As a Singaporean, a second home in one's neighboring country should be familiar to you. What with the common maritime boundaries, culture, ancestry, laws, and even religion. Both Singapore and Malaysia share a common ethnic background, similarities in cuisines, laws, and governance as well as extremely high standards of living.
However, should an aspiring Singaporean plan to invest or buy property in a neighbor’s land? Here are the top 5 reasons to do so:
Malaysia has an exclusive plan for investors in property. This is simplified as being provided with a multi-entry visa renewable every 10 years with the condition that minimum income and liquid assets be met. For people aged 50 and below, it amounts to an annual income of RM500,000 and for older people, it amounts to RM350,000.
For those looking for bank loan options, there are plenty of schemes available with varying initial deposit plans and value to loan ratios. Watch out to apply for the transaction in Malaysian ringgits if you are largely based in Malaysia as the Singaporean dollar is rising steadily against the weaker ringgit.
The Human Development Indexes of both countries are high and Malaysia has an HDI of 0.8 with Singapore scoring 0.1 higher than its neighbor. As such we see that the situations in both countries are at par. Both of these countries have been listed in the top three popular destinations in Asia. However, Malaysia, in addition, is popular among retirees who like to spend winters in warmer, laid back climates.
Properties are slightly cheaper in Malaysia as compared to Singapore. This may also partly be due to the fact that the Malaysian Ringgit is slightly weaker compared to the Singaporean Dollar. As such, it is easier to procure property in Malaysia.
There are dedicated property development areas with plans that lease multiple properties for the long term (99 years) exclusively for foreign investors. As these properties have high rental demand, it is a lucrative source of income for those seeking investment ventures.
The Minimal Occupation Period (MOP) is 5 years. It means that a prospective flat purchaser has to rent out a property for a minimum of 5 years before he/she may consider buying it. For Singaporeans, who live on the other side of the shore, it seems to be a precondition that can be easily met. However, it is advisable to discuss the nitty-gritty’s of area specific laws with a real estate agent as well as a lawyer. For example, the minimum cap for buying a property in Penang is RM500,000 whereas it falls to 350,000 in Sarawak.
Besides these, Malaysia is unique to Singaporeans as being a home away from home. Or in this case, near to home. Singaporeans can utilize the slightly cheaper but equally fancy restaurants! Just a walk across the causeway, and you can join the 12 million plus Singaporeans who visit Malaysia each year.
So what are you waiting for?
Fill in the form below to secure your own Malaysian property, or just drop us a message if you have any questions! Our professional team of agents are here to assist and help you.
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