In about a week’s time, we will be signing our Sales and Purchase (SnP) Agreement for the house. The appointment with the lawyer is set, the agreement papers are ready. Just waiting for us to put our beautiful and precious signatures to the paper. And to seal the deal.

Let’s keep our fingers crossed for the bank offer letters to be ready at about the same time too, to lessen hassle.

Jittery, unsure, nervous, exhilarated. Can’t deny am feeling all that. So many what ifs questions popped up. And also the thought of finally owning our own piece of land also drove my senses wild.

Is this the same for all first time buyers of houses and properties? Would be curious how others feel too. Feel free to share your experiences in the comments. I believe other first-timers will be curious to know too!

Let’s hope everything goes on smoothly!

Again, news about Japanese being keen on making Malaysia their Second Home surfaced in the papers. I guess they are as fascinated with the Malaysian culture as much as we are fascinated with their work culture.

We would indeed welcome them with wide arms, as they bring with them, their rich culture to this melting pot of cultures. Read my previous post on Japanese Retirees: Your potential new neighbour.
Read on for the article in the local paper, The Star.

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More Japanese keen on MM2H

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PENANG: The Malaysia My Second Home (MM2H) programme is gaining popularity among the Japanese who regard Malaysia as the second most preferred retirement home after Australia, according to an MM2H agent.

Tropical Resort Lifestyle (MM2H) Sdn Bhd managing director Ishihara Shotaro said he expected the number of Japanese staying in Malaysia under the programme to double from the current 700 people to 1,400 in three years.

“We receive at least 30 enquiries about the MM2H programme daily and submit five to 10 applications a month for our clients.

“Penang and Kuala Lumpur are among the most preferred states for MM2H participants as they both offer good security and healthcare facilities,” he said.

He said Malaysia’s warm weather and diversity in its food and culture attracted many foreigners who wanted to experience a different lifestyle after retirement.

Ishihara said the company expected more Japanese to come in under the MM2H programme this year as baby boomers in Japan reach retirement age.

“There are about seven million Baby Boomers retiring this year and statistics show that 20% of them, or 1.4 million people, will seek a retirement home outside Japan,” he said.

Ishihara said the MM2H programme was a good income source for Malaysia as the participants spend an average of RM5,000 to RM7,000 a month in the country.

He added that 15% of the participants had bought property in Malaysia.

“They also promote tourism to Malaysia as many of their friends and family come for holidays while visiting them,” Ishihara said.

He said feedback from the 500 MM2H participants the company had handled was very encouraging as most of them found Malaysia an idyllic place.

Ishihara said many of the Japanese staying in Malaysia were looking forward to making friends with locals and learning some of the dialects such as Hokkien.

“We encourage local people, especially pensioners, who want to make new friends among the Japanese community to approach us.”

Those interested can call Tropical Resort Lifestyle at 04-2286540 for details. -The Star/Asia News Network

(note:US$1=RM3.50)

Great piece of news for house owners who intend to sell their property. The scrapping of the property gains tax would mean you get to pocket all the proceeds from the sale of your property, without having to share it with the government.

Quite a generous move by the Malaysian government, considering that the government will stand to lose tax revenue. However, this could actually boost the sluggish property market, as reports said.

Anyway, for you and me, it is good news and would certainly welcome it with open arms. One less headache to consider.

Previously, every Malaysian has one chance to be exempted from the property gains tax - on the sale of their first property. It applies to both gender, male and female, but the privilege for the girls will automatically be forfeited once the girl gets married. So, now it will be fair to both gender, which is good!

Read on for the news report on the scrapping of the property gains tax.

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By Chan Tien Hin and Stephanie Phang

March 22 (Bloomberg) — Malaysia has scrapped capital gains tax on property and will offer incentives to entice investment into the nation’s southernmost state.

Companies investing in tourism, financial services and certain other industries in the state of Johor, which neighbors Singapore, will be exempt from corporate income tax for 10 years, Prime Minister Abdullah Ahmad Badawi told an investment conference in Kuala Lumpur today.

Abdullah wants to encourage more investment to help boost growth in Malaysia’s economy, which has been outpaced by Singapore for 21 of the past 30 years.

The government expects the 382 billion ringgit ($109 billion) redevelopment of Johor to create 800,000 jobs in the next two decades and turn the area into an international destination for businesses and tourists.

“The incentives are very good on paper,” said Tan Teng Boo, who helps manage $100 million at Capital Dynamics Asset Management in Kuala Lumpur. “Still, it will be crucial to ensure that the follow-through and implementation of the project is efficient.”

The Kuala Lumpur Property Index gained 2.7 percent at the 5 p.m. close, outpacing a 1 percent gain in the benchmark Kuala Lumpur Composite Index. Selangor Properties Bhd., a Malaysian property developer, climbed 3.2 percent to 3.82 ringgit, while IGB Corp. rose 2.5 percent to 2.5 ringgit.

The April 1 abolition of tax on gains from property sales, first imposed in 1975, may cost the government 200 million ringgit a year, according to estimates by Sia Ket Ee, an economist at OSK Research Sdn. Removing the tax, which makes up 0.2 percent of government revenue, will help lure more foreign investments, he said.

‘Definitely Good’

The property measures are “definitely good” for the economy, said Quek Leng Chan, a Malaysian billionaire whose assets range from the Hong Leong Group to local cement producer Tasek Corp. and is estimated by Forbes to be worth $2.9 billion.

Growth in Malaysia’s $147 billion economy is expected to accelerate to a three-year high in 2007, the central bank said yetserday. Southeast Asia’s third-largest economy is forecast to expand 6 percent this year after growing 5.9 percent in 2006, Bank Negara Malaysia said.

The current capital gains tax on property is 30 percent within the first two years, falling to 5 percent by the fifth year, according the Inland Revenue Board’s Website. For foreigners, the tax starts at 30 percent for the first five years, and drops to 5 percent in the sixth and subsequent years.

Property Investments

“This is very good for the property and construction sector,” Suhaimi Ilias, an economist at Aseambankers Malaysia Bhd. in Kuala Lumpur, said of the measures announced by Abdullah today. “All these are what the market has been waiting for.”

Abdullah’s proposals may spur private investment in Malaysia, which Mohd Effendi Norwawi, Minister in the Prime Minister’s Department, today said declined 2 per cent in the five years to 2005. Norwawi expects private investment to increase 11 percent in the five years to 2010.

Malaysia started easing rules on property investments by foreigners in December, fueling speculation the country may introduce more measures to reinvigorate home sales as the central bank lifted its key interest rate three times between November 2005 and April 2006 to curb inflation.

Home sales in Malaysia fell to 85,153 units in the first half of 2006, 3.4 percent lower than a year earlier, the Real Estate Housing Developers Association said.

Foreign direct investments also fell 15 percent to 15 billion ringgit in 2005.

Transforming Johor

The decision to scrap the tax “is very good for the property industry,” said Choong Khuat Hock, who helps manage 400 million ringgit at Kumpulan Sentiasa Cemerlang Sdn. in Kuala Lumpur.

“Malaysia’s properties are one of the cheapest in Asia and they needed an impetus to crystalize the value. It shows the government is flexible and welcomes foreign investment.”

Malaysia is attempting to spur the development of southern Johor state, connected to Singapore by two bridges, by improving the region’s infrastructure. Singapore is attracting about $6.6 billion of investments from two casino-resort operators including Malaysia’s Genting Bhd., Asia’s biggest gaming company by market value.

The measures announced today are the latest in a series of incentives to encourage companies to plow funds in the country.

Malaysia has also cut its corporate tax rate to 27 percent from 28 percent this year, and offered incentives for real estate trusts and Islamic finance, where Malaysia is the world’s biggest issuer of Shariah-compliant debt.

Johor Chief Minister Abdul Ghani Othman told reporters today he’s expecting $40 billion of foreign direct investment in seven years in the Johor project, the so-called Iskandar Development Region.

Abdullah unveiled his plans at Malaysia’s biggest investment conference, attended by local investors and fund managers from cities such as New York and London.

Oh, seems like the Malaysian government is all out to woo foreigners to settle down in Malaysia. Just today, the government announced that spouse of foreigners can stay for five years before having to endorse their passports again. That could save quite a lot of hassle.

Read on for more information.
Thursday March 15, 2007, The Star

Foreign spouses of Malaysians can stay for five years without annual endorsement

PUTRAJAYA: A big relief for Malaysians married to foreigners as their spouses can now stay in the country for five years without having to go to the Immigration Department annually to endorse their passports.

The Government announced the five-fold extension period making it easier on foreign spouses who had in the past complained about the hassle in getting their passports endorsed annually.

Deputy Prime Minister Datuk Seri Najib Tun Razak said: “Foreigners married to Malaysian citizens could stay in the country for up till five years without having to have their passport endorsed annually as presently exercised.”

This is part of the marketing strategy aimed at further boosting the country’s tourism industry from now till 2010.

The Deputy Prime Minister said the plan includes getting more tourist arrivals from long haul destinations, to increase the number of days tourists spend in Malaysia and to encourage the arrival of tourists coming here for meeting, incentives, convention and exhibition (MICE) events.

Najib said the Cabinet Commitee on Tourism, which he chaired on Thursday had set a target of increasing up to 10%, the number of tourist arrivals for MICE events for 2010 from the present 3%.

Personally, I do think Malaysia as a very ideal place for retirement, especially if you love a simple yet rich-in-culture type of lifestyle.

There’s also so much lush greenery, enchanting forests, mesmerizing beaches, tropical sun and peaceful nature. A perfect getaway from the nail-biting cold of far-flung places in the world.

And yet, for those who still wants to get in touch with their cosmopolitan side, they could always hop down to the big cities, such as Kuala Lumpur which is also known as a shoppers’ paradise.
So, what are you still waiting for?

Sunday March 11, 2007, The Star

Time’s right for second home

BY FOONG PEK YEE

BERLIN: The time is now, the place is Malaysia.

This is Deputy Tourism Minister Datuk Donald Lim Siang Chai’s message to foreigners to visit Malaysia and participate in the Malaysia My Second Home (MM2H) programme.

“Between 20% and 30% of the expected 3,000 MM2H participants this year will be from Europe,” he said in an interview here on Saturday.

Under the MM2H programme, foreigners aged 50 and above are required to deposit RM150,000 in a local bank or show proof of having an offshore income of RM10,000 a month. Those below 50 will have to deposit RM300,000.

A year later, they need to maintain RM60,000 in their accounts and withdraw the remainder of the money.

Those taking up the MM2H programme can also buy houses costing RM250,000 and above without having to apply for approval from the Foreign Investment committee (FIC).

They are eligible to buy a duty free car.

The Immigration Department’s Director of the Visa, Pass and Permit Division Ab Rahim Ismail said the department received between five and 10 applications for visas every day under the MM2H programme.

“Processing takes about two months,” he said.

Ab Rahim said that successful applicants were required to come to Malaysia within six months from the date of approval.

“They must apply for an extension if they cannot meet this deadline,” he added.