Is Philippines Property Investment the Best in the World Today?

So where in the world is the best place to invest in a holiday and or investment property today? Some people say that it is the magnificent Philippines islands.

Being an archipelago, the Philippine islands have a lot to offer in terms of natural resources. Its 7,100 islands boast numerous white and black sand beaches, making it eminently attractive to vacationers and tourists. The fantastic marine biodiversity affords abundant species of flora and fauna and a range of tropical wildlife.

The Philippines is widely recognised as "the Pearl of the Orient Seas" and is situated 750 miles off main land Asia where many of the main islands have beautiful weather, pristine beaches and frills of modern living.

The Philippines is not only the "Pearl of the Orient Seas" in terms of a popular global tourism destination but this archipelago has also emerged as a serious holiday home and investment location within Asia attracting many investors from America , Asia, Europe and the Middle East who are investing in Philippines property and property values have been steadily increasing year on year.

"The Philippine real estate market has experienced a nominal year-on-year growth of 10 per cent for the last five years, despite recent events affecting the global property market" said. Tuano, who is also the chairman of the Philippine Business Council, Abu Dhabi, spoke to Khaleej Times ahead of next weekend's Philippine Property Show, which is being held for the first time in Abu Dhabi.

Philippine Real Estate Market Buoyant Despite Global Crisis
Olivia Olarte 25 September 2009

One of the fasting moving emerging destinations in the Philippines is Palawan which has the "best beaches overall in Asia" according to Conde Nast Traveller and National Geographic

Banyan Tree the well known a high end luxury resort company have committed over $70m on two islands in Palawan, meaning the region will gain further exposure and interest from visitors and property investors alike.

One very notable new beyond eco resort development in Palawan is Cacao Pearl.
A fantastic private island resort which will be home to a selection of custom designed and totally unique villas, beachfront or hidden within the rainforest, all the residence will provide an opportunity of Private Island living without the large cost.

Award Winning
Cacao Resorts has been recognised at the CNBC International Property Awards with an award for Best Residential Development in Country for the Cacao Pearl, private island adventure in Palawan.

The private Island lifestyle offers something totally unique that's impossible to replicate and unaffordable to most. A completely unique experience, nothing quite compares with the feeling of being somewhere tropical with just a select number of fortunate people, all enjoying an exclusive lifetime experience.

It is this forward thinking and way of life of the tropical island experiences that is attracting a growing number of people and property investors to the Philippines and in our opinion, if you are looking for a tropical climate, adventure and luxury as well as excellent financial returns in terms of rental income and capital growth then yes, the Philippines is the best place to buy property on the planet today.

Article Source: http://EzineArticles.com/?expert=Luke_J_Fitzsimmons

Tips for Foreigners Buying Properties in Malaysia

Tips on Investing Properties In Malaysia

If you are foreigner and plan to invest in a property in Malaysia, here are some tips that you will find useful.

Financing your property

As a foreigner, you are allowed to borrow up to 70%. In most case, the banks are more than willing to finance your purchase of 50% of your property price.

Restriction in Disposing of your property

You are not allowed to sell your property less than 3 years from the date of your purchase.

Number of units you can own in Malaysia

As a foreigner, you are only allowed to own not more than 2 properties. Should you intend to purchase a third property, you will have to appeal to the Foreign Investment Committee and provide a valid reason for the third purchase. There is no guarantee that your appeal will be granted.

Remitting money into Malaysia

If you intend to purchase or have purchased a property in Malaysia, you are allowed to open a bank account to remit your funds from your domicile country for purpose of paying for the property.

Taxation of your property

Should you intend to dispose your property within the 5 years after the date of your acquisition, you will be taxed 30% of the gains only. If you dispose your property after the 6th year of your purchase, you will be taxed on 5%of your gains.

Minimum purchase price allowed to purchase

As a foreigner, you are allowed to purchase a property costing more than Ringgit 150,000. In some states such as Johor, Melaka and Penang, the purchase price of the property must be more than Ringgit 250,000.

Types of properties you are allowed to purchase

You are allowed to purchase residential apartments, condominiums, service apartments and landed properties such as terrace, semi-detached and bungalows.

Fees involved in purchasing a property

You are required to pay legal fees and disbursements for the preparation of the sale and purchase agreement whichis a percentage of the value of the property. Should you plan to take up financing from a bank, you will have to pay legal fees and disbursements for the preparation of the loan documents.

Article Source: http://EzineArticles.com/?expert=Juanita_Chin

5 Powerful And Fundamental Tips To Kick Start Your Property Investment

If you're thinking on how to start making passive income through property investment, read this 5 powerful which you can surely use to kick start your love journey with property investment today:

1. A Positive and Right Mindset

Having a positive and right mindset are key ingredients towards any venture, don't you think so?

It's the same whether you're trying to make money from any business, or in this case - real estate.

Without a positive and right mindset, it might just hinder or slow down your journey of becoming a successful property investor.

You have to believe in yourself, and that you can do it.

And how far you want to make it, read on...

2. Set a Goal

Every successful entrepreneur sets goals for themselves. It is your blue print to success.

Without a goal, you will not have a direction, let alone the motivation to take action.

You goal for making money from property investment can be how much you would like to make in rental income, capital gains and the time frame that it will take for you to get there. Write it down.

Sounds simple?

In reality, this may be very overwhelming!

Of course, if you have not made a single cent from your property investment, and your goal is to make a million dollar in the next 6 months...well, it can be very scary isn't it?

Well, not that I say it is impossible. It is more of the question of whether you can attain it or not, and whether it is practical or not. So, set yourself a practical and attainable goal.

Next, you need to have the sword and armor to achieve your goal...

3. Educate Yourself

With a goal, and without the tools or means to achieve them... it's like building a castle in the sky. (No pun intended!)

So, if you are not sure where and how to start to start, you better get yourself equipped and educated.

You can learn the skills by attending seminars by property gurus; or you can educate yourself on the nuts and bolts of property investment by reading books or materials written or prepared by successful property investors and gurus. Of course, you can also gain knowledge from audios, videos, courses etc.

The main purpose is to equip yourself with the right information and avoid making costly mistakes before buying your first property.

After all, there's no such thing as the perfect property...

4. The Perfect Property

You see, if we go for perfection in whatever we do, we'll never get started, in anything at all.

So, if you want to get a property which meets your criteria 100%, the perfect score, you can continue to dream on.

It's a fact, there's no perfection. As long as 70% to 80% of your criteria are met, you can consider investing in it.

Whatever score or criteria, please remember to do Your HOMEWORK!

It is very important to get enough information before making your purchase. Avoid buying property on hearsay or on impulse or you might just regret your purchase. Make sure you know all the incidental cost of owning the property before making your investment.

Check to see if there are any potential risks in the surrounding areas that may bring down the value of the property.

See the brochures and advertisements with a critical and objective mind. Verify all the information that is given by the sales staff. Request to see the actual unit.

Do your due diligence before buying. You'll save a lot of heartaches... and of course, you money!

5. The Future Value of Your Property

Are there any upcoming developments that will affect the future value of the property you are investing?

You would want to avoid the too-late syndrom: finding out 'too late' that they are going to build another high-rise building next to yours, or that a sewage plant is planned beside your property, or anything else for that matter which will affect the value of your property.

When in doubt, ask around, especially the existing residents. They'll surely tell you a news or two.

Lastly, I have a confession to make...

If you're thinking you can actually start to invest in properties with the view of making passive income with this 5 tips... I'm sorry.

This is to give you a sufficient foundation to start with. Not to actually show you how to do it step-by-step.

Remember, you still need to get yourself educated. It may be difficult at first, but I'm sure you'll love the journey.

So, start falling in love with making money from property investment today!

Article Source: http://EzineArticles.com/?expert=C_Guan_Soo

How To Finance An Apartment Purchase In Malaysia

If there was a contest to determine the most popular business in Malaysia, mortgage lending could certainly compete. Just about any institution with cash i.e. banks, or access to someone else's cash i.e. insurance companies, wants to be in the residential lending game. It is a fact one can easily confirm with a quick glance at the local newspapers. You will see pages after pages of mortgage lending offers.

There are many lenders in the market, and the first time apartment buyer should talk to as many people as possible. The reason for this is to find the best mortgage lending offers available. In additional to the newspaper, good mortgage lending offers can also be found in the yellow pages, real estate directory and by asking real estate lawyers, real estate brokers and agents, and people who have bought apartments recently.

For many years the best known mortgage lenders were Malaysian local banks such as Maybank, Public Bank and Hong Leong Bank. In the recent years, the insurance companies have jumped on the mortgage lending business bandwagon. Even tough the insurance companies are not primarily in the mortgage business, they have managed to packaged mortgage plan bundled with their insurance product. In some cases, first time apartment buyers can obtain access to insurance funds only through mortgage bankers and mortgage brokers.

Mortgage bankers are individual and organizations who loan their own funds and the funds of others to real estate purchasers. Once a mortgage is made, the mortgage banker typically sells the loan to an investor. A mortgage broker, unlike a mortgage banker, does not have capital to lend but instead loans money that belongs to others. He makes his money on fees, charges and points. In addition, a mortgage broker may also service loans.

Just like in any country, to finance an apartment purchase in Malaysia can be a daunting task. A typical mortgage payment term for the average Malaysian is from 15 to 30 years. The best thing for a new apartment purchaser to do is to get advice from the right people before signing on the dotted line of a mortgage agreement.

Article Source: http://EzineArticles.com/?expert=Will_Yap

How To Find The Right Property Location In Malaysia

In the strategic property locations such as Kuala Lumpur and Petaling Jaya, you'll be surprise that even traffic congestion there has not lessened the values of these areas. Their attraction sometimes has to do with tradition. Generally, people are naturally drawn to certain areas and are not drawn to others. This has been the town planners nightmare. They draw plans proposing certain areas for development and those areas fail because they are not attractive enough to people.

If a property location is so important, that should be our primary concern when we are doing our investment research. To find the right property location in Malaysia, firstly the location should be good. One that is popular and has a lot of amenities. However, the location may be a new one and untested in the market. So what should you do in this case? In such a case, you have to look at the surroundings. Avoid if you can places such as ex-mining land, ex-dump sites and hill slopes.

Those are places with hidden problems for if the developer does not take precautions and do a good job on the foundations. You could have problems with sinking floors, cracked walls, unstable roofs and landslides. Retaining walls have been known to crumble and roads to collapse. You could also be subjected to unwanted smells and diseases in the case of ex-dump sites. Other undesirable locations are the surroundings occupied by squatters, graveyards and sludge ponds. Of course, there are those who will not like house located at T-junctions, near busy roads or other nuisances such are petrol stations, restaurant and next to a school.

Finding the right property location in Malaysia will depend largely on what the public prefer. The "ideal" location should be one which is attractive to most people acting as a natural magnet drawing people naturally to the area.

Article Source: http://EzineArticles.com/?expert=Will_Yap

Financing For Investment Property

Understanding different types of loans, and knowing when to use them is essential for investing in real-estate. Different loans are used for different reasons. Specific loans may be used for holding property long term, and specific loans are used for short term holds. Each type of loan has a specific purpose when investing in real-estate. Learning each loans purpose is essential to ensure the right loan is being applied to the correct investing strategy. Investors can get crossed up very easily, costing them a lot of time and money. Knowing when to use a specific type of loan can be the difference between making a lot of money and losing a property to foreclosure. Below is a list of the most popular loans used by investors.

• Fixed Rate Mortgage - This loan is probably the most common loan used by average real-estate investors. It is also one of the safest to use. The interest rates are locked for the entire life of the loan. This loan usually comes in terms of 15 years, 20 years, 30 years, or 40 years. The longer the term, the lower your payments will be. Obtaining the lowest payments may sound good, but a longer term equals much more interest paid to the bank. Choose a term that will allow the most cash-flow out of your investment property. This is the perfect loan for a property that does not need rehab and is to be held as a long-term investment.

• Adjustable Rate Mortgage- This is the same type of loan that has recently been the cause for many foreclosures over the last couple years. People have been steered away from these loans. This is not a bad loan if investors understand how to use it correctly. These loans usually come in 10/1, 7/1, 5/1, and 3/1. The number before the one indicates the length of the first term. After the first term the payment will increase to a higher fixed interest rate. The first term payments may be cheaper than a conventional loan, but after it adjust the payments will significantly go up. This loan is best used for property intended to be sold before the end of the first term. The advantage is that the investor will have a low mortgage payment for the first term.

• Interest Only Loan- This loan can be used for property with a lot of equity already built into it. If investment property has a lot of equity in it, then paying down the principle and creating more equity may not be important. Accomplishing positive monthly cash-flow may be more important. For example, let's say an investment property was brought, and the seller left $50,000 in equity for the buyer. The buyer decides to rent the property and then sell it in 5 years. The investor can make cheaper payment to the bank because he is only paying interest on the property and no principle. Therefore, the investor can make more money renting the property because he is paying less in mortgage payments. The investor has $50,000 in equity, 5 years of appreciation, and 5 years of profitable rental income. In this case an investor may want lower mortgage payments, instead of paying principle and interest on property that already has equity-- and will be held for only 5 years.

• Seller Financing- This is good way to buy a property from someone who may own a property free and clear. A lot of times you can negotiate these deals with no money down and no credit check. People who own property that may need repair are more likely to agree to seller financing. Many people avoid buying property that need extensive repair. These properties are hard to sell, so the owner is probably open for different ideas of getting rid of the property. The goal is to get 0% interest and no payments. This may seem unlikely, but surprisingly some seller financed deals are structured this way. If the seller does not agree, then negotiate the cheapest rate and term possible.

• Hard Money Loan- This loan is normally used for property that is going to need repair. This type of loan allows investors to finance the money needed to buy and fix investment property. Be very careful. Be sure you are able to get out of this loan quickly. These loans are short term, and a balloon payment is due 6-12 months after the loan originates. Buy and fix the property, then refinance before the loan is due. Although, lately investors have been getting caught with their pants down. The banks have been making it harder, and harder to refinance out of these types of loans. In some cases, investors cannot refinance due to seasoning issues, and the loan becomes due before they can secure permanent financing. Before using this loan get pre-qualified for long-term financing, and be sure the investment property adheres to all guidelines and financial conditions for the new loan. In some instances, investors can walk away with money in their pocket if everything goes accordingly.

There are many other loan products on the market . Each loan is designed for a specific purpose and a specific person. Each loan has its own risk, some more than others. The important thing is to learn and understand the loan. Plan your strategy and choose the loan that makes the most sense for the strategy in place. Make it work for you and not against you.

Article Source: http://EzineArticles.com/?expert=Khalid_Johnson

How to Get Rich in Property Investment

Investing in properties is a sure but slow way of getting rich. Many people have become rich through property investment by steadily working at it. You don't need to have a lot of money to start investing in properties. Because of the power of leverage, you can buy properties using other people's money. The basic idea of property investing is that the lesser your money you can put into buying a property, the greater your chances of making a higher return on your investment. To better understand the power of leveraging, let's compare investing in properties with investing in equities.

Power Of Leveraging:- Properties vs Equities
By investing $100,000 in equities, you get to control $100,000 worth of equities. A 10% increase in the price of your equity would generate a 10% profit in your investment (i.e. $10,000) while a 100% increase in the price of your equity would generate a 100% increase in your investment (i.e. $100,000). In contrast, by investing in a $100,000 property, you do not need to come up with $100,000 as you can apply for a loan from the bank to finance a major part of your purchase. It is common for banks nowadays to offer up to 90% margin of financing to assist you in your property purchase. Therefore, by investing only $10,000 of your money, you get to buy a $100,000 worth of property in which 90% of the property price is financed by the bank. A 10% increase in the price of the property (i.e. $10,000) would already generate a 100% increase in your investment as the money you put in is only $10,000. Wouldn't it be easier for a property to increase by only 10% compared to the price of an equity to double before you make a 100% return on your investment? That's the power of leveraging at work.

Capital Appreciation vs Rental Returns
To be successful in property investment, you will either need to make a huge capital appreciation from the disposal of your properties or generating good rental returns from your tenants. If you prefer to buy and sell properties only, then you will need to have the holding power or ample reserves to be able to meet your monthly bank installments (for properties that are financed via bank borrowings) before you eventually dispose off the properties at a profit unless you paid for them in full by cash. The other common option for most of the property investors starting out would be to rent out their properties to good paying tenants who are helping them to meet their monthly bank installments. Make sure that the monthly rental you receive from the tenant is more than the monthly bank installments to enjoy a positive monthly cash flow.

Once you have successfully rented out your property, rinse and repeat the process to build up your property portfolio and start enjoying this passive rental income so that you can let your properties appreciate over time to make a good profit later should you decide to dispose them off. Therefore, it is imperative for you to be a good and successful landlord in order to be a successful property investor. Always keep in mind that your tenant's rent is paying for your mortgage and other expenses and this will eventually make you rich in the long run.


Written by: Juanita Chin
Article Source: http://EzineArticles.com/?expert=Juanita_Chin

Tips For Investment Rental Property

The drop in real estate prices have made this time one of the best times to buy investment rental property. But if you don't know what you are doing, rental property can turn into your biggest nightmare. Here are some tips for investment rental property that can help you get started and keep you on track.

1. Get past the fear - lots of people fail to pull the trigger on investment rental property.
2. Get some knowledge - this goes a long way towards getting past the fear
3. Learn what type of property is the best one for you
4. Its all about location - don't buy property in a war zone - who will rent your property?
5. Start with something simple like buying single family houses
6. Learn how to finance investment property - there are dozens of creative real estate investing ideas to chose from
7. Save money for a downpayment - no money down real estate usually has negative cash flow
8. Clean up your credit record - a good credit score can lower your monthly payments significantly
9. Buy houses in the "starter homes" price range
10. Only buy houses from motivated sellers - you earn your money when you buy
11. Hire someone to do a home inspection until you have experience to do your own
12. Use a "subject to" clause in any contract you submit to a seller
13. Don't over improve a rental house
14. Use a lease-purchase strategy to get the best tenants and best rental income - if you make the tenants 'potential owners" you can even get them to do some maintenance
15. Always do a background check on potential tenants
16. Follow your lease to the letter. If you give tenants an inch they will take a mile
17. Keep accurate records of your income and expenses

These are just a few tips for investing in rental property. Like any profession, knowledge is power. Take time to study what successful real estate investors do. Join a real estate investment club and associate with people that are buying investment rental property.

Article Source: http://EzineArticles.com/?expert=Paul_Beauchemin

5 Unique Ways to Find Funding For Real Estate

Despite the current slump in the housing market, it can be an attractive time to acquire funding for a real estate property. I made my move into the real estate business at a time where it was not a sure thing, but I have comprised key skills that continue to allow me to not only survive the slump, but profit from it. I had a mere $800 to my name when I decided I too wanted to make real estate work for me. Over time my success keys have been shared with others, and I will share them with you.

There are great ways to obtain the capital necessary to launch a future in the real estate market. We will look at five, though there are many.

Grants:

The government dishes out millions of dollars each year in grants to those seeking funding for real estate ventures. This is mainly because one of the government's main duties is to provide housing for U.S residents. Not only are the grants there to help the brokers, but also acts as an outsourced entity for the government. There are not only federal grants for which you can apply, but also state level grants as well.

Private Investors:

If you can be provided with an opportunity to sit down with someone who is willing to entertain putting forth a little investment capital for a possible venture, wear your best suit and tie. Have a professional proposal detailing your outlying costs and show the bottom line of your profit margin. A Private investor will be more concerned with your bottom line than perhaps, a bank would. Chances are your investor will be looking for a faster return on their money than a financial institution will.

The seller (can you believe this?):

Yes, you can possibly obtain the money needed for a property from the seller. It may benefit the seller more to finance your purchase than to maybe face foreclosure. In some instances the seller is willing to add additional monies to the price of the property to account for the down payment and closing costs. This additional money may need to be covered in a certain time period such as a deferred down payment. It will increase your interest to carry that extension on your balance; however it will buy you some time to earn more capital.

Liquefying any assets:

If you feel strongly about entering in to the market and have tried other avenues to obtain capital; you may think about liquefying any available assets. You can cash in any stocks, bonds or other savings. Also you may contemplate turning over your 401K in hopes that you can replenish your retirement fund with a much more lucrative investment in larger sums. Especially if you can invest then into a CD account which yields higher interest.

Loans:

If all else fails, It is still possible to obtain an investment loan from a bank or credit union. You may be required to possess a higher credit score and/or have substantial collateral to convince the bank to fund your venture. In this instance you may or may not receive the full amount necessary, and will also need to consider the interest rate that will be assessed above the loan. This will be essential when completing a bank proposal.

Article Source: http://EzineArticles.com/?expert=Dave_Lindahl

RM7b for LRT extension

Syarikat Prasarana Negara Bhd, the state-owned public transport operator, plans to spend up to RM7 billion to extend light rail transit (LRT) lines in Kuala Lumpur.

It already has RM4 billion in hand and will call for bids from construction companies next month.

Group managing director Datuk Idrose Mohamed said work on the extensions of the Kelana Jaya and Ampang lines, which cover a total of 34.7km, is due to start early next year, after all approvals from the authorities have been obtained.

The LRT extension is among a few major deals eagerly awaited by the construction industry, which has not seen large contracts of late.

Construction is expected to be completed by the end of 2012.

Of the RM4 billion it has, half is internal funds. The balance was raised from an Islamic bond sale recently.

“The other RM2 billion (from the bond sale programme) is expected to be raised somewhere in 2010,” Idrose told reporters at a briefing in Kuala Lumpur yesterday.

Prasarana was set up as part of efforts to revamp the public transport system in Kuala Lumpur and its surrounding areas.

Feasibility studies for the LRT extension started in 2006. However, it is unclear why the project took so long to take off.

“Of the various alignment options we received during the feasibility studies conducted in 2006 and 2007, we view the proposals submitted to the government last March as the most cost-effective,” Idrose said.

Approval for the extension was obtained from the government last month

Idrose said there will be minimal land acquisition for the project as the lines will go mainly through Tenaga Nasional Bhd’s cable area, road and river reserves.

At least 10 alignment options were received for each LRT line, he added.

Idrose said the preferred alignments for the Kelana Jaya line extension will begin from the Kelana Jaya station, passing through 13 new stations, including Subang Jaya commuter station and USJ, before ending at Putra Heights, covering a total of 17km.

As for the Ampang line, the proposed extension will begin from the Sri Petaling station, passing through Kinrara and Puchong before ending at Putra Heights, covering 17.7km with 13 new stations.

A display of the extension can be viewed at the Subang Jaya Municipal Council, Petaling Jaya City Council, Shah Alam Municipal Council and Department of Railways.

The public will be given three months to voice their opinions before the plans are finalised.

By Business Times (by Azlan Abu Bakar)

Rosy outlook for property sector

Exhibitors at The Star Property Fair 2009 at G Hotel and Gurney Plaza in Penang were pleased with the huge crowd turnout during the three-day event which they declared a resounding success.

Belleview Group managing director Datuk Sonny Ho said the overwhelming response at his companys booths was totally unexpected.

We had, since the fair first started back in 2003, suggested that it should be held at a good shopping mall so as to attract the weekend crowd. But even then, I had not anticipated such a response, he said.

Ho said the company opened up 50% of its new Bukit Dumbar Residences freehold landed property for sale and would have been happy to sell half and follow up on the rest.

On the first day itself, we already achieved our expectations in terms of committed sales, and by today, we have achieved our quota, he said on the last day of the fair yesterday, adding that they also received good response for Phase 2 of their Palmyra Residences.

SP Setia Bhd property division (north) sales and marketing assistant manager Joanne Koay said the company generated good sales and did not mind the venue of the fair as long as the crowd kept turning up.

EUPE Corporation Bhd marketing assistant manager Chris Tan said the crowd at this new venue was slower but of higher quality than at the previous venue at the Penang International Sports Arena (PISA) in past years.

This turned out well as it provides us a chance to spare more time for potential buyers, he said.

Blossom Time Sdn Bhd assistant marketing manager Norita Ibarahim said they received more enquiries than expected.

The response for our The Residences @ Ferringhi Park was good, and some visitors even made the trip to the showhouse in Batu Ferringhi on the spot, she said, adding that they also received many enquiries about their beachfront condominium project which was open for registration.

Over at the lifestyle section, Kitchentech general manager Wilson Yeoh said there was a good flow of people and it was a good chance for them to showcase their products and enhance their value.

Cucina Kitchen & Wardrobe managing director T.H. Tan said the fair was always a good way to advertise and promote their products.

The crowd is good but the atmosphere is more relaxed, giving us the opportunity to pay attention to our customers.

A buyer, operations executive Chng Lee Hong, 49, and her husband who only wanted to be known as Lim, 50, made an impromptu decision to buy their dream home in the form of a double-storey terrace house in Belleview Groups Palmyra Residences project in Balik Pulau.

Chng said she was happy with the layout of the four-bedroom unit with two parking spaces while Lim said he was pleased with the location and trusted the developer.

A buyer who only wanted to be known as Mrs Lau, 38, said she and her husband bought two condominiums, one for their own stay and one for investment.

Well probably stay at IJM Land Bhds Platino in Jelutong, while the other unit Ideal Homes Properties Sdn Bhds One World 2 in Bayan Lepas is for investment, said the sales manager.

Henry Butcher (Malaysia) Penang director Dr Teoh Poh Huat noted that the visitors to this years fair were more affluent, and there was a great deal of interest in subjects pertaining to lifestyle, particularly going by the large crowd attending the health talks.

He said: People are aware that they need good health to enjoy their wealth.

Where property was concerned, Dr Teoh said quite a number of new projects attracted some attention, indicating that buyers had been waiting in the sidelines for the right time and opportunity.

The three-day fair, themed Modern Lifestyle, featured over 50 exhibitors occupying some 100 booths at the hotel and shopping complex.

Besides checking out property, home improvement products and financing packages at the exhibition booths, visitors also took the chance to attend various talks and forums, take part in the Surf, Click & Win and Lucky Catch contests, and watch performances such as belly dance and a fashion show featuring various pieces of jewellery which were auctioned off by Henry Butcher in aid of the Penang Pure Lotus Hospice of Compassion and Asia Community Service.

The Star Property Fair 2009 was organised by Star Publications in collaboration with Henry Butcher and supported by The Expat Group.

By The Star

Investment Growth In Malaysia

Malaysia shows solid potential as a promising emerging property market for foreign investors. Below is an overview of some of the factors that are contributing to the growth of Malaysia as a successful investment arena.

International real estate investors looking to target a well priced, strong economy for sustainable growth and yields over the medium to long term are considering Malaysia as a highly lucrative option.

The government’s blueprint for economic growth and diversification for a four year period between 2006 and 2010, known as the “Ninth Plan”, aims at vast improvements to Malaysia’s infrastructure as well as economic developments. This progress is predicted to directly and positively effect the real estate market in Malaysia, bringing with it strong growth potential.

As a resort destination Malaysia’s affordability is a great attraction, bringing growing numbers of visitors annually to boost the economy. Tourist arrivals in Malaysia rose to 16.5 million in 2005, a rise of more than 160% in five years. This is an astonishing achievement for tourism in Malaysia and is good news to many property investors in the coastal resort hotspots, such as Port Dickson. The first low cost airline offering global services from Malaysia is planned for July 2007 and will connect Manchester and Luton as well as Hangzhou near Shanghai and Tianjin near Beijing from a later date – all good news for Malaysia and its growing tourism and investment arena.

While the country’s economy keeps flourishing, inflation remains low, overseas export opportunities continue to expand and more businesses are establishing regional centres in Malaysia. Malaysia is the Asian leader in terms of attracting interest from foreign investors, most of whom are from the Middle East. They see it as a viable and attractive emerging market with high medium term growth potential. The amount of foreign investment into the country continues to increase and international investment into the property sector in Malaysia is firmly predicted to grow at unprecedented levels.

Another particularly positive factor in favour of real estate in Malaysia today is the value of the local currency, the ringgit (MYR). Valued below the euro, dollar and British pound, foreign investors buying into Malaysia are reaping the rewards of buying so much more for their money. Meanwhile, property per square meter in all Malaysian towns, cities and resorts remains at a fraction of the cost of similar properties in the likes of London or New York.

Demand for real estate is high from an affluent expatriate market as well as an increasing Japanese, Indian and Singaporean market leaving many investment options open to shrewd investors in Malaysia.

Capital Growth Predictions

Depending upon location, off-plan residential property both in the city and within coastal resorts has seen price increases of between 14 and 15% per annum. With economic indications showing Malaysia can only continue to grow at a steady pace, many investors are purchasing now in order to achieve the highest returns on their investment.

Rental Yield Predictions

The best yields are possibly available in the commercial property sector or KLCC serviced apartments, with returns of 8% not being unusual. It is possible to invest in “tenanted” residential or commercial properties with guaranteed yields of 8%-10% available. We also suggest looking at off-plan commercial premises that will net yields well into double figures, while a number of hotels are also available with gross yields in excess of 17%.

Tourist resorts offer strong rental and capital growth potential with recorded yields in Port Dickson last year reported at 9.36%.

Malaysia Economy

Economically, the outlook in Malaysia is very positive. According to a recent study from ING Real Estate, Malaysia will be the Asian country with the biggest increase in work force from 2003 to 2013, with worker numbers increasing to 13 million, representing a 27.9% increase over the 10 year period.

Growth has been driven by a spurt of corporate investments, sustained consumption, improved external trade facilities and foreign investor friendly fiscal and monetary policies, that have boosted Malaysia’s economy to new levels.

Reasons Why Malaysia is an Intelligent Property Investment Location:

• New tax incentives and the relaxation of laws governing real estate purchase by foreigners.
• The government’s “Ninth Plan” will have a positive impact on the Malaysian real estate market through further improvements to the infrastructure and economic policies.
• Stable economy and government.
• English is widely spoken by a multi-lingual, experienced and qualified workforce.
• Local currency valued at far below the euro, dollar and pound sterling, allowing foreign investors to buy a lot more for their money in Malaysia.
• Property prices per square metre in all major Malaysian towns and cities are at a fraction of the cost of similar investments in many other worldwide destinations.
• Great demand for quality new real estate from an affluent expatriate market.
• Malaysia ranks among the top three countries among the 53 Commonwealth countries for the greatest number of tourist arrivals, according to the World Tourism Organisation.
• Malaysia attracted 20.88 million foreign visitors in 2007, representing a 19% rise on the previous year
• Location near the Equator, hence a year-round tropical climate, ideal for tourism.
• Extensive, beautiful, white sandy beaches at luxury resort areas offering an escape from hectic life just south of the bustling capital of Kuala Lumpur.
• Low buying costs currently at between 3.4 to 6.75% of the property value.

How to Avoid Making Costly Property Investment Blunders

Real estate investments enable you to accumulate wealth and to you attain your financial goals within a desired timeframe. Unfortunately, many novice investors who lack an understanding of the common real estate investment pitfalls can easily lose instead of make money.

Before jumping in, it’s extremely important to understand and avoid the main causes of failure. These are:

1. Lack of Right Education

The major cause of most real estate investment failures is probably careless investing. Many beginners start off by listening to friends and family members. They get free advice on what works and how to succeed. What they may not realize is that free advice can be very expensive. It may be the case of the blind leading the blind. Learning to invest from people who have only bought one or two properties in their lifetime via the trial and error method is time-consuming, frustrating and expensive. You pay with mistakes – costly mistakes! One wrong property purchased can cost you thousands of dollars and may take a few years of your life to undo the damage done!

With a small investment of time and money, you can easily avoid costly mistakes and reap profits from day one. Take the time and trouble first to read all the relevant property investment books and attend educational courses on this subject. After all, the best real estate you can ever invest is in the real estate between your two ears! You should also look for the right mentors who started at the same financial position as you - and who has achieved success with several properties. Learn from their experiences, avoid their mistakes and replicate their successes.

2. Inadequate Research

Another major cause of real estate investment failure is inadequate research. While it’s not that difficult to find investment properties, finding the one that is profitable is another story. Many become so excited about owning a property that they get blind-sighted. They may buy a property that looks good on the surface rather than investing time and effort doing research.

A savvy investor would usually watch the market for a few months before diving in. He would select a few specific locations and get to know it well. He would get to know all the negotiators specializing in that area and details of all properties available for sale and those that have been transacted in the last few months.

By doing these, you will acquire a solid foundation needed to determine which properties and locations make investment sense. When the right property in the right location comes up at the right price, you would be able to confidently purchase it without any hesitation.

3. Emotion-Based Decisions

The third major cause of real estate investment failure is emotion-based decision making. Successful investing is purely a numbers game and it’s done without any emotions.

One of the biggest challenges a real estate investor has is in studying the numbers on each and every potential property. It takes discipline and experience to pass on properties that may look good initially, but don’t stack up number-wise. Buying based on emotions or impulse can cost thousands of dollars, hours and headaches. Before investing in real estate, ensure purchase decisions are based not on emotional reasons, but on sound facts and figures. Whenever in doubt, it’s advisable to get appropriate impartial advice from other like-minded property investors.

4. Paying Too Much

Another major cause of real estate investment blunder is paying too much for a property. Once the papers are signed, few things are worse than discovering you paid more than you should have. Paying in excess of a property’s worth requires time to recoup the extra expenses and lowers your return on investment.

While individuals who buy property to live in are prepared to pay more for emotional reasons, investors should always aim to pay the fair or lower-than-market price. It’s all about the numbers. Conduct thorough research on the area and compare prices to ensure you can get a decent return on investment. Also, get a valuation report before confirming your purchase price. In property investments, profits are made at the point of purchase, and not at the point of sale. Buying is entirely within your control, whereas selling a few months or even a few years down the road may not be entirely within your control.

5. Lack of Direction and Commitment

One more cause of real estate investment failure is lack of direction and commitment. Treat your real estate investments as a serious business and not a hobby. Hobbies don’t make much money, businesses do!

If you treat real estate investing as a hobby that you indulge in whenever you feel like it, you’ll get hobby results. If you set aside the time and treat is as a business, you’ll be able to earn a profitable outcome. For example, one of my seminar graduates made over RM1 million in profits by flipping over 10 properties in the last 5 years. He treats his property investments as a serious business sideline and his goal is to flip a minimum of 2 properties each year.

6. Neglecting Inspections

The sixth major cause of real estate investment failure is neglecting inspections. Buying old properties are riskier, compared to buying brand new from a reputable developer. Obviously, the older the property, the greater the risks. But the risk factor can be reduced when you take all the necessary precautions and budget additional expenses for repairs.

Professional inspections are a must when investing in real estate. You may find properties that seem like bargains to the untrained eye, but an expert inspector could discover thousands of dollars in repairs that are necessary to keep the property running. While inspections do add one more cost to the investment equation, they’re necessary to the successful real estate investor.

Property Investment

• As a foreigner, you are allowed to invest in any residential property as long as the price is above MYR 250,000 for other states in Malaysia (or above MYR 350,000 for certain parts of Sarawak and above MYR 500,000 for the state of Selangor)

• Foreigner can invest in raw land zoned for residential purpose, landed bungalow, semi detached villa, terranced house, townhouse, apartment unit of any size and condominium. The property can be bought off the plan from the developer or as a completed property. The property can be either leasehold or freehold.

• The only restriction is that any property that is restricted to bumiputra (native) ownership cannot be bought.

• Currently all property transactions in Malaysia are exempted from real property gain tax. Thus the seller does not need to pay any tax on the profit on disposal of property. However, as part of the condition of ownership imposed by individual states of Malaysia, foreigner will need to apply for an approval to sell the property if the ownership period of the property is less than 3 years.

• Aubella can assist you in organizing an exploratory trip in the following states of Malaysia to understand the property market of the particular area:
  

  • Kuala Lumpur & Selangor

  • Penang

• Aubella could also specially designed a trip for you if the pre-arranged exploratory trips are not up to your satisfaction. Please click here for more information.

• Once you have decided on the investment, the standard property purchase procedures is as followed:

1. Buyer sign the sales form of the property, a deposit of between 2% to 5% is placed, depending on the terms and conditions of the property sales.

2. Aubella will then introduce a qualified lawyer to execute the sales and purchase agreement for the buyer (if need be) and arrange for bank loan (if need be).

3. Once the prevailing conditions on the sales form are fulfilled, Buyer will need to sign the sales and purchase agreement. At this stage, the remaining of the 1st 10% of the selling price of the property will need to be paid by the buyer.

4. The rest of the payment schedule, delivery of the title etc will be spelt out in the sales and purchase agreement. For completed property usually the remaining 90% of the selling price is paid within 90 days from the date of the agreement. For property currently under construction the developer will collect up to the progress billing.

• Once you have taken full ownership of the property, Aubella can then assist you in getting tenants who are currently participating in Malaysia My Second Home, or long-stayer who intend to join this program.

Benefits for Malaysia My Second Home Program

• As a participant under Malaysia My Second Home program, you will be entitled to withdraw MYR 50,000 if you join Malaysia My Second Home as an over 50 years old participant; or MYR 150,000 if you join as a below 50 years old participant, after owning a residential property in your personal name or jointly with your spouse.

• Alternatively, if you haven't join Malaysia My Second Home yet, and your total investment in residential properties in Malaysia under yourself or jointly with your spouse exceeds MYR 1 Million, then you are eligible to join Malaysia My Second Home by just placing MYR 100,000 if you are above 50 years old; or MYR 150,000 if you are below 50 years old.

Renting A Property

With consumer confidence as low as flat, buying property is the least on the mind of most young and single working professionals. However, it is not unheard of a small family renting a single unit of landed or high-rise property. Here are some of the reasons why people prefer to rent.

To Save Money
Contrary to popular belief, renting a room can actually help you save up, especially if you are living all by yourself. By renting, you wouldn't need to worry about closing fees, mortgage interest, property taxes, private homeowners' insurance and maintenance; as all these will be the landlord's responsibility. The sum from these areas can either be invested for more return, or saved up as emergency rations or to fund your new Perodua MyVi. Besides, a recent study by Fidelity Investments indicates that stocks provided investors with nearly 4.6% higher average returns in the past 45 years than real estate; a worthy venture for the extra money.

More Options Available
While there are more incentives for house buyers now, rental rates are also seeing a slight decrease. In prime locations and popular areas, competition can be stiff, with various innovations coming up to attract potential tenants such as partial furnishing, utility fees inclusion etc. Amenities and furnishing are some of the attractions that tenants most often look for, such as built-in cabinets, fridge and other accessories of the kitchen; amenities that are sometimes not available in newly-bought homes, or are unaffordable in new homes.

More flexibility
Buying a home is a big commitment. If you have to move for any reason - say, for work - your property would need to appreciate by at least 10% for you to recover your sales costs, which typically takes about five years. Renting allows you the freedom and mobility you need to find the right job before you tie yourself to a massive home investment.

Over all, it is sort of a low-cost-less-responsibility option that satisfies most working professionals, who may expand their career elsewhere, and college/university students, who will be leaving their education institute after graduation.

However, renting is not a completely fool-proof solution to stand against the economic whirlwind now. For those who are looking to building up equity and for long term gains, or preparing for retirement, renting may not be a suitable option, and buying a property should be in serious consideration.

Penang-Oriental Pearl of Malaysia is A Best Property Investment

Penang, the Oriental Pearl of Malaysia is a favorite for many reasons: her tasty delicacies, her beautiful beaches and sea, her unique historical culture, as well as her waterfront properties.

For most foreigners, Penang has always been viewed as the best place for retirement, having such a unique combination of arts, culture and modern structures. With the introduction of the Malaysia My Second Home Program, Penang has received even more attention than previous, as well as a rise in the sales of its properties.

This is quite evident in the increase of various property development projects across Penang, especially its waterfronts and beaches. On the north near Tanjung Bungah, we have a few luxury condominium projects available: Infinity, The Cove, and Gurney Paragon; we have waterfront hubs such as Queensbay, The Light and Kelawei View. All of these are high-end high-rise boasting a superb, unobstructed waterfront/ seaside view, which appealed to most of its target audiences: retired foreigners, foreign expats and upper-class locals. The people who definitely can afford the property in mind.

As observed by Ho Chin Soon, Director of Ho Chin Soon Research Sdn Bhd. Penang's property industry will continue to do well into the future. Aside from its properties-with-a-good-view, big infrastructural projects such as the Second Monorail link and the Second Penang Bridge, when completed, will bring about more convenience for future residents; not to mention future commercial and infrastructural projects that will emerge along with the route of these 2 giant projects.

And one mustn't forget the main reason why many had chosen to purchase properties on the island: affordable property prices. Quoted from Starbiz's (Thursday 23 April) Property Insights, they have estimated that the value for Penang beachfront lands ranged from RM23psf. to RM350psf. Still considered quite a low price for such prime locations. However, given the rather fast-paced development on the island, no one can really guarantee if the prices may rise in the future with more appreciation for its properties' value.

Despite the advantages of development, there may be some worries that Penang's property market may face the problem that KL and parts of Klang Valley had already see within their area: over-supply of high-rise properties such as condominiums and office towers. But then again, it is another concern for another research.

Fengshui and Property

As for as long anyone can remember, Fengshui and property usually come hand-in-hand. When people (especially Chinese folks) look for a new home/ office/ land plot, Fengshui is an important matter that would always be considered before any buying/ selling decision is made.

So, what exactly is Fengshui, and why is it so important to a property or location?

Feng Shui, literally translate as 'Wind-Water', originating from Taoism practices in China. It is the complex knowledge in balancing the energies (known as 'Chi') of a given space to assure good health and good fortune for the people living in the space. As commonly known, gentle wind and clear water means good Fengshui, where harvest is aplenty, while bad Fengshui came to be associated with hardship and misfortune.

The main tools used in Fengshui analysis are the Compass and the Ba-Gua, to detect energies, and to divert bad 'Chi'. As one Fengshui expert say, you cannot 'cure' Fengshui, or 'cure' the energy; but you can redirect them, or avoid them while trying to get the best out of the situation.

Can I do some improvement myself?

While it is reassuring to have an expert of 'master' of the arts to get an overall diagnosis and reading on your piece of property, those who'd like to do some improvement can actually do it themselves too, and below are some of the tips you can DIY to improve your home’s or office’s over all Fengshui and brighten things up.

• Clean up – inside and out. Fix broken or neglected items. You'll benefit from the energy boost.
• Bring the outside in. Sunshine and fresh air do wonders for you, and your house. A vase of fresh flowers connects you with nature.
• Welcome the world! Make sure the entrance to your house is clear, strong and inviting.
• Keep it simple. Reduce that clutter, in your house or on your office desk. You'll think and feel clearer if you simplify your surroundings.

Investment Property In Malaysia 2009

Malaysia real estate investment offers Britons good value for money because of a favourable exchange rate between the ringgit and the pound.

This is the claim of a new article on the Choices website, which states that an increasing number of opportunities are opening up in the country in light of the price and its popularity as a holiday destination.

"At today's rate of 5.85 Malaysian ringitts to the British pound, Malaysia represents excellent value for both the holidaymaker and the property investor," the piece says.

In addition, it notes that properties of equivalent value are generally of better quality in Malaysia than in Europe, while the government has introduced tax breaks to incite investors.

Further announcements regarding the liberalisation of regulations surrounding foreign property ownership in the country are expected to be made by prime minister Datuk Seri Najib Tun Razak at the Invest Malaysia 2009 conference this week, according to the Star Online.

Investment property in Malaysia offers foreign investors low prices and high growth potential. Recent improvements and reforms have led to a strengthening property investment market in Malaysia.

Malaysia is experiencing major development and economic growth, giving rise to an upturn in its tourist, residential and commercial property markets.

A solid infrastructure that is being further strengthened by the government’s “Ninth Plan” renders Malaysia a modern and efficient country. Increased air services as well as tax breaks and other incentives are enticing overseas investors to the country. With prices still at an amazing low, discerning property investors regard this strong Asian economy as a lucrative one for high returns on investment.
International Property Investment Network (IPIN) and Malaysia

The International Property Investment Network has selected Malaysia as one of its chosen locations to offer solid investment opportunities to its members. Why not find out about the many reasons for this in our Malaysia investment research section. Here you will learn why Malaysia is firmly set to offer property investors excellent growth potential.
Why Invest in Malaysia?

As one of Asia’s prime emerging property markets, Malaysia has much to offer worldwide property investors. Natural and economic factors are set to offer fast and significant growth potential in Malaysia.
Natural and Cultural Factors

• Proximity to Australia, Bali and Singapore easily attracts investment and visitors from these countries
• English language is widely spoken, creating ease and transparency in property purchase transactions
• Warm climate with average temperatures of 21 to 30°C, enticing a year-round tourist trade
• Exotic culture and food. A warm and friendly population and peaceful society
• Great sports facilities, including golf, fishing, diving and other water sports
• Stunning palm fringed, golden sandy beaches and beautiful holiday resort areas

Economic Factors

• Property growth of between 15 and 30% per annum
• A surge in economic activity has created high demand for quality commercial and residential property to serve a growing expatriate community
• Government incentives to ease foreign investment in Malaysia, including tax breaks and relaxation of laws governing foreign ownership of property
• Low cost of living compared with many other countries. Correspondingly low buying costs and maintenance costs
• High rental demand due to a strong tourist economy and an increase in commercial activity in large cities such as Kuala Lumpur
• Malaysia is among the top three of all Commonwealth countries in terms of tourist arrivals
• Easy access to Malaysia via cheap flights from Asian cities as well as from the UK (approx. £300 return)

Land for Development / Project Sourcing

Malaysian land purchase offers investors a prime opportunity to gain maximum returns on investment. Propertyshowrooms.com and IPIN (International Property Investment Network) work with a close network of developers, land owners and agents alike to establish a carefully vetted list of sources and contacts which allows us to find our clients the very best options available today. Should you so require, we will also assist you to set up joint venture opportunities in Malaysia and implement investment strategies with the help of our trusted network of competent and reliable professionals.

An improvement in the worldwide property investment climate now allows us to identify many large-scale individual investors and investment consortiums who wish to take advantage of the current strong investment locations in Malaysia.

Malaysia currently offers some of the best investment opportunities available in the worldwide property market. Rental yields and capital growth figures rate well amongst today’s emerging markets and a new spurt of corporate investments via investor friendly government policies, have boosted Malaysia’s economy to new levels. This, together with a booming tourist industry and the creation of new luxury resorts is creating an exciting property investment climate in Malaysia.

Intelligent investors are quickly making the most of today´s real estate market in Malaysia, while prices are low and opportunities still last.

10 Reasons Why Malaysia is Your Preferred Property Investment Destination

Tabung Haji said to be buyer of Naza building

Tabung Haji is believed to be the buyer of a multi-storey tower in the heart of Kuala Lumpur that will be built by Naza TTDI Sdn Bhd.
A source said that Tabung Haji had purchased the 30-storey building, located at the RM4.1 billion integrated upmarket commercial and residential property project known as Platinum Park.It would be the second property in the project that Naza TTDI has sold, after last year's RM640.7 million deal with plantation group Felda for a 50-storey tower."I don't know whether Tabung Haji will move its headquarters to the new building or whether it bought for investment purposes," the source told Business Times. Tabung Haji has declined to comment.In an interview with Business Times recently, Naza TTDI group managing director SM Faliq SM Nasamuddin said that a 30-storey building had been sold to a government-linked company. He did not reveal the buyer."This tower together with two other towers is scheduled for completion within five years," the source said.Naza Group of Companies joint executive chairman SM Nasarudin SM Nasimuddin, when met at a function in Kuala Lumpur yesterday, declined to reveal the buyer of the third tower at Platinum Park."It has already been sold, but I am not about to reveal who the buyer is," he said after witnessing the signing of an agreement between Naza Group and Well Spring Inc in Kuala Lumpur.Naza has been given a master licence by the US-based company to operate "Tutti Frutti" frozen yogurt outlets in the country.Work has started on the Felda building as well as the 50-storey building which will house Naza Group's headquarters.Platinum Park, developed by Naza TTDI, is in the vicinity of the Petronas Twin Towers and the Suria KLCC shopping centre.It is set to be the single largest luxury project undertaken by a Bumiputera company in the heart of Kuala Lumpur.There will be seven buildings at Platinum Park.Naza TTDI is the property arm of the Naza group. Founded by the late Tan Sri Nasimuddin SM Amin, the group was better known as a motoring company before it bought over TTDI from Danaharta in 2004.

Make Malaysia A Choice Property Destinations

PRIME Minister Datuk Seri Najib TunRazak has urged property players to give more emphasis to the identity, function and sustainability of their projects to make Malaysia a preferred destination for real estate. He said the reputation of local properties for quality should be reinforced through promoting a Malaysian identity. "We should not have a skyline which is indistinguishable from any other city in the world," he said at the official launch of the Malaysia Property Incorporated (MPI) in Kuala Lumpur today. "We are proud that our iconic buildings like the Petronas Twin Towers and Menara Dayabumi have Malaysian and Asian aesthetics," he said in his speech which was read by Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop. Najib said Malaysian properties should be truly functional to meet the needs of its users while understanding and taking into account, local factors such as weather and the culture. "A focus on function means that a property should not be just a physical structure of brick and mortar but one which truly supports the activities and lifestyle of its users. "At the same time, it must be well integrated into the surrounding community," he added. When it comes to sustainability, he said the government was focused on promoting the use of green technology, which also includes encouraging the development of energy efficient buildings.

Properties need Malaysian flavour

Local property players should place more emphasis on giving their products a Malaysian identity to ensure quality goods.
Prime Minister Datuk Seri Najib Tun Razak said imbuing local properties with the Malaysian flavour would help reinforce the country’s reputation for quality.
“The pursuit and promotion of quality Malaysian properties is another piece of the jigsaw that supports enhancing our cities as economic centres,” he said in his speech, which was read by Minister in Prime Minister’s Department Tan Sri Nor Mohamed Yakcop, at the launch of Malaysia Property Incorporated here yesterday.
He said the pursuit of quality required rigorous attention to detail and the needs of consumers, even to the level of ensuring that the design of the lavatories would make them easier to be maintained and kept clean.
Najib said Malaysian properties must also be truly functional and take into consideration local factors, such as the weather and culture.
“A focus on function means that a property is not just a physical structure of brick and mortar but a structure which truly supports one’s activities and lifestyle and, at the same time, is well integrated into the surrounding community.
“The combination of strong identity, functionality and sustainability will no doubt augur well to reinforce Malaysia’s property proposition,” he said.
Najib said Malaysia provided value for money to foreign investors, offering high-end properties supported by world-class infrastructure and connectivity at relatively affordable prices.
Later, Nor Mohamed told reporters that the Economic Planning Unit’s study to find solutions to the issue of toll increases every three years was on track and that the results would be announced soon.
“It will be in due course. It will not be too long from now,” he said.
The Government had deferred the toll rate increase for five highways, which was scheduled to take place on March 1, resulting in it having to fork out RM287mil in compensation to the toll concessionaires.

Malaysia to be made property hub

RM50mil grant each from Govt and private sector for promos

THE Government, through one of its public/private sector initiatives, will be rolling out plans to make Malaysia an international property destination.

Datuk Seri Effendi Norwawi, Minister in the Prime Minister's Department, told StarBiz: “The idea is to make Malaysia a destination for foreigners to buy properties. Property prices here are so much cheaper than in places such as London and Singapore. We should show that we have real value for money.''

A matching grant of RM50mil each between the Government and private sector is likely to be introduced for international promotions.

“We should go out to the world with our best projects,'' he said. “In this respect, we are careful with the kind of properties and developers we promote.

A bungalow in Mont Kiara. Property prices here are so much cheaper than in places such as London and Singapore

“We do not want cases where investors buy properties they are not satisfied with, as these will give us a bad reputation. Self-regulation is important to maintain our image,'' he stressed.

Under the plan which is expected to be implemented soon, Malaysia's premier properties will be showcased at exhibitions overseas, with targeted markets in the Middle East, South Korea and Japan.

“We've been having dialogues with Fiabci and the Real Estate Housing Developers Association (Rehda) on the ways to reform the property sector,'' he said.

The Government has taken heed to the recommendations from the private sector and liberalised many areas in the property sector, the latest being the waiver on real property gains tax. “We are now ready to take on the challenge worldwide,'' Effendi said.

The Government's international marketing plan will be coordinated with Fiabci and Rehda.

Among others, real estate agents will be the ambassadors to tell the Malaysian property story. In this respect, their skills and professionalism will be further enhanced to ensure that the message gets across effectively and foreign investors are impressed.

“Our integrated efforts will include pushing the Malaysia My Second Home programme as well as health and ecotourism. There will be no more excuses this time,'' he said.

“We talk to Rehda and have a wonderful working relationship with them. They have brought many of the issues to the National Implementation Taskforce and we have freed all the restrictions.

“We are optimistic that this plan will work because many of our properties are so undervalued,'' he said.

However, he is aware that the speculative element would be something to watch out for. “We ought to be watching this carefully and be prepared to deal with it.

“But our main priority now is to get the promotions going. There is still quite a large property overhang and we have to release it,'' he said.

The first batch of properties to be showcased will probably be those located in the Klang Valley, followed by those in the Iskandar Development Region and Penang.

Malaysia’s first international theme park set to boost tourism sector

Some 5,000 jobs are expected to be created with the establishment of the Legoland Theme Park in Iskandar Malaysia.

Iskandar Investment Bhd chairman Tan Sri Azman Mokhtar said that job opportunities would be available during various phases of the project in the next five years.
‘Play well’: Jakobsen and Lego characters in Johor Baru yesterday.

Theme parks have a proven track record of attracting a large volume of visitors.

Legoland would be Malaysia’s first international theme park, he said, adding that tourism was one of nine key economic pillars under Iskandar Malaysia’s comprehensive development plan.

The Lego Group started humbly in the workshop of a Danish carpenter Ole Kirk Christiansen. The word, lego, is an acronym of the Danish words ‘leg’ and ‘godt’ meaning “play well”.

Legoland parks are based on the popular Lego toy construction game.

The first Legoland Park was opened in Billund, Denmark, in 1968 with three more parks in London, California and Germany.

Legoland Parks managing director John Jakobsen said Legoland Malaysia Park would be the only one to operate throughout the year, unlike the others which close for winter.

The RM750mil park, on a 930ha site in Medini Iskandar, will have more than 40 interactive rides, shows and attractions when it opens in 2013. Another Legoland is expected to open in Dubai in 2011.

Property in Malaysia

Reasons to invest or live in Malaysia
One of the main advantages of investing in Malaysia property is the fact that real estate laws protect Malaysians and foreigners in equal measure. Foreigners may purchase properties with a minimum value of RM250,000 (USD75,000) and may own multiple properties in freehold or leasehold, depending on the land tenure in question. Property laws are based on British law.

With the introduction of the Malaysia My Second Home (MM2H) programme, the decision to invest in Malaysia is effortless, and is open to all non Malaysians looking to live permanently in Malaysia or simply come for well deserved holidays.

Applying to invest or live in Malaysia
MM2H applicants must first apply for a conditional approval letter which is issued by the country’s Immigration Department. Documentation proving your financial situation is also required.

Financial requirements for those BELOW 50 years of age

• Open a fixed deposit account of RM300,000
• After one year, you may withdraw up to RM150,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM150,000 in the account, which must be maintained throughout your stay in the country.

Financial requirements for those ABOVE 50 years of age

• A choice of either putting RM150,000 into a fixed deposit account or show proof of a government-approved monthly off-shore income of a minimum of RM10,000.
• After one year, you may withdraw up to RM50,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM100,000 in the account, which must be maintained throughout your stay in the country.

Living in Malaysia
Great weather. Malaysia enjoys a truly tropical climate with warm days and cooler nights. The average temperature during the day is 27°C.

Political stability. Malaysia is a constitutional monarchy with a system of parliamentary democracy, and has enjoyed political stability since independence in 1957. The rule of law follows the British system of justice with an independent judiciary.

Low crime rate. With a relatively low crime rate, Malaysia is considered to be one of the safest countries in the region, making it ideal to raise children.

High standard of living. While the cost of living well in Malaysia is comparatively lower than most developing countries, the standard of living is high. Overall, spending power has progressively improved.

Medical facilities. World class medical facilities and care is available at a reasonable cost and the country is gaining a reputation for being the top healthcare hub in the region.

Accessibility and infrastructure. Every major city has an airport and train station. Islands can be flown to or have regular ferry / boat services. Landmark developments include KLIA (Kuala Lumpur International Airport), Cyberjaya, Putrajaya and the MSC (Multimedia Super Corridor).

English speaking. The national language is Malay (Bahasa Melayu) and English is widely spoken and considered to be the country’s second language.

Education. Pre-school through to university with a choice of either public or private, are available. There is a variety of international schools including British, Australian, American and French amongst others, systems of education.

Property transactions expected to increase

The recent relaxation of the FIC rules is expected to spur demand for residential and commercial property financing.

PETALING JAYA: Bank earnings and loans growth are likely to improve towards the end of the year, bolstered by the recent deregulation of the Foreign Investment Committee (FIC) guidelines on properties as well as easing conditions for new listings and fund-raising activities.

According to a foreign brokerage, property transactions, both residential and commercial, are expected to increase following the relaxation of the FIC rules, which should spur demand for property financing.

Higher property financing would lead to a turnaround in loans growth by year’s end or early next year, it said, noting that property financing comprised 36.4% of total loans in the banking system.

“The policy changes will create more revenue streams for Malaysia’s financial sector and reduce dependency on pure interest income,” the foreign research house said, adding that loans growth in May was underpinned by the relatively stable household loans segment, which grew 8.4% year-on-year.

In addition, the liberalisation would also encourage more mergers and acquisitions (M&As), as well as more capital and equity market activities, which would benefit investment banks, it said. With greater foreign ownership allowed in stockbrokers, product innovation – such as the roll-out of more varied derivative products – is likely to improve.

The foreign research house added that Malaysia’s capital market was expected to gain better access to capital and investments with the removal of the 30% bumiputra equity requirement, making it more attractive for foreign listings while supporting existing listed companies seeking to raise funds.

A local bank-backed brokerage said residential mortgages showed “no signs of weakening” as they sustained 10% growth from December 2008 to May 2009 despite the gloomy economic landscape.

This was due to progressive release of housing loans approved in the past one to two years, high savings rate of Malaysians, sustainable property transactions thanks to limited speculation, low interest rates and attractive schemes by developers, it said.

Moreover, there could be more corporate deals in the pipeline, including new listings and M&A transactions on the back of improved average daily trading value on Bursa Malaysia, it said.

This would augur well for investment banking income, including brokerage and corporate advisory fees, the research house added.

HwangDBS Vickers Research, meanwhile, said the liberalisation was “very bold measures” to improve the competitiveness of Malaysia’s properties internationally.

“The biggest winners will be developers with large exposure to the more ‘open’ districts like the Federal Territory and Penang, where the authorities would likely be supportive,” it said.