The forthcoming Malaysian Annual Real Estate Convention (MAREC ’08) will for the first time, have a regional theme: Regionalising The Malaysian Market - The Reality of Getting There The event is expected to generate business opportunities for practitioners within the ASEAN region.
To be held at the Sime Darby Convention Centre from Jan 11- 13, the event will have the support of a large number of corporate bodies which have registered their executives as participants.
One of the most exciting features of MAREC ’08 is the all-new parallel sessions within the convention aimed at certified real estate negotiators (CREN), negotiators and support staff of real estate agencies. In previous years, the Malaysian Institute of Estate Agents (MIEA), designed and structured the convention mainly for real estate agents. Negotiators and other agency staff had to rely on other MIEA programmes to gain knowledge and information.

Learn how to carve out a successful career in real estate at MAREC '08Realising that attention to negotiator and support staff issues was lacking, MIEA decided to create a new session within the convention to cater to the needs of this group. Several speakers have been lined up to conduct these sessions. The speakers are senior members of the real estate fraternity and have been picked for their special skills and unique reputation in the market.
One of the topics to be covered in a parallel session is How To Be A Top Negotiator.
To guide and motivate participants, MIEA has managed to engage the services of one of its most illustrious members. Property consultant Stephen Tew has been involved in the real estate business for over 25 years.

He is a walking success story on how real estate can be a successful career if approached in the right manner. Tew started his career much like everyone else in the business, as a negotiator. Having worked hard and built up an impressive clientele, he decided to forge ahead with some partners and formed a real estate firm called The Golden Triangle. He again proved his calibre and helped built The Golden Triangle into one of the leading agencies of the day.
Several years ago, Tew decided to take on the challenge of forming his own sole proprietor-ship and ventured to form Hectares & Stratas. As principal, he has steered the company into a highly successful entity.

Steven TewTew will share with participants his secrets of carving out a successful career in real estate. He will talk about changing your mindset to achieve success and the need for discipline to make it.
“Although being a real estate negotiator is different from the average sales job, all negotiators should bear in mind that it is still a sales related job. To tap its potential and reap its rewards, negotiators have to approach the job with specific long-term goals,” says Tew.
More than 250 participants have registered for MAREC ‘08 and the MIEA expects a full house. Discounted rates of RM538 for members and RM638 for non-members are still available until Dec 31.

For negotiators intending to take advantage of the parallel sessions, MIEA is offering a special rate. For a discounted price of RM438, CRENs and negotiators will be able to participate in the entire convention and will also be eligible to attend the parallel sessions.
For information, contact the Malaysian Institute of Estate Agents Secretariat at 03-77277477 or convention chairman Siva Shanker at 019-3372852.

1.Malaysia offers a stable, freely-elected government
2.The country enjoys a stable economy with 7% GDP growth in 2004. Continued low inflation ensures the cost of living will continue to be one of the lowest in Asia
3.Kuala Lumpur has grown extensively since the Asian Economic Boom of the 1990s and is the regional headquarters of many of the world’s major corporations
4.It is one of the most vibrant cities in Asia and home to a number of stunning skyscrapers, most notably the Petronas Twin Towers and Menara Kuala Lumpur
5.The old town maintains some links to its colonial past with narrow and winding streets and a delightful hybrid of Chinese and European architecture
6.Malaysia practices a justice system based closely on the British legal system
7.Foreigners can buy up to 2 houses and are entitled to 60% bank loans
8.Kuala Lumpur continues to benefit from a growing tourism market helping to create a mature rental market
9.Kuala Lumpur is extremely well connected – major airlines fly to the Kuala Lumpur International Airport and a high speed train service takes under ½ hour to reach the city
10.Kuala Lumpur’s education and medical services are some of the best in the Pacific Rim

No, whether you are a foreign or local investor, basically all are subject to and benefit from the same property rights. Malaysia’s land tenure is based on the
Australian system of land ownership – the Torrens system. A small percentage of lands mainly in the rural areas are reserved for the
indigenous people (Malay Reserve land) and cannot be owned or purchased by the non-native locals or foreigners. Most properties that are investment generating lie predominantly in the urban areas of the larger cities like Kuala Lumpur, Penang, Malacca and Johor Bahru (adjoining Singapore) and have no ownership restrictions.

Is financing available for investors who wish to purchase property? If so, how hard is it for foreigners to qualify for this financing?

Yes, financing is available for foreign investors and there is no hard and fast rule about it. For the potential purchaser to qualify he must show proof of possessing some source of income to enable repayment. For foreigners, the maximum loan normally allowed is 70% and the term of loan depends on the age of the purchaser.

Have you noticed any increase in the numbers of foreigners interested in investing in and/or moving to Malaysia recently?

Yes, there is an increase in foreigners interested in investing and moving to Malaysia. Some of them come under the Malaysia My 2nd Home (MM2H) Programme and others come in for investment purposes or move to Malaysia to take up a job.

Kuala Lumpur Property Market

Malaysia offers a real estate investment opportunity in one of the fastest growing economies in the world. We believe the following factors make Malaysian real estate an exceptional opportunity.

Malaysia's strong political stability and stable economy encourages a more than favourable climate for investors locally and from overseas. A high literacy rate and widely spoken English makes the country a preferred choice. Its GDP is expected to grow around 6% per annum in 2007.
The likely appreciation of the Ringgit: The Malaysian currency is the third most undervalued currency in the world and is 51% undervalued relative to the US Dollar, according to the latest "Big Mac Index" published by 'The Economist'. The Ringgit is widely expected to strengthen as government controls are gradually eased.
Recent abolishment of property gains taxes: Property gains taxes have been abolished from 1st of April 2007.
Liberal investment rules relative to other emerging markets: Malaysia has amongst the most liberal property-ownership regulations for foreigners in Asia, with the process of liberalisation continuing.
High development margins: Development margins are strong due to the increasing real estate requirements of a rapidly growing and increasingly-wealthy population.
Growing competition between banks driving down lending margins: Decreasing lending margins have a favourable impact on real estate valuations Increasing international interest in Malaysian real estate, particularly from the Middle East.
Malaysia is the only country in South-East Asia which offers both conventional and Islamic financing.


12 Points to look at before investing in Kuala Lumpur

To buy a property completed or under construction by a developer?
Are you purchasing the property for investment or for staying?
What sort of budget?
Location near KLCC or out of KL Central?
Leasehold or Freehold property?
• Freehold Land - Held in perpetuity. Most inner city lands are freehold.
• Leasehold Land - 99 years or 60 years in most cases of lands alienated from the Government prior to development.
What type of property – condo/bungalow/semi-D?
How many rooms/baths/land area/built up/furnished/partly?
What level of tight security?
Near schools, amenities, shopping malls and public transport?
Do you plan on purchasing the property in cash or mortgage? How many years for repayment? Best loan package?
What will be the legal fees and professional fee/stamp duties before acquiring the property?
Upon signing Sales & Purchase Agreement (SPA) with minimum 10% deposit the balance sale is to be completed within 6 months [+/-] with the relevant consent and approval from the relevant authorities then the balance purchase sum to be paid to the owner. If you are taking a mortgage loan then once state/developer’s consent has been obtained the bank will release 70% of the loan and you will have to top up the differential sum. This will be handled by the appointed lawyers/banks.

Buying & Selling Property In Kuala Lumpur

Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.
There are two choices:
Purchaser finds his own banker.
His lawyer can submit to his panel of bankers.
The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:
Purchaser’s & Vendor’s identity card or passport if foreigner.
A copy of the previous S&P from the Vendor
A copy of the title (if any)
Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.
Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.
The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.
As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.

Which areas offer the best long term prospects for capital appreciation?
Kuala Lumpur City Centre (KLCC), Ampang, Bangsar, Brickfields, and Mont Kiara (near the international schools) are all expat areas which have good appreciation and demand.