nathan tinkler also bought one there. Crime relatively low or basically none. Everything is done to high standards overe there. i remember losing my baggage once and the department in the airport in charge of the lost baggge were really upset that it would affect their stats if it was not found.
South East Asia
- Thread starter syahrr01
- Start date
nathan tinkler also bought one there. Crime relatively low or basically none. Everything is done to high standards overe there. i remember losing my baggage once and the department in the airport in charge of the lost baggge were really upset that it would affect their stats if it was not found.
More exactly, speculative in essence and, as a result, volatile.
Many Aussie investors make the mistake that property investment in SEA is the same as in Australia. Here we generally follow the “classical” investment strategy which essentially consists of buying assets that can produce steady income on a long term basis.
SEA is all about speculation, not only in property but in all types of assets. People disregard income and are focused on explosive short term gains that evade taxation. They buy in and out quite frequently on the basis of hearsay/sentiment/insider info.
At this game most foreigners lose their shirts. Very few succeed but still on a very smaller scale than the local tycoons.
Yes generally speaking.
In emerging countries the maturity of the economy can be measured by the lack of corruption and the respect of property.
So consider this.
On Transpacrency International corruption index, these countries are ranked very low: China 75th, Thailand 80th, India 95th, Indonesia 100th, Vietnam 112th, Philippines 129th, Laos 154th, Cambodia 164th.
Compare this with Singapore 5th, Australia 8th, Japan 14th, Taiwan 32th, Korea 43th.
The same thing is happening on the International Property Rights Index: India 55th, China 59th, Philippines 73th, Thailand 87th, Indonesia 103th, Vietnam 109th.
Whereas Singapore is 4th, Japan 4th, Hongkong 20th, Australia 18th, Taiwan 22th, Korea 27th.
Malaysia is in a hybrid situation being 60th on transparency and 39th on property rights.
All in all Vietnam is the worst followed by Indonesia and the Philippines.
Last edited:
LOL you're telling me...
Just got back from there yesterday, went 4 times last year, we both buy from and sell to Malaysian companies (have since the 90s) and i grew up across the border in Singapore so i know it fairly well.
To say it has low levels of corruption astounds me imo. May not be as bad as say Indonesia but the number of dodgy Datuks and Datins around is ridiculous.
Sure, Malaysia isn’t a model of goodness and a 60th ranking is nothing to be proud of.
But everything is relative. I’ve bought in Malaysia and found it far less tricky than in Vietnam for example. Believe me, datuks and datins are mild in comparison with the ferals you find in some other places.
But everything is relative. I’ve bought in Malaysia and found it far less tricky than in Vietnam for example. Believe me, datuks and datins are mild in comparison with the ferals you find in some other places.
malaysia
i've not read all the thread .. but i'd like to share my experience of investing in Malaysia –
We purchased a condo/studio/apartment off the plan at Port Dickson a number of years ago – the motivation being that it was only $60k, payment was due over a number of years, the return was guaranteed at 5% net for the first 3 years (the unit was leased to a hotel company), it was pre-GFC & you had 30 days free occupancy per year.
Whilst the location isn’t glamorous (the beach is pretty average) – it is only an hour from the airport, an hour from Melaka & just over an hour from KL
A lot of bureaucracy in the purchase process – paper shoving, witnessing etc etc – but we got there!
All worked out well, we visited a few times – used our free days & let other family members use the remainder – the rent cheques were banked into a Malaysian account & whilst not being massive, they were enough to cover the cost of Malaysian holiday spending money.
All great – however at the end of 3 years the hotel company decided not to renew their lease – so what were we going to do with a unit that we couldn’t let ourselves? – we entered negotiations with the hotel & got a new 3 year deal for a reduced return, but at least it was something
We’ve tried to sell the place but with no luck .. & here’s where a bit more thought into exit strategies might have been helpful
Finding a trustworthy agent has been difficult – it’s not unknown for agents (& anyone can be an agent) to put the title into their own names, sell the property & pocket the lot – also it’s quite common to sell for one price & tell you they’ve sold for a lower price, pocketing the difference!
Apparently legal firms can sell & they are more reputable, however you then need to find another legal form to act as conveyancer – which is more difficult
A lot of KL based ‘agents’ won’t touch it because PD is too far to travel to show prospective buyers around
The property has been offered for the purchase price, however most Malaysians don’t want to buy a weekend studio in PD & if they do then there’s a heap of older stock for half the price! & if they want an investment then they want a higher return than it’s currently getting
So the current situation is that the unit is still there, waiting for us to revisit, paying a bit of rent – it’s not costing us anything but there is an opportunity cost of holding it – no doubt we’ll have another set of negotiations on rent when the current lease expires in a couple of years time
Anyone know a reputable agent up in Malaysia?
Moral of this tale is .. plan your exit strategy & don’t think that prices will rise indefinitely (i had thought that even if we had to sell quickly for a song then we’d still get our money back because of the property price growth – however there has been none in the last 5 years)
i've not read all the thread .. but i'd like to share my experience of investing in Malaysia –
We purchased a condo/studio/apartment off the plan at Port Dickson a number of years ago – the motivation being that it was only $60k, payment was due over a number of years, the return was guaranteed at 5% net for the first 3 years (the unit was leased to a hotel company), it was pre-GFC & you had 30 days free occupancy per year.
Whilst the location isn’t glamorous (the beach is pretty average) – it is only an hour from the airport, an hour from Melaka & just over an hour from KL
A lot of bureaucracy in the purchase process – paper shoving, witnessing etc etc – but we got there!
All worked out well, we visited a few times – used our free days & let other family members use the remainder – the rent cheques were banked into a Malaysian account & whilst not being massive, they were enough to cover the cost of Malaysian holiday spending money.
All great – however at the end of 3 years the hotel company decided not to renew their lease – so what were we going to do with a unit that we couldn’t let ourselves? – we entered negotiations with the hotel & got a new 3 year deal for a reduced return, but at least it was something
We’ve tried to sell the place but with no luck .. & here’s where a bit more thought into exit strategies might have been helpful
Finding a trustworthy agent has been difficult – it’s not unknown for agents (& anyone can be an agent) to put the title into their own names, sell the property & pocket the lot – also it’s quite common to sell for one price & tell you they’ve sold for a lower price, pocketing the difference!
Apparently legal firms can sell & they are more reputable, however you then need to find another legal form to act as conveyancer – which is more difficult
A lot of KL based ‘agents’ won’t touch it because PD is too far to travel to show prospective buyers around
The property has been offered for the purchase price, however most Malaysians don’t want to buy a weekend studio in PD & if they do then there’s a heap of older stock for half the price! & if they want an investment then they want a higher return than it’s currently getting
So the current situation is that the unit is still there, waiting for us to revisit, paying a bit of rent – it’s not costing us anything but there is an opportunity cost of holding it – no doubt we’ll have another set of negotiations on rent when the current lease expires in a couple of years time
Anyone know a reputable agent up in Malaysia?
Moral of this tale is .. plan your exit strategy & don’t think that prices will rise indefinitely (i had thought that even if we had to sell quickly for a song then we’d still get our money back because of the property price growth – however there has been none in the last 5 years)
Hi, really fascinating comments about Malaysia and Indonesia.
If you'd posted your intention to buy those holiday PD condos, I'd told you to renege on your contract.
My brother did in the 90s, against his sister's advice, & found immediately it was no picnic. He pulled out with no losses, but that's only because he's a builder himself, and has abang adik contractors who allowed to back out.
As for corruption or not in Malaysia, I'll tell you I'm still scratching my head over how my house and car got sold without me having to sign anything at all! All good, money was in my account but how it got done?
KY
If you'd posted your intention to buy those holiday PD condos, I'd told you to renege on your contract.
My brother did in the 90s, against his sister's advice, & found immediately it was no picnic. He pulled out with no losses, but that's only because he's a builder himself, and has abang adik contractors who allowed to back out.
As for corruption or not in Malaysia, I'll tell you I'm still scratching my head over how my house and car got sold without me having to sign anything at all! All good, money was in my account but how it got done?
KY
i think Port Dickson is a good place for temporary visitors not the place to buy a property for good returns or capital growth.
I think you find many other places closer to the capital city of kuala lumpur which gives you better growth. There are places bought off the plan for say around AUD150K which is now AUD300K in a duration of 1.5 years. it depends on the locality, demographics (very important) and distance to public transport and most importantly a shopping mall (this is probably very important).
In malaysia, everyday most people experience issues with
1)hot weather (so it's not like here when you can walk out for 15 min without an AC - although many ppl without cars do)
2)parking spaces (is always packed)
3) stuck in a traffic jam (many avoid going out during 4-7pm due to this)
So if you have say an apartment which is built next to or on top of a mall. you're basically guaranteed demand whether it is a service apartment or a standard apartment.
That being said - i expect the current general elections over there to soften the prices rather than having an uplift in prices. it maybe a good time to sell out if you're looking to offload.
I think you find many other places closer to the capital city of kuala lumpur which gives you better growth. There are places bought off the plan for say around AUD150K which is now AUD300K in a duration of 1.5 years. it depends on the locality, demographics (very important) and distance to public transport and most importantly a shopping mall (this is probably very important).
In malaysia, everyday most people experience issues with
1)hot weather (so it's not like here when you can walk out for 15 min without an AC - although many ppl without cars do)
2)parking spaces (is always packed)
3) stuck in a traffic jam (many avoid going out during 4-7pm due to this)
So if you have say an apartment which is built next to or on top of a mall. you're basically guaranteed demand whether it is a service apartment or a standard apartment.
That being said - i expect the current general elections over there to soften the prices rather than having an uplift in prices. it maybe a good time to sell out if you're looking to offload.
Last edited:
I bought my property in the phillppinres as part of an overall stratagey, eg buffer plan Z, or back stop. If all else fails I have some-where to live quite happily on little income and be able to produce a little income from the property. It is not to make high returns for liviing expenses or life style. But to provide some-where to live and a life style, with out the need rely on accummulation of assets and income. This a has enabled me to take some risk and not be paralyzed with fear when investing in australia and not worry to much about losing money or becoming destitute. When investing in asia it helps to have connections in the right places the best investment you can make is to buy the Cheif of Police a set of golf clubs, and do stuff like hire the local swimming pool for a day and let all the locals in for free.
