RPC

Last week there was a good news released especially for for foreign investors. The good news is that the government is re-opening application for Malaysia My Second Home (MM2H) starting this October 2021. Download Full MM2H Update Here MM2H PDF The bad news is the requirement for MM2H application has changed. A big one. First let us understand what is MM2H anyway. The Malaysia My Second Home (MM2H) is a programme promoted by the Malaysia Tourism Authority and the Immigration Department of Malaysia, to allow foreigners to stay in Malaysia for a period of ten years.

There are three types of property market in Malaysia. The first is primary market. This is new launched developers’ projects. Second is subsale property which is secondary market. This is where you buy the property from existing owners. The third is auction property, which we vaguely referred as tertiary market. If you followed me long enough, I have been advocating investing in subsale property. There are many reasons why I tend to invest in subsale properties.

Commercial properties are usually more lucrative and higher return than residential properties. They generate more money for their owners and can have less of a hassle with the upkeep. People who live in an area will often prefer a commercial property over one that is residential. This is because they have much less to do with the upkeep of the property, which can be a full-time job when it comes to residential properties.

The pandemic outbreak causes tourism industry to collapsed. Many businesses in this industry hit the most. The same is happening to short-term property owners. Unable to get any bookings, the short-term property owners switched to long-term rentals. However, switching to long-term rental is not as easy as the owners thought. Not only the owners need to collect monthly rentals, they also need risk damages to the contents in the property too.

What is due diligence in real estate? Due diligence is part of a process in acquiring property. Each of the stakeholders will conduct their own due diligence. For example the solicitor will conduct due diligence (when the solicitor is representing us) on the vendor when we are buying the property. Solicitor will usually check if the owner is the rightful owner, any pending bankruptcy, any bank loan attached the property etc.