Hi all,
Just wondering if anyone has had experience in investing in Malaysia? I am considering buying something there ‘off the plan’ after just being over there again, but need to do my research first. Any input whatsoever would greatly be appreciated – either in this post – or feel free to PM me.
cheers
sq
Hi Suzieq
I’m wondering if you’re aware Malaysia has a two-tier market when it comes to purchasing properties generally (and other social issues I won’t go into here). So it’s highly probable you pay market price to get in if you’re not a Malay by descendent, while the generous concession is allowed to the others.
Also, there is no Small Claims Tribunal, or similar Tenancy Tribunal, over there to deal with tenancy disputes (arrears in particular). The tenants can virtually do a lot of damage before the legal system catches up with them at the Magistrate Court. Trying to get a landlord insurance is another issue – it’s unavailable. Their legal system is draconian, and the Bar Council ensures the legal fees are not discounted by competition. A conveyancing fee can be easily three times what we pay here regardless of how straight forward the transaction is. CGT for OS investor is another issue you need to consider if you wish to sell later.
If you’ve done your research and it proves a goer; get a good property manager. Their fees are usually negotiable. I know Calvin Saw from Dowell Realty as I dealt with him for selling a property over there. He was one hand picked from list of 30. With his experience and connections with property developers, he may point you in the rigth direction and advise you better than I can.
Suffice to say I do not share enthusiasm of property investment in Malaysia until there are significant improvements on upholding the lanlords interest.
Irrespective of where you buy, Suzieq, I wish you all the best.
CT
Thanks for your advice CT. I’m just happy that someone has had some experience/connections with property in Malaysia because I am finding it difficult to get much info at this stage.
Yes I have spoken to a couple of locals in Malaysia who were indicating that I would have to buy in a “malaysian” name. I wasn’t able to get a good grasp of what they were getting at so I thought I would just come home and try and find out more info before making any decisions.
I haven’t given up all hope yet – if there is a way I will find one! If not I’ll just invest elsewhere.
thanks again and I will be in touch with Calvin.
cheers
sq
Thanks for your advice CT. I’m just happy that someone has had some experience/connections with property in Malaysia because I am finding it difficult to get much info at this stage.
Yes I have spoken to a couple of locals in Malaysia who were indicating that I would have to buy in a “malaysian” name. I wasn’t able to get a good grasp of what they were getting at so I thought I would just come home and try and find out more info before making any decisions.
I haven’t given up all hope yet – if there is a way I will find one! If not I’ll just invest elsewhere.
thanks again and I will be in touch with Calvin.
cheers
sq
I lived i n Malaysia for a couple of years and investigated buying a property whilst there.
They don’t have PMs as such. A PM will find a tenant for you but ongoing rent collection is your responsibility.
The standard of construction is very variable. Every day there are newspaper articles of government inspectors being paid off to ignore major issues. Concrete is mixed with less cement in it than is legal to save money. Paint is diluted with water to save money.
The whole system over there is corrupt and as a “wealthy” westerner you are fair game to be ripped off by everyone you deal with. Paying bribes is commonplace. Police expect it just for pulling you over. We even had a bank teller ask for RM50 to ignore the waiting period on a cheque we wanted cashed.
The Asian Currency crisis of the 90’s saw a lot of money lost by investors. With a less stable economy something similar could easily happen again.
I personally wouldn’t even consider buying there after having lived there. Same with any SEA country with the possible exception of Singapore.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Great observations Simon, I’ve lived there half my life time and would not invest in Malaysia as there are plenty of opportunities here now that I’m a permanent resident.
Quote:[They don’t have PMs as such. A PM will find a tenant for you but ongoing rent collection is your responsibility.
/quote]The situations are changing on PM; there are markets for ex pats and OS residents investing over there. My mother is currently using one in Penang, while Calvin Saw is based in PJ Kuala Lumpur.
For Suzieq – getting a few PM, as you may know already, is a simple Google search away. Check out MIEA website would be a must. I emphasise the need for due diligence to sort the wheat from the chaff. For the tyranny of distance, never give the PM the autopilot right. I’d ask for inspection digital photos to be sent with report every 6 months or so on the IP.
I do think of retiring over there somedays for reason of strong AUD against MYR. Then again, I might not be used to their way of life anymore.
Corruptions and poor building standards are rife. We do have some degree of the same problems here. But no one can iron them out irrepective of where you buy. Here’s where insurance comes in. That’s is entirely another topic.
CT
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