Ten Reasons to Consider Malaysia as Your Second Home
Malaysia has an active and government back policy of positive immigration and as a result it is a nation attracting serious interest from international citizens seeking a superior, low tax, high quality lifestyle destination in which to live, work or retire.
Here are the top ten reasons why, if you haven’t already, you might like to consider Malaysia as your second home country – it’s the right place for anyone seeking a first world, sophisticated nation in which they can own freehold and affordable real estate pay little or no taxation legitimately and achieve a fantastic quality of life for all the family
1. Malaysia My Second Home Program (MM2H)
The ‘Malaysia My Second Home Program’ or MM2H as it is locally known, is the government backed positive immigration policy that allows those who qualify the right to live in Malaysia on a renewable, multiple entry ten year visa, to bring immediate family members to live with them under the terms of the scheme, to own freehold property in Malaysia, to import worldly goods and even a brand new car tax free, and to enjoy all the multiple benefits that Malaysia offers to its citizens both local and international. And that’s not all…
2. Tax Free
Those who satisfy the medical and financial requirements for residency in Malaysia under the MM2H scheme legally and legitimately avoid having to pay any form of income tax whatsoever in Malaysia on their internationally sourced income!
3. Education
In Malaysia there are 21 private universities, 17 public universities, 5 foreign universities, 500 private tertiary colleges, 32 international schools and that’s before one gets into listing the Malaysian government funded educational establishments available!
Quite simply, education is highly prized and valued in Malaysia and as a direct result the quality of education available across the board is exceptionally high. There are over 40,000 foreign students currently studying in the nation as a result, and those who relocate there under the MM2H program can of course take their children with them and privately educate them from primary age right through university and beyond.
4. Health Care
The standard and availability of medical services in Malaysia – especially in the main cities such as Kuala Lumpur – is exceptionally high. There are over 225 private hospitals as well as numerous private specialist clinics such as maternity clinics and respite care homes as well as some 121 government backed hospitals in Malaysia and almost all have the very latest in terms of equipment and facilities available for treating every kind of illness.
5. Infrastructure
The general infrastructure in the main cities, employment and residential hubs in Malaysia is first class and first world. New and upgraded motorways, road and rail networks, communications resources and general public amenities mean that living in the likes of Kuala Lumpur or Penang in Malaysia is like living in any other first world city in terms of the modernity of all available resources and essential infrastructure.
6. Exchange Rate
As Malaysia has an export driven economy it pays the government to keep its currency highly competitive which means that an international citizen’s dollars, pounds, euros or yen will go far further and buy far more in Malaysia.
7. Cost of Living
Add to this the fact that the cost of living in relative terms is so low in Malaysia, that petrol is heavily subsidised for example, eating out is simply cheap and that one can rent a city centre apartment for the same price as one a third of the size and less well located in the majority of European and North American cities and an average wage will make one feel very wealthy in Malaysia whereas an above average wage will allow anyone to have the lifestyle of a king!
8. Property
Apartments, town houses, beachside villas and sprawling houses in city suburbs are all available for sale to foreign buyers. There are very few restrictions placed on foreign buyers in Malaysia in fact and because property prices are so low in comparison to Europe and America, one can buy so much more in Malaysia for the same price as a small family home elsewhere in the civilised world.
9. Natural Beauty
What’s more, as Malaysia is such a beautiful and diverse nation it has an incredibly strong tourism market meaning that well located properties can act as excellent investments with many buyers purchasing to let to the tourism market which is attracted by the stunning natural beauty of Malaysia.
Those who qualify for MM2H are allowed to buy up to two homes meaning that one can be bought for occupancy and one for holidays or investment elsewhere in Malaysia.
The natural beauty of the country alone also means that even if you don’t think Malaysia is perfect for your second home country, it makes it a nation well worth taking an extended break in.
10. Friendly People
And finally while many nations purport to having some of the most welcoming citizens in the world who open their arms and hearts to foreign visitors and citizens, Malaysia truly is a nation of the most friendly, welcoming, open and honest people you will ever meet who will make genuine friendships and establish long lasting bonds with the astute international citizens who decide to call Malaysia their second home.
What Makes a Good Real Estate Deal?
So often, beginning real estate investors focus on techniques that they lose sight of the important issue: Is this a good deal? Learning to recognize a good deal takes research, education and, above all, experience. Here’s a good formula to determine whether a potential real estate purchase is a deal. It’s a simple acronym called C.L.E.A.R.
Cash flow
“Will this property cash flow?” Well, that depends on a lot of factors, such as the strength of the local rental market, the interest rate on the financing, and how much of a down payment you make. It also depends on whether it is a single-family or multi-family dwelling. All of these factors considered, ask yourself, “Will this property provide income?”
Then ask the question, “How will this property cash flow compared to other potential properties?” For example, a $150,000 house that rents for $1,000/month has a better income potential than a $300,000 house that rents for $1,600/month. A four-unit building that costs $400,000 may bring in $3,000/month in the same neighborhood.
Now, of course, whether the property will provide income to you begs the question of whether income is important to you. Is it? Do you earn other income? Do you need more income now, or is future equity growth more important? There’s no right answer to these questions, but are all factors to consider when looking at a potential purchase.
Leverage
Leverage is important for investors because the less cash you put down on each property, the more properties you can buy. If the properties go up in value, your rate of return goes up exponentially. However, if the properties go down in value and you have a lot of debt on the property, this can result in negative cash flow (see above).
Since real estate is generally cyclical, negative cash flow is only a short-term problem and can be handled if you have other income or a cash reserve to handle the negative. “Nothing down” investing is very attractive for the high-leverage investor, but should be approached with caution.
If you are a long-term player, leverage will generally work in your favor if the markets in which you invest appreciate in the long run and your income from the properties can pay for most of the monthly debt service.
Equity
Does the property you are purchasing have equity? Equity can take a number of forms, such as:
-
A discounted price
-
A potential fixer upper
-
A rezoning opportunity
-
A poorly managed property
-
A foreclosure
There are many ways to create equity, but buying into equity is your best bet. Find a motivated seller who wants out of his property and is willing to give up his equity for less than full value. Or, buy a property that needs work that can be done for 50 cents on the dollar or less.
In other words, if the property needs $10,000 in work, make sure you get a $20,000 discount on the price or better.
Appreciation
Buying in the right neighborhoods in the right stage of a real estate cycle will result in appreciation and profit. However, timing a real estate cycle is difficult and is speculative. If you buy properties without equity or cash flow solely for short-term appreciation, you are engaging in a very risky investment.
Buying for moderate, long-term (10 to 20 years) appreciation is safer and easier. Look at long-term neighborhood and city-wide trends to pick areas that will hold their values and grow at an average 5% to 7% pace. Combine this tactic with reasonable cash flow and buying into equity, and you will be a smart investor.
Risk
Risk is a consideration that too few investors consider. Now ask yourself, “What if my assumptions are wrong?” In other words, do you have a “plan B”? If you bought for appreciation and the property did not appreciate in value, can you rent for positive cash flow?
If you buy with an adjustable rate loan and the rates go up, will this put you out of business? If you have a few vacancies, can you handle the negative cash flow or will it break the bank for you? Expect the best, but prepare for the worst. And remember, whenever you look at a property to purchase, think CLEAR: Cash flow, leverage, equity, appreciation, and risk.
Are You First Time Home Buyer?
Basic Knowledge for First Time Home Buyer
TITLES
There are two categories of titles
Freehold – which gives the owner perpetual ownership;
Leasehold – which allows the owner to stay in possession only for a specified period. When the specified period ends, ownership reverts back to the authority which issued the title.
Generally, a house is issued a title for the piece of land on which the house is erected; and an apartment is issued a strata title for the specific area on the specific floor of the building in which the apartment or condominium is located. A search can be done at the relevant land offices or registries to determine whether the title is encumbered. If the title has not been issued, a search can be done on the master title on which the whole or part of the housing project is erected.
DOCUMENTATION AND PROCEDURES
All purchases direct from housing developers must use the Schedule G (for purchases of houses) or the Schedule H (for purchases of apartment respectively of the Housing Developers (Control and Licensing) Act 1996 as the sale and purchase agreements. Payment of the purchase price the said Schedules G and H is by progressive payment based on completion of work as certified by the architects. Payment of the last 5% of the purchase price will be held by a firm of solicitors as stakeholders for the defect liability period, which is currently 18 months from the delivery of vacant possession.
There are no fixed rules on the form of agreement for purchases from existing house owners (more commonly called sub-sale). However, it is common practice that upon signing of the sale and purchase agreement 10% of the purchase price be paid to the seller, and the purchaser be given 3 months to pay the balance of purchase price with an extension of 1 month if he fails to do so within the first 3 months’ period. Interest at the rate of 10% per annum calculated on a daily basis is normally charged for the extension period. Payment of the balance of purchase price is usually made to the solicitors acting for the seller as stakeholders to ensure redemption of the house (if the same is still charged or assigned to a bank or financial institution at the time of sale) and payment of real property gains tax by the seller.
Other than the sale and purchase agreement, a memorandum of transfer, which is Form 14A of the National Land Code 1965, must be completed to transfer the title from the seller to the purchase. In instances where the title has not been issued, then if the purchase is from a developer, the developer will undertake in the sale and purchase agreement to transfer the title when the same is issued; and if the purchase is through a sub-sale, the transfer will be through an assignment of the sale and purchase agreement between the developer and the seller (Principal SPA) to enable the buyer to take benefit of the developer’s undertaking to transfer the title contained in Principal SPA.
STAMP DUTY
Stamp duty is levied on the document of transfer (i.e. the memorandum of transfer if the title has been issued, or the deed of assignment of Principal SPA if the title has not been issued) based on the purchase price as follows:
a. 1% on the first RM100,000.00
b. 2% on the next RM400,000.00
c. 3% on the next RM1,500,000.00 and
d. 4% on the remainder
(item 32 [a] of the Stamp Act 1949)
LEGAL FEES
The first Schedule of the Solicitors Remuneration Order 1991 sets out the fees to be collected by lawyers for work done in handling the sale or purchase of house based on the purchase price as follows:
1% on the first RM150,000.00
0.7% on the next RM850,000
0.6% on the next RM2,000,000
0.5% on the next RM2,000,000
0.4% on the next RM2,000,000
OTHER FEES
Stamping fee( per document) RM10
Adjudication fee RM10
Search fee RM60
Registration fee RM100
For each sale and purchase of a house, the solicitors concerned can only collect fees based on the above scale from either the seller or the purchaser and not from both of them.
FINANCING
Mortgages : Loans of 90% of the purchase price are usually available. Current Base Lending Rate 6.75% per annum; loans are available up to a period of 30 years
Retire in Malaysia? Malaysia My Second Home Program
Malaysia My secondly Home Program represents advertised of the Government from Malaysia to allow people or foreigners of entirely across the worldwide who meet definite criteria, to stay in Malaysia as far since conceivable with a sociable visit authorize on an aggregate debut visa. The sociable Visit authorize is initially for a period frequently (10) years (dependent on the validness from the applicants pass) and is renewable.
Malaysia My secondly place Program are hospitable whole citizens of countries accepted of Malaysia regardless of race, religion, sex or age. Applicants is allowed to bring in on their partner and kids (under 18 years old who not married).
These program is originated coordinated and established by the Malaysian Government. It’s, accordingly, a program, that the Government wish continuously work out to assure to them success.
We have piled up some valuable fact concerning Malaysia My Second Home Program for our network Visitors. Why choosing Malaysia as second home?
1) Governmental support
This program is initiated organized and launched by the Malaysian Government. It is therefore, a program, which the Government will continuously work to ensure its success.
2) Standard of living
Malaysia has one of the highest standards of living in the region with all the modern infrastructure and facilities in place.
3) Cost of living
Cost of living is one of the lowest in Asia and will remain so for a very long time. This is achieved through the Government efficient monitoring of the economy in ensuring that inflation is kept low at all times and thereby also the prices of goods and services.
4) Weather
Borneo and therefore Sarawak is a tropical state with an equatorial climate. It is hot and humid throughout the year with average daily temperatures ranging from 23°C during the early hours of the morning to 32°C during the day. There are two monsoon seasons. Despite the monsoon seasons, the climate in Sarawak remains fairly stable throughout the year.
5) Infrastructure
In spite of Sarawak vast expanse, its major towns and cities are well connected by transportation routes. Sarawak has a modern and fully equipped port and airport facilities for international and domestic linking, as well as a road network system connecting all the major towns within Sarawak as well as Sabah and neighboring countries, Brunei and Indonesia. The ‘Trans-Borneo Highway’ connects ‘Kuching’ to all major cities in Sarawak, and carries on through to the neighboring state of Sabah through Brunei. Most major towns and cities offer a variety of public transportation including buses, taxis and limousine services. Bus services are also available for those wishing to travel within the state from town to town, or even internationally to Indonesia (Pontianak) and Brunei. River transportation system is an important means of transportation for passengers and goods to large proportions of the population of the state. Express boat services utilize the many waterways inland to get to more rural areas inaccessible by road.
6) Political stability
The ruling Government is the longest serving freely elected Government in the world. It is a Government representing all the races, religions, cultures, etc. found in Malaysia. Sarawak is a state in the confederation of the states in Malaysia. A Chief Minister governs Sarawak state. In fact, Malaysia is one of the most politically stable countries in the world.
For more information;
Robert Kiyosaki Guide to Invest In Properties With 6 Steps
Kiyosaki & Dolf De Roos Revealed The 6-Steps How to invest in Properties and Real Estates
- Decide To Be Investor
- Find An Area
- Identify Properties
- Analyze, Offer and Negotiate
- Put together the deal
- Property Management
Become a Successful Kuala Lumpur Real Estate Investor
In Kuala Lumpur real estate, there are plenty of opportunities for everyone to accumulate wealth and become financially free. Poor financial planning coupled with wrong investments have made many people poor wealth accumulators.
Most people acquire their financial knowledge once they start working or though rial and error. This traditional of learning would cost them thousand of ringgit and it would set them back a few years financially. When it comes to putting money to work, it requires a different mindset and new set of skill that is best learned from the experts.
For example, many people have made wrong property investment that have cost them thousand of ringgit and a few of their life is required indo the damage. It is easy to get into properties but very difficult and costly to get out.
“You must get it right, not only the first time, but every time in property purchases-whether you are buying as investment or your own home.”
Kuala Lumpur real estate is one of the few cities where the majority can easily invest in one property every three to five years. Whereas, in countries like Singapore or Hong Kong, it is considered a major achievement to buy a second property for investment purposes.
Kuala Lumpur real estate has a huge advantage as the prices of properties are amongst the lowest in the world.
One can esily buy a medium-cost apartment that gives rental return of 7 to 9% per annum for as low as RM70,000. All you need to do is come up with a low payment of only 10%.
Properties also provide an excellent long-term investment vehicle to fund your children’s education and retirement needs while providing a steady and predictable passive rental income that will help you to gain financial independence and ultimately, financial freedom.
In Kuala-Lumpur-Real-Estate.com, I will share my expertise and experience to benefit all my readers and clients. So, stay tune for more article and strategy coming on how you can become a successful real estate investor.
Park View Service Apartments – A Mere 5 Minute Walk to KLCC
Park View Service Apartments, a 40 storey service apartments, the first of its kind to be a built in the Golden Triangle area was launched three years ago. The apartments are small studio units of 400 to 600 square feet, and with this, Mayland hit another pioneering first when it pushed the 400 square feet studio to the Malaysian public.