Posted by
OffThePeak
11 yrs ago
MALACCA Malaysia thread - Hotspot?
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Anyone been there?
Is it nice?
Would you want to Live there?
Or Buy property there?
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To give you an idea of what I am looking at:
http://tinyurl.com/GEI-Melaka
(At HKD 520 per sf, it looks very cheap)
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Ed
11 yrs ago
Been there many years ago... seemed like a quaint town... when you mean live there do you mean retire there? Or move there to seek work?
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Ed
11 yrs ago
It's amazing how little value we get for our money buying in HK eh... 2M can't even get you a box in an old walk up in Sheung Wan these days!
I don't know enough about Malacca to comment specifically but my general thoughts would be that it's the people as much as the place that makes a place livable....
Had dinner with a couple here in Bali last night - they were just in France for 5 weeks looking for property deals... the prices particularly outside of Paris have absolutely cratered... they mentioned one place that the owner had sunk over 3.5 million Euros into was now on the market asking 800k... and that it could probably be had for 500k... this was in a very quaint town near the spanish border...
They have backed off buying after having toured around France - in their words they said 'you could feel the desperation' ... shops are shuttered... economic activity is moribund... they reckon it's too early to bottom fish...
A hotel owner in Seminyak in Bali was saying that the European tourist trade to Bali has dropped off to almost nothing...
Anyone who is believing the bs that Europe's crisis is over is dreaming - the nightmare is just beginning....
No doubt there will be some buying opportunities in Spain, France, Italy etc... not sure what residency rules are like for retirees though....
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Yeah - but if you live in France, you may get stuck with French taxes.
(One of my friends from Singapore will fly off the Spain at the end of the year, where he thinks he can buy some property for a bargain. But I think he may be a bit early.)
The big Advantage of Malacca is that it has some wonderful history, and it is a tourist magnet which attracts more and more tourists each year. But the Old City has become too crowded, and so they are building a new city, with its own attractions next to it, with better highways links.
This new area will feature some museums, including one dedicated to Admiral Cheng Ho who was from Malacca and sailed halfway around the world in historical times. It is hoped that this will attract many new Mainland Chinese tourists, who will come to Malacca to find history that they can no longer find in their own country.
Another big advantage of Malacca is that it is halfway between Singapore and Kuala Lumpur. An express rail train between those two cities should be in operation by about 2020. It is planned that there will be a Malacca stop, which could make it easier to move tourists from those two locations.
The planners of the new Cheng Ho City area are also hoping to build an International Financial Center on part of theit landfill. But that dream is probably at least 10 years away.
/Cheng Ho City, website: http://chenghocity.com/
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OTP,
Great information. Thanks. Will be following this thread.
Ed,
Family members recently went to Bali and said that the tourism workers said the same thing - European visitor count in Bali has cratered.
I think buying in European property is too expensive for the risk involved right now. Prices are by no means a bargain and there are all sorts of weird risks involved with taxation, confiscation, anti-foreigner hostilities, or all out war in Europe (its been known to happen.....). However, prices in Ireland are crazy cheap and it is far more insulated from European risks thanks to its location / history / culture / Britain.
Anyhooo, Malaysian property is interesting. Good thread.
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Ed
11 yrs ago
It's my understanding that prices in Spain are not totally imploding only because if the banks were to sell off foreclosed properties at market value they would have to write them down on their books which would implode their balance sheets...
So they sit these properties on their books no doubt marked to fantasy land pretending they are solvent and that the market will eventually recover and they can sell them at this fantasy land price...
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(we are going down to Melaka to have a look next week - and so I will post a few more notes here)
Melaka to become a "powerhouse for tourism" ?
http://www.youtube.com/watch?v=CFBibgFznuM
Here's some useful background on Meklaka from one of the online property services:
Teeming with history and drama, Melaka is a must-see on any tourist’s itinerary in Malaysia. Its people, many descended from foreign countries who married and settled down here, have a culture and way of life distinct from the rest of Malaysia, so much so that UNESCO has named it a World Heritage Site in July 2008.
Earning that recognition comes easily as Melaka is the only state in Malaysia that has been conquered by successive foreign invaders intent on monopolizing its trade routes during those golden centuries when it was the trade centre along the Straits of Malacca (as it was then known).
. . .
Covering an area of 1,950 km sq, Melaka is divided into three regions - Alor Gajah, Central Melaka and Jasin taking its place as the third smallest state in Malaysia. Located in the west coast of Malaysia facing the Straits of Melaka and in the southern region of the peninsula, the state capital is Melaka Town.
Located 147 kms south of Kuala Lumpur, it is bordered by Negeri Sembilan to the north and Johor to the east. Its population as of 2007 was 759,000 with 57% of the population being Malay, 32% Chinese including the Peranakans and Indians, plus those who are partially Portuguese and Dutch Eurasians falling into the minority.
Transportation
Transportation in Melaka is versatile with express buses traveling to all major towns in the country and Singapore. Bus services operate from two main terminals at Melaka Sentral, off Jalan Tun Abdul Razak. The taxi centre is also located there.
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/more: http://www.iproperty.com.my/property/featuredByStateWriteUp.aspx?ID=MA
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190k
11 yrs ago
I plan a two day stop over in Malacca/Port Dickson early July. Any tips on what to do, see, go etc would be appreciated I will have a hire car
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Malka,
Thanks for your comments.
Malacca is changings fast from what I read, Tourism has doubled in the last few years, and new Condos and shopping Malls, etc are springing up. There will be a growing Medical care there, and its heritage has given it a culture which is open to the west (I believe.)
It has many similarities with Penang, but is still cheaper.
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With Singapore imposing restrictions* on buying there, I wonder if some people with money will decide to buy in Malacca - perhaps that is already fueling buying.
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* Notes from the Main thread:
Singapore is also "in a coma":
+ Sales of new private homes in July plunged to the lowest level in more than 3 1/2 years. Down 73% from 1,806 units in June
+ The July slump comes are two months of increasing sales
+ Paltry offerings from developers are partly to blame
+ Individual buyers are not allowed to use more than 60% of their monthly income to service debt
+ Singapore's Central Bank closed some loopholes in June
- all per today's Asian WSJ
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"If I move to live in Msia/Pg, I want to be in a house/semi-det/terrace not a hi-rise condo."
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Many say that.
My reason for preferring a Condo are:
+ When we are not there, the Condo would be more secure,
+ The location would be better - we may not need to own a car,
+ Maintenance for a house can be an expense, and a headache
+ We only need maybe 1,000 sf, not the 2,000 - 3,000sf or more, which you get with a house - Why pay for space we do not need?
I can see some arguments on the other side too, but I would be interested in your reaction is to my points
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Ed. Re Spain and France. There is virtually no secondary market in the latter. There hasn't been for decades. Too many rules and regulations and taxes.
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"Tower block modern condo projects can be eery if most of the residents are renters who disappear for whatever reason."
Haha.
I live in such a project in HK : The Long Beach, where only about half of the flats have been sold - but management fees are paid on all.
I see this as an advantage, since the clubhouse and other facilities are well looked after, and under used. I normally get a computer in the Reading room whenever I want. And am working there now.
But thanks for the comments on how primitive the management practices are in Malaysia. I wonder if this is less of a problem in the higher-end Condos.
There are problems in HK too, which I could tell you about since I was on the board of a very large project's owners association in HK (and even Chairman for a while.) But that's a tale for another thread.
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TWO CONDOS we plan to look at:
THE SHORE @ MALACCA RIVER, MELAKA
from RM 781,000
25 Photos / Condominium : 3 BR | 2 bathrooms
Built up: 1,232 Square Feet (634 psf). Facing Direction:SouthEast
Furnishing: Partly Furnished, vacant
Posted Date : 15/8/2013 3:09:00 PM
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The Shore @ Melaka River is a mixed development which is now work in progress and is located in Melaka Tengah near to the Melaka Heritage City and Jonker Street. The Shore @ Melaka River consists of 4 Towers with 3 Stories of Retails and 5 Stories of Car parking lots. The residential starts from the 9th Floor.
VIDEO : http://www.youtube.com/watch?v=BpnCYEtghUo
Pre Launching now is the Tower 3A which is 1232sf in build up with partly furnished units. This Tower 3A is 27 Stories in height and only 159 Units available in total. Situated next to Tower 2 which is the Swiss Garden International Hotel has the view of City or Podium view for you to choose. Check our the package or promotions below:
NOW OPEN FOR SALE
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/see: http://www.iproperty.com.my/propertylisting/2335803/melaka-tengah-condominium-forsale
The WAVE, Kota Laksamana
Two BR's - RM 476,600 and RM 385,000
11 Photos / Condominium : 2 | 1
Built up: 645 Square Feet
Furnishing: Partly Furnished
Posted Date : 5/8/2013 3:53:00 PM
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The Wave Residence will be the First Prestigious Service Residence ever launch at Kota Laksamana, Melaka.
Development project strategically located near to World Heritage City & Jonker Street, Melaka Raya and all tourist attraction site.
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/see: http://www.iproperty.com.my/propertylisting/2271069/the-wave-condominium-forsale
/385k: http://www.iproperty.com.my/propertylisting/1967371/kota-laksamana-serviced-residence-forsale
/438k: http://www.iproperty.com.my/propertylisting/2288936/melaka-kota-laksamana-melaka-serviced-residence-forsale
Developer: Faithview Development Sdn Bhd
Type: Serviced Residence
Build Up Area: 645 – 1,125 sq. ft.
Price: From RM385,000 Onwards
Tenure: Leasehold
Project Commencement:
Project Completion (Expected):
Google Map:
https://maps.google.com.my/maps?q=2.201616,102.228119&hl=en&ll=2.203674,102.228727&spn=0.051803,0.077162&sll=4.18646,109.48935&sspn=13.206784,19.753418&t=m&z=14
The Wave website : http://www.faithview-dev.com/en/thewave.html
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WE arrived in Melaka today
Initial impressions are very positive after a quick tour, and a walk around the odl part of the town.
I am a bit overwhlemed by the amount of construction going on here?
Where will the people come from to fill up these places?
+ The quick answer is; Tourism.
+ The number of tourists is expected to be 13 million in 2013, and it has been growing at 1 million per annum - about 30% of that is oversesas tourists, and that part has been growing even faster
+ To keep that growth up, they need to grow the number of hotel rooms, improve the look and quality of the tourists attractions, and grow it - All this is happening, but the key part of the new attraction is SHOPPING - How unique will this be?
+ The historical area is quite wonderful, and they seem to have gentrified it, without losing the charm. It is bigger and nicer than Georgetown in Penang, and more authentic than what one sees in Singapore
+ Another big challnege will be transport, and they are building some new roads. My own view is that they ened to make dramatic improvements in public transport and they have hardly started on that.
I want to study the transport links more, while thinking about whether or not prices are moving up too fast to be maintained
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FOREIGN OWNERSHIP under review in JB - says NST
There's an article in the New Straits Times, yesterday's edition, saying that the ownership of property in the Johor Bahru state is now under review by the Johor assemby. They are concerned about escalating prices, whiling blaming this on aggressive buying by Singaporeans, who face restrictions in buying at home.
Current limits applied to foreigners are:
+ Minimum price of RM 500,000
+ Maximum percentage on condos, apartments, and serviced apts: 50 %
+ Max pct on bungalows and vacant lots: 30 %
+ Max pct on double storied terrace and cluster homes: 20%
It is implied that they may consider raising the minimum price, and/or cutting max percentages. If they do, presumeably these changes would only apply to JB where the assembly's legislators have influence on laws, and where pressure from Singapore has been most intense.
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Malaysia's Boom in property-buying may need cooling - says NST
The country's hosuehold debt has expanded at a rate of 11.5% over the last five years, outpacing the nominal GDP growth of 7.5 % per annum. And the Household debt to GDP ratio hit 83%, one of teh highest in the region.
Household debt to GDP ratios
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2002 : 63.5%
2003 : 65.7%
2004 : 66.7%
2005 : 69.1%
2006 : 68.8%
2007 : 65.9%
2008 : 60.4%
2009 : 71.7%
2010 : 74.0%
2011 : 75.8%
2012 : 81.1%
3/'13 : 82.9%
Cooling measures may include: tightening (again) the LTV ratio, and removal odf developer interest schemes. And they may be imposed in Q4 or Q1 next year.
Property loans make up 45 percent of household debt, and at the moment there are no caps on first and second mortgage loans, while there is a cap of 70% on the third property and beyond
-pg.4 of NST, 21 aug. 2013
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YIELD : a 6% Guaranteed return is not quite a 6% return
There can be a big difference between "Gross" and "Net".
Many Hotel projects in Malacca are now offering a "guaranteed 6% return", but the actual Net Return will be much lower, perhaps 3% or even lower before Capital Gains. Here's why:
Example: RM 500,000 Property - held for 5-6 years...
Annual Rental : RM 30,000 : at 6% guaranteed
Mgmt fee etc. : RM 06,000 : Estimated
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Net Return--- : RM 24,000 : Estimated: 4.80%
"Assessment"*- : RM 03,600 : estimated at 12% of Gross Rent
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Net Pre-tax-- : RM 20,400 : Estimated: 4.02%
Income Tax-- : RM 05,718 : at 28% of Pre-tax income
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Cash on Cash : RM 14,682 = 2.93%
But there are other costs...
+ 2% "Heritage Tax" on the Purchase price
+ Upgrade cost, probably paid after first 3 years, and it could come to maybe 5%
Together these two additional costs might whack 1% or so off your returns over 5-6 years. So maybe you will make 2% Net - which is less than you can now make from a bank deposit.
This shows the importance of Capital gains, in generating decent returns
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*Most sales people will not even tell you about this cost, using the rationale: "We do not know exactly what the assessment will be." I got the 12% of Rents estimate from a brochure for a KL property.
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MM2H : Malaysia My Second Home : 10 year Visa
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Malaysia My Second Home Programme is promoted by the Government of Malaysia to allow foreigners who fulfill certain criteria, to stay in Malaysia for as long as possible on a multiple-entry social visit pass.
The Social Visit Pass is initially for a period of ten (10) years, and is renewable.
ELIGIBILITY
It is open to citizens of all countries recognised by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring their spouses and unmarried children below the age of 21 as dependants.
I have read that:
"Upon conditional approval applicants are given 6 months to fly to Malaysia to go through medical checkup, purchase medical insurance, open a fixed deposit account with the required sum of investment and then pay for your visa fee at the Immigration dept. After that, you should be given full approval."
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website : http://www.mm2h.gov.my/
forms - : http://www.mm2h.gov.my/pdf/Application%20Direct%20Form%20(Complete).pdf
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There's a large promotional section in today's SCMP:
SPECIAL REPORT : MALAYSIA COUNTRY REPORT
Much of it is promoting developments in Melaka / Malacca
Image: http://www.charterworld.com/news/wp-content/uploads/2014/03/The-Melaka-Gateway-in-the-popular-Southeast-Asia-yacht-charter-destination-Malaysia-665x409.jpg
And Links are provided (in an ad) to two Melaka-related websites:
1 : http://www.MelakaGateway.com.my
2 : http://www.Invest-Melaka.com.my
NOTES : "Melaka Gateway heralds new era" - Mega Project
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+ 246-hectare area/ HK$118 Billion - comprises man-made islands
+ Eco-islands, entertainment resorts, theme parks - to boost tourism
+ Target: 2.5 million additional tourists, and 15,000 jobs
+ Melaka and Malaysia want "high-yield travellers"
+ Melaka already has a Top-10 rating in the Lonely Planet's guide
+ By 2020, Malaysia wants to receive 36 million tourists
+ The new development alos includes a cruise terminal
+ Plans the largest marina in Asia
+ Wants to attract: wealthy Chinese, Indians, Arabs, and Russians
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