More Indonesians buying Malaysian apartments<\/p>\n
For many affluent Indonesians, buying a house in neighboring
\ncountries such as Australia, Singapore or Malaysia is not
\nunusual.<\/p>\n
Although such purchases have significantly declined since the
\nfinancial crisis hit Indonesia in 1997, the demand for foreign
\nhomes among Indonesian buyers remains high.<\/p>\n
In the past, many Indonesians chose Australia or Singapore for
\na second home. However, due to the higher living costs in these
\ntwo countries, many people have now turned to Malaysia, which is
\nrelatively less expensive for living or studying.<\/p>\n
Besides investment purposes, the motive for most Indonesians
\nwho purchase a house in Malaysia is to provide a house for their
\nchildren who are studying in the country.<\/p>\n
"Many Indonesians generally buy apartments in Malaysia for
\ntheir children to study," Vivi Yanti, a marketing employee at
\nKnight Frank property company, told The Jakarta Post.<\/p>\n
She said demand for Malaysian property was quite high among
\nIndonesian buyers. "Day-to-day inquiries are on the rise," she
\nsaid referring to the response to the company's advertisements.<\/p>\n
Besides its proximity to Indonesia, the quality of Malaysia's
\nhigher education system is also a lure for Indonesians.<\/p>\n
Many Indonesians also choose to buy a second home in Malaysia
\nbecause they have close relatives in the country, which shares
\nthe same cultural and linguistic roots with Indonesia.<\/p>\n
"I think the main reason many Indonesians prefer Malaysia is
\nbecause of its cheaper living costs. The tutorial costs at a good
\nuniversity in Malaysia are even lower than those at international
\nuniversities in Indonesia," Vivi said.<\/p>\n
In term of prices, apartments in Kuala Lumpur are generally
\ncheaper than in Jakarta. An apartment with four rooms plus one
\nstudio costs about 1 million ringgit, or about Rp 2.3 billion.<\/p>\n
"The price of apartments in Indonesia is between 10 percent
\nand 15 percent higher compared to apartments of the same class in
\nKuala Lumpur," Vivi said.<\/p>\n
Apartment owners in Malaysia are becoming more aggressive in
\nselling units to foreigners following the relaxation of
\nregulations on the purchase of residential property by foreigners
\nin May 1998.<\/p>\n
Indonesia is one of their most promising markets thanks to the
\ncontinued growth of the middle class here, many members of which
\nprefer to send their children to school overseas.<\/p>\n
Before considering a house purchase in neighboring Malaysia,
\nit is worth reading the important guidelines a foreigner must
\nfollow (below).<\/p>\n
The guidelines are reprinted from home buying tips provided by
\nMalaysian property company Sutera Properties Development's
\nwebsite www.suteraharbourproperty.com.<\/p>\n
1. Foreigners are not allowed to purchase any residential
\nproperties as follows:<\/p>\n
- Double\/single story terrace or linked houses<\/p>\n
- Low-cost and medium-cost houses<\/p>\n
- Low-cost and medium-cost flats<\/p>\n
- Houses on Malay reserve land<\/p>\n
- Bumiputera (Malaysian indigenous) quota units<\/p>\n
2. Foreigners are allowed to purchase:<\/p>\n
- Terrace or linked houses above two stories, but limited to 10
\npercent of the total number of units built of its type. It must
\nbe valued at 250,000 ringgit (about US$66,000)<\/p>\n
- Land\/bungalows and semi-detached houses, but limited to 10
\npercent of the total number of units built of that type. It must
\nbe valued at 250,000 ringgit per unit and above as exercised by
\nrespective State's Guidelines. If the purchase of land is for
\ninvestment purposes, they must establish a local company with 49
\npercent Malaysian equity (inclusive of at least 30 percent
\nBumiputera equity).<\/p>\n
- Condominiums or apartments worth 250,000 ringgit and above but
\nlimited to 50 percent of the total number of units within each
\nblock.<\/p>\n
3. Foreign individuals (including husbands and wives) are not
\nallowed to own more than two residential units (either
\ncondominiums or one condominium and one non-condominium). Foreign
\ninterests will not be allowed to purchase more than one non-
\ncondominium residential property. Those who wish to own more than
\ntwo units will be considered to be purchasing units for
\ninvestment purposes and therefore must establish a local company
\nwith 70 percent Malaysian equity (inclusive of at least 30
\npercent Bumiputera equity).<\/p>\n
4. Local companies\/industrial firms owned by foreign interests
\ncan purchase more than two residential units for their staff.
\nThey are allowed to purchase residential units worth more than
\n60,000 ringgit per unit except low-cost apartments, low or
\nmedium-cost houses, houses on Malay reserve land and Bumiputera-
\nquota units.<\/p>\n
5. Permanent residents are allowed to purchase residential units
\nworth more than 60,000 ringgit per unit, subject to the following
\nconditions:<\/p>\n
- Husband or wife must be a Malaysian citizen, or<\/p>\n
- They must be qualified to apply to become citizens and have
\nsubmitted the necessary applications.<\/p>\n
-- The Jakarta Post<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/more-indonesians-buying-malaysian-apartments-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }