Property news Malaysia: Summarized

Malaysian developers want to reduce the money needed in the savings account when you apply for the Malaysia My Second Home program. But in stead property developers demand for buying a Malaysian property.

Since most of us under the Malaysia my second home programme do need a property to live in, Malaysian developers are jumping on the bandwagon to target the Malaysian my Second home expats. Malaysian developers would like to see a lower amount of money go in the savings account so that a property has to be bought in stead.

Property news Malaysia: opinions

Looks great, less money to put in the savings account, but what if you already have a place to stay in Malaysia before applying for the Malaysia my second home?

Or you go for long term security and say: since the Malaysia my Second home is only valid for 10 years, will I take the risk of buying a property? Where is the guarantee that I will be around my investment for as long as the investment is mine? It will be quite difficult to manage a house when you are no more granted extension of your Malaysian My Second Home Visa. 10 years seems long, but houses do have a much longer life-span.

Although it is said that there is now less paperwork to do for Malaysia My Second Home holders when buying a house, I don’t hear anything about the waiting time for the paperwork to be done, which was until now almost double as long as for the local Malaysians.

For westerners, we feel the lack of security when we see that most Malaysian houses that have iron grils on doors and windows. This locked up in a gril house could give a bitter taste of "living like a king in Malaysia". Houses in gated surroundings and secured condominiums are already answering this challenge, yet this doesn’t take away the general feeling of lack of security. We know: we take the good things with the not so good things: you have to look at the whole package…

Last but not least: is Malaysia ready for the challenge to produce high end quality houses for people that are used of living in western countries? I heard a few times already when visiting looking for house purchases in Malaysia: Mister, bear in mind that our local workers are not paid much, so sometimes the finish is like it is paid for.

Property news Malaysia:

The STAR newspaper June 5th 2006

Read the whole article below:

Malaysia My Second Home Sceme spurs interest among foreign buyers

THE spin-offs from a highly successful Malaysia My Second Home (MM2H) programme to the property sector would be tremendous if it spurred greater demand for residences from the participating foreigners.

Developers hope that allowing property purchase as an alternate to cash deposits will add a progressive dimension to the property market.

The Tourism Ministry is looking into injecting further flexibility to the programme by doing away with the need for a RM300,000 cash deposit so that the foreigners would be able to use the money to buy their houses priced at a minimum of RM200,000.

Under the recently introduced guidelines, residential properties purchased by foreign buyers under the MM2H programme are exempted from requiring the approval of the Foreign Investment Committee. The buyers only have to produce a letter from the Ministry of Tourism certifying that they are participating in the programme.

This hassle-free process makes it much easier for developers to market properties to this target market. Developers have given the thumbs up to the Government’s efforts and expect the programme to drive greater foreign interest in the local real estate sector.

E & 0 Property Development Bhd director of marketing and sales, K.C. Chong, said the programme would spawn more opportunities for foreigners to invest in the country.

"Certainly the idea of being able to own a home here, without all the previous hassles, is an attractive proposition for foreigners who work here or have some connection with this country and would like to have ‘roots’ here," he told StarBiz.

"We have customers who have worked or are working here who enjoy their time in the country. Although they will eventually leave, they want to plant some roots here so that they can return to this lovely country. This speaks volumes for Malaysian hospitality and the Malaysian way of life," Chong said.

According to Mah Sing Group Bhd president and group chief executive Datuk Leong Hoy Kum, with the updated and more flexible conditions, it would be easier for foreigners to set up home in Malaysia.

He said there was room for the MM2H programme to grow and contribute significantly to Malaysia’s property sales and FDI in the property sector.

"Many of these foreign buyers seem to prefer landed homes in gated communities or condominiums. Important considerations include security, facilities and proximity to facilities such as reputable international schools. While most of them appreciate locations with good accessibility and amenities, no doubt some would also like to live away from city centres, away from the hustle and bustle of life," he added.

The programme is also expected to spur more positive changes in the property fraternity, notably lifting the bar for developers who are keen to attract foreigners to their projects.

E & 0’s Chong said: "To ensure their projects are attractive, developers have to lift their current offerings a grade higher, as they are literally competing on the world stage.

"An obvious area is in the delivery system - the most glaring being quality. Developers really need to raise the bar in this regard. Our marketing skills are already of high calibre, but we will also need to be better to compete with the overseas players. We do have a price advantage in that our property prices are among the cheapest in the region."

Chong said the types of properties favoured by participants vary depending on their lifestyles and needs.

"Most of our (E&0 property) buyers liked our city developments, such as our condominiums in Dua Residency, and our semi-detached homes in Idamansara, which are located in well-known locations. I think this case is true with other developers - foreigners will always tend to buy in places that are known."

He said managed properties tended to be more attractive as buyers knew the properties were in good hands, and when rented, offered good yields on their investments.

"0f late, we have had some interest from foreigners in our Seri Tanjung Pinang project, which suggests that resort homes are equally attractive. The key point here is still familiarity and comfort with the location, as the project is very close to Penang’s Gurney Drive," Chong added.

All these buyers have tended to come from Singapore, Indonesia, Hong Kong, Britain and Australia.

Syarikat Permodalan Kebangsaan Bhd head of property division, Steven Lim, said that as the participants were mostly retirees, medium sized apartments or condominiums were the most popular.

Meanwhile, Mah Sing’s Leong said that with security being a main consideration, the company’s gated and guarded communities would be especially appealing.

Developers have to ensure they build quality homes in the relevant minimum price range of RM200,000 in all states except Penang, Malacca and Johor, which have a minimum price of RM250,000, and certain areas of Sarawak where the minimum price is RM300,000.

As for developments in good locations, Leong said most developers would build higher-end lifestyle homes that command better prices.

"The homes have to have certificates of fitness (CF), not built on Malay reserve land or reserved for bumiputra quota or agricultural land developed on the basis of the homestead concept," he added.

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Article By June Ramli
NEW STRAITS TIMES SATURDAY MAY 20 2006

Re-launch MM2H

KUALA LUMPUR: Expatriates who come to Malaysia under the Malaysia My Second Home (MM2H) Programme may be allowed to work here on a part-time basis.

Tourism Minister Datuk Seri Tengku Adnan Tengku Mansor said that currently, MM2H participants were not permitted to work while they were in the country. Discussions are underway among various ministries to relax the conditions to make the programme more attractive.

Many MM2H expatriates complain of boredom because they have little to do. They say they would like to be able to work part-time.

Jack Beetson, an Australian race-horse breeder says: "I would love to teach horseback riding but under the current conditions of MM2H I can’t."

Tengku Adnan explained at the re-launch of the programme yesterday, that the Government would be particularly interested in allowing MM2H expatriates whose expertise can serve the country, for example in biotechnology, to work.

He clarified that MM2H, which replaced the SilverHaired Programme, is not targeted at retirees who want to live here permanently or wealthy people. It is designed for those wanting to set up a second home and enjoy a better quality of life.

"In Japan if you have RM300,000 you cannot live like a king. But over here you can build a house and even have a maid," he said.

To participate in the programme, they must have RM300,000 in fixed deposit upon their arrival. Once the application is approved, they can withdraw RM250,000 to buy a house, or for education or medical purposes.

In another move to make MM2H more attractive, the present five-year multiple entry visa has been extended to 10 years and is renewable.

There are 8,574 MM2H expatriates from China, Bangladesh, the United Kingdom, Taiwan, Singapore, Indonesia, India, Japan, Pakistan and Hong kong in the country. Most have set up home in Penang and Sabah because of the scenic beauty there.

Ministry of Tourism personnel, Nurul Huda Hasbollah (back, left) and Siti Nor Farizan (back, right) showing the MM2H brochure to English couple, Harry Boswell, 71 and Stephanie Bacon, 64, at the re-launch of the programme, yesterday.

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