Settling in Malaysia - Decision & Transition

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Breathless - I guess you are referring to Balik Pulau, which is the western township of Penang. It is a lovely spot, very green and also very remote. But it is slowly changing, with an international boarding school being build there. The wet market is also very interesting and the place is popular with the Penang laksa, probably one of the best, and Char Koay Teow. Personally, I have not explore the area yet. But have driven past when touring around the island in a car. I was initially thinking of a landed property there, but then decided if that is what I want to do, I may as well continue living down here in Tasmania countryside, so pristine and peaceful with unobstructed water view, with beautiful wildlife including Wedge-tailed Eagle and frequently see dolphins swimming up river catching salmon and trout.

I chose Penang because it is sophisticated, yet still very layback with friendly people and yes, safe. But, be careful with motorbike handbag snatch thief.

I also like the idea of being around similar like minded expats, and Penang has lots of expats after KL. I think Penang will always be a popular choice of living for expat, after KL and Singapore. It has a strong colonial influence during the British empire. Did anyone know that George Town is the first place colonised by the English. God help us!  So Penangites are quite westernised in a sort of way, but yet the culture and heritage are still very much intact. It is a good mix of East meets West, and is a real multiracial melting pot in a tiny island. Malay, Chinese, Indians, Eurasians, Thai, Chinese, English, Germans, Japanese, Australians....and many other nationalities.

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Hi guys,

A question has just struck me. It probably belongs in the rent v purchase thread but I'll post it here anyway.

An MM2H immigrant must purchase a property valued at RYM500k, as I understand the latest provisions. But during my sojourn in KL and Penang earlier this year, I met a couple of expats doing the visa run who owned and lived in property valued at less than that. They effectively bought a holiday home as ordinary investors.

What is their position if they then apply for, and are accepted for, MM2H? Are they expected to sell their holiday home and buy another valued at 500k? And if not, what is to stop people buying a cheap property while doing the visa run and then applying for MM2H, thereby circumnavigating the proviso?

Anyone?

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That is a very interesting question, Torq.
I hope someone has done it and has an answer, so my partner can do the same. Must be a loophole. 

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An MM2H immigrant must purchase a property valued at RYM500k,

You can buy a property but it's certainly not a requirement. If you decide to buy one it has to be at least 500K (750 in Kuantan).
So the couple can stay where they are. I suppose that they will not be eligible to lift part of their FD after a year so they have to leave
the whole amount (150K or 300K depending on age) in a MM2H FD.

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Hi Torq

you misunderstand the new rule. It is not a rule for mm2h only but for ALL foreigners who want to buy a property. Before the value was set at 250K (most states), where now the min value has to be 500K (again - most states, Kuantan is a little overdoing in that point with 750K).

But in any way... where there is a will there is a way... I wouldn't give up a property, which I would like to buy, but it would cost f.e. only 420K. You can arrange with the seller to put the renovation work into the contract, or furniture etc and he officially buying that staff for you and you buy it as included into the property.
If the difference would be only 10-20K you even can handle this as a commission, which he pays back to you. You only need to compensate him for 5% PGT (property gain tax) which he has to pay on the higher sales price.

Just my little thoughts for that...

Ciao

Udo

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Hi Torq

you misunderstand the new rule. It is not a rule for mm2h only but for ALL foreigners who want to buy a property. Before the value was set at 250K (most states), where now the min value has to be 500K (again - most states, Kuantan is a little overdoing in that point with 750K).

But in any way... where there is a will there is a way... I wouldn't give up a property, which I would like to buy, but it would cost f.e. only 420K. You can arrange with the seller to put the renovation work into the contract, or furniture etc and he officially buying that staff for you and you buy it as included into the property.
If the difference would be only 10-20K you even can handle this as a commission, which he pays back to you. You only need to compensate him for 5% PGT (property gain tax) which he has to pay on the higher sales price.

Just my little thoughts for that...

Ciao

Udo

Ah, that explains it, Udo. Obviously these properties were bought when the threshold was lower.

And I thought I had found a loophole!     

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hi, torq,

Out of interest, the threshold started out as RM150,000. It was upped to RM250,000 at the end of 2006. And upped to RM500,000 on 1st January 2010.

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Cheers, Scott. It won't matter to me, I imagine. I'll be renting. My days of buying property are over! 

So I've been told by my chief accountant -- better known as she who must be obeyed! 

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Just for the record - the threshold is £300k in Sarawak.

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Malaysia among top 7 affordable places to retire Abroad?  Seems so from this article posted June 2 in US News & World Report Magazine by Kathleen Peddicord...

Retirement an be about elevating your standard of living and enriching your lifestyle, even if you have only a modest nest egg. And retirement can begin at any time and any age. To do this you need to shift your perspective and look beyond our own borders.

The idea of relocating to another country, in retirement or otherwise, can be intimidating. To pick a place, start by figuring out how much money you have to live on in retirement. Tally the equity in your home, the value of your IRA or other retirement accounts, your Social Security or other pensions, your car, other property holdings, collectibles, and household goods.

After you’ve taken stock of what you own, take a good look at who you are. Make a list of your personal priorities and preferences, your interests and agendas, and your objectives and goals at this point in your life. What could you not live without?

Then compare your personal priorities against the world’s most interesting, appealing, and affordable places to spend time. There are at least 25 countries where you could live well on very little. Here are seven of my picks for the world’s top retirement havens.

1. Panama. In many ways, Panama is the world’s premier overseas haven. It’s certainly the best choice if you’re considering launching a new business as part of your new life overseas.

2. France. France is far more affordable in some regions than you might imagine and delivers an unparalleled quality of life for every euro invested.

3. Uruguay. You’ll be far removed from all the troubles of the rest of the world in this safe, stable, and welcoming country.

4. Belize. With both Caribbean island and inland highlands living options, this is a country where life is sweet and simple.

5. Mexico. Mexico is a good choice if you don’t want to move too far from children or grandchildren.

6. Croatia. This is the new and far more affordable Tuscany.

7. Malaysia. My top pick in Asia is not only super-affordable but also, unlike most countries in this part of the world, open to foreign retirees. Malaysia has straightforward, user-friendly options for establishing foreign residency.

Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 25 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter. Her book, How To Retire Overseas—Everything You Need To Know To Live Well Abroad For Less, was recently released by Penguin Books.