Your number 1 partner when buying property abroad
A former British colony, Malaysia is in South East Asia, near the equator and is split into two regions by the South China Sea with Peninsular Maylasia and Malaysian Borneo, Thailand bordering in the north, Singapore in the south and Indonesia in the west. Due to it´s rich history and the geographical make up of the country, it is a diverse land of many cultures and extreme contrasts, with skyscrapers like the Petronas Towers, currently the tallest twin towers in the world, 5 star hotels, wooden houses on stilts and some of the best beaches and diving spots in the world.
The capital Kuala Lumpur attracts a lot of foreign investment with a thriving business district, bringing with it a high demand for both residential and commercial real estate, with rental yields upto 10%. A short drive from the capital is one of the country’s main attractions and investment hotspots, with many new beautiful holiday homes and rental properties being built on the stunning beaches of Port Dickson.
Malaysia has a modest population with an abundance of natural resources,
being the worlds largest producer of rubber, palm oil and tin and with
the government pulling out all the stops to improve tourism and the economic
and social climate, the economy is booming with high capital growth figures,
making it one of the fastest growing economies in the region. With a great
climate, exotic culture, low cost of living, property prices still very
low and a high rental demand, property investment carries great potential
with a healthy 20 to 30% annual growth.
TOP 10 REASONS TO INVEST IN MALAYSIA
Unlike some of its neighboring countries, the Malaysian government is constantly looking to improve conditions for people wishing to purchase property and has taken steps to make it easier for foreign investors. Property prices are low and there are few restrictions in place, the main one being that foreigners can purchase any kind of property with a minimum value of MYR250,000 (US$67,977) and can purchase up to two residential properties – two condominiums (max. 50% foreign ownership within a block) OR one condominium and one of the following:
• Terrace or linked houses above two storeys
• Lands/bungalows and semi-detached houses
Further property can be purchased with permission from the Foreign Investment Committee. Other than this, foreign investors are treated in the same way as Malaysian nationals and both are protected by the same real estate laws
Buying costs in Malaysia are among the lowest in Asia, with Capital Gains Tax and Inheritance Tax recently being abolished completely.
The ‘Malaysia My Second Home Program’ or MM2H as it is locally known, is a government backed positive immigration policy that allows those who qualify the right to live in Malaysia on a renewable, multiple entry ten year visa, to bring immediate family members to live with them under the terms of the scheme, to own freehold property in Malaysia, to import worldly goods and even a brand new car tax free, and to enjoy all the multiple benefits that Malaysia offers to its citizens both local and international. With a highly prized education structure, those who relocate within the MM2H program can privately educate their children from primary age, through university and beyond. Once within the system, any internationally sourced income is tax free.
The Malaysian property market is one of the strongest in the world, currently in a “boom” state and has plenty of room for growth with tax advantages and finance available, a British legal system with all paperwork in English and a strong capital growth of between 20 and 30% and rental yields of 8 and10%.
Considered to be an upper middle-income country, Malaysia offers a vibrant and bouyant city life along with a relaxing and ambiant lifestyle, allowing vistors and those on above average wage to live like a king, enjoying the low cost of living and splurge on all of lifes luxuries. Many investors from the Middle East see Malaysia as a viable and attractive emerging market with high medium term growth potential, within an economy that recorded a GDP of 5.8% in 2006.
Medical services are exceptionally high, with over 225 private hospitals as well as numerous private specialist clinics such as maternity clinics and respite care homes as well as some 121 government backed hospitals. All with very latest in terms of equipment and facilities available for treating every kind of illness.
Malaysia has an incredibly strong tourism sector and some 21 million tourists visited in 2007, the government has been successful with their “Visit Malaysia 2007” campaign which they launched worldwide. With such a strong tourist market, the demand for rental properties is out weighing supply which is particularly good news for buy-to-let investments in coastal resorts such as Port Dickson.
The general infrastructure is first class and very modern, with 7 airports serving worldwide locations and Kuala Lumpur International Airport being the main one serving the capital city. Flying time from London to Kuala Lumpur is 12 hours 30 minutes.
The Malaysian currency is the Ringgit and in the past this has been pegged to the US dollar but this was finally abolished in 2005, allowing the ringgit to float against various currencies, and as an export driven economy it is beneficial for the government to keep its currency highly competitive, which means that dollars, pounds, euros or yen will go further and increase international investment potential.
Classic tropical climate with relative humidity levels and short showers, but year round sunshine and high temperatures, rarely dropping below 20°C, even at night, and usually climbing to 30°C or more during the day, attracting perennial tourism to this beautiful country with the friendliest and most welcoming people you will find.
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