Australian and Malaysian Property Cultures

Australian and Malaysian Property Cultures

Australia is no stranger to Malaysians. Malaysians would’ve heard of Perth, Melbourne, Sydney, Brisbane, Canberra, Adelaide, Gold Coast, Tasmania, Darwin; let alone travelled for holiday or sent their children to further their studies in these cities. With that being said, Australia is also one of the top investment destinations for Malaysians.

No doubt, investing in Australian properties is a different ball game than investing in Malaysian properties. It’ll help in your investment decision to understand the Australian property culture, jargon, terms, and regulations beforehand. Below are some comparisons of how Malaysian properties differ from Australian properties. Below is a teaser of Australian properties 101.

Image source: Reapfield-Meridien Australia Properties

 

Freehold Titles

Property ownership in Malaysia is divided into two main types of titles:

  1. Freehold
  2. Leasehold (99-years lease)

Australian property laws are comprehensive and protect owners with freehold titles – not leasehold. Homeowners own the property in perpetuity for now and for their future generations. They do not have to lease the land from the government and renew the lease back to 99 years.

House & Land

In Australia, terrace houses are known as townhouses. In Malaysia, townhouses take on a different meaning. A townhouse is literally two houses on top of one and another. For example, a family may share the ground floor and the first half of the first floor. Another family may share the second half of the first floor and the second floor. It serves as a multi-generational home or for two streams of rental income. The similar concept to a Malaysian townhouse is the Dual Living house in Australia. It is two properties in one: a three bedroom family home and a one bedroom unit.

SOURCE: Reapfield-Meridien Australia Properties

Image source: Reapfield-Meridien Australia Properties

The common type of house in Australia is the House & Land, compared to Malaysia’s terrace house. In Australia, boring is best.

A house & land is basically a free-standing home built on your own plot of land. The size of a house & land is equivalent to the size of an average bungalow in Malaysia. The land size for an Australian house maybe 4000-6000 square feet which is similar to a Malaysian bungalow. Furthermore, an Australian house can be on a land as massive as an acre or more. Therefore, to put it into Malaysian perspective, they’re owning freehold bungalow land in Australia.

Australian houses are generally single-storey. Of course, there are double-storey houses. In Malaysia, the majority of the old and new houses are double-storey. Majority of the land is in the backyard which is the opposite of Malaysian houses in general. Australian houses are fenced all around, except for the front porch. In the summer, Australians will Barbie (Barbecue) with a can of beer and watch football in their backyard. In addition, Malaysian houses have a car porch to park their cars. Australian houses have garages to not only park their cars but to store their junks.

Image source: Reapfield-Meridien Australia Properties

Gated & Guarded?

Due to the spike in crime and snatch thefts, local residents took the initiative to secure their tamans (neighbourhoods). Today, we’ve gated and guarded communities in Malaysia. Sections of neighbourhoods are fenced, gated, and guarded by community-hired security guards.

In Australia, the term gated and guarded community does not apply. Even if it does, it only applies to the super-rich bungalow communities and not the average, common neighbourhoods. The communities and the houses in them are not gated and guarded. If a house is gated; it’s probably an Asian (or Malaysian) owner.

Full Turn-Key Package

New housing developments in Malaysia generally have three types of furnishing options:

  1. Fully furnished and move-in condition
  2. Partially furnished with fixtures and fittings
  3. Unfurnished or bare unit

The developer determines the furnishing package. New houses are usually unfurnished. New service residences are either one furnishing choice only or a combination of the multiple options above.

In Australia, new houses and apartments are built partially furnished. They are known as full turn-key packages with nothing more to spend. This generally includes:

  • Stone bench tops to kitchen and bathrooms
  • Reverse cycle A/C unit
  • Fans to bedrooms and pavilion
  • Tiles to all living, wet areas, pavilion, and portico
  • Carpet to all bedrooms
  • Roller blinds to all windows and sliding doors
  • Landscaping including driveway and paths

In Malaysia, owners have to further furnish their new houses and apartments with air conditioning, fans, lights, kitchen cabinets, curtains, etc.

Contracts to purchase

When buyers buy a newly completed house in Malaysia, the selling price is quoted as a whole. Buyers only sign one contract for the house – the Sales and Purchase Agreement (SPA). Buyers pay one price for both the land and the building.

Its different in Australia. The price for the land and the price for the building are separate. For example, the total price of a house may be AUD$589,904. Of the AUD$600,000, the price of the land is AUD$308,400 and the price of the building is AUD$281,504.

Buyers sign a split contract, whereby there’s a contract for the land and a separate contract for the building. The stamp duty is only based on the land, not the building.

Image source: Reapfield-Meridien Australia Properties

Construction Time

New residential developments in Malaysia take years to complete. New service residences take three to four years to construct. New houses take two to three years to complete.

In Australia, developers release plots of land in stages. A buyer purchases a plot of land from a developer. The builder then goes about building the house on the purchased plot of land. Construction takes an average of six months to complete!

Body Corporate Fees

In Malaysia, apartment and condominium owners are subject to maintenance fees with a sinking fund. For example, the monthly maintenance charges may be RM0.30 per square feet plus 10% sinking fund (RM0.03) which equates to RM0.33 per square foot. If a unit is 1000 square feet, the owner is subjected to a monthly maintenance fee of RM330. The apartment and condominium’s management collects the maintenance fees from the owners to maintain the building and the facilities in it.

In Australia, it is called Body Corporate fees. The body corporate fee is calculated on a per annum basis and then divided into weekly payments. Unlike Malaysia which is paid monthly, the fees are paid weekly in Australia.

Square Feet vs Square Meters

In the property industry, Malaysians and Australians use different measurement systems. Properties in Malaysia are measured in square feet (sq. ft.); whereas properties in Australia are measured in square meters (sq.m.).

Rent weekly and not monthly

For property investors, upon vacant possession, the next step will be to rent out the house. In Malaysia, the rental is calculated monthly. In Australia, the rental is calculated weekly. Collecting rent weekly allows an investor to earn approximately 8% more than collecting monthly.

Assuming the monthly rental is RM1,200 per month. Per annum, the investor earns RM14,400. However, if the RM1,200 was divided by four, it’ll be RM300 per week on average. There are 52 weeks in a year. If the rental is collected weekly instead, the investor stands to earn RM15,600 per annum! That’s one week more of rental, as compared to renting it on a monthly basis.

Entry and exit strategies

As a foreigner buying a property in Malaysia, there are a few barriers to entry. In Kuala Lumpur, the property value has to be at least RM1,000,000. In Selangor, the property value has to be at least RM2,000,000 and with strata-title. Different states have different threshold levels and restrictions.

Foreigners can purchase a Malaysian property by borrowing from a Malaysian bank. Generally, foreigners have a 70% margin of finance or they can only borrow up to 70% of the purchase price.

Source: propertyupdatebyannpaul

In terms of an exit strategy and selling the property in Malaysia, the foreign owner can sell to anybody – Malaysians and non-Malaysians alike. Nonetheless, the foreign owner is also subject to the Real Property Gains Tax (RPGT) upon selling his or her property.

Unlike Malaysia, there is no minimum threshold in Australia. However, foreigners can only purchase new projects or under-construction properties. Foreigners are then subject to an entry-level tax – Foreign Investment Review Board (FIRB). There’s the FIRB Fee by the Australian federal government. In addition, each state charges its own FIRB surcharge and stamp duty. In Malaysia, the stamp duty is established by the federal government as a whole.

When selling the property in Australia, the foreign owner can only sell back to Australians only. The owner is also subject to paying capital gains tax on the sale.

Things you’ve learnt about Australian properties

In summary, we’ve learnt how Malaysian properties differ from Australian properties by way of home ownership, housing, security, contract to purchase, construction, maintenance, measurement, rental collection, and investment strategies.

Comment in the section below additional interesting things you’ve learnt about Australian properties, investment, and culture as compared to in Malaysia or in your own country?

Overseas Investment Projects Open, Australia Ready For More Malaysian Investors

Overseas Investment Projects Open, Australia Ready For More Malaysian Investors

Overseas Investment Projects Open, Australia Ready For More Malaysian Investors

Australia has been a migrating destination most sought after by Malaysian investors for many years.

Driven by the country’s economic and political stability that offers diversity of opportunities, education and human rights protection, Australia is ranked by UNDP (United Nations Human Development) as the second-best country in the world for quality life following their “Human Development Index” statistics assessment.
[1]

Australia one of the most medically-advanced country

Australia is also in the top 10 of most medically-advanced countries in the world with over US$5.5 billion invested in their medical research, which ensures better medical assurance and treatment quality. [2]

Better and more trusted law equity

One of the top reasons that makes Australia one of the best choices for migration is their better and more trusted law equity. Australia is best known as a country that spends every dollar of its tax-payers money on the well-being of its citizens.

4th best country for education

Education has been one of the primary factors taken into consideration when choosing a country to migrate for the family. With Australia ranked as 4th best country in the world for education [3] many have made it one of their top migrating destinations for the betterment of their children’s education.

Though national standards were implemented in 2014, each state is tasked in managing their own education system to ensure its quality education is up-to- par with their high Human Development Index.

One of the best countries for Business and Investment

In Australia, the state government has zero interference over the conduct of private businesses, another plus point for business migrants choosing Australia as their preferred investment destination.

With its strong, sustained economic growth, Australia has opened up more projects that target overseas investors, intending to expand their business and migrate to Australia.

Migration into Australia is made even more appealing by its cultural diverse and beautiful natural environment, its world-class sporting facilities as well as an enviable lifestyle.

Australia also tops a one of the best countries for retirement [4] showing an increasing numbers of migration by successful investor opting to settle down and retire in Australia.

The Australian Migration Agents Pty Ltd (AMA) invites qualifying business owners and investors to a cost-free seminar. This seminar will allow you to understand and strategize your business and investment as a gateway to obtaining Australian Permanent Residency in Australia.

There will be discussions on the latest Commonwealth government migration regulations, eligibility rules and policies on State Nomination, types of visas and details on projects available for overseas investors.

Eligible investors will be expedited for a meeting with State Nomination Body to discuss their intentions.

Presenting at the seminar is a prominent Australian Migration agent with over 27 years of practice hands-on experience, CEO of Australian Migration Agents Mr. Robert Chelliah.

Exclusively made available for seminar participants is a question-and-answer session with Western Australia Investment and Business Specialist Mr. Hermann Steeger.

Through AMA they will assist you in your business strategizing and expansion into Australia, providing a one stop platform, step by step guidance and assistance to the applicant and their family from beginning to Post Arrival Support Services (Final and settlement stage for successful applicants.)

Australia is hoping to attract more overseas investors with the availability of projects in the selected fields such as Ecotourism, Food & Beverage, Hospitality Industries, Property Ownership and Development, Agro cultivation and Commercial Horticulture.

AMA has hundreds of proven and outstanding winning records in facilitating investors with their business expansion and investment plans into Australia.

Chelliah is an expert in legislative migration and handling complex cases, he is a skilled strategist and also a well known media commentator.

With a 100% success track record, Chelliah has over 40 years of working experience with the Australian Commonwealth government Immigration Department making AMA one of the longest serving migration agents in Australia.

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Chelliah added,

“Now appears to be the best time for investors to truly ride on these investment opportunities before the Australian Department of Immigration again revamps their migration legislatives.”

Take part in the benefit of their excellent education system that is made available and affordable by the Australian Government Department of Education, in an effort to ensure they retain their 99% literacy rate while working towards a 100% literacy rate. [5]

Australia is confident of seeing an increase in overseas investors with the amount of investment projects offered by its financial institutions and government bonds. It is through these investments, applicants have a better opportunity to migrate and experience living in Australia.

Register now to secure seats at a seminar near you!

Kuala Lumpur

Venue:Hilton Hotel,PJ
Date:Sunday, 23rd July 2017
Time:02:00 – 06:00 PM

Penang

Venue:Bayview Hotel, Penang
Date:Saturday, 22nd July 2017
Time:02:00 – 06:00 PM

Johor Bahru

Venue:KSL Hotel, JB
Date:Friday, 21st July 2017
Time:02:00 – 06:00 PM

Speak to Robert: +60123482961

*Admission is strictly by pre-registration ONLY owing to limited seats.

Details of available projects:

  • W.A seafood and honey – Export Stock Ownership >AU$500,000
  • Supermarket – Grocers – Investment Value >AU$500,000
  • Property Development – Apartment, townhouse project – Land ownership >AU$1Million
  • Commercial Warehouse – Poultry and food produce – Ownership > AU$1Million
  • Manufacturing – Business Ownership AU$1.2Million
  • Property Development – Luxury villas project >AU$1.5Million
  • By the end of the settlement process, investors will obtain partial refund of their professional fees upon the confirmation of their consignment with the available proposed projects.

    Types of business visas and financial requirements:

    VISA 132 – Business Talent; Stream A – Business History. (Permanent Visa)

  • Business owners with businesses annual turnover of at least AU$3 million
  • Business ownership with 30% business equity
  • At least AU$400,000 business equity value
  • Personal and business assets of at least AU$1.5 million
  • 2. VISA 188 – Business Innovation Stream. (Provisional Visa)

  • Business owners with businesses annual turnover of at least AU$500,000 over 2 years
  • Personal and business assets of at least AU$800,000
  • Business ownership with 30% business equity
  • 65 score points assessment
  • 3. VISA 188 – Business Investor Stream. (Provisional Visa)

  • Business and personal assets of at least AU$2.25 million
  • Interest bearing capital guaranteed investment of at least AU$1.5 million
  • Business ownership with 30% business equity
  • 65 score points assessment
  • 4. VISA 188C – Significant Investor Visa (SIV)

  • Total assets of AU$5 million in managed funds
  • Points test exemption, no age and language proficiency requirements
  • No Australian residence tax obligations
  • Complete 160 days of residency in 4 years
  • *Other business visa categories available
    *Private counselling available post seminar

    Other business and investment fields open to investors:

  • Commercial and domestic property development
  • Eco tourism
  • Hospitality Industry
  • Food and Beverage
  • Agro cultivation and Commercial Horticulture
  • Retail Outlets
  • Many other areas
  • Attend the seminar and discover how you can make your migration plans a reality.

    AMA is an Australian migration agency established in 1994 that practices with the highest integrity and ethics complying with their mission statement of:

    “WE DO ONLY ONE THING & WE DO IT BEST!”

    Australian Business Investment Migration Seminar

    Australian Business Investment Migration Seminar

    Australia is experiencing strong and sustained economic growth. Driven largely by an expanding diversity of business opportunities combined with an enviable lifestyle, it has been the preferred destination for migration and most sought after by Malaysian business owners and investors for many years.

    The Australian Migration Agents Pty Ltd (AMA) of Petaling Jaya (Reg: 995541-P) invites qualifying business owners and investors to a cost free seminar to find out about various business opportunities in Australia.

    In this seminar AMA CEO Robert Chelliah will outline about:

  • Readily available investment projects in Australia.
  • How to expand your business into Australia.
  • Commonwealth government migration rules.
  • Engaging the right ethical MARA coded agents.
  • Types of visas suitable for your investment.
  • Eligibility rules and policies on State Nomination
  • Suitable state and investment field.
  • Strategizing and undertake due-diligently for a successful visa grant.
  • How to obtain partial refund of your professional fees.
  • There will be a question-and-answer session exclusively for seminar participants with Mr. Hermann Steeger, a Western Australia-based experienced investment and business specialist.

    Key Speaker

    Mr. Robert K Chelliah
    CEO Australia Migration Agents Group of Companies

    Special Guest

    Mr. Hermann Steeger
    Western Australia Investment and Business Specialist

    Why Australian Migration Agents Pty Ltd?

  • Longest serving migration agent in Australia since 1990.
  • 27 years of hands-on practicing experience.
  • Investors deal directly with an Australian registered agent at all times.
  • Hundreds of proven outstanding winning records in facilitating investors with business expansion and investments into Australia.
  • Headed by an industry expert, migration media commentator, specialising in advocacy cases before the Administrative Appeals Tribunal (Migration & Refugee Division).
  • Expert in legislative migration and handling complex cases.
  • End to end hassle-free migration application, advocacy and support services.
  • Investor’s best interests are a top priority, no high risk investments involved.
  • Team of expert in strategic business planning, competent in assisting business set up.
  • Pre-investment tours arranged for the contracted investors.
  • Eligible investors will also be given an appointment to meet directly with visiting Australian State (NSW) Nomination Body Representative to discuss their intentions.

    Founder and CEO Robert Chelliah stated “With the availability of many Australian financial institutions and government bonds open to overseas investors, now is the best time to expand your business into Australia”

    Register for a pre-assessment seminar to realise your investment plans.

    SELANGOR:
    Venue: Hilton Hotel, Petaling Jaya.
    Date: Sunday, 23rd April 2017
    Time: 02:00 PM – 06:00 PM

    PENANG:
    Venue: Bayview Hotel, Penang.
    Date: Saturday, 29th April 2017
    Time: 02:00 PM – 06:00 PM

    *Admission is strictly by pre-registration ONLY owing to limited seats.

    Details of some available projects:

  • F&B – Modern Australian/Seafood Restaurant – Investment value < AU$500,000.
  • Supermarket – Grocers – Investment value > AU$500,000.
  • Resort Management – Beachside holiday town – Investment value < AU$1million.
  • Lifestyle property – Vineyard – Investment value > AU$1million.
  • Property development – villas, townhouses, house and land packages – investment value > AUD 800K – AU$1million
  • Some other readily available business and investment fields open to investors:

  • Commercial and domestic property development
  • Eco tourism
  • Hospitality Industry
  • Food and Beverage
  • Agro cultivation and Commercial Horticulture
  • Retail Outlets
  • Many other areas
  • Types of business visas and financial requirements:

    1. VISA 132 Business Talent; Stream A – Business History. (Permanent Visa)

    • Business owners with businesses annual turnover of at least AU$3 million
    • Business ownership equity of at least AU$400,000.
    • Personal and business assets of at least AU$1.5 million

    2. VISA 188 – Business Innovation Stream. (Provisional Visa)

    • Business owners with business annual turnover of at least AU$500,000.
    • Personal and business assets of at least AU$800,000.

    3. VISA 188 – Business Investor Stream. (Provisional Visa)

    • Business and personal assets of at least AU$2.25 million.
    • Interest bearing capital guaranteed investment of at least AU$1.5 million

    4. VISA 188C – Significant Investor Visa (SIV)

    • Investment and assets of at least AU$5 million.
    • Point testing exemption with minimal residency, no age and language proficiency requirements.
    • No Australia residence tax obligations.

    *Other business visa categories available

    *Private counselling available post seminar

    Invest and experience living in Australia that offers endless opportunities and a better quality life for you and your loved ones.

    Benefit from their better and more trusted law equality and rights, and excellent education system. Australia is also one of the top 10 most medically-advanced countries in the world that will offer better medical assurance.

    AMA is an Australian agent that carries their practices with highest integrity and ethics complying with their mission statement of:

    “WE DO ONLY ONE THING & WE DO IT BEST!”

    Australian Business Migration Seminar

    Australian Business Migration Seminar

    AUSTRALIAN BUSINESS MIGRATION SEMINAR

    AUSTRALIAN BUSINESS & INVESTMENT OPPORTUNITY

    SUNDAY, 27/11/2016 | PETALING JAYA – SELANGOR

    The AUSTRALIAN MIGRATION AGENTS PTY LTD (Reg.995541-P) with a special guest speaker from the WESTERN AUSTRALIAN STATE GOVERNMENT SMALL BUSINESS DEVELOPMENT CORPORATION (SBDC) invites you to a pre-assessed value-packed seminar.

    • Register early for the cost free seminar.
    • Have your eligibility assessed by the visiting government official.
    • Find out how you can migrate to Australia.
    • Find out which business visa most suited to your need.
    • Get to know about different business opportunities.

    WHO SHOULD ATTEND?

    • BUSINESS OWNERS
    • INVESTORS
    • SELF-EMPLOYED PROFESSIONALS
      Including:
      DOCTORS, LAWYERS, DENTISTS, ENGINEERS, ETC.

    KEY SPEAKERS

    Mr. Bruno Delfante

    Manager WA Business Migration Centre, Small Business Development Corporation (SBDC)

    Mr. Robert K Chelliah

    CEO Australian Migration Agents Group of Companies, Migration Agents Registration No. 92-54011

    Types of business visas and financial requirements:

     

    1. VISA 132– Business Talent; Stream A – Business History. (Permanent Visa)
      • Business owners with business annual turnover of at least MYR9 million
      • Personal and business assets of at least MYR4.5 million.
    2. VISA 188– Business Innovation Stream. (Provisional Visa)
      • Business owners with business annual turnover of at least MYR1.5 million.
      • Personal and business assets of at least MYR2.5 million.
    3. VISA 188– Business Investor Stream. (Provisional Visa)
      • Business and personal assets of at least MYR6.75 million.
      • Interest bearing capital guaranteed investment of at least MYR4.5 million

    *Other business visa categories available

    Book a seat to attend our seminar

    Venue: Hilton Hotel Petaling Jaya. Anggerik Suite, Level 2.
    2, Jalan Barat, 46200 Petaling Jaya.

    Date: Sunday, 27th November 2016

    Admission: Strictly by pre-registration only owing to limited seats.

    Time: 2PM to 6PM

    Contact: Robert +6012 348 2961   Annu +6012 787 5590

    *FREE PARKING AVAILABLE UNDER THE OVER-HEAD BRIDGE.

    Please follow the link below to RSVP.

    For more information, visit our website