Settling in Malaysia - Decision & Transition

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ZERO TAX, this is enough reason for me. I am still working and was about to have to start paying the better part of 47% tax in Aus, something I hadn't done for the past 12 years. I couldn't afford not to move. We cetainly don't have any regrets.

Myself and my wife have been approved for the MM2H visa and will pick this up, I hope next week. We rent an apt in Penang and are in the process of selling everything in Aus. Not sure we will buy as I'm not to familiar with the real estate market here and we can get pretty good returns at the moment for fixed term deposits.

We have been here now for approx 6 months on and off and so far no major problems or hurdles that cannot be over come with a bit of research. You want to try and open a bank account in China.

We love the fact we can walk out our door and choose from at least 7 nationalities when it comes to food, the people are friendly, the crime rate is relatively low, the weather is great, petrol is cheap, cost of living is way cheaper than Aus.

I can put up with the broken pavements, open sewers, bad drivers etc etc just as long as my income remains tax free.

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ZERO TAX, this is enough reason for me. I am still working and was about to have to start paying the better part of 47% tax in Aus,

I can put up with the broken pavements, open sewers, bad drivers etc etc just as long as my income remains tax free.

Are you sure?

It seems to me if you are a non-resident and getting income derived from Australian companies, shares, rents etc that you do have to pay tax and at a higher rate. But it does appear that you dont have to declare overseas derived income.

From the date you cease to be an Australian resident, there is no need to disclose your foreign source income in your tax return. Also, all Australian sourced interest, dividends and royalties derived after you ceased to be an Australian resident are subject to the withholding tax provisions as a final tax and should not be included in your tax return.

http://www.ato.gov.au/individuals/content.asp?doc=/content/29089.htm

http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm

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All income is derived outside of Australia and Malaysia, so yes I'm sure.

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hi, spider,

Thanks for that. Nice dad.

BTW, Harry Rodger Webb is Cliff Richard.

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hi, rspec,

Congratulations on the approval. 

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hi, spider,

Thanks for that. Nice dad.

BTW, Harry Rodger Webb is Cliff Richard.

Yeah Mate,

I knew Cliff Richard's "real name".  I suppose I should explain to some that pre-decimal currency a bob was slang for a shilling (10 cents).


Bob

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All income is derived outside of Australia and Malaysia, so yes I'm sure.

Lucky you
I was confused by your comment of 

I am still working and was about to have to start paying the better part of 47% tax in Aus

Now if only I can figure out how to get some outside of Australia as well, without selling up my property

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Sorry for the confusion, should have stated that I work outside of Australia, the company I work for pay my taxes at source.

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Hi Breathless,

Any idea about prices since I could not find this data on web site you provided ?

Thanks,

James

Has anyone looked to the Western side of Penang Island?

http://maps.google.com.au/maps?f=q&source=s_q&hl=en&geocode=&q=penang&sll=-25.335448,135.745076&sspn=64.025322,114.169922&ie=UTF8&hq=&hnear=Penang,+Malaysia&ll=5.372364,100.218894&spn=0.017988,0.027874&t=h&z=16

Last time we were there we rented a car for a couple of weeks and spent a bit of time driving around on this side and it was very quiet, green, almost uninhabited in comparison apart from some new subdivisions with this style of house on them


Heres the website for that subdivision

http://www.botanica-ct.com.my/

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Hi Breathless,

Any idea about prices since I could not find this data on web site you provided ?

Thanks,

James

Some listings here

http://www.google.com.au/search?source=ig&hl=en&rlz=1G1GGLQ_ENAU304&q=botanica+penang+for+sale&meta=lr%3D&aq=f&aqi=&aql=&oq=&gs_rfai=

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This site has a comprehensive listing of Penang properties both on the Island and the mainland:
http://www.apartment-penang.com/

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Hi Guys,

My thinking on transitioning to Malaysia has evolved a little based on superb feedback from this Forum. Our situation is that we have a 1 -2 year transition period (ie waiting for our youngest to complete uni & get established) - I have already retired (at 52).

Initially, the approach was very simple - rent for a while in Penang & then buy. Now, I am not entirely convinced about rational for buying given low capital appreciation rates/rental yields/high strata costs against flexibility of renting a fully furnished condo in say Penang Times Square for about 3000RM per month including all utilities (perhaps some of you may know better rental options ??). On the other hand, I appreciate the case that home ownership is not a purely economic decision. We may well end up buying but there is at least a case for periodically renting during the 2 year transition period. 

The other change in approach is to check out the other popular areas in Malaysia - Malacca, Kuantan, Perek & Ipoh. So, it makes sense to visit these places & spend a bit of time since we have 2 years to make a final decision plus I have time on my hands. In nothing else, it may simply reinforce that Penang is No 1.

So, would appreciate some feedback whether people have weighed up the buy/rent decision & if they have investigated other areas of Malaysia before deciding on Penang ??

Many thanks,

James

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Mr G loves Penang and I come from Penang. Both of us loves the food and ever since March, we hired a car and I realised that the drivers are polite. They simply adjust their speed to let me in when I found myself in the wrong lane and don't stick their fingers at me.
BTW,we just got our 10 year visa. The agent did all the leg work and it didnot cost me a bomb. Medical check which he arranged for us was RM50, that's probably the minimum price.

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hi, georgeshooter,

That's great about getting the 10-year visa. I find driving in Malaysia is easy. Take it slow, don't expect indicator signals, and drive an old merc because anyone with a Proton isn't going to risk banging into it.   

Oh, yes, avoid any Protons that have been "made over."  They're easy to tell as they've usually been sprayed yellow. Also the Protons with thump thump exhausts. These are often black, tinted windows, and run-down as the owners spent all the cash on the impressive exhaust. 

hi, james200,

There's already quite a few posts on topics on the buy/rent issue. The first, given below, develops into a very interesting thread.
Have You bought Property in Malaysia as a MM2Her
Purchase v Rental

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hi, james200,

There's already quite a few posts on topics on the buy/rent issue. The first, given below, develops into a very interesting thread.
Have You bought Property in Malaysia as a MM2Her
Purchase v Rental



Thanks Scott - have just glanced at that thread: appears that buy/rent equation is marginal from financial perspective !

James