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In this episode, we will address the hidden spots for potential foreigners who are planning to retire in Malaysia. Everyone are always focused on popular locations such as Mont' Kiara, Damansara, Bangsar and etc. Those are fine but for retirement, there are way more value around the town.
Also, this is an example of how everyone should work towards. Having multiple properties to pay for their lifestyle via the rental collected.
12:01 Yes I always think Malaysian are so rich when I see Starbucks are always full😂
UK £3/cup average but lowest wage is £10.42/hour now for an adult over 23 year old. So they pay at least 3 cups of coffee for the staff per hour. In Malaysia, how much Starbucks pay their staff when they charge average RM15 per cup?
From my observation over 20 years, the spending power in Malaysia KL vs UK London is around 1:3 (with the current currency exchange). Let’s say your lifestyle in the UK need £3k, and you want the same lifestyle in Malaysia, you need around RM9,000 to maintain.
I'm a foreigner working in Singapore. Me and my wife decided to buy a property in JB area. Due to the over supply of properties, the minimum requirememt is lowered down to RM600,000. We thought that we should take advantage of the current lower value before government raise the required minimum property purchase back to RM 1 million. The development where we are buying our property now has 70% occupancy rate. A good increase compared to 2 - 3 years ago.
Mind to share which property is it?
Welcome to Malaysia Arkitotoyz!!
@@coeurblanc4999 We chose Country Garden, Danga Bay. Same developer as the Forest City which was controversial during the past couple of years. I suggest you visit the area and see the community.
@@iherng Thank you! Pleasure to be greeted by you.
I ❤ Malaysia 🇲🇾 Hope to get a business visa or a MM2H 🎉 Thanks Sean for another great informative video 🏆
I started my property investment journey using maximum loan from banks with as little down payments as possible. After a few yrs, I found this method to be fruitless as all the rental returns just ends up in the banks pockets. Then I sold all of my properties, reset and bought new properties using cash only. I can say, it's much much more fruitful as I get to see all the rentals returns accumulate at a much faster rate. So much so I left my job and go into it full time. Never looked back since.
Thanks for sharing Aaron. How I wish I can do so too hahahahaha. The main issue is by the time I accumulate the required cash, the property price would have increased. Then it will be a never ending chasing game.
Even if I have the said cash, it makes more sense to still get loan but park the cash into the account to knock off the interests. In this case we get the flexibility for emergencies. But for me, I would definitely put my money in some other investment assets because housing loan is one of the cheapest financing product to leverage on.
@@iherng Hi Sean. I see what you mean. If your intent is to also invest in other asset classes, then it makes sense. But a food for thought, if you think about the amount of rental money that channels into the banks after the full loan tenure is paid up, even considering that it's coming from tenants, you would start to reconsider your strategy. That's what happened to me. The banks are using the owners to make interest margin returns on properties. With the increasing interest rate we are facing now, it just helps the banks more.
@@leeaaron7856 Why would you care that banks earn interest from you if your rental can breakeven with your mortgage? You could have owned 3 or 4 property instead of 1 if you leverage correctly. After 30 years, yes you paid more interests to the bank, but you also got yourself more property than you would have if you didnt. Imo, you could have used the money to leverage more and buy another property even if you are not investing in other asset classes. The key is to make sure you dont overleverage yourself and have enough safety margin to play with. But of course some people have diff level of risk appetite, it s not for everyone. I myself would consider putting extra money, say 1 or 2 years mortgage amount into the flexi account just to be safe before considering buying another and leveraging for more.
@@goldenamour3730 You see, it really depends on what your investing strategy is. If your strategy is to acquire as many properties as possible by leveraging from banks, then you will have to run at a higher risk of much higher costs because of very low returns. This puts the investor at the mercy of the banks to which he owes. For me, its not about how many properties I want to own, it's about maximizing the returns on each property that I have. I would rather have 1 property fully paid, enjoying 100% returns than 3 properties, leveraged 70% and only earning 30% returns. And, a property leveraged at 70% contains a floating interest rate cost which is not controlled by the owner. So it boils down to your investment model at the end.
Great information Sean. 👍🏼 Keep in mind, HDB aka Public Housing is subjected to Singaporean and PR purchase only. There is a cap on income ceiling for buying a new Public Housing for couple combine income of not more than S$14,000/-.
If one is selling, there’s no guarantee of profiting unless if you are referring to those who have bought probably a decade ago and also subjected to a list of regulations if you are to purchase the next property.
IMO the Public Housing prices are insane. Where on earth a Public Housing that will cost so much else where! 😅
Malaysia will be a good place to retire and it’s sustainable. 😊
Adding on, because it's strongly propped up by rental income as well. ANY location in SG also can find tenants. So even if the HDB-buyers can't afford it themselves, they can simply stay with parents and let the rental fund the mortgage. Average 4-rm flat (~800sqft) costs 450k - 500k now, after subsidies it can be about 350-400k. They can rent out the entire unit for about 3k, or 2 rooms for 1k each and even staying in it themselves.
At 2k monthly, it's already 24k per year, about 6% yield AND living in it. If rent out whole unit, it's 9%. Singaporeans can also take HDB loan of up to 90% unit value which say a 300k loan, 2.6% (HDB loan is always at this rate), only about 1.6k monthly. So possibly can cover mortgage, earn some money, AND still stay in it. I am not even considering property price appreciation which seems to be going up non-stop for past many years already.
So what Sean said is true, if you can buy HDB, SURE CHOP earn money, it is literally impossible to not earn money if you get a HDB unless world war 3 breaks out or something.
@@xSerizawa the rental rate were driven up due mainly to the influx of Expats from North Asia and other parts of Asia.
It's true HDB owners are suddenly enjoying the win fall which is a great opportunity for them to have that extra income.
Renting out a HDB is different from a Private Property as you need HDB approval (Subjected to HDB terms and conditions ) before you can lease out the whole unit applicable to BTO & MOP. Unless one its taking it at your own risk.
Let's hope the high rental yield will continue to benefit the HDB dwellers!
@@xSerizawa renting out HDB is another story. Not everyone wants to stays with strangers or can stay at parents place.
I think Sean is referring to capital gain. Capital gain on BTO is confirmed after MOP.
But resale is another story, recently those 1 million resale HDB is hard to have capital gain due to the lease decay.
Furthermore when you look into HDB price history, when you bought it at peak, you might need to wait like 10 years to come back at the price you bought.
Eg. 2013 > 2020
The price index shows HDB bought at 2013 break even at 2021.
Not all HDB makes money.
data.gov.sg/dataset/hdb-resale-price-index
ya lo. so kelian for renter. but such a good news for owning a house in SG, boom millionaire lo easier
Another excellent video Sean! Malaysia is definitely underrated and frankly let's keep it that way so less competition for me (LOL)!
I like your channel , keep up .
Appreciate it Rohana❤️
Just wondering whats the lyric of the song at the end of the video?
Why lock down your hard earned money into illiquid asset when retired. Investment horizon is so short and you might need cash if anything unforeseen happens. Liquidity is important when retired. Buy one to stay and invest the rest on low risk for cash flow. Living on 4% withdrawal strategy annually on your investment asset is a good way to start.
No sure if I miss this.. better to put the money where it works harder. Ie. Property in Singapore with rent. Then rent in Malaysia.
Well that's the best lah!!
Well said and informative as usual 😃
Thanks for watching Indder:)
Hi Sean. If this couple come to Msia and they are not working here, how are they going to get a bank loan. While the rental income from UK may be considered by the bank, this wont support anything significant towards a RM1m propoerty right?
That’s provided they’re not working lah. But they can always apply loan while still being in payroll mah hehe.
Well unless the rent is collected by a company, then there’s a payroll or dividend payment scheme from the company to the applicant then it can be considered.
Great question!! Let me make a full episode on this;)
Why is Wangsa Maju famous with expatriate?
Mainly because of it's complete amenities with the proximity to KL City Center.
22:35 yes you are😅great stuff though
Hahahahahaha!!
renting is far economic n saving in my pov...i wonder,y not they buy prop in sg n rent it out n earn sgd?feasible shawn?
They can only buy private property and the 60% stamp duty doesn’t make sense to them at all for investment.
@@southadam yes,correct,only non hdb...60% is crazy!least costing priv prop in sg how much?sgd 1mil upwards?
That would be the logical way actually Nazrojean, but SG government is strongly against using property as an investment tool! That’s why even when they got capital, they need to invest outside of Singapore.
The property market in SG would be far worst in affordability if there aren’t any cooling measures in place.
@@nazrojean7128 non studio? 2 bedders- 1.5mil onwards. Studio too expensive for psf
@@iherng there is an influx of hot money into the private property from the “east”. The 60% deterred. This is the so far harshest cooling measure for foreigners.
As for local, first property still 0% absd.
Some might not owned HDB but stay with parents, could afford the private property.
Malaysia property current situation is buy for yours next generations. If not all yours cash will stucked n feed bank interest.
Great stuff shared iherng! Very good for retirement in Malaysia
so you also invest in My properties? How about Sg properties?
Bring foreigner they need to pay very high tax rate on rental income?
20%
@frederickho348 I read it's a whopping 30% for foreigners 😥
👋🏻😍😍❤👍🏻👍🏻✌🏻🙏🏻
14:00 won't the interest saved up worth the cash buy? If I have cash to buy a property in one go and rent out, won't the near 100% rental return worth it?
I think he covered this a while ago.
For him, even if he has the cash, he'd take the loan. Because his ROI is higher than the 4% interest from loan. Then use the extra cash to invest in another property or elsewhere.