Investing into Malaysia Real Estate

Direct Foreign Ownership with No Capital Controls

Non-residents are free to buy residential and commercial properties in Malaysia but all purchases are subjected to a minimum of RM500,000.

Transparent Torrens Land Administration System – same as Australia

Real Estate Investor-Friendly Tax Environment

– In Budget 2012 Malaysia a new structure of RPGT, Real Property Gain Tax, was introduced as follows:

1st year 10%

2nd year 10%

3rd year 5%

4th year 5%

5th year 5%

6th year 5%

Repatriation of Income is allowed

– Bank Negara Malaysia  does not impose any restriction on the repatriation of profits, rental or proceeds fromdivestment of investments in Malayisa by a non-resident.

Foreign Investment Protection in Malaysia

– Investment Guarantee Agreements (IGA). Malaysia has entered into an IGA with South East Asian Nations (ASEAN) countries, the Organisation of Islamic Countries (OIC) and more than 50 other countries to increase the confidence of foreign investments in Malaysia.

Investment Guarantee Agreement will:

– Protect against nationalisation and expropriation

– Ensure prompt and adequate compensation in the event of nationalisation or expropriation

– Provide free transfer of profits, capital amd other fees

– Ensure settlement of investment disputes under the Convention on the Settlement of Investment Disputes.

Development of Iskandar Malaysia is on track has exceeded Phase 1 target set.

Johor is an upcoming real estate growth, playing catch up vis-a-vis hot spots in Klang Valley, KL & Penang.

Demand for housing of corporate staff & growing student population.

Economic outlook for Johor is compelling due to national and state government’s intense commitments. ITs property market cycle is largely seemed to be in its inception stage now.

Investments from Singapore firms/developers are growing and expected to reach record high in 2012 and beyond.

Singapore buyers keen on Nusajaya projects

by Cheryl Tay
Propertyguru 13/6/2012
Singaporean buyers have shown keen interest in Nusajaya  projects in Johor, which is good news for developer UEM Land Holdings Bhd.
Datuk Wan Abdullah Wan Ibrahim, Managing Director and Chief Executive of UEM Land, said that the recent move to tighten housing regulations in Singapore has impacted purchasing power in the country.
“Generally, our Singaporean neighbours are in favour of higherend developments, especially projects with strong security system, lush green environment and are lifestyle-driven.”
In April, the government announced new, tighter rules to ensure that developers would provide accurate sizes and layout of apartments, in a bid to protect buyers less familiar with the property market.
As a result, more Singaporeans are expected to buy in Malaysia due to the tightening regulations in Singapore, according to Steve Melhuish, CEO and Founder of PropertyGuru Group.
He added that property prices have reached an all-time high and slight price declines are pushing Singaporean buyers to invest elsewhere.
Wan Abdulah said, “Approximately 50 percent of our total purchasers in Nusajaya are foreigners while the remainder are Malaysians.” UEM Land’s Nusajaya is one of five flagship zones in Iskandar Malaysia — the first economic growth corridor in Johor.
The developer has four ongoing projects in the area, namely East Ledang, Nusa Idaman, Puteri Harbour, Nusa Bayu and Horizon Hills, a joint venture (JV) with Gamuda Land Bhd.
“Our luxury garden residences, East Ledang and highend condominium, Imperia at Puteri Harbour received overwhelming response from the Singapore buyers,” he added.
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