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Friendly Malaysian Invite To New Home Buyers
August 4, 2009Article by Ray Withers
Malaysia’s open invitation for foreigners to live in the country for as long as possible with their families is a great success for Kuala Lumpur property sales in the recession.Instead of short visas, Malaysia issues 10-year passes to visitors who match the Malaysia My Second Home rules.Not only, that the visitors can’t escape the wife, mother-in-law on kids because they are all eligible to live in the country as well under most circumstances.
This open and friendly attitude by the Malaysian government has families flocking to live and work in the flourishing capital of Kuala Lumpur – and many can’t afford to buy and are looking for properties to rent – and that’s good news to investors.This demand is stabilising housing prices and rents in the city, although prices have decreased about 8-9% year-on-year.
“Kuala Lumpur is in huge demand from clients,” said international real estate consultants Property Frontiers managing director David Cox. “Interest has been constant since 2007 and the Axis development in the city is our third most popular project.“Inquiries are up an amazing 20% this year on last and the market there seems to be defying the credit crunch that is biting so hard elsewhere.
“One of the underlying factors supporting the market is undoubtedly the Malaysia My Second Home programme.”Although the Malaysian property market has taken a dive in line with the rest of the world in the recession, Far East economies are holding up much better than those in Europe and the USA.Property prices have dropped far less and experts predict countries like Malaysia will come out of the recession quicker and financially stronger than those in the west.
Property Frontier’s project Axis Pandan is two developments –midmarket Axis Residence Deluxe, Kuala Lumpur and Axis Crown Premier, Kuala Lumpur.The premier provides a luxury living space with fantastic views over the city and the nearby Royal Selangor Golf Club.The developments stand atop of the region’s largest shopping mallApartments are turnkey developments, delivered ‘ready-to-let’ and offering gross yields of about 8%.
Investors can buy in to the Axis projects with 60% loan-to-value mortgages for just £19,000 cash plus purchase costs. Prices start at £50,000 for a two-bedroom apartment.