CUT AND KEEP
INSIGHTS
ON
friday
AUGust 2, 2013
Thegreater real
estateplatform
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Imagine
lying on the beach of your
ocean-front villa along theMexican
coast or admiring the viewfromthe
balconyof your chateau in a charming
oldFrench village.Why even skiing
down the slopes of one of theworld’s
best quality snow-ladenmountains
fromyour holiday cabin inNiseko
Village inHokkaido, Japan. These
may have beendreams tomany
Malaysians not long ago, but
improved living standards have
made it reality.
GLOBAL SCENE
Whether buying real estate
abroad to live in, holiday at, or as
investment,Malaysians have joined
the bandwagon of international
property investors. A local daily
recently reported that localswere
snapping upproperties in theUKand
US. CleverMalaysians have been
taking advantage of the lower
exchange rates, and investing in
regionswhere property prices have
droppeddue to economic instability.
JazmineGoh ofHenryButcher
Malaysia said: “Malaysian investors
are becomingmore savvy. The buying
trend is heading towards amore
global outlook. Togetherwith the
Singaporeans andmainlandChinese,
we are nowthe biggest overseas
market investors for prime properties
inLondon.”
We learn that the rising trend in
Malaysians buying property abroad
stems fromthosewhose children
study overseas. There are thosewho
migrate, aswell as thosewho invest,
hoping to achieve financial freedom.
Then again, there are themore
matured setwith intention to retire
abroad, renting out their properties
in themeantime. Looking at the real
estate scene abroad and the number
of international transactions of
cross-border dealings,
Goh lists the top five
popular citiesMalaysians
are buying property in
as London, Sydney,
Melbourne, Singapore
andNewYork.
GOODBUYS
AMalaysian couple,
theYang’s, share a little
about their global
property investments.
They bought an
apartment block in
Wellington, NewZealand
and a condominiumunit
inMelbourne. SaysMrs
Yang, “During that
time, our childrenwere
studying inMelbourne.
So, buying a place there
made sense. Australia is
also generally a peaceful
country and therewas
likelihood of the property
appreciating in value.”
Today, the couple still
owns bothproperties.
“The price of the
Melbourne property
has doubled in value.
The apartment block in
Wellington is rented out to foreign
students, and ismanaged by a
company there. The rental income
more than covers ourmortgage,”
thewife reveals. Although both
properties have fetched surpluses,
the contented couple has no intention
of adding to their list of real estate
buys due to their advanced age.
The couple does however, advice
first time property buyers intending
to purchase real estate abroad, to take
note of these fewmatters.
1. Choose the right location,
preferably near or in central
business districts;
2. Take advantage of the tax
rebateswhen you buy
directly fromdevelopers, like
inAustralia;
3. Be financially prepared for
timeswhen your property is not
rented out; and
4. Keep your property for 10 years
ormore. Youwill seemuch
greater returns.
Another couple in their golden
years, are the Perera’s. They reside in
Malaysia.While the husband is Sri
Lankan and runs a global business
enterprise, hisMalaysianwife
manages their catalogue of real estate
properties. These include a holiday
home in Sri Lanka (apart fromtheir
family home); a house inDenHaag,
south ofHolland; another house in
London; and a fewhigh-rise
condominiums in theMalaysian
capital. “Our house inLondon came
inhandywhenwe needed funds to
start our business here inAsia.We
sold it off at a profit. Once our
company becamemore established,
wewere able to invest inmore
properties inMalaysia,” they inform.
They too, are not looking to grow
their property portfolio but
encourage property investing, as it
helpsmanage risks.
VIVAMEXICO
VisitingMalaysia recentlywas
the former president of the FIABCI
MexicanChapter, IsaacHoloschutz.
He informed of the country’s current
and encouraging economic growth,
nowat 3.2%, leading theUSwhich is
at 2%. Holoschutz also said that in
2011, the LatinAmericanhospitality
report rankedMexico the eighthmost
attractivemarket to foreign investors.
This boosted the real estate, light
industry and commercial sectors.
It also led to the amendment of the
country’s property legislation,
allowing foreigners to purchase
property alongMexico’s coastal and
national borders.
Arecent news report by
Bloomberg also reported thatmore
thanUS$90 billionworth of property
assets are expected to come from
cross-border real estate acquisitions,
a recordhigh asAsian investors
diversify abroad. It alsomentioned
CBRE (Coldwell Banker Richard
Ellis)Global CEOMatthewKhourie
commenting about theAsians on a
property buying spree in theUS
andEurope.
EXPLORE ANDANALYSE
While all this buying and
selling of propertymay sound
exciting in thought aswell as to the
pocket, it is advisable to explore it
with caution, especially if it is your
first time investing abroad. Do
research, ask and consult the experts
before coming upwith anymoney
up-front or signing any document.
Here are some important issues to
consider:
• Check the rules and regulations
of the country you’re intending
to buy property in, including the
financial, legal and tax
implications and regulations.
• Do research and relevant land/
property searches as some
countries prohibit the sale of
property to foreigners.
• Ifmaking a purchase via a
property developer, check their
background, financial standing,
track record, license etc.
• Run through the purchase
contract and all other contracts
before signing any document.
Read the fine print. Best to get
your own legal advisor to review
the agreement tomake sure your
interest is protected.
• Check the laws of the country
especially if you require overseas
mortgage or bank services.
• For those buying to rent out, do
check on the country’s respective
tax regulations as some countries
tax on rental income.
Available properties at
hotspot locations
London
X
X
Lord House, 375 Kensington
High Street
X
X
Marine Wharf, Surrey Quays
X
X
The Tower, One St George Wharf
X
X
190 Strand, Central London
X
X
20 Albert Embankment, London
– launching in September 2013
USA
X
X
515 East 72, Upper East Side, NewYork
X
X
The Laurel, Upper East Side,Manhattan,
New York
X
X
The Rushmore, Upper West Side,
Manhattan, New York
X
X
Element, Upper West Side, Manhattan,
New York
Australia
X
X
The Hamptons, Breakfast Point, Sydney
X
X
HAUS, Collingwood, Melbourne
X
X
Rochedale Estate, Brisbane
X
X
MY80, A’Beckett Street, Melbourne
X
X
Oceanna 29, Scarborough Beach
Road, Perth
For a more comprehensive list of foreign
properties marketed in Malaysia by Henry
Butcher, visit
Tips Before Moving
Abroad…
X
X
Be financially sound –
Make sure you not only have
money for the move but
for emergencies.
X
X
Register with your embassy
– It will come in handy in
times of crisis. It makes
locating you and transferring
you to a safety zone easier.
X
X
Visit the doctor – Get all the
necessary vaccines and
immunisations required.
X
X
Learn the language – Not all
countries consider English
their first language. To avoid
‘lost in translation’ moments,
it would help to at least
converse in the country’s
native language.
X
X
Secure accommodation
– Thanks to the internet,
getting in touch with
landlords abroad is easy.
However, do background
checks on prospective
landlords to make sure they
are legitimate. Best to go
through a recommended or
internationally recognised
real estate company that will
see to all the details.
X
X
Arrange for children’s
education – Find out how
your child’s education
system fits the country
you’re moving to. If it is
complicated, make sure
there is an international
school to enrol your
children at.
X
X
Insurance – Talk to your
insurance company on the
types of insurance needed
to keep you, your loved
ones and your belongings
protected abroad.
X
X
Income tax – Inform the
income tax department of
your move and settle any
outstanding payment, if any.
You wouldn’t want to be
‘surprised’ at the airport. Be
aware of the tax rules
applicable to expats in the
country you are moving to.
X
X
Tie up loose ends – Be sure
to inform your banks of your
move. If you’re leaving your
house unoccupied, do inform
your neighbours and appoint
someone trustworthy to
check in once in a while.
X
X
Get packing – Employ
professional movers who
know exactly what they are
doing. If not, be prepared to
do-it-yourself, learn from
your mistakes if it is your first
time, or improve if you’ve
done this before.
Mexico National Consumer Price Index (NIPC)
YEAR JAN FEB
MAR
APR MAY
JUN JUL
AUG SEPT OCT NOV
DEC
2013 107.678 108.208 109.002 109.074
2012 104.284 104.496 104.556 104.228 103.899 104.378 104.964 105.279 105.743 106.278
107
107.246
2011 100.228 100.604 100.797 100.789 100.046 100.041 100.521 100.68 100.927 101.608 102.707 103.551
2010 96.57548 97.13405 97.82364 97.51195 96.89752 96.86718 97.0775 97.34713 97.85743 98.46152 99.25041 99.74209
2009 92.45447 92.65859 93.19164 93.51782 93.24543 93.41714 93.6716 93.89572 94.36671 94.6522 95.14319 95.53695
2008 86.98944 87.24804 87.8804 88.08038 87.98522 88.34932 88.84169 89.35475 96.96366 90.57671 91.60627 92.2407
>Lifestyle standards of the averageMalaysian are rising steadily.
Locals are not just jet-setting theglobe aimlessly, but closing clever
cross-border propertydeals around theworld
Mexico United States
Spain
Economic Growth %PIB
