Nottingham, United Kingdom (PressExposure) April 13, 2008 -- Some will say that Malaysia shouldnât be called an emerging market because, as an ex-British colony it has been popular with overseas investors for a while, and because prices are already slightly higher than other emerging markets in Asia and around the world.
However, as Asia continues to be the worldâs biggest economic growth hotspot, there is still plenty of room for economic expansion in Malaysia, specifically from the ever growing tourism industry, which will see house prices grow strongly in the coming years. For that reason, I have felt compelled to include it as an emerging market and also because in my opinion, for those with a fairly big overseas property investment budget it is one of the best places in the world to make an overseas property purchase.
The government has and is always taking steps to encourage foreign investment, and this has led to a whole host of benefits for overseas investors:
There are no restrictions on foreign ownership, in fact foreigners are automatically granted residency in the country upon completing their purchase. Many of the laws are left over from the British colonial era, which is reassuring for people because they can easily understand the laws governing their purchase, it also means the buying process is easier than in other Asian countries. There is no inheritance or gift tax, and capital gains tax is on a sliding scale, from 30% at the beginning to zero after five years of ownership.
This economically friendly environment and easily understandable judicial and financial systems have also led to another massive plus for an investment in Malaysia: western banks like HSBC, United Overseas Bank, and Standard charter have set up shop in the country. That and the fact that the big Malaysian banks like Maybank will happily provide mortgages to foreigners, mean that unlike many of the other emerging property markets, and/or highly desirable destinations, buyers can easily get 70% Loan To Value mortgages to finance their Malaysian property investment.
This unrestrictive and westerner friendly economic and judicial environment is also undoubtedly a reason for Malaysiaâs booming tourism industry though probably not as much of an attraction as itâs tropical climate and the sheer beauty of the place. Take the beach front Nexus Resort, a five star hotel on Sabah beach Borneo. Set in lush tropical gardens the Nexus hotel has won 17 awards in five years of operation, including the Virgin Gold Holidays award. The resort has a golf course, spa and swimming pool.
David Stanley Redfern Ltd are currently offering a range of 1 bedroom spa villas from Â£115,000, and 2 bedroom pool villas (with private pools) from Â£200,000 on the beachfront resort. The properties will be serviced by hotel staff and their rental managed under the hotel brand, which means they have a guaranteed rental yield of 7% per year for the first five years, at which point CGT will have dropped to zero, this is an excellent opportunity for part time investors, who could then sell, for a no doubt huge profit, not cut into by CGT, and then invest in another rental managed property in another emerging market.
David Stanley Redfern also has properties in the capital Kuala Lumpur, 4-6 bedroom apartments from Â£271,000 on the Tijani 2 North development in Kenny hills. Tijani means jewel in Arabic, a name befitting of the developmentâs Kenny Hills location, the most exclusive area in Kuala Lumpur and in fact Malaysia -- the Sultan of Brunei has a home there, need I say more?
Find out more about Malaysia investment property at http://www.davidstanleyredfern.com/investment-property/Malaysia/