KL Property Market - where is good?

[Craiginqatar]

Does anyone know anything about the Kuala Lumpur property market, besides that KLCC has a current over-supply of high end apartments? I'm attempting to scatter my investments in property around the world and this market is quite interesting. Does anyone have any recommendations for areas. I have been looking in the Mt Kiara area.

I have heard from some people that it is easy to find a tenant for your apartment and from others I have heard that it can be difficult, but does anyone have any direct expertise or experience in this.

Cheers

Craig

 

[Wunderbar]

Why would you buy in a country with political instability and a backward economy? You're better off buying in Hong Kong

 

[Craiginqatar]

HK is too expensive to get into and find a decent place.

HK certainly has good returns in both rental and capital gains, but like Singapore it is very expensive which limits the barrier to entry, or at least the barrier of my budget.

The Malaysian economy, even during the GFC, was fairly stable. Economic growth last year was around 6%, you have an enlarging middle class, and this year is forecast to grow at 5.1% with a similar outlook for the following year.

 

[Pretty]

Penang is much better compared to KL. Less volatile and more stable in price. Buying property in Malaysia is good because they had abolished the capital gain tax back few years ago. Unlike some countries, you actually own the property. It will be under your name and you will be governed by laws that is applicable to foreigners and locals.

My sister bought her house back in 1999 in Penang for 500K MYR and now worth around 1.8 mil MYR.

 

[Wunderbar]

Only certain properties in Malaysia are freehold. I think most are leasehold

 

[Pretty]

check here
http://www.propertyshowrooms.com/malaysia/property/investment/why-invest-in-malaysia-property.asp

 

[Pretty]

Check here
http://www.hba.org.my/faq/lease_freehold.htm

 

[meconium]

Only certain properties in Malaysia are freehold. I think most are leasehold

Incorrect. Leasehold property in Malaysia exists, but it is less popular than Freehold land.

Why would you buy in a country with political instability and a backward economy?

Backward? Malaysia is one of the world's largest manufacturer of semiconducters. Virtually every computer you've used since the 80s onwards has bits and pieces that are made in Malaysia. Malaysia is also a huge energy exporter and that assures its future for the next few decades.

You're better off buying in Hong Kong

Prices are pretty damn high in HK and there is considerably less scope for capital gain.

 

[Melbournian]

Does anyone know anything about the Kuala Lumpur property market, besides that KLCC has a current over-supply of high end apartments? I'm attempting to scatter my investments in property around the world and this market is quite interesting. Does anyone have any recommendations for areas. I have been looking in the Mt Kiara area.

I have heard from some people that it is easy to find a tenant for your apartment and from others I have heard that it can be difficult, but does anyone have any direct expertise or experience in this.

Cheers

Craig

Don't buy in KLCC area - it is overcrowded and jammed. Mt Kiara is high in demand however they are many towers there. You're better off in PJ. Otherwise try a development called iskandar which is basically a mini suburb outside singapore and johor. Singapore prices as you know can reach millions for a condo and the current is ard 2.5X of the ringgit. A lot of people would be attracted to this.

I can tell you there is plans for a major development for a super train line from KL to singapore which would make the very very attractive for singaporeans who live in very small units and want to buy a place which is not only 200% cheaper but significantly bigger.

i'm no expert but i have very good local knowledge of these areas. since i do own in KL as well.

 

[Melbournian]

Penang is much better compared to KL. Less volatile and more stable in price. Buying property in Malaysia is good because they had abolished the capital gain tax back few years ago. Unlike some countries, you actually own the property. It will be under your name and you will be governed by laws that is applicable to foreigners and locals.

My sister bought her house back in 1999 in Penang for 500K MYR and now worth around 1.8 mil MYR.

Actually they are reintroudcing the tax but is very very minimal. Besides you can use the Malaysia 2nd home scheme and then use it to your advantage. You can get in a personal maid, 2 cars tax free and a lot of other benefits.

As for penang - my experience is that it although it is worth a certain amount of money it is very hard to sell.

 

[Melbournian]

Only certain properties in Malaysia are freehold. I think most are leasehold

majority ard 80% are freehold. i think you must be thinking singapore which has many many leasehold due to insufficient land.

 

[Pretty]

Actually they are reintroudcing the tax but is very very minimal. Besides you can use the Malaysia 2nd home scheme and then use it to your advantage. You can get in a personal maid, 2 cars tax free and a lot of other benefits.

As for penang - my experience is that it although it is worth a certain amount of money it is very hard to sell.

It will have to depend on area. My mum house (in prime location) sold so easy last year in Penang island.

 

[Ms Jade]

Besides you can use the Malaysia 2nd home scheme and then use it to your advantage. You can get in a personal maid, 2 cars tax free and a lot of other benefits.

As for penang - my experience is that it although it is worth a certain amount of money it is very hard to sell.

A few friends looking into retiring there & it looks pretty attractive. I love Penang & wouldn't mind keeping a pad there to spend a couple mths there a year. i think one thing that struck me when i last looked was the relative cheap price you can get houses on the island compared with the $$$ for condos.

 

[virgo]

Malaysia

Hiya

My personal opinion:

the price differential between Singapore and Malaysia is so great that i foresee many Singaporeans will rent out their overpriced property (i just killed my golden goose there) and retire at least part of the time in Malaysia.

I personally know of a good British friend of my husband who works in Singapore during the week and "retires" to his huge house in Johore Bahru (the nearest state to Singapore a skip and hop away).

There are so many states to choose from with lovely beaches and balmy weather, improved health facilities, great shopping, great food,low cost of living and friendly easy going people....

Malaysia is not some backward place as some allude to; it may be so 20 years ago when i was growing up in Singapore but pay it a visit (esp. its capital) and you'll be pleasantly surprised.

For me, it is definitely top of my list to consider half a year retirement (in the Aussie winter months). esp. with the Malaysia my second home scheme.

 

[Melbournian]

A few friends looking into retiring there & it looks pretty attractive. I love Penang & wouldn't mind keeping a pad there to spend a couple mths there a year. i think one thing that struck me when i last looked was the relative cheap price you can get houses on the island compared with the $$$ for condos.

Well said - again for retirement as opposed to capital gain. Penang is a lovely place with good food and culture.

 

[Melbournian]

Hiya

My personal opinion:

the price differential between Singapore and Malaysia is so great that i foresee many Singaporeans will rent out their overpriced property (i just killed my golden goose there) and retire at least part of the time in Malaysia.

I personally know of a good British friend of my husband who works in Singapore during the week and "retires" to his huge house in Johore Bahru (the nearest state to Singapore a skip and hop away).

There are so many states to choose from with lovely beaches and balmy weather, improved health facilities, great shopping, great food,low cost of living and friendly easy going people....

Malaysia is not some backward place as some allude to; it may be so 20 years ago when i was growing up in Singapore but pay it a visit (esp. its capital) and you'll be pleasantly surprised.

For me, it is definitely top of my list to consider half a year retirement (in the Aussie winter months). esp. with the Malaysia my second home scheme.

Agree - once that iskandar project comes up - there is going to be huge capital gains for those who invest.

There are no laws not permitting foreigners to purchase and besides it was a british colony decades ago so the laws are commonwealth based. There is still opportunity for the right investors in the right place. i can't say the same for indonesia - too complex and difficult to even get a place.

 

[Wunderbar]

Malaysia is not a stable place - why else do you think so many Malaysian-Chinese have emigrated away? They sure as hell aren't doing it because Malaysia is such a great economy...

 

[zed_kid]

Skip HK, KL, Singapore... it’s all junk, and go straight for Monte Carlo. *sarcasm implied

 

[Melbournian]

I would say Yes and No

Malaysian chinese mainly migrate away to the the policies adopted by the government which favour the local malays. This are mainly middle class or people who have desire to excel in their own professions.

One must also see the social aspect of these policies being that if the gap of wealth were to significantly between the ethic chinese and malays - this would cause civil unrest which would result in possible riots or more damage to the country and its citizens. This was quite evident in 1998 riots in indonesia.

There are many opportunities to be realized given the right know how and connections.

 

[Wunderbar]

Exactly - you have a constitutional right of discrimination against the group of people who are hard-working and dominate the economy as a result. Why would you invest there if you are an Australian citizen? Things can erupt at any time - you just need to see those race riots in Malaysia back in the 1950s.

Not to mention a corrupt and inept government as well - people are scared of investing there and the ringgit is the first currency to get dropped if the ***** hits the fan. Not worth it at all!