Real Estate in Penang

Today I was looking up some price-lists about Penang.

Compared to 5 years ago, prices are cheaper now and there is a remarkable supply of condominiums for sale to foreigners. - Also plenty of rental offers.

If used together with the 5 year retirement visa (which gives you the right to bring wife and maid with you), Malaysia is now getting competitive with Thailand.

http://www.penang-pr...rtment_sale.htm

I was looking through this real estate broker, nice offers.

Considering that Thailand requires you to renew your visa every year, and requires a deposit not only for you, but also for your wife and does not include even your children, Malaysia is getting somewhat more interesting.

1000 Malaysian Ringgit is now less than 10000 baht.

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Financial requirements for Malaysia are now easier than Thailand, if 50 years and above

May either choose to:
- Opened a fixed deposit account of RM150,000.00 or USD40,000; OR
- Show proof of monthly off-shore income of RM10,000.00 or USD2,500 (such as a pension scheme).

After a period of one year, participant who fulfills the fixed deposit criteria can withdraw up to RM90, 000.00 or USD25,000 for the purchase of house, children education or medical purposes in Malaysia.

Participant must maintain a minimum balance of RM60,000.00 or USD15,000 from second year onwards and throughout stay in Malaysia under this programme.
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Visa fee: RM90.00 per year is charged for the issuance of a Social Visit Pass, renewable 5 years x 2 = 10 years.
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For SINGLES over 50 years old:
Single Participant with fixed deposit of RM100,000.00
Can withdraw up to RM40,000.00 for the purchase of house, car or invest in local share market,
must maintain a minimum balance of RM60,000.00 from second year onwards and throughout stay in Malaysia.

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This all is some good reason to look away from Thailand, up to now Malaysia was not really competitive, not in financial terms, not for buying your own house - and you can buy the land of your house in your own name in certain areas, not only condominium.

It seems like both countries are moving the goal posts, but in different directions.

Thailand is making it more difficult for foreign retirees and Malaysia is making it easier..

TizMe, on 2007-09-20 21:46:13, said:

Yes, Malaysia changed the rules, and I think, it is very moderate to require a married couple, 50+ from overseas to keep a fixed time deposit of about baht 550.000,- (RM 60.000,-) in return of a 5-year retirement-visa.
Even these 5 years are now under revision and there will be soon a 10 year retirement-visa, renewable.

Entering Malaysia as tourist was always easy, passport, no questions, 3-months permit at the border.
I am surprised to see the prices for real estate in Penang, which can be bought by the foreigner - no difference to Thailand anymore, if you ask me.
However there are still restrictions, and as foreigner you cannot buy any kind of real estate, only upper class property.


If you are not really into Thailand, it might be interesting to check it out further...no military coups, still modest pricing, quite safe and clean, no language hassles and most important, no visa troubles.

Interesting webpages about retirement in Malaysia

http://www.expatexpo.com.my/index.php

http://www.mm2h.com/

This post has been edited by yohan: 21 September 2007 - 12:38 AM

Excellent timing...
I am looking to buy a house on Penang. Firts to rent and later to live in

Who could help me here

KIR

I can't remember how many visa runs I made to Penang back in the, and I never tired of the place. It is a very nice place because it still has that old world feel with it's multi-cultural atmosphere and beautiful architecture. Bangkok seems to get more ruinous by the day.

This post has been edited by mbk: 21 September 2007 - 10:54 PM

KIRBACH, on 2007-09-21 17:37:46, said:

I gave 3 links in this thread, please study them carefully.
In Malaysia you MUST have first of all the visa for retirement, and AFTER you can buy.

The usual way is to rent for one year, and to look what is suitable to buy. After 1 year you can withdraw most of your deposit, only RM 60.000,- must remain as a fixed deposit.

The money you withdraw MUST be used for investment, which means to buy your own accomodation.

Please keep in mind, that foreigner can buy only upper class housing with a minimum value of RM 250000,- (about 2.3 million Thai baht) - it might be not only condominium, but your own house including land.

As a real estate broker in Penang told me, this is quite a lot of money, and to come up with RM 250000,- they never supply an empty home for foreigners (most Malaysians prefer for a cheaper price a totaly empty shell), but they give top-quality furniture inside, including top-class kitchen appliances etc. and then sell that unit as a package for RM 250.000,-, which is legally correct for transfer to a foreigner holding retirement visa.

The visa valid for 5 years does not oblige you to buy anything. The retirement visa does NOT include any labour permit and is not for foreigners married with Malaysians.
The visa might include spouse, minor children, maid and under certain circumstances also parents might be invited for long-stay.

mbk, on 2007-09-21 23:53:29, said:

I got the impression, the Malaysian Government is thinking about in the same way. Getting more realistic about foreign tourists, especially long-stay.

During the last years, there were a lot of complaints by real estate brokers in Malaysia, unable to sell even upper class property to foreigners.
All these ideas as a Muslim country, to be open for rich Arab people... they have to admit now, this business did not work out, most Arabs still travel to France or UK and Italy etc... and buy property in Dubai or Bahrain...

On the other side, there are plenty of complaints by Malaysian officials about the Thai visa-run. Foreigners are going to the border, get 3 months permit, and just go to the other side of the street back to Thailand...some others go to Penang, take a Thai tourist visa and are gone...

As I saw during the last month in various forums, there are plenty of complaints of such foreigners in Thailand, who do not have a Thai wife or are single. (I also have a Japanese wife, not a Thai wife)

These foreigners are retired or often 50+ already, their wife is not a Thai national, they have retirement allowances and are often financially good off with savings - but in Thailand they have only a company-owned house, which is creating recently a major source of concern and hassles, are requested to pay a deposit with no interest in return, and need to report every 3 month on a 1 year visa.

Not a bad idea to try to get some of these people 'over the border'....

To move over to Malaysia, a foreign couple in Thailand needs about 3 million baht.
For this you get a very nice condominium or house in your own name - including excellent furniture, still have a deposit of half million baht left over - and you get a visa 5 years and extension-rights for another 5 years = ten years no hassles. Retirement-visa-rules also say clearly, any income from abroad like retirement allowances (or of course all what you bring over from Thailand) is tax-free.

This post has been edited by yohan: 22 September 2007 - 02:22 PM