Malaysia My Second Home Programme

Join Malaysia
My Second Home Program Today!

Own a prime Malaysian property that is:

and receive a long term multiple entry visa to Malaysia!

Visitors to Malaysia are bound to have heard of the slogan: “Malaysia, Truly Asia”. It may be true to a certain extent to say that even people whom have never set foot in this lovely country we call home, that they may have seen our TV commercials of lush tropical greenery, fruits, pristine warm tropical beaches, top dive in the world, friendly and hospitable people, diverse multicultural fusion yet traditional food, diving which we Malaysians sometimes incidentally take for granted.

Yes, for all you readers out there who do not call this mystical, tropical, summer all year long country your home, the Malaysian government’s MM2H program is definitely a bargain sale for those who are shopping for a second country to call home!

With the MM2H, non Malaysian citizens from any country recognised by Malaysia is can live in Malaysia for an indefinite period via a renewable 10-year social visit pass. Since the programme’s inception in year 2002, more than 18,000 applications have been approved under the MM2H.  Most of the applicants for MM2H are from China, about 3,000 already successful owned their second home in Malaysia.

Why MM2H?
• Malaysia enjoys political and social stability
• The Malaysian economy is enjoying healthy growth, which in turn provides an ideal investment environment in properties
• Malaysia enjoys extremely affordable cost of living as compared to a long list of international cosmopolitan cities and countries
• The Malaysian community is multilingual and multicultural. Most international communities are bound to find a common language or culture
• Malaysia is a tropical haven, away from natural disaster zones

Why Invest in Malaysian Properties?

Whether you are looking at short-term rental or long-term investment, Malaysia is a great choice as the country offers a wide range of property types and locations for expatriates with all sorts of requirements. Malaysia has been ranked one of the top ten real estate investment destinations worldwide and has since received investors from all over the world.

Here are some key attractions of Malaysian properties:

• Affordable and good value property prices than neighbouring countries such as Singapore and Hong Kong despite overall price increases in recent years.

• The Malaysian government is actively encouraging investors from overseas to buy properties in Malaysia under the MM2H initiative and most barriers that were previously in force on foreign investments have been removed.

• The rights of overseas investors to own and possess property, to seek legal redress in courts are guaranteed under the Malaysian (common law) legal system.

• Overseas investors are allowed to buy freehold land.

• The standards of quality and design of Malaysian properties have advanced dramatically.

• The effective tax rate on disposal of real property is currently at a mere 5%, while no tax is imposed on profits gained if the property is disposed after five years of ownership.

Purchasing Properties under the MM2H Program

Under the MM2H program, an overseas investor may purchase any number of residential properties in Malaysia, subject to properties at a minimum purchase price of RM500,000 and above for most states in Malaysia, except for the states of Sabah and Sarawak where the eligible minimum purchase price is at RM350,000 and above, while the state of Pahang sets its eligible minimum purchase price at RM750,000 and above. However, there has been a recent proposal to increase the minimum purchase price to RM1 million and above.

Generally, MM2H visa holders obtain higher amount of financing from banks in Malaysia to purchase property under the MM2H program, whereas non MM2H visa holders may not be granted financing from certain banks.

The prime attraction of property ownership in Malaysia, particularly Kuala Lumpur, is income. Although gross rental yields have fallen somewhat over the past year, the decline has been gentle, almost invisible. The average rental yield per annum in Malaysia is approximately 6.2%, which is higher as compared with Singapore, Hong Kong and Shanghai that yields between 2.7% to 3.1%.

Renting Properties under MM2H Program

Noting that it is not compulsory to own any property in Malaysia to qualify for the MM2H program, it is possible for MM2H visa holders to rent properties instead. Overseas investors looking at target tenants could consider other MM2H visa holders as equally potential tenants to local tenants. The average rent paid by expatriates stood at RM60,000 per annum, with the majority who paid under RM48,000 per annum. Top range rental paid by expatriate tenants however goes up to a range of RM108,000 to RM120,000 per annum. It may be interesting to note that a large number of working expatriates (therefore holders of working permits) who have their rents fully paid or mostly subsidised by the companies that they work with as a part of their remuneration package.

Again, renting a property in Malaysia is also way cheaper than Singapore and Hong Kong, which is also one of the factors attracting investors to choose Malaysia as their second home.

Generally, rental per square meter in Malaysia is at USD11.29 only.

What Are You Waiting For?

Buy a Malaysian Property and Call Malaysia Your Second Home!

While the MM2H visa is not exactly the status of a Malaysia Permanent Resident (PR), it is nevertheless as good as a PR status. Apart from the MM2H status accorded to the visa holder and spouse, school going children (up to 21 years old) are given student pass for their studies at international schools, private colleges and universities.

So what are you waiting for? Be a part of the MM2H program today!  

 (Source: UHY Chartered Accountants)