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.