Budget 2014: Real Property Gains Tax / Goods & Services Tax

There were many measures announced in the Budget for 2014 and of these, two will be of particular interest to expats, the former of the two in particular if you own, or are contemplating buying, property here.

The regulations regarding Real Property Gains Tax (RPGT) have been amended in an attempt to curb foreign property speculation, unfortunately expat residents, including MM2H visa holders, have not been exempted from the changes.  From January 2014 non-Malaysians / non-residents (e.g. those who do not whole Permanent Resident status) will be required to pay 30% tax on any property price gain if sold within 5 years of acquiring the property.  After 5 years the tax is levied at 5%.  I stress that this is on the gains, not the overall sale price, so if you buy a property for RM 750K and sell for RM 900K after 5 years you will pay 5% RPGT only on the RM 150K the property has gained in value.  When calculating the gain you can subtract the cost of acquisition (e.g. legal fees etc) and any renovation costs, so it will be worth hanging on to any bills!

Still, the increase is quite considerable given that in 2013 the rate was 15% if the property was sold within 3 years (and of course, in Penang at least, foreign owners are locked in for 3 years so could not sell), dropping to 10% in years 4 and 5 and zero thereafter.  For some this is still not an issue but it may be enough for others, depending on their plans and circumstances, to think harder and longer about buying a property here.  What will be interesting to see is the trend over the next few years.

The second change, which will of course apply to everyone, is the imposition of a Goods and Services Tax from April 2015, however the current Sales Tax (6%) and Service Tax (10%) will be abolished.  There will be no GST on essential cooking items (rice, flour, spices and oil etc) or on electricity consumption up to 200 units.  Property sale is also GST exempt.

An overview of the announcements for the 2014 Budget can be found here at 'The Malaysian Insider'.  There is also a useful PDF showing some budget highlights here.

Property Registration: Indah Water and Penang Municipal Council

Administrative articles are often dull but, like many uninteresting things in life, the issues have to be attended to and it's often easier to tackle things like this in different countries if you have an idea what to do in advance.  This article covers the two administrative issues of registering property ownership with your local council (here in Penang it's Majis Perbandran Pulau Pinang or MPPP), responsible for issuing an 'Annual Assessment' (a local tax on your property), and Indah Water, responsible for sewerage services. While this article is really Penang specific, the principles will apply wherever you are in Malaysia.

In some cases, when you purchase a new apartment (e.g. not sub-sale from a previous owner) most of the registrations that you need with various utilities and such like will be done for you.  It will of course be up to you to arrange services such as telephone, internet and satellite TV.  Even when buying sub-sale it may well be that your agent (if you used one), depending on how professional and helpful they are, will arrange connection to mains electricity (TNB) and mains water (PBA).  Two services that are easy to overlook however are the local council and Indah Water.  The amount of your council 'Assessment' will vary with the value of the property and AFAIK the invoices in all cases are issued twice a year with payment deadlines being 28 February and 31 August.  Indah's sewerage services are generally priced the same at around RM 8 per month, again, invoices mostly being issued twice a year.

When you purchase your property it may be that your lawyer will register the change of ownership with these two services on your behalf, often though this does not happen.  It should not be an issue however as even if the change has not been registered you will still receive the bills.  The staff at both agencies are very helpful however and it's easy enough to check whether your ownership has been registered, and indeed what payments are outstanding or when they are next due, at the email addresses in the following links:

MPPP E-mail

Indah Water E-mail

If your ownership of the property has not been registered it can be amended very easily. In both cases all you will need is a copy of your 'Sales and Purchase Agreement' (SPA).

The MPPP main office in Penang is situated at Komtar in Georgetown.  To change your details here you take your SPA together with some form of ID (passport or driving licence) to the reception area that is between the two rooms of counters in the MPPP offices on the ground floor.  Go to the security desk and tell them you need to register a change of ownership.  Once you hand over your ID you will be given a pass which will allow you to take the lift to the 12th floor.  Here you will find the registration office and the very helpful staff there will assist you to complete the required single form (which is in Bahasa Malay).  Once you hand over your SPA, that's it, no ID is required.  In due course you will receive a notification that you have been registered as the new owner.  If there is any outstanding amount to be paid in terms of the assessment you can pay it by going back to the ground floor and taking a ticket for the payment counters which are to the right of the central reception desks.  Once paid you will be issued with a receipt.  I would suggest avoiding paying close to the payment deadlines as it gets very busy at these times.  You can pay any bill due and also in advance if you wish.  I pay for a whole year, one less thing to worry about.  MPPP also have an office at PISA but I'm not sure if you can change your registration details here or if it's merely a payment office.

Indah Water - Georgetown

Indah Water in Penang is located in Victoria Street in Georgetown, adjacent to the Pos Laju parcel handling centre.  The process here is even easier.  Merely go into the office to the desks on the right and the staff will take your copy SPA and update the system.  Any bills due can be settled at the cash desk to the left in the office and again, you can make advance payments.  A receipt will be issued once you have paid and the change in ownership will be picked up with the next billing cycle.

That's it, done.  Quite simple really, more so if you know what to expect in advance, and two more admin jobs off the list of things to do.

House / Apartment Purchase: LHDN number online

Without going in to all the whys and wherefores, anyone buying or selling a property in Malaysia will be required to take out an income tax (LHDN) number.  This is primarily as a safeguard to ensure that your tax details are registered so that any Capital Gains Tax due is paid buy sellers.

It is possible to take out an LHDN number by going to a LHDN office, which in Georgetown is on the corner of Beach Street and Light Street.  It is however very easy to do it online, either from home or from your lawyers office.

To apply online you go to the LHDN website and:

1) Click ezHASIL at the top

2) From the drop down menu select 'e-Daftar'

3) From that page select the top left tab 'Daftar Pembayar Cukai Individu'.

4) Complete the form (Google Translate can help with the form fields as it's all in BM but is easy).

5) Select Submit and it will provide an e-voucher with your application reference.

6) You then go back to the e-Daftar page and select 'Muat Naik Dokumen Syarikat' to mail (in our case, mostly) a scan of your passport and MM2H visa page.

You can also check back on the e-Daftar page and click 'Semak Status Syarikat' to check your application's status.  After a week or so your LHDN number will arrive by email.  Very straight forward and very easy.

House / Apartment Purchase - Associated Costs

So, after a very long break in posting, largely brought about because of being busy getting ready to move out of rented accommodation (at last) and move into my permanent home, normal service will now be resumed!  Apologies to those followers for whom the content fizzled out for a few months and thanks to those that have stuck with it.  To those, and to new readers alike, I hope that previous and subsequent posts will continue to to provide useful information about Penang (and MM2H) and indeed give some insight into some of the highlights of Penang life.

To kick things off I thought it might be useful to provide a rough guide to the costs that are associated with house / apartment purchase (at today's rates) which will of course need to be factored in to your overall costs.  All prices are in RM:

       60  Land Searches (x2 @ RM 30 ea)
       30  CTOS Searches (x2 @ RM 15 ea)
       30  Bankruptcy Searches (x2 @ RM 15 ea)
       40  Stamp Duty (for Sales and Purchase Agreement)
       10  Adjudication
     150 Cheques (written by lawyer)
       50 Mileage 
  1,000 Registration Fee
10,000 State Consent Fee (up until recently this was RM 1,000 but rose at the same time as property purchase threshold limits changed for Penang Island).

12,370 Sub Total

The above costs cover the general admin fees due and will likely be the same for all purchases.   The Registration Fee is also subject to change.

On top of these costs you will have to add the cost of your lawyer fees which are likely to be around RM 6,000 and the Stamp Duty Fee for transfer of title (Strata).  At the time of writing this is worked out on the following basis:

1% on the first RM 100k of the property cost
2% on the next RM 400k
3% on the next RM 1.5m
4% thereafter

As can be seen, these costs can rack-up quickly.  So, for example, on a 750k property you'd pay RM 16,500 in Stamp Duty.  So, adding all of the above together:

12,370  Admin Costs
  6,000  Legal Costs (approx.)
16,500  Stamp Duty

34,870  Total

Finally, when you own a condo here, over the course of the year, in addition to regular utility bills, you will incur a number of other charges for:

Service / Maintenance
Sinking Fund
Fire Insurance
Quit Rent
Assessment
Water (sewerage services)

These charges will vary depending on the property and I may well cover these in due course with an updated article about the 'domestic' costs that people need to cater for.  I mention the charges here simply because at the time of completing on a purchase your lawyer will advise you of any additional sums that may be payable by you by way of 'apportionment', essentially paying back the vendor for any such charges they have paid in advance but calculated only from the date you become the owner of the property.  Many of these charges are collected only once or twice a year so you could find yourself having to reimburse 3-5 months depending on where your purchase date sits in the billing cycle and the cost could be anything between a few hundred to a few thousand RM.

The Sinking Fund and Maintenance charges also deserve a special mention.  Depending on how these are handled by the condo management, over time owners will generally build up a sum which is held in credit against your property.  This credit is passed on to the incoming owner and if not used, will also be passed on to any subsequent owner.  As such you may well also need to reimburse the vendor for any credit that may be held by the management in respect of your apartment.

Hopefully the above will provide a rough idea for people interested in what other costs they may need to take into account when buying a property.  I'd stress that the above is an indication of prices at today's rates and clearly you would need to check with your lawyer as to both THEIR precise rates and the whether or not any of the state fees have risen.

Finally, one thing worth bearing in mind is that if buying a new property from a developer they will often bear the cost of the admin and legal fees but you should also be aware that, as far as I know, stamp duty will become payable when you come to sell the property, at or before which time you will need to apply for strata title.

Property purchase thresholds - foreign buyers.

It has now been confirmed that from 1 July 2012 the minimum property purchase threshold for foreigners wishing to buy in Penang will be RM 1m for condos and RM 2m for landed property.

There is good news for MM2H visa holders in that the minimum threshold for them is RM 500K, although visa holders will be limited to owning two properties at any one time, likely to prevent abuse of this exemption by anyone wishing to buy and sell multiple properties for profit.

Hopefully the new thresholds will curb property speculation to a degree and help reduce spiralling property costs making properties more affordable for locals.  The MM2H exemption is a great bonus and provides yet a further incentive for applying if your aim is to buy in Penang.

Penang Property Purchase Limits

While there is still no absolute certainty I am assured by several people I know in the property and legal profession that the minimum limit at which a foreigner can purchase property in Penang is set to rise to RM 1m for a condo and RM 2m for landed property from 1 July 2012.  This is mostly to curb the speculation market and to try and control prices to make housing more affordable by locals.  At present it seems there is no exemption for holders of MM2H visas.

This will have obvious implications for foreigners looking to buy a property after 1 July but, beyond the obvious, may also implications for owners of properties in locations which have high expat residency levels with little interest from local buyers, possibly because of location and such like, should they decide to sell.

Once confirmed, or otherwise, I will post further.

Apartment Considerations

As I spend more time here and having visited countless properties since April I have started to come up with a mental list of considerations with regard to purchasing or renting somewhere to live. Some are more important than others and, depending on your own view, these issues may or may not be important to you. The list is not exhaustive and I'll likely add to them as times goes on. The list is largely not in any order of importance:

Building and Design:

• Renovation Noise: This will most likely be an issue if you buy, or are considering renting in, a newly completed block. Condos etc are sold basically as concrete shells and once people start to fit them out, the drilling and hammering starts. The density of units in the block and the prolific use of air-wells will greatly multiply the problem. Believe me, it is hard to describe how immensely irritating the sound of high-impact drilling is from 9am - 5pm day in, day out, for weeks on end, maybe months. I doubt very much that I would rent in a brand new build again because of this. If it's a property you've bought you'll likely put up with it more but for rental I prefer to get the living experience (including peace and quiet) that the finished article would bring.
• Environmental Noise: Either from motor cycles (actually glorified hair dryers on two wheels but damn noisy) at all hours in some of the low cost housing areas, building site and traffic noise etc. All more of an issue if you prefer to sleep without air con (AC) and with windows open. An odd one is also frogs. Yes, frogs!!! dependant on how close you are to greenery and water you will often get a chorus of frogs croaking all night which, while interesting at first, I suspect would become quite an irritant if you are a light sleeper. All these things are worth checking out by visiting the area at various times of day and night and at the weekend. If buying near a mosque you may also want to visit at prayer times to check on noise levels.
• Orientation: An important one. Facing east and you'll get the morning sun beating down, facing west, the afternoon sun. This can create some significant cooling problems for you if you will be in during the day and will likely add to the bills for use of AC.
• Leasehold or Freehold? Freehold is generally considered better for re-sale.
• Design and layout: Some are MUCH better than others and for me a building that uses less, preferably no, air-wells is better. Air-wells conduct noise very well and are great for gathering rubbish. If a building uses air-wells to provide light to some rooms you need to be very high up, otherwise the light you get will be minimal. I have seen some units at 1,100 sf that are much better designed, and make much better use of space than some at 1200 or 1300 sf. The space needs to be usable too. No great tracts of floor area that you can do nothing with or endless 'dead end' off-shoots from rooms.
• End of block: or corner facing units are often preferable to internal units both because of the views and increased privacy (no-one walking past you door and one less immediate neighbour).
• Natural light: How much do you get? Some units are terrible. Some also have windows of bedrooms facing on to common landings (where the lifts are) which thus get no view or natural light and little privacy.
• Drying area: Some units have good utility areas and some don't. Drying your washing and such like can then be difficult if you have no space for the rather large drying racks here. Electric tumble dryers are an option but possibly not desirable for permanent use. Drying washing on balconies is discouraged.
• Density: Buildings with high numbers of units per floor will likely suffer from increased noise, less privacy and an increased risk of dodgy neighbours (simply more chance at 12 units per floor than 4).
• Security: How effective is it?? Many places have guard houses and guards but some are much more effective than others. In some cases just pipping the car horn will get the barrier raised and let you access the car park. If on foot you can often just walk in unchallenged. Try that at Miami Green and see how far you get. Not all security is equal.
• Security: How easy is it to secure your unit completely if you are away.
• Servicing: Some blocks are better cared for, maintained and cleaned than others. Worth checking a few times to check the state of common areas etc.
• Car parking: how much do you need. Many units have just one slot and purchasing extra can be pricey (RM 25,000 per slot).

Fixtures and Fittings:

• Hot Water: Not something that is the norm here, either in bathrooms or kitchens. Some look to add water heaters in kitchens etc. for washing up. If buying new, it's something you may wish to discuss with developers as an optional extra.
• Power-points: How many and where. Some places are very poorly designed in this respect and have a dearth of power-points and often have power-points in less than useful places. In one apartment the bed in the master bedroom would be 'forced' against a certain wall because of layout. But, no power-points for bedside lamps or clocks etc??? Also long stretches of wall without power-points can be a problem if looking to place illuminated display cabinets etc. In some cases the points in kitchens are placed stupidly high, just below the bottom of cupboards rather than just above the work-surfaces (trailing and unsightly cables when plugging in appliances).
• Shaver points: Only seen these in very few bathrooms. Something to consider.
• Double Glazing: Rare. Great for keeping out noise and insulating from heat but I've not seen it in use here. Some people look to fit secondary double glazing and the design of your unit may make this more or less practicable.
• Baths: Very few places have baths fitted in bathrooms, most are shower only. Some that do have baths only fit the very small ones. Larger units (2,000 sf) may have at least one bath fitted as standard (BUT, see hot water above).
• Glazing film: Similar to what is used in cars, some look to apply this to certain windows to reduce the heat, UV and glare from the sun. I'm exploring the use of different types here and will post again with what I consider to be the best option.
• Air-Con: Buying a new unit you may also be able to discuss fitting AC with the developer. This is generally going to be better than the hack and slash that's required for a post-fit. Not all units are equal either. Panasonic is considered to be quite a good brand. Daikin is however considered one of the best because it is almost silent. Hand held remotes a great advantage too, better than wall mounted controls.
• Ceiling fans: I use these a lot. I never use AC. Some are better quality than others and some also come with combined light units. Better units also come with a remote control so you can vary the speed of the fan and even set a pre-designated cut-off time.
• TV Point(s): How many and where placed. If a new or recently built unit you may wish to check that it's wired for Astro TV HD (requires two feeds per box) if that is important to you. Oddly, even some brand new units don't have HD enabled with claims that "It's coming soon". The placing of these points, along with phone points and associated power-points often leaves a lot to be desired!!
• Drinking Water: Two options really. You can either get a free-standing or work-top water fountain and use the large 5 gallon bottles (about RM 50 for five) or fit a filter unit to your supply. These are not the cheap RM 150 particle filters but cost somewhere around RM 4,000 and you then switch between drinking and general use water. I plan to use the latter once I move somewhere permanently. You will need to replace the filters in these about once a year at a cost of about RM 300.
• Storage: Often a problem. How much do you need and how much is there? Storing all manner of things can become quickly problematic once your seemingly spacious apartment is fitted with furniture and such like.
• Gas: Is bottled here if you intend to use it and you will need enough space for the bottle installation (which will eat up some of your kitchen storage).

That's all for now. Not exhaustive like I say, just some issues you may overlook, when considering where to rent / buy. Some of these things can also be rectified after purchase but obviously there more there is to do, the more mess and the greater the cost.

More Property Ponderings

Readers may be aware that I had pretty much decided to opt for an off-plan purchase at Batu Uban and I'm largely happy to stick with. There is however one problem, it hasn't launched yet and I have no Sales and Purchase Agreement (SPA). Problem with this of course is that the longer the launch takes, the longer the build will take and the more money I throw down the drain in rental. As such, I still keep my options open.

When I first came out to Penang I was ADAMANT I had to be near Gurney, Georgetown and Straits Quay but, although I do visit them still, it's FAR less than I anticipated, largely because I have rapidly developed a social circle which just does it's own thing, wherever. When I couple that then with the lack of developer (versus speculator sub-sale) units in any condos that I actually like and the lack of units 'off-plan' that appeal (for me Surin, Lattitude, Pearl Regency all have issues) I do start to ponder is a Penang island residence REALLY essential??? Condo wise I'm still considering the island of course and in particular out by E-Gate and Queensbay and plan to look at a few more projects there. I did have an option of a condo at The View when I was here in April and am kicking myself slightly that I didn't take it. But, I figure these things happen for a reason.

Of late however I have also started to consider Juru, Auto-City and Butterworth. All have existing and/or planned developments by the developers that appeal to me (Mahsing, Boon Siew and possibly IJM) AND there is the added bonus that land is cheaper and available there so we are talking about landed and in some cases detached.

Of course landed property has factors you need to consider such as pests and vermin, security, upkeep, maintenance etc. with those issues being somewhat less prevelant with condos (albeit you pay for it) but condos also have potential problems such as neighbour noise, road and area noise and how good the management company is. These are just random picks but those are some of the key things I consider. Condos do have the benefit of a 'lock it and leave it' approach but landed does have the benefit of SPACE!!!!!

I'v only just started on the research of Juru as an option and the one thing that does concern me is WILL the trip across the bridges into Penang island become a proverbial pain in the ass?? That said, I suppose it'd be quicker (or at least as quick) as getting to Batu Ferringhi where I also once considered. There is also the issue of whether there is QUITE enough out at Juru on a day to day basis, eateries and of course the lack of some facilities I do use (such as a gym, cinemas and the big malls). Decisions, decisions

I plan to go out to Juru soon for a look around and to visit a view projects. There is a project called Palm Gardens that did appeal but a quick call to a friend of friend revealed that it's basically two strips of houses, ungated and in a kampung (lesser developed village) and may not be as desirable as the marketing blurb suggests. Juru Heights was however recommended, as was Cendana. There's also a property fair at Gurney next weekend over four days (Fri-Mon) so I'll likely hit that too to see if there are any projects that appeal. I'll post up here any projects that I come across and and up/downsides and whether my decisions change.

Luckily Juru is still classed as Penang so the blog title won't have to change. So the only POJ I'll have to contend with is the one I'll get if I don't keep on top of the char kway teow with frequent gym visits

Tenancy Agreements and Deposits

Through my very good friend and property agent Catherine Loh I was fortunate to find a rental quite quickly upon my return to Penang and I will be moving into the apartment in a few days time. Catherine was excellent in sorting the documentation out most of which seems to be done using fairly standard forms. I do trust Catherine 100% (which always helps) so had no issues with accepting the documentation after reading it through.

This update is merely to provide an indication of the process and the costs at the initial stages of rental. Having viewed the apartment and decided to opt for it I met the landlord with Catherine after he confirmed acceptance of my offer. I decided to go for a 2 + 1 year rental while I wait for my apartment to be built as it gives me piece of mind for two years and the option of a third. The block is very well located strategically so I'm happy with that choice. We ran through the draft of the Tenancy Agreement (TA) and each of us signed and initialled each page. I paid a small deposit (RM 500) in cash for which the landlord gave a receipt, this was to take the property off the market. While we were there Catherine made full notes of the inventory at the property.

Following this Catherine took the TA to get it stamped and registered (for which there is a charge of RM 250, or around RM 125 if a one year agreement) and I commenced transferring the funds I needed to the landlord's account direct by internet banking (MEPS-GIRO) via HSBC. The common arrangement seems to be:

a) Two months rental as a deposit which will be returned at the end of the lease subject to damage inspections and such like (or you may be able to offset this against your last two months of rental)

b) The first month rental, paid in advance (tenancies generally starting from the 1st)

c) A utilities deposit of RM 1,300, normally equivalent to half a month's rental, again which is returned at the end of the lease if you have paid all your bills!!

I also opted to pay the monthly rental thereafter on the first of each month by using the auto-pay facility at the bank direct into the landlord's account. In all cases, regardless of receipts, this provides a good audit trail of payments and takes away the hassle of having to be around on the first of each month to pay your rent!!

On the subject of direct money transfers, bear in mind that as a non-local (and even an MM2H visa doesn't change this) you will be subject to an RM 5,000 per day limit on direct bank transfers so will need to factor this in if the amount you need to pay exceeds this. For peace of mind I also did a minimal initial transfer to the landlord's account and asked him to confirm receipt by SMS prior to my doing the full amount.

Once the transfers were complete we all met up at the apartment again and were provided with our copies of the stamped TA. We also ran through the inventory attached to each of the TAs and checked all items were working etc., making a note of any matters yet to be finalised/completed (e.g. further key card to follow, adjustment needed to kitchen cupboard for gas bottle for the cooker). Finally, we jointly took and noted (on each TA) the meter readings for the water and electric which in my case, are accessed in a utility room on the apartment floor.

One thing which is useful is to note which telco line your block is served by for the information of the internet/landline company you intend to use. In my case the line is Centrex and I plan to go with TM Streamyx (further update to follow). They will also use this information to check the broadband speed you are able to receive.

So that's it, all fairly straight forward but at least this post provides an overview of the process and the sums of money you will need to pay over initially. Happy house-hunting!! Finally, if anyone is looking for a very good agent I cannot recommend Catherine Loh highly enough. Contact me direct via the blog email link or from my profile page if you wish to be put in touch (this is merely to prevent spammers).

Property Developers - Penang

Just for the information of those who may also be house-hunting in Penang now or in the future, the following developers have also been recommended to me by locals. They seem to be quite highly regarded. Won't go into the details of properties here as they will of course change over time but the Ferringhi Residence (Battu Ferringhi) and Icon (Georgetown) developments, both by Mah Sing look interesting:

• IOI Properties
• Mah Sing Group
• Boon Siew Group
• IJM Land

Other developers which you can pick up fro previous posts are:

• Ivory Properties Group
• Bolton
• Ratu (Taman Ratu) - unable to find a direct website

Moonlight Bay - Batu Ferringhi

I was shown the Moonlight Bay development by Peggy Khoo of Ivory. It is clearly one of their premier developments and I have to say I was very impressed with the design, the location and the landscaping. To the right is a view of a villa-condo show unit interior.



Consisting of condo-villa style apartments and detached villa properties it really had a sophisticated feel to the whole place. At the time of writing there were a few condo units left (facing towards the 'Greens' and the pool areas of the development, priced at around RM 1.3m and, I believe, some of the semi D properties which go for between the RM 2.5 - 4m mark.



Very nice properties I have to say and, had my place in the UK sold, I would have been very tempted with one of the condo units. As a committed socialite though I am still a little unsure of the Batu Ferringhi location as a viable place to live long term. Depends what you want but if frequent trips to Georgetown would be on your agenda I have a feeling the trek from here would become a little tiresome if you needed to do it frequently, as would the fact that there are no eateries within walking distance nor even a supermarket close by. Nice set-up though, nonetheless and clearly right on top of the BF beaches if that appeals.

Property Agent - Penang (Top Pick)

Since I have been in Penang I have met several people who have had some pretty dismal experience with property agents. Often they have been shown a limited selection of properties with agents pushing what they have to sell, rather than seeking to understand the needs of the client and showing them properties that might match their profile.

I was fortunate in that I was recommended a very, very good agent by several people who have used her previously, a very nice lady by the name of Catherine Loh. Catherine certainly does get to understand your needs and will show you a wide variety of properties, as well as providing you with much information on the areas you may be contemplating buying. She is very friendly, helpful and , above all, knowledgeable and well connected. I have spoken to several people who have use agents in the past and when I told them of my experiences with Catherine they commented "you have been lucky then". Some clearly felt that agents were trying to "have them over" but that is certainly not the case with Catherine.

I can wholeheartedly recommend Catherine Loh to anyone looking for a property agent here in Penang and I would be happy to pass her contact details on to anyone interested. I haven't posted them here merely to avoid the 'spam bots' from grabbing the e-mail address etc. Rarely would I envisage giving a 'Top Pick' award to a person as it is mostly something I use to identify my top choices of the places I visit. I do however think it is a useful and well justified award in this case.

Ivory Developer - Roadshow Discounts (29 April - 2 May)

Very quick update for those who may be within striking distance of Penang this weekend and to whom the Ivory properties 'Lattitude' (Tanjung Tokong) and 'Island Resort' (Batu Ferringhi) appeal. Ivory are running a road-show on the ground floor of Gurney Plaza with the promotion offers of 8% discount AND 5% cashback running until 10:00 pm Monday.

At the Island Resort they have a few units left at 1250 sf. With the promotion it reduces unit cost from RM 691K to RM 604 K (at RM 483 psf) for hillside views and from RM 724 K to RM 633 K (at RM 506 psf) for sea view, completes next year.

The same deal is available on Lattitude with a 1600 sf down from RM 828 K (very high floor) to RM 724 K (at RM 452 psf). In this project they also have 1,500 sf units. The units have different aspects (views) and a range of floor levels which will affect the prices considerably with the units listed here being at the higher end of the scale.

Anyone interested should contact Peggy Khoo at Ivory.

Property Solution

This post contains the last of my ramblings, I suspect, about the properties I have checked out in my search for somewhere to live in Penang as I do indeed think I have found my solution. Over the last two of my three days with Catherine I visited some very interesting and attractive projects and one where the attraction was so great, I couldn't resist.

The first project we checked out was Surin by the Bolton Group over at Batu Ferringhi (BF), not far from Miami Green. This project in their 'Tower A' was fairly well advanced through its launch cycle but was very attractive nonetheless. It is scheduled to complete around 2013 IIRC. They only had a few units left though and I suspect these will be snapped up quickly. Prices however were quite good. At the time they had a few units at 1,520 square feet (sf) going for around RM637 K with a sea view, putting the price at RM 419 per sf (psf). There were also units of 1,300 SF going for around RM 550K putting them at around RM 423 psf. I was quite taken with this project as the units design was nice. I think the prices had been revised up quite a lot since launch though as these units were not very 'fresh' in the developer launch cycle. My problem with this project was that the few units with the sea view would have a view at night that would be very dark (e.g. no city lights in the distance etc which can be quite attractive - this 'black hole' view may appeal to some) and the others would face the 'greens', the hillside behind. In addition, BF is quite a way out for me and while the attraction of the beaches may appeal to many there is the problem that it's quite a way out from Georgetown and even further from travel connections (e.g. bridge to mainland and airport). Also, where it is located is likely to be subject to less development infrastructure wise in terms of businesses (shops, restaurants and bars etc) and technology (fibre optic etc.). It's all down to what an individual wants of course and all those issues may actually be requirements for others. For me though I think I would prefer to be near to the connectivity but still have a few and a good amount of fresh air and greenery around the project. A very nice development nonetheless.

Next we looked at a couple of developments by the Ivory group and I must say I was very impressed with Ivory overall. Firstly we looked at the Island Resort development again in BF. Not too many units available here again and again somewhat late in the launch cycle. They had just a few units at 1,250 sf and the design of these was nice. The views from them were also better IMO but at around RM 724 K this comes at a price of 579 psf, not too bad but starting to edge up somewhat. Despite the attraction of this project (which for me was slightly nicer than Surin) there were still the downsides of the BF location, for my particular circumstances.

The next Ivory project we looked at was Lattitude over in Tanjung Tokong (TT), virtually opposite Island Plaza (a rather grand name for what to me is a rather abysmal shopping mall). Now this project was VERY appealing and I was really tempted to take the plunge and reserve here. The mock up and design drawings of the building look very attractive and I have a feeling units will go like hot cakes here. The layouts were all really very nice and they had units at 1,600 and 1,500 sf at around RM 500 psf putting them at about RM 750 - 800K. As with all developers you will pay slightly higher prices for the higher floor levels with the premium per floor (which will vary from project to project but around RM 2-3K) often kicking once above a certain floor level when the views are seen to improve. The prices above however take into account these floor levels in the few remaining units available and due to complete around 2013/4. The units at 1,600 sf have a balcony which extends to the master bedroom and for the little extra this to me was the best unit. My only problem with this project is again, location. TT is OK but is in an area that I would actually visit quite infrequently I suspect, especially as my favourite bar/restaurant 'Bagan' plans to relocate to Georgetown. Certainly there are a few eateries here and it is close to Gurney Drive but even that is an area I think I will be less inclined to visit often.

A final consideration for me with all of the above is the question of market saturation and potential for property appreciation as a result of area and infrastructure development. All properties will have a ceiling in terms of the price they will hit, regardless of where they are. Property prices in TT, Gurney and BF areas have shot up in value over the last two years and you can't help but think it has to peak soon. A place to live is also a place that can make you money if you choose and provided doing so is not the sole motivation (in which case some people may choose to live anywhere, good or bad, if it makes them money) it is possible to combine investment potential with area and connectivity. In these parts of town the connectivity is not so good to the mainland or airport etc. BF does provide a more attractive environment, again for me, but at the expense of being way out. The central TT/Gurney area though is quite saturated in terms of living and business developments and there are few opportunities there now to build and create more and it is this infrastructure development that can help pull up the prices of properties as the infrastructure gets better and better be it business, connectivity, living accommodation or technology. Many would say that that has already happened in this area and that prices, even for new developments, have peaked already. As with anything to do with investments this is all a gamble and prices could continue to soar. However, as I think I may be able to match investment potential with an area which also fulfills my needs in terms of day to day living I decided to pass on all of the above, albeit Lattitude still appeals.

So what did I decide? Well, at the close of these days of viewings I visited a new project, and I mean VERY new, out towards the east of the island at Batu Uban. It will be not far from the Twin Towers development. I was very fortunate to be able to visit this developer and it was solely because my agent has a personal connection there that they agreed to meet me to discuss this project which is very very 'fresh' in its developer cycle. What is quite appealing about this project is that developers insist on interviews with prospective buyers as they are keen to sell only to people who intend to reside there and to ensure they get a good balance. This approach will also likely prevent speculator purchases which IMO can only be a good thing.

Having viewed the project artwork and plans etc. I have to say that the design of this building is absolutely stunning and the apartment layouts superb. They will have units at 1,000, 1,500 and 2,000 sf and all can be easily customised (e.g. remove maid's room to extend the kitchen or provide a split wet/dry kitchen as if often the case here). The properties have a range of aspects with some looking out more towards the Strait and other facing the bridges. The area has a very nice airy and fresh feel and is well located for the airport and travel to the mainland. In addition there is plenty of potential for the planned and future infrastructure development and technology links are likely to be quite advanced. It has also been said that the cost of living here is likely to be slightly less than in the north (Gurney/TT etc) which can be weighted towards tourists somewhat. There is also a new Express Way planned which will further speed up connections to the Georgetown and Gurney area. Even more appealing is the price. I am unable to be specific at this stage but suffice it to say that the units are priced at way way under RM 500 psf. There is a floor premium to pay at RM 3 K per floor once past level 7 but even with this prices will be very reasonable. I will likely go for a 1,500 sf unit as these can be easier to sell on than the larger should the need arise but the 2,000 sf units are also very very appealing. With a 1,500 sf unit you will also get 2 car parking spaces. Scheduled for completion in 2014 this development I think will be a very good investment as well as ticking all of my boxes in terms of day to day living.

So the property search seems to be over and I have to say I am surprised it took so little time. I suspect it was also a case of right place at the right time. There will be some time to wait of course for this project to be built but I figure selling up in the UK etc. could take a fair time as well as finalising the MM2H application. Much as I would like to move to Malaysia as soon as possible it could well be several month before that is possible, maybe longer. In any event, should I get here earlier I will be happy to rent and visit the development as it grows. Once I am here I will likely continue to visit new projects I hear about both out of general interest and to provide information for other potential MM2H candidates in the future. In the meantime, if anyone is interested in the property I will be able to put you in touch with my agent who may be able to gain agreement from the developer to meet and chat through the project. Clearly though an interested party would need to visit Penang as the developer does insist on personal interviews.

Property Ponderings (5)

Between Monday 25 and Wednesday 27 April I spent much time with my very helpful property agent, and now friend, Catherine Loh of Property Solutions, who had been recommended to me by several MM2H forum members. We looked at numerous properties ranging from older completed units in Georgetown through quite expensive, (but better value for money IMO) out of town in Batu Ferringhi and Tanjung Tokong, up to the flagship units of the E&O Property Company in Straits Quay and then out of town to the south west and Batu Uban. So, some ramblings about the places I looked at (all condos) and the areas :

Times Square, Georgetown: Approx RM 900K. This was an apartment which is part of the 'Ivory' company development but for me, in all honesty, was a little tired looking and had not the best of outlooks. There were some worrying cracks in the building fabric already and it seemed to lack much by way of character. There seems to be a premium to pay to live in the city (as there is everywhere) and one which, in this case, I am not prepared to pay. To its credit it was very well placed but I am not sure the general feel of the place appealed.

Diamond Villas, Batu Ferringhi: This was a fantastic place, lovely size, well laid out, lots of breeze and fresh air, but at a cost of RM 1.3M !!! For me though, the best of all the places I saw that day at just over 2,000 SF. The location was good, the facilities were good (pool etc) and the outlook spectacular. Above all it had a fantastic kitchen and and 4 bedrooms. The property is nearly ten years old now and at RM 1.3m this is serious money and expenditure of that amount here for me requires some important factors to be taken into account. See later my comments on investment peak, possibly the only drawback with this place.

Miami Green, Batu Ferringhi: The resort style of these condos is very appealing and the management company is supposed to be very good. Nice enough apartments priced at around the 500K mark but for me there is one major problem. At just over 1,000 sq ft I personally would like a little more space for living here on a full time basis. At around 1,500 sq ft they would be ideal, at 2,000 more so but I'm not sure I would be happy there long term at 1,050 SF. Of the the blocks there, G is the newest. There are some low rise blocks there too which are quite tasteful but I'm not sure if, missing the sea views, makes the space come in on you somewhat more. Like I say, nice enough but not for me and again, I think they may be nearing their peak for investment potential.

We also visited the 'Waterfront' project by Ratu. Few units were available here and they were being snapped up fast. The unit I saw is already gone and went for around RM 944K but was specious and well designed but something just didn't feel right. It was also directly across from the floating mosque and, having lived next to a mosque for 3 years in the UAE I find that the calls to prayer can get intrusive at times, regardless of how much you mind gets used to switching off. Nice enough and worth considering, subject to availability.

Fettes Residence, Tanjung Tokong: These were very nice but the only problem for me is that now is well past the best time to buy there. Developer units have reached their peak, there are few left and others are now flipping sub-sale and at quite a hike. At about RM 1m now IMO I would not consider it a good investment. I think if you had been able to get in at RM 400-425 PSF Fettes would be OK but for me, not at the moment. Layout is very nice, again about 2,000 SF size but some of the space is less well utilised than I would like to see. For me, a further problem was that too many of the rooms are internal facing and thus with now windows. My final concern is that I am not sure whether the area is right for me. We all have our own needs and desires and I'm just not sure Tanjung Tokong matches mine. But all that is just personal opinion.

Straits Quay: Nice development, crazy prices!!! RM 1.8m approx for 2,000 SF+, fabulous layout and design but a lot of dead SF for me (too much bathroom and dead end corridor space which you are paying for) but I'm just not sure of the overall SQ development concept. Looked a bit like a prison camp for the landed properties, one of the places where I definitely think the condo would be a better choice. If money were no object, maybe they would be OK but at RM 1.8m, and thinking JUST about a place to live (e.g. no investment concerns) I think I'd opt for the more stylish and individual Diamond Villas and buy an apt at Miami Green or even Langkawi to rent out!!! One consideration with Straits Quay type places is that their utilities are charged at commercial rate, somewhat off putting, but not too bad if usage is not high, apparently.

Catherine also told me of a newcomer developer who has bought a stretch next to the Straits Quay Plaza (to the right as you face the sea). They will be doing two towers, one as serviced apartments and one as purchased, priced at around RM 600 PSF. She did say she would be cautious about recommending these places as they are not a public listed company and that more research would be needed as to the stability of the company, their delivery times and product quality. Overall though, unless these other developer places are cracking value and outstanding design, Straits Quay seems to be a nice place to visit, being marketed as 'the place to live' but IMHO fails to match up to the hype at the moment and feels a little sterile. Popular with expats it seems as Tesco is relocating there. Also a good place for boaters with the Marina nearby.

All in all I wasn't too impressed with what I saw in Tanjung Bungah or Tanjung Tokong for the money to be honest. They are clearly going at premium rates and one can't help but think that the bubble cannot go much higher before it bursts. Don't get me wrong, there are some nice places and it's a nice area to live but unfortunately the prime time to buy in what's available just now has been missed. The bubble may continue to go up, but with prevailing world conditions it's not something I am prepared to risk.

My other concern is investment potential. Clearly if you are buying a place to live it is less of a concern but if you decide to move in 5-10 years time it would be better to make money than lose it, especially if we are talking substantial amounts. Buy a property that has peaked and you also need to factor in some form of refurb costs as time goes on, costs which will eat further into the minimal further appreciation you will get if you bought 'high. Places like MG and Diamond Villas have, I suspect, reached their appreciation peak. I could happily DO Miami Green I have to say, if only the places were a little bigger. The other places I saw seem to be charging a lifestyle premium (albeit the Straits Quay condos are nice) and I suspect management costs will be high and/or are unfortunately sold out of most of the developer units with often only lower floor sub-sales being available at hefty property flip prices.

After these visits I was more and more convinced of the need to either buy a completed developer unit on higher floors in a new build in a nice green and fresh area or buy off plan, as early in the launch stages as possible. For the amount I am likely to go into town (and even then it will be mostly Georgetown) I didn't find the BF area too far out to be honest. MG may not do it for me but I have to say for what it offered I found the units and the site to be very good. Just a little small for my needs. Fettes Residences would have been OK several months ago at the right price. At RM 1M per unit now, for me, no thanks.

The most appealing news seems to be of new developments at two extremities and a more central one in Tanjung Tokong. More of those to follow. So that's a quick round up of the first tranche of properties. Hopefully no-one will get offended by comments about various properties or areas as this is, largely, a personal diary and an account of what suits ME. It is however useful to air those views in the hope that they may be of use to others.

Happy house hunting!!!

Property Ponderings (4)

As prices continue to rise for condos in the popular locations of Gurney, Tanjung Tokong, Tanjung Bungah and Batu Ferringhi there comes a point when it is perhaps pertinent to question at what stage these condos cease to be good value for money. Whether you can afford the prices is neither here or there IMHO as all areas for me have a price 'ceiling' above which I consider it to be poor value for money and which I will refuse to pay. The other big issue I have is that I have always been fortunate to live in a nice detached home, often with some land, and not too many close neighbours. As such, the prospect of a condo with neighbours above, below and likely to the left and right, does concern me, and it concerns me a lot.

Contrast the prices then for these 'desirable' condos in Penang with some of the developments which are springing up off the beaten track both in Penang and, for instance, Ipoh in Perak and for RM 500K (the price at which many of these Penang condos now seem to be hovering) you can get a LOT more for your money. Checking out Fullhouse.com (see links) provides details of a number of projects which I won't bore you with the in depth details of but, as an example, a luxury 4 bedroom bungalow in Seberang Perai Tengah, Penang can be had for RM 486K and a palatial 5 bedroom, 5 bath 2 storey detached in Ipoh, Perak will set you back RM 523K. Given the choice on what to own for my RM 500K, in terms of the property only, and for me it's a no brainer.

There is however a but (isn't there always!!!!). In this case the 'but' is about the ease of access to amenities, nightlife and such like. The Penang condos are popular for a number of reasons and one of them is location, location, location. Batu Ferringhi has the nearby beach and is not TOO far from Gurney and Georgetown and the 'Tanjungs' are not far from either. I live in a peaceful rural village now and in all honesty, fancy a change, for a few years at least. As I have mentioned before, the last thing I want when I feel like popping out, on the spur of the moment, to a restaurant or bar is for it to be SO much of major undertaking that you end up not bothering. The house, its location, and even its view are important but they are not everything. Indeed, as I made reference to in an earlier post, in the UAE I found I had 'highlights' but no 'life' whereas in the UK I find I have 'life' but no 'highlights'. I don't want to replicate that in Malaysia and, another consideration when buying a landed property, I equally don't want to be cutting lawns, treating fences and painting woodwork on a regular basis!!! Life is simply too short!!!

Two other considerations have been flagged up to me that may affect property prices and are worth bearing in mind, both general economic issues. Firstly is the potential for the Bank Negara (Malaysian Central Bank) to raise interest rates, this will often take the heat out of the property market. The second is the planned introduction of VAT, anticipated at around 4%, likely in 2012. This will clearly have an impact on materials, fees and such like, all of which will likely filter through to the buyer.

So, yet more to check out. Who knows, over time this might become "Pick of Perak" yet

Property Ponderings (3)

I have previously mentioned the issue of the somewhat alarming recent prices rises for property in Penang and there is a useful thread on the MM2H Forum (Penang Condos) where this issue is being discussed. Some of the potential explanations for the price rises are offered together with a slightly cynical (though I suspect not far from accurate) theory as to the marketing strategy of the developers in shifting their properties. Right or wrong, property prices continue to rise!!! Have a look through the various sub-boards on that site (e.g. "Where to Live" & "Property Matters") and you will find several discussions about properties in Penang (and elsewhere) with references to upward price trends.

In short, it seems that many of the properties in Penang have gone up by as much as 10-15% in the last 3 months alone and by an even more alarming amount in the last 6-12 months. Question is why? While it is hard to be sure it doesn't seem that there would be enough buyers there to snap these properties up and continue to drive up prices, especially in terms of MM2H applicants, so on face value it seems to be similar what went on in Dubai with property speculators buying blocks of property off-plan hoping to 'flip' them (sell them on prior to completion at a very healthy profit). Many individuals, often in syndicates, also got caught up in this "Can't Fail" investment opportunity and handed over money in bucket loads. It was fine at first (many investors seeing a 50% profit on their investments within 6 months), then of course, it failed. World economy, no buyers, high and dry investors. Many of the properties in Dubai remain unfinished and those that got completed, investors are having a hard time in dropping them for 30% of what they paid for them. I'm also aware of similar issues in Florida with properties that were going for $350K two years ago no going for $160K!!

Question is will the same happen in Penang and if so when? Is the current upwards trend sustainable? No-one wants to buy when property is at its peak, even if it's with a view to living in the place rather than selling as an investment because at some stage, you are likely going to have to move on (as the word 'Second' in the title of the MM2H visa implies). Few would wish to sell at a 50% loss. Problem of course is how long do you wait, if you wait at all? Next year they could be 50% higher again. It's a tough call.

To get the most bang for the buck I am seriously considering off-plan purchase, subject of course to being able to find the right one in the right place and built by the right developer. Again, as has been mentioned before, it's a bit more of a gamble as you cannot see what you are getting and walk away as you can with an existing build. From what I gather, developers are being given a bit of an incentive to build properties at or under the RM 350K mark so time will tell if that generates more builds in that area instead of the "super-condos" that seem to be springing up. A useful site to check out availability of property for sale (existing and new projects) which I was pointed towards is Fullhouse.com. The site also caters for rentals. I have added this site to the 'Useful Links' also.

Property Ponderings (2)

Some further information coming to light from residents and forum members:

Balik Pulau: Mentioned this district before and as I suspected it is quite a way from anywhere to such an extent it probably would become a drag to live there. No point having a nice landed property with nothing to do nearby requiring a drive, and sometimes a long one, to get to malls, entertainment and activities. The nearest mall so I am told is at Bayan Lepas which means a drive back past the airport and likely encountering traffic from the industrial zones. No thanks. Likely off the list now.

Batu Ferringhi: A bonus with BF is that it's near a beach. Downside, as alluded to before, is that it's some way out and at the end of quite a winding road. Many of the properties are built on the hills surrounding the beach. Once further consideration is that at the end of Tanjung Tokong and the beginning of BF, there is a floating mosque which can get busy on Fridays. I lived in Abu Dhabi for nearly 3 years in a newly re-furbed apartment that was behind a mosque. To my amazement the apartment was single glazed. Double glazing features on my property checklists now!!! That or a local noise check!!

Tanjung Tokong: As has been mentioned, Gurney Drive is very well placed for amenities with most in walking distance. Tanjung Tokong is not far from Gurney (being the next developed area out and before Tanjung Bungah) and is close to Island Plaza, Gurney Plaza, Straits Quay and hospitals etc etc. It is an up and coming area by all accounts and, it is suggested, likely to be a good place to live and invest.

For obvious reasons Tanjong Tokong and Gurney are pretty much at the top of my places to check list at the moment, fortunate considering I will be staying nearby.

Property Ponderings

Ultimately, should Malaysia tick all my boxes, the biggest question for me will be what type of property to go for. At the moment Penang is at the top of my list so much of the information I detail here relates to that area. The information has been distilled from a variety of posts, messages, mails and research I have been able to do and is clearly biased towards the nuggets that particularly affect me and my needs.

General Considerations

There are 5 key questions for me:

• Rent or buy?
• Condo or landed property (e.g. bungalow/house)?
• Old or new (and in that regard new/completed or off-plan)?
• City or suburbs?
• Leasehold or Freehold?

I have to say I have always been adverse to renting. I just view rental as dead money. There are some benefits though, particularly as a new resident. For me these mainly centre around checking out a place to live to make sure you are making the right decision (area or indeed country), the ease with which you can pack up leave from a rental should the need arise (liquidating an owned property will take time) and of course providing you with a roof over your head if you decide to go the new build/off-plan route. Once sure about the country/area however, ownership becomes a no-brainer for me. In Penang there are many properties around the RM 500K mark and you can get a reasonable rental there for around the RM 1,500 per month. Clearly the more you pay the more you'll get but this figure seems a good enough benchmark. You don't need to be a rocket scientist to work out that over, say, 5 years at RM 1,500 per month you would pay RM 90K in rental and on a RM 500K purchased property you could afford to sell it for just RM 410K (should the market decline) and still be no worse off. Over 10 years of course price you could sell at, if you had to, would be just RM 380K.

On the condo or landed property front I'm still undecided. One thing I don't want is a life of maintenance and chore tasks such as cutting lawns, treating wood, cutting hedges etc etc etc. There are however attractions to landed properties including having your own space, potentially fewer neighbour issues and the ability to design your own place. Condos also have some attractions however, in particular for me, the ability to "lock it and leave it" whenever the fancy to travel takes you (security less of a concern albeit there have been some reports of "inside job" break-ins with security guards suspected of letting the villains know of vacant properties), many of the condos seem better placed in terms of proximity to nightlife etc. and fewer maintenance issues (though this can depend greatly on the management company). A further consideration is whether condos appreciate as much as landed properties with suggestions that they may not. I will have to ponder this longer and visit several properties to form a view I think.

Old or new, again one I need to ponder more. Newer builds will obviously be more modern and, if you chose your builder/development carefully, can be of a good quality. This is important to me in terms of the electrics, water pipes etc, bathroom/sanitary fittings and state of the overall buildings. You need to be careful with a new build to ensure the builder does not intend to use asbestos based ceiling tiles in bathrooms and kitchens as it is still a commonly used material. This is clearly an important consideration for older builds to, rental or purchase. Some of the older buildings are well established and some, such as Miami Green, have a good reputation because of their management, security and design (MG is built in an apart-hotel style with good facilities) and are popular with expats. I need to check out whether I think these benefits are worth the premium some of these properties command. It's all a personal choice again. Clearly the off-plan option is under this heading too and the main benefit to this to my mind is the significant savings with properties being bought, for example, off-plan a year or two ago at RM 350K and now going for RM 550K. Even taking into account rental for 1-2 years this represents a significant saving!! Indeed, something that is somewhat alarming is the rate at which property prices seem to be escalating in Penang with many properties having gone up by 10-15% since January 2011 alone! The question is, is it sustainable? Finally, while considering this option, it is important not to forget renovations. Possibly worth considering in an older building and either DIY or using an renovator. An issue of course will be how good the infrastructure and fabric of the building is, water pipes, electrics, walls and water-proofing. In Abu Dhabi complete blocks used to be shut down by developers and renovated allowing a 'deeper' refurb to be done (sometimes!!!!). Not sure yet if this happens in Penang.

Finally, city or suburbs? And, again one I need to ponder more. The major cities such as Kuala Lumpur or Georgetown have their attractions being well placed for all amenities. The downsides include the levels of noise in some cases, traffic congestion (and the resultant pollution) and the feeling of claustrophobia that busy city living can bring. There are of course also suburbs and suburbs. For me, in Penang the choice will likely come from one of the major contenders (e.g. Gurney Drive, Batu Ferringhi, Tanjung Bungah and Tanjung Tokong). All have their benefits and the main purpose of my first trip will be to see what ticks most of my boxes, there will inevitably be compromises to be made. Another thing I need to check out, though maybe not this time around, is some of the property in other parts of Penang and even elsewhere in Malaysia where prices can be substantially less. I do however need to be careful that the cheaper property cost does not come with a heavy impact in terms of quality of life and at the expense of things to do. This could lead to a miserable existence and would be false economy.

Lease or freehold is also a no brainer for me, but something to check for. I always favour freehold over lease as it is just so much easier to sell on IMHO.

Some Specifics

Mainly so I have the details in one place for when I get there, some suggestions from current and prospective MM2Hers in terms of property and guide prices (as at March 2011). Property comparison is often quoted in price per square foot (ppsf/psf) and, where relevant, I have included them and will update this to show some complete unit prices when I get them. On the condo front Im Malaysia, as with many countries, as the floor level goes up (often providing better views) the price goes up also, sometimes at an alarming rate:

• Seaview Gardens: An older property (1995) with some of very questionable quality with prices between RM 520 - 680K being asked for!!! 'Sea Range' and 'Reef' are similar older condo buildings.
• Ferringhi Mutiara Apartments (Batu Ferringhi): Going at RM160k each
• Miami Green (Batu Ferringhi): Popular but at a price. An older property at approx RM 500 psf. G block is the newest. The views to the rear are none to attractive so I believe and the higher level apartments with better views command very high prices. At the time of writing asking prices for the units there were between RM 488K - 600K (likely for the higher floor levels).
• Fettes Residences: 415 psf. New.
• Brezza (Tanjung Tokong): 500 psf. New again and near the E&O Straits complex and Tesco!! Prices off-plan were RM 350K, now RM 490K!!! Problem here is that unless the developer has converted, these properties were leasehold

Further options include Georgetown (above Times Square) and south of the bridge where there is a lot of new development.

At the moment the Tanjung Tokong area appeals to me and potentially an off-plan or new build. The trip I am sure will reveal a lot more but I am indebted to the mails, posts and comments from various forum members and contacts for providing this very useful information.

So, that's it for now. I'll update this if I come across more useful nuggets before my trip and of course there will be more updates, with pics, once I am there.

Districts - Malaysia / Penang

While the blog is still in its early stages I thought that a few words on what I have looked at in terms of areas/districts to consider living in.  Much of this information was gleaned from the very useful sites I have already made reference to and the recently arrived "Rough Guide to Malaysia, Singapore and Brunei" and the "Lonely Planet: Kuala Lumpur, Melaka and Penang".  It is worth pointing out that a new version of the latter book is due in June 2011 so it may be worth waiting unless you need it now, which is the position I was in. Another book I have been recommended is the Explorer "Kuala Lumpur Complete Resident's Guide".  I had one of these for Abu Dhabi and it was very good.  It was published in 2008 so I thought I'd contact Explorer (based in Dubai) to see if there was likely to be an update in the near future.  They replied very promptly and at the moment there are no plans to do an update, probably worth getting regardless as they do touch on things that tourists may not be concerned with.

This is not in any way proposed as any kind of cutting edge analysis, merely some scribblings of what I've looked at on the basis of what appeals to me and some of the VERY early opinions I have formed.  It is also not meant to be an advisory on where others should live as our circumstances and needs will all be different.

General Districts

• Kuala Lumpur: Always an option but I do tend to find big and blustering capitals are places I like to visit, not live.  It clearly suits a great many people but I am not sure it will have the character of some other areas and I'm just not sure I fancy somewhere THAT busy.
• Langkawi: Absolute paradise from what I can gather and a wonderful place to visit so I'm told.  I really don't think there would be enough to keep me occupied there though from speaking to several people I know who have been there.  If peace and tranquility are your thing - maybe.  Prices for food etc I believe are higher than on the mainland.
• Penang: Obviously the one that appeals to me more than others at the moment.  It seems to be well placed, popular with expats, has a pleasant enough 'old world' charm (especially in Georgetown), has a heavy Chinese influence, enough going on to keep me occupied and some nice beaches.  Like KL though it can suffer with traffic problems from what I can gather, esp in Georgetown.
• Melaka: A potential contender still.  Less developed with high-rise from what I gather with 'landed property' a real option, very good property prices and quieter than Penang/KL.  It is a place I do plan to check out before settling for good, but maybe not my April 2011 trip.  Traffic can be a problem here too it seems.
• Butterworth: An area I have come across on posts and somewhere I may also check out but I have a feeling it will be too quiet for me.  It is perhaps more accessible for mainland Malaysia (being on the West coast, level with central Penang) and prices seem to be cheaper again, for property and about everything else.  Part of me does crave somewhere with a bit of a buzz though and I'm not sure Butterworth, or indeed Melaka, will have it for me.  We are all different afterall.  In any event, yet to check them out.
• Kota Kinablu: Picturesque and popular with the sailing fraternity I believe.  Again, a place worthy of checking but in my case I think, just for a holiday.
• Sri Manjung/Sitiawan: Again, worth a look.  Good choice of landed property, very good for shopping and again, quieter than places like Penang etc.

So, having come to e VERY premature decision that Penang will likely fit the bill, a word or two what I have been able to glean about the districts within Penang itself:

Penang Districts:

• Georgetown: Clearly an option and well placed in terms of being central.  I think the traffic problems might grate after a while and while I fancy somewhere with a bit of a buzz i think this may be pushing it too far.  It will likely be a place I like to visit, but not live.  A bit like London in that respect I think.
• Gurney Drive:  Now this seems like it might fit the bill.  Far enough out of the hussle and bustle of Georgetown but with enough going on to keep me occupied and contented. This area will be the focus of my trip in April so more to come!!!!
• Tanjung Tokong: Slightly further out than Gurney (towards Batu Ferringhi) but again a real contender.  Some nice developments here and plenty going on.
• Tanjung Bungah: Further still but not too far.  I need to check out this area as again it has some appeal.
• Batu Ferringhi: The furthest out from Gurney (about 15 minutes or so down quite a windy road so I gather) and very popular with expats it seems.  The Miami Green apartments seem to crop up in threads a lot as being quite desirable.  Depending on how things pan out I may end up staying in one while I am there in April.  Some seem to think it's a bit too far out of it and a little quiet but that can be a benefit.  One thing that might bother me is if I had to travel every time I wanted to do anything.  Could become a drag.  Again, an area I plan to hit on the first trip, so watch this space!!!
• Balik Pulau: More central and some really nice developments here.  I will check this out too but would have to see just what is going on locally.  I'm not looking for a rural idyll at this moment in time.  Quite a lot of landed property in this area and at prices which are much more reasonable than the coastal areas.  Again I suspect it might be a bit of a drag if you need to travel for everything.
• South of Georgetown: Not a district in it's own right but a general area, in my case, to avoid.  Considerably industrialised by all accounts so a definite non-starter.  there is however mention of some interesting developments springing up at a very reasonable price, if you can stand the area and the 'views'.

So, as it's getting late, that's about it for today.  Much more to come with an update tomorrow on hotels/accommodation I plan to use for my trip and quick update on any jabs needed.  I had a shed full it seems when I went to the UAE 3 years ago so hopefully many will still be 'live'.