Daughter and b/f have both been working with NGOs in post-tsunami Aceh (Indonesia) for over 2 yrs. It's a short flight from KL so they're familiar with it and now talking of investing in a flat - apparently you can get one for 30K Euros. I was under the impression via a friend whose son was living there until recently that foreigners couldn't buy. Daughter says that below a certain price band you can.

Anyone know whether this is right or has someone been spinning them a line? Also I would worry that they'd have to leave it with an agent to manage/let - how would you find one to trust? What's to stop anyone telling them there have been eg 6 months voids when in fact it's been let? They very likely won't be in the area much longer (unless maybe Burma) - daughter now talking of working in Sudan

Working for NGOs they are never likely to earn very much - they have savings but not very much by UK standards. I'm worried about them sinking a lot of their cash into possibly dodgy investment. I know KL prices have gone up a lot recently and economy booming, but feel that this is maybe just another property bubble waiting to burst.

Daughter does tend to be over-trusting and scoff that I'm too suspicious. Would prefer her to leave any cash on deposit for now.
Advice from anyone clued up on this area very welcome - needless to say NO VIs!

I thought it was above a certain price you can. To keep speculators away ! http://www.mm2h.gov.my/incentives.php Around 6.4 ringits to pound.

250,000 MR = about 50,000 euros.

http://www.mm2h.gov.my/ My missus keeps reminding me that she would like to have a place there 'one day', hmm maybe.

I liked Malaysia when we visited last year, stayed in a KL 'aparthotel', did our own thing. Its a nice place, in a 'huge less sterile Singapore' kind of way.

Sorry if this sounds rude and doesn't answer your question but I find it strange that people working for an NGO would want to get into BTL and help price out locals. Considering they seem to be devoting their lives to helping people in dangerous places, have they really thought about the ethics of getting into BTL in a foreign country?

Why put all their eggs in one basket in property anyway? Why not drip feed savings into a variety of different investments?

Many thanks for your reply, Loggy.



Strange as it may seem, even people who work for NGOs in stinking hot, hugely corrupt countries might like to own a property and be able to afford to have kids one day. I don't suppose it's even occurred to them that they'd be pricing anyone out. They're just thinking of a reasonably safe home for their savings. In any case, after several yrs in SE Asia (Cambodia as well) they will be all too aware that the people most willing to shaft and exploit the locals are other, richer locals.

But as I said in my OP, I would rather they put their money elsewhere.

Incidentally the houses they're living in are rented, owned by locals who have not objected in the least to colossally increased rents since the tsunami brought so many NGO staff in.

I think this idea that investing is wrong is quite bizarre. I would have thought that most people should regard foreign capital investment that improved living standards a good thing and not a bad thing. Whether housing is the best investment in a developing market is an entirely different proposition, I'd have thought there would be opportunity to invest in growing and cash-generative industry that creates jobs and generates a much higher return on capital with less work than a house.

I'm malaysian, living in the UK right now. Used to live in KL for almost 25 years. May I know which area is the flat? 30k Euros for a flat in KL seems pretty cheap to me. The 3bed condomoniums in KL are typically ~110k Euros. Yes, you can buy a property unless if it a above a certain amount and not below.

If it's for investment purposes, I wouldn't recommend buying flats in Malaysia. Flats/Condos in Malaysia generally tends to increase in price ~1-2 years after being built, and begins a downward trend afterwards, because there is simply too much supply of flats/condos in KL area.

Many thanks for your reply. I've no idea what area - they very likely don't know themselves - have probably just been listening to someone else pretending to know all about it.
Will pass on your info, thanks again.