Liquid Assets

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Hi,
I have been looking at this agian and am wondering what they count as liquid assets

i. Applicants aged below 50 years are required to show proof of liquid assets worth a minimum of RM500,000

http://www.mm2h.gov.my/conditions.php

I have debt free property but would not really consider them too be liquid, though the banks would "lend" me RM500,000 against them

What else is there apart from cash and perhaps metals or shares?

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Hi Chaps

I think we may all be drifting off topic a little here. The original aim of the thread was to see how we could engage with the authorities over the the MM2H program. The perfectly valid points are now being made are in danger of getting lost in the wealth of information available on the site.

Regards

Bob

Sorry,
search (top right) being used

Although that does not provide a definitive  answer for me either  http://www.my2home.info/index.php?action=search2

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hi,

I've split off the last few posts from "MM2H - Moving forward" and named this topic "Liquid Assets." Obviously the first post here starts the thread a bit abruptly as it wasn't intended as a starter. That's the problem with splitting topics.

Let's see if we can get some idea of what liquid assets are acceptable for an application.

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Hi, this may or may not help, but in my cover letter i provided a table itemising all of my assets and categorised them as-

Income (salary, rental income, dividends etc.)
Liquid assets (cash, shares, unit trusts etc.)
Property (purchase amount, not current value, although the current value was higher)
Insurance Policies (health and life)
Debt- Car loan and mortgages

I provided a subtotal for each item and a sum total.  the lady that accepted my application was quite happy with the summary.  I'm pretty sure having the table made it easier to accept my application as they could see my financial position very easily and make a quick judgement call with regards to financial capability. 

I can't speak for MM2H but i have a feeling that if you're short in liquid assets, providing a detailed table (maybe not everything above but if you own your home it makes sense to avertise that you are essentially debt free) would help.

Craig

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hi,

Thanks for that Craig.

I emailed Yvonne, as she deals with current applications, and she replied as follows :

In our summary, we would have 3 parts in the financial category:
1) Monthly income : Salary, rental income, pensions, director's fee, dividends, bank interests, business income etc.
2) Cash-in-Bank : Savings, Checking and Fixed term accounts
3) Non-Cash Assets: Property
 
As for Shares, Bonds and Stocks, if the applicants are able to confirm that the items can be readily cashed then we would consider them to be "Cash-in-Bank", if not, we would categorize them as non-cash assets.
 
We would not accept the value of the properties to be used as "Cash-in-bank".

The more info the better, I think. And it can only be a snap-shot of any assets on that particular day.

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Thanks for that

In our summary, we would have 3 parts in the financial category:
1) Monthly income : Salary, rental income, pensions, director's fee, dividends, bank interests, business income etc. 
2) Cash-in-Bank : Savings, Checking and Fixed term accounts 
3) Non-Cash Assets: Property 
 
We would not accept the value of the properties to be used as "Cash-in-bank".

That's a shame

I am not about to start selling my income producing assets yet, perhaps in 20 years, but not yet.

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I am not about to start selling my income producing assets yet, perhaps in 20 years, but not yet.

Ah well perhaps you misunderstand. Property or investments could be termed "liquid" as you are able to sell them (liquidate). Doesn't mean you would have to.

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I have always thought of property as an illiquid asset, as it is not something that can be bought and sold quickly - unlike shares and bonds and the like. Also, what if the title to property is tied up in a mortgage?

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hi,

I agree with paotonboy. Everything is liquid including selling granny.     I thought that the distinction was in the ease and therefore speed of disposal. Selling shares is nanoseconds, property somewhat longer.

The folks in Immigration are looking for cash, as, apparently, that says more about you than property ever can. 

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From Investopedia:

Liquid Asset

"An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally regarded in the same light as cash because their prices are relatively stable when they are sold on the open market...

...Liquid assets include most stocks, money market instruments and government bonds."


Illiquid Asset

"The state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets also cannot be sold quickly because of a lack of ready and willing investors or speculators to purchase the asset...

...Some examples of inherently illiquid assets include houses, cars, antiques, private company interests and some types of debt instruments."

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Ah quite correct.

Well they are nuts if they think I have 100,000 USD available in stocks and bonds!

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hi, Old School,

I doubt that Immigration and the Ministry of Tourism sees things that way. They are setting minimum levels of financial worth for the MM2H scheme.  Prior to 2006 the requirements were less onerous, and under the Silver-Haired Programme they were even easier. I imagine that a mix of inflation, expectations, and experience have taken a toll.

On this site there's a whole Board on M2H Alternatives.

And have a look at the "Sabah and Sarawak" topic, also "Help, Can I apply," as Sarawak has different requirements.