From my limited observations property prices have not seen the escalations similar to Aust. Appartments and condo living is very common in KL and Penang and prices have risen marginally.  I think props with land have the greatest potential to rise.

However,  t he Malaysian gov introduced the Malaysia my second home scheme to encourage foreigners to buy property, live there and spend their cash.There are some concessions too.  Do a google search "malaysia my second home".  If you like the tropical climate, diverse cultures, friendly people, and very cheap living then its worth considering for retirees/ semi-retirees. For these reasons  I am considering buying a property in Penang or Butterworth and spending some time there.  

26,

Outgoings are rates, insurance, water, body corporate ie. all the thing u normally pay with residental.

u need to check out the lease to make sure they are paid by the tennat.

As the prop is a going concern (has a tennant), my understanding is that GST is not applicable for the purchase. If u are registerd for GST ( u must register if income is above $55K I think) then u charge the tennant GST the u do the quarterly BAS return and pay the $ to the ATO.

There are probably are issues that u should discuss with your accountant. Get their advice before acting.

Other issues:
The return appear very good.

How secure is the tennant? Is his business successful?

The Increase PA of 5% appears gennerous.

Good luck.

hrm

Hi David,

I think that you have half of the formula: you’ve worked out what prices the house configurations could fetch….why not use the same source to get unit prices, ( or talk to local REs) then

Go see the local council and see if dual occ is feasible.

hrm

Hi Karlm,

Do a search on this forum, you’ll find some threads on DHA.

hrm

Hi Loanwolf,

You could search the RE sites on the net to give you prices of whats for sale, and some RE sites show past sales info too. You could do this for one and two bedders.

hrm

Steve,

Cool looking house.

From the pics it would appear the the garage was converted in to the flat!

I would convert the flat back to a garage if possible and give the place a good lick of paint. This should be less than $10K, and
for a modern look what about rendering the front?

Other option: do the garage and lick of paint and possibly render, then rent out for a bit more $, revalue, refinance, then find another.

Consider the sell costs, CGT, refinancing costs, purchase costs etc.

hrm

Hi,

I too get regular alerts from Domain and others.

I have noted lately that they are using emotive (e.g realisation sale etc.)words to get our attention.

I don’t think there is anything wrong with the word liquidation.

hrm

Hi Skyboy,

I’m one for claiming all the depreciation I can.

This helps the cash flow but when you sell the amount of depreciation claimed on the property over the years is deducted from the original purchase costs to give your base cost for CGT calculations.

I think its better to take the deductions when you can (now) as the rules could change at any time.

hrm

I agree that we should look after the tennant.

They are the backbones of our investments same as employees at work.

I treat all people as equals till they prove differently , no matter their colour, race , religion etc just like my staffie (he will lick anyone to death).

There will always be some scum bags around but they are a very small percentage.

Go on give your tennants something they never expected. It doesn’t cost much per year!!

Cheers, roll on Christmas!!!!!!

hrm

Sparky,

I could be offended by the above.

Could you please expalain what you mean?

hrm