Malaysia - Good or Bad?

Discussion in 'Malaysia property' started by Yogi, Apr 25, 2008.

  1. Yogi

    Yogi New Member

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    I'm going for good.

    I have invested on the Palm on the Sepang Goldcoast. At the time I secured a unit there it seemed to meet all my criteria for investing. At that time the Malaysian economy was strong, now there seems to be a bit of Political upheaval and I am not sure how this is going to affect the economy and ultimately my investment.

    Is anyone a bit more 'up' on all things Malaysian than I am and do people still see Malaysia as a good investment?

    Is the far East going to be hit by the infamous 'credit crunch' that is starting to hit the UK now and IMO will have an affect on most, if not all, of the Western world?

    Cheers
     
  2. andyk2

    andyk2 New Member

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    The credit crunch and Malaysia

    Hi Yogi,

    The so-called "credit crunch" has been fabricated by a load of greedy banks who were over charging poor people for lending them money that they could never hope to repay. When they got burnt, they simply blamed global issues and were not prepared to look at their own short-comings.

    Most of these banks are in the Western hemisphere, and lenders in the East have not had to cover their tracks or admit their mistakes/greed.

    Consequently banks from the Middle East, Hong Kong, Singapore and Malaysia are still experiencing a healthy demand for finance, do not have to load their interest rates to recoup what they lost through their stupidity/greed and are doing quite nicely thank you.

    Average rental yields throughout Malaysia are about 8%, so banks are not all that worried about lending out to clients wishing to invest in BTL properties at rates of about 6%.

    As ever, the usual issues surrounding exit strategy would apply to the "Palm" style developments, and a better bet would be serviced condominiums in Kuala Lumpur City Centre for investors looking to make a sizeable profit on minimal capital outlay.

    If you need any further info, please send me a pm or email.

    Have a good day.

    Andy
     
  3. redangel7861

    redangel7861 New Member

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    Cluster Village (Sepang Gold Coast)

    Anyone purchased on this development?? Me and a few of my friends have put down deposits on apartments a few days ago. Looks good for strong rental yields and capital appreciation.

    Located on the Base of the Palm.

    Rgds
    RED
     
  4. agentkhoo

    agentkhoo New Member

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    Another area for investment in Malaysia is the Iskandar IDR area. Which is currently jointly developed between J.B (Malaysia) and SIngapore. This special economic zone will be jointly promoted by the regional government of JB and Singapore to attract high value manufacturing and technology companies to setup manufacturing and R&D facilities there. As it is like a Special Economic Zones in India, the companies operating in that area will enjoy special perks and incentives. Not mentioning specially built infrastructure, posh offices and manufacturing facilities and telecommunications and transportation will be world class.

    There are of course interesting commercial and industrial investments available within SIngapore that are supporting the Iskandar IDR area, complementing rather than competing with them.
     
  5. redangel7861

    redangel7861 New Member

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    PICS from the Palm Malaysia Sepang Gold Coast

    Bathroom.jpg House1.jpg House2.jpg

    Livingroom1.jpg Livingroom2.jpg Room.jpg

    Front View.jpg


    PICS from the Palm apartments Sepang Gold Coast, Malaysia. Similar finishing will be available on Phase II "Tropical Cluster".
     
    Last edited: Jun 19, 2008
  6. 9009Ali

    9009Ali New Member

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    Hi Redangel7861,

    Yes, I've also put down a deposit on the Tropical Cluster Village. Which agent did you go through ?

    I hope it will be profitable

    Ali
     
  7. andyk2

    andyk2 New Member

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    Don´t knock the Banyan!

    Robert,

    There are some good points in your post, especially insomuch as the beaches on the East coast of Malaysia suffer from being on the second busiest shipping lane in the world. But the Banyan Curve project was never meant as a holiday home.

    It is used as a convention and conference centre throughout the week and as a place for a weekend break for residents of Kuala Lumpur at weekends. The first phase opened in 2006 and those clients who invested at that early stage witnessed a gross return last year of 9.36%

    With this kind of return, the future market will be driven by foreign investors - but not the European market necessarily. Chinese, Korean and investors from the Middle East are pouring money into Malaysia as they see the country as one of the most favourable to meet their investment goals.

    Generally prices are rising by 6% in Malaysia (source Bank Negara), although off-plan serviced apartments in KLCC are seeing an increase in prices of 40-45% during construction - these price increases are mostly fuelled by the domestic market as it is rare to see any new releases advertised outside of Malaysia.

    8% rental yield does cover the mortgage, tax liability and service charges, but only if you take a mortgage at 5.25% or less (easily available) and over a thirty year period. Beware, some banks have high charges for early redemption of the loan.

    Finally, the Base Lending Rate (BLR) in Malaysia has not changed since April 2006. The only way you could have lost money on an investment in Malaysia is if you bought in a foreign currency which has strengthened against the Ringgitt (ie the €uro). As sterling has lost 8% of its value (against RM) and the dollar 5% over the past 12 months, it would appear that real capital appreciation in Malaysia has been well over 10% this year and therefore a darned good investment.

    But as you rightly state in your post ........... not a holiday home
     
  8. eyeC

    eyeC Senior Member

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    i would like to add after you consider the income tax there will be no return on investment

    so the only way to make money is on price appreciation on certain types of properties mainly

    high end in penang for example or KL

    if you buy for rental income consider other locations around the world
     
  9. andyk2

    andyk2 New Member

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    And another view ....

    Reasonable point, but if one shops around carefully, net returns of 3%, 4% or even 5% can be acquired. Not great, but at least there is a solid exit strategy with the strength of the domestic market. Also you don´t need to aim for just the high end.

    Example - Berjaya Times Sqare Serviced Apartments. 600 metres from the Petronas Twin Towers, freehold and fully furnished. Purchase Price around RM 350.000 (c.$100.000) 20% deposit required and the balance on finance (I think this is what you are advocating - the figures are much better if you borrow a lower %).

    Rental income on a long term let - RM 3.000 per month* = RM 36.000 pa.
    Take off 2% of the purchase price for allowable expenses and multiple the rest by 28% (base rate for income tax). That leaves you with a net annual income (after maintenance, management fees, insurance and service charges) of RM 20.880. Take off mortgage repayments of RM 17.200*, and your net income in a year is RM 3.660 (c.$1000). Like I said, it´s not great, but represents 5% on what one has actually invested ($20.000 deposit).

    That might seem like a good deal in the next 12 months compared to some other locations around the world.

    Be lucky

    Andy

    * Sources. Property Price and rental income - iproperty.com.my
    * Repayment mortgage through CIMB Bank @ 4.60%
     
  10. ariecol

    ariecol New Member

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    I think it will be wise to visit the properties before you buy

    Penang: Low rental income. Moderate cap growth. Nice food. YUM YUM
    For Msia: The better rental is Mount Kiara + KLCC props.

    YES malaysia 5* hotel is rated to be one of the most best valued.
     
  11. andyk2

    andyk2 New Member

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    Absolutely!

    Malaysia has to have the best food in the world. Would suggest somewhere up near Jalan Semantan to eat from the road vendors or one of the market stalls (also a great place to make a killing on rental yields - Mon´t Kiara has far too much traffic)

    Agree that you should visit the properties before you buy, but look at the maths also. What are neighbouring properties going for and how much are they attracting in rentals? Good sources are iproperty.com.my and expatriates.com.

    Happy Investing

    Andy
     
  12. ariecol

    ariecol New Member

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    have u tried penang food. more yummy but higher risk of diarrhoea :eek:

    i saw kiaraville. damn.... it is so beautiful the landscaping. shld hav bought it. unfortunately run out of cash.
     
  13. lexus

    lexus New Member

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    medium range apartments

     
  14. lexus

    lexus New Member

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    cyberjaya!!!

    Hi,

    I am new to Malaysia investing. Actually a friend of mine recommended the up and coming IT center of Malaysia i.e CyberJaya

    Any recommendations on this topic will be appreciated.

    I haven't been to Malaysia yet, so any videos about CyberJaya will be welcomed too.
    :)
     
  15. ariecol

    ariecol New Member

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    PLEASE DONT. I have yet to hear any success story.

    Depending are you looking for passive income or flipping?
     
  16. andyk2

    andyk2 New Member

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    Berjaya Times Square

    Hi Lexus,

    Didn´t have your email address, so posted the info on a link below. There are a few other properties in the same price range if you click on the "back" button at the foot of the screen, but apologies if anybody expected to see me actually finish a web site before Christmas! Too busy.

    <snip>
    Please let me know if you have any questions.

    Happy Investing

    Andy
     
  17. lexus

    lexus New Member

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    Thanks Andy.

    Nice website, I am researching different options available. I will contact you soon with more info.
     
  18. ariecol

    ariecol New Member

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    which one are u looking at?
    care to share?
     
  19. lexus

    lexus New Member

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    Damansara Heights. looks really good. Fits my budget range with good rental yield.

    I am doing my research currently will update you with my results soon.
     
  20. ariecol

    ariecol New Member

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    lexus, which project is it? twins damansara?

    we did consider the project, but, we run out of money to buy! hahaha

    one of my childhood friend who is an estate agent bought it actually. in fact it has appreciated.

    Mount Kiara is still on the way UP UP UP
    KLCC as well.

    amazing!
     
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