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
Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts
Monday, October 5, 2009
Thursday, October 1, 2009
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
Read more...
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
Friday, September 25, 2009
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
Read more...
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
Wednesday, August 5, 2009
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.
Monday, August 3, 2009
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.
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