"The good news is that it's easy for a foreigner to find a rental in Malaysia. English-language newspapers, such as The Star and the New Straits Times, have large classified sections with many rental listings. As English is widely spoken throughout the country, it's possible for English-speaking foreigners (like you) to shop for a rental this way on your own (unlike in Spanish-speaking countries, for example). You can call property owners directly and make appointments to look at anything you find in the classifieds that interests you. "Good websites to consult include www.iproperty.com.my, www.fullhouse.com.my, www.penangproperties.com, and http://malaysia.craigslist.org. "While it is quite possible to find fine a rental this way (searching the classifieds, both in print and online), I have found that, in this country, working with a property agent has its advantages. Agents are paid by the property owner and not the lessee, meaning their services are free to you. And their negotiating skills--important in this country for getting a good deal--can make their services invaluable. "In addition, your Malaysian property agent will have a much better understanding of the culture and of the nuances of the market than you could ever hope to have. A good agent--that is, one who is not affiliated with a specific development project and who makes an effort to show you only places that meet your criteria--can take a lot of the hassle out of your finding-a-rental experience. "Almost all long-term rental landlords will ask for a lease, typically for a minimum of six months; most prefer one or two years. If you are willing to commit for six months only, you narrow your choices, and your rent will likely be a bit higher. "As you'd expect, rentals cost more in the cities and less in most smaller towns, with Kuala Lumpur and Johor Bahru being the most expensive locations. That said, very affordable rentals can be found even in these two areas. "Rentals can come fully furnished, partially furnished, or unfurnished. Typically, fully furnished places include all household items, including vacuum cleaners, televisions, DVD players, pots and pans, plates, silverware, linens, towels, wall hangings, etc. They sometimes advertise, 'All you need is your suitcase,' and this can be the case. "Partially furnished places include all major household furnishings--sofas and chairs, dining room sets, large kitchen appliances, washing machines, beds, dressers, and so on, but you'll need to provide your own household items. "Unfurnished apartments come with large kitchen appliances (stove and refrigerator) and air-conditioning but little else. "Few places come with an oven, as it isn't an appliance that most Malaysians ever use. "Fully furnished apartments, of course, rent for more money than unfurnished ones. "Rental agreements generally require the first and last months' rent payable in advance and a utility deposit equal to six months or one year's worth of gas, electric, and water. As most expats choose to keep their utilities in the landlord's name to avoid having to pay large 'foreigner deposits,' this utility deposit saves a considerable out-of-pocket expense. The deposit is refunded within 30 days of vacating the property, often sooner. "In addition, a stamp duty is due upon execution of a lease. This non-refundable tax is charged to the tenant based on the government's fixed price of the cost of the rental. The stamp duty generally amounts to US$100 to US$200. Either the landlord or the agent will take the signed lease to an official who will register and notarize the document. Then you and the landlord each will receive a notarized copy. Leases are written in English. "Here are a few tips to keep in mind when renting in this country. If you use an agent (as I recommend), make sure he is not affiliated with a specific development project. "Visit any property you're interested in at night. Your would-be new neighborhood may be nice and quiet by day but alive with the sounds of karaoke or nightclub partying by night. "If you rent a condominium, pay attention to security and maintenance of the grounds and common areas. Ask current residents what their experiences have been. "If you plan to rely on public transportation, be certain that bus or train access is within a reasonable distance. Note, for example, that not all bus stops are for public buses. An agent might point to a bus stop nearby without pointing out that only school buses stop there! "In urban areas, there are often more vacancies right now that there are renters. Don't be reluctant to try to negotiate on price. Keep in mind, though, that negotiations should be friendly, not adversarial. Also note that, if a price is agreed upon, you are expected to rent the unit. Never haggle successfully and then back out of the deal. "Because it's a renter's market right now, you can also ask for certain household items to be included in the price. Maybe ask the landlord of a partially furnished place to include a television or a microwave, for example. Remember that you'll have more bargaining power if you're signing a lease for at least one year. "If you pay a deposit--to hold a unit or as a security deposit--get a receipt. "Finally, have the landlord show you proof that he or she is the actual owner of the property. A good agent will insist on this. If, though, you're searching on your own, without an agent, you'll have to make the request yourself. Cases of this kind of fraud are rare, but they do occur." Kathleen Peddicord Continue Reading:
My friend, an American, has been living outside the United States with his family for more than 15 years. For most of that time, they've been based in Paris. Several years ago, though, my friend bought a piece of land, with an old hacienda, in Argentina. Since then, he's been trying his hand as a cattle rancher on the pampas. And the idea has grown on him. "We'll continue to return to Paris regularly," he continued, "and we'll keep our apartment here. But, when I think about my retirement years now, I imagine myself on horseback, riding out each morning to check on the herd or maybe to mend some fences. "A friend has also purchased a ranch in the same province of Argentina as ours. I can see us meeting up for long rides and then later, back at the house, for an asado. "I enjoy the way of life down there. Days spent on the land, tinkering with improvements to the property. Evenings spent around the fire. The food, the wine...I've really begun to look forward to it..." Kathleen PeddicordP.S. What else this week?
- "It's not surprising that Malaysia has become a recognized international medical tourism destination," writes Asia Correspondent Wendy Justice. "It boasts some of the least expensive health care in the region. Costs for many treatments are lower even than in neighboring Thailand. The cost of health care in general is so low that many people don't bother with the expense of health insurance.
"Of course, cost is only one part of this important issue. Cheap medical care is no good to you if it's no good. That's not the case in Malaysia, where the quality of care can be of the highest standards.
"Here are some particular examples to give you an idea just how affordable medical care can be in this country..."
- Your retirement nest egg has been marginalized, and you're thinking there's no way you could afford to retire overseas.
This is probably the most-often-given reason for why someone who's interested in the idea of launching a new life in a new country hesitates or even abandons the idea altogether. And it's the least valid.
Here's the truth: You can't afford not to retire overseas.
I'm speaking both literally and figuratively.
Let's begin with my literal point. You could retire toCuenca, Ecuador, for example, and enjoy a comfortable life in a safe, pleasant colonial city on a budget of as little as US$700 per month if you own your own home. If you don't, you could rent a "local-style" apartment for as little as US$200 a month, making your total monthly nut as little as US$900 per month.
- "One week into my recent trip to France and, wham!" writes France Correspondent Jann Seal. "I was on my back with a fever and other disagreeable happenings.
"The flu.
"I dragged myself down to the local pharmacist. In France, they're easy to find. Just look for the green cross on a sign above the door. I found one on a building in the center of town that signaled someone who at least understood sickness was on duty.
"The lady pharmacist seemed to read my expression as I fell through the door. She attempted to diagnose me more specifically by asking questions in French (of course). I was no use. My ability to produce any French in response was lost in my fever..."
- "Can you still find property for US$50,000 or less?"asks Overseas Retirement Letter Editor-in-Chief Lynn Mulvihill in the current issue.
"That was the initial challenge I set for myself for this month's issue. Only I didn't leave it at that...
"Of course you can find a building lot for less than US$50,000. And, if you look, you can find plenty of opportunities for small renovation projects for relatively small change...and closet apartments in fallen-down suburbs across the globe.
"But can a retiree find a comfortable home, in move-in condition, in a part of the world where he might actually want to spend time, for less than US$50,000?
"Those were the criteria for my search for real estate to feature in the property section of this month'sOverseas Retirement Letter (in production now) Iturned up interesting results..."
ALSO From Global Real Estate Investing Guru Lief Simon:The perfectly diversified international real estate investment portfolio might look something like this:
- A rental property in Europe that is leveraged (that is, carries a mortgage...remember that it's possible to borrow for the purchase of real estate as a foreign buyer in many European countries) and that generates positive cash flow. Right now France, Italy, and Portugal make the most sense for this kind of investment. This is a long-haul play, and, thinking very long term, I like Paris.
In Paris this month, I'm reminded that this is the closest thing to a recession-proof rental market as you'll find. France is perennially the world's most touristed destination. This season, thanks to the Greenback's strength against the euro, tourism in is way up throughout the country and especially in Paris. The rues of this city are crowded with camera-toting, guidebook-carrying visitors, many of whom choose short-term rental apartments over hotel accommodation. Our rental manager assures us that, right now, short-term rentals are in greater demand in the French capital than they've been in some time. All markets cycle, including the Paris rental market. But, again, this city is as close to a sure-bet for this kind of investment as exists.
- Next, a rental property in a resort location. Right now, I like the Philippines for this.
- Then, a rental property in another active market. My top recommendations today would be Panama City and Buenos Aires. Neither is as recession-proof as Paris, certainly, but the Panama City rentals market continues to boom (I'm netting 12% per year from my downtown rental) and B.A. is a city that generally always attracts its share of visitors needing a place to lay their heads temporarily.
- Then, raw land. For this, again, I like Panama. Frankly, if your property investment portfolio doesn't include some holding in Panama, you should look to fix that this year. This country's property markets (rentals in Panama City, development lots, and raw coastal land) offer both safe haven and serious upside.
For raw land investments, I also like New Zealand and Honduras.
- Finally, if you can find an opportunity for one, I recommend including in your portfolio a direct investment with a developer. This could be a straight equity investment in a development or what's referred to as a "hard money loan."
Equity is self-explanatory. A hard money loan is when you lend cash to a developer who needs some (don't they all?). Usually, your loan is collateralized by land, and you are promised a return of your capital plus some premium typically great enough to make the undertaking worthwhile from your point of view. A developer might offer you a return of 25%, for example, within a specified period of time, say, 12 months.
This portfolio would give you 6 to 15 properties in perhaps 4 or 5 countries. It'd bring you diversification of market, of currency, of type of holding, and of exit strategy.
And it represents all four strategies I recommend you employ: buying wholesale, path of progress, crisis investing, and real productive assets.
"Here are some particular examples to give you an idea just how affordable medical care can be in this country:
- A coronary bypass operation in a private hospital is around US$10,000, less than 10% of the cost of the same surgery in the United States...
- A total hip replacement runs around US$6,700, including a 10-day hospital stay and all meals...
- A knee-replacement costs less than US$6,000, also including a 10-day inpatient recovery...
- A complete blood test (CBC) costs less than US$15 at most laboratories...
- And a chest X-ray runs about US$15...
"For more information on particular procedures and their associated costs, take a look at this website: here "You find small doctor's offices throughout Malaysia, even in small towns, and in urban areas you have many choices. Most of these kliniks have one physician who functions as a general practitioner. A visit to see a klinik doctor costs around US$5. "Medications, if required, are often filled at the office, and, again, prices are rock-bottom. If the klinik doesn't have the medications in stock, you are issued a prescription, which can be filled at any pharmacy, just like in the United States. If blood tests or other diagnostic testing is required, the klinik may be able to run the test on the spot. If not, they may refer you to a laboratory or hospital for testing. " Polikliniks have more than one doctor. They may have a general practitioner along with another specialist or two--an orthopedist, dermatologist, gynecologist, and so on. Prices are roughly the same as those charged at the one-doctor offices. These clinics often have their own X-ray equipment and laboratories and sometimes even the equipment to perform minor surgeries. "The next level in Malaysian health care is the specialist clinic. These may be free-standing or located in or near a hospital. The doctors have hospital privileges. A visit to a specialist generally costs less than US$30, follow-up visits included. Specialist clinics tend to be extremely clean, with professional staff, modern equipment, and doctors trained in Europe, the United States, and Australia. "Finally, there are public and private hospitals throughout the country, including at least 10 major hospitals in and around Kuala Lumpur (KL), as well as excellent hospitals in all the major urban areas, including Georgetown, Ipoh, and Johor Bahru. "The quality of care varies, and, though still minimal (that is, amazingly affordable), costs are higher at the private hospitals. Still, most foreigners choose private hospitals over the public ones. Care is generally excellent, with state-of-the-art equipment and trained staff. "In KL, Gleneagles Hospital, in the Embassy district, offers excellent care for foreigners, with Western food and English-speaking staff throughout the facility. Other fine private hospitals in the area include Subang Jaya Medical Centre, Sunway Medical Centre, and Damansara Specialist Hospital. "The accredited Gleneagles Hospital also has a full-service facility in Georgetown, the second-largest city in the country, home to a large expat community. Island Hospital and the private non-profit Penang Adventist Hospital are also internationally accredited and well regarded. Altogether, there are at least six major private hospitals in Georgetown, and seeing a specialist in Georgetown costs even less than in KL. An office visit can cost less than US$20. "Dental care is such a great value that, if you need major dental work, the money you save on the dentistry could pay for the cost of your trip to Malaysia. "A consultation and check-up (without X-rays) is free at most dental clinics. (X-rays cost about US$15.) A filling costs around US$25, a root canal less than US$250. A full porcelain crown is US$300, and a full denture (one jaw) costs less than US$250--less than the co-payment for many Americans with dental insurance! "To get more of an idea of the costs for dental care, take a look at this website: http://www.bsdental.com/fees.html. "As with physicians, dentists are typically foreign-educated and are held to a high standard of care. And you never have a language barrier." Kathleen Peddicord Editor's Note: We've reported often on opportunities for living and retiring in Malaysia, our top retire-overseas pick in Asia:
Continue Reading:
In New York this week to visit our daughter (who's interning at Christie's auction house during her third year at university) and to meet with the publicist for my new book, we've a full schedule for seeing the sights. This is 10-year-old Jack's first trip to the Big Apple. We want to show him the Statue of Liberty and Ellis Island so he can learn a little about how his Scottish ancestors started their new lives in this country, the top of the Empire State Building so he can gain some perspective on this great city, and Central Park, dressed up for the season with brightly colored beds of tulips and daffodils.
We're appreciating the history, the shopping, and the museums of one of our favorite U.S. cities, but, as we wander and explore, we're also coming face-to-face with the realities of life in this part of the world right now. Conversations on the street, in restaurants, on park benches, and on the television screens we can't seem to avoid are all about health care reform, illegal aliens in Arizona, new taxes, the collapse of the housing market, the shenanigans at Goldman Sachs...
The debates are ever-present and often heated, and we're beginning to understand the stress involved with calling this country home right now.
The longer we're living elsewhere, the more we appreciate where we've come from. We'll always be Americans, but, right now, the challenges of life in the United States of America seem overwhelming, too great for us to process. I've heard these past few days arguments for and against the new health care bill, the new immigration law in Arizona, and higher taxes. I try to keep an open mind and to consider all points of view. It's not easy.
Lief and I want Kaitlin, living now in New York as a student, and Jack, who has lived his entire life overseas, to appreciate all that the United States has to offer. But we want them to understand, as well, that life here isn't the only life there is. We want them to see that they have options.
Right now, many of these options are irresistibly appealing. And pursuing them doesn't make you any less American.
We Americans are a romantic, optimistic bunch. The grass will be greener, we tell ourselves continually, over the next hilltop or around the next bend in the road.
And, in fact, it can be.
In Panama, for example, where we've been living for the past year-and-a-half, things like U.S. health care reform and what to do about the Goldman Sachs debacle seem very far away.
Every place has its own issues and causes for worry. When life one place becomes intolerably challenging (as I'd argue it has in the United States), move somewhere else.
You aspire to diversify your investment portfolio. Why not your life?
We lived seven years in Ireland at a time when we were able to enjoy the final roars of the Celtic Tiger. We sold our house in that country just before the Irish real estate bubble burst. We took the proceeds from that sale and invested them in an apartment in Paris, where we spent the next four years savoring the perennial charms of the City of Light.
Then, when the business agendas of our life became priorities, we relocated again, this time from France (a nightmarish place to indulge any entrepreneurial whim) to Panama, a market that continues to offer tremendous potential for upside.
We lived in Ireland when the U.S. dollar was trading on par with the euro. Today, our dollars spend better in Panama.
We're not the only ones adopting this kind of diversified lifestyle, of course. Friends refer to it as "planting flags," looking around the world to identify where best you might pursue whatever family, new life, better life, retirement, financial, asset-protection, business, profit, privacy, or banking agendas you might have.
Put your money in one jurisdiction, keep assets in others, reside elsewhere, and perhaps arrange second citizenship yet someplace else.
Lief and I have been working toward this life approach for years. The pieces are coming into place.
And, as they do, we're finding an unexpected benefit. As our options for where and how we spend our time and our money continue to expand, our appreciation for the world as a whole evolves, too.
Our appreciation of the whole world, including the United States.
In the current climate, Americans are more interested in the idea of living, retiring, and investing overseas than ever. As life in the States grows increasingly uncertain, a new life somewhere else can seem a great out.
It is. But it's also an in.
Starting anew in another country is maybe about escaping. More than running away from something, though, starting over overseas is about running to something.
Something new and better. Something richer and fuller.
Starting over overseas is about following the road around the next bend to someplace greener.
Someplace very green indeed.
Kathleen Peddicord
P.S. What else this week?"From the comfort of your veranda," writes Asia Correspondent Wendy Justice, "you can see the people of the neighboring village tending to the irrigated paddies of bright-green rice. A gentle breeze making its way down from the distant mountains softly touches into life the shimmering greens of a hundred species of plant life.
"You eye the ducks swimming in the irrigation canals and tilt your ear slightly toward the sounds of happy laughter, and other-worldly gamelan music softly carries from the banjar community hall in the distance.
"Taking a deep breath, you sigh with contentment. The scent of flowers surrounds you, and a wisp of incense floats your way from the canang sari offering baskets that your housekeeper has carefully and reverently placed to invite balance and harmony into your home.
"This place is called the 'Enchanted Land,' and, once you've seen it, you'll understand why. Despite its small size, this island packs in everything you expect of paradise, from coral reefs to the jungle-clad slopes of mighty mountains complete with tribes of naughty monkeys. Here, amid the most gracious and hospitable of people, you could live well for as little as US$1,500 a month...
In the month since my new "How To Retire Overseas" book was published, I've been interviewed by a dozen reporters and editors intending to review the book in their respective media. A common theme has emerged:
Americans are ready to make a move. They want out. They've had it with health care "reform," rising taxes, and an uncertain future. They want to find a way to hold on to the assets they've worked their whole lives to accumulate. More than any generation of retirees that has preceded them, they're ready to take action to take control.
They're even ready to retire overseas!
When I began covering this beat 25 years ago, I was a little ahead of my time. Back then, the suggestion of retiring to a foreign country was most typically met with raised eyebrows or confused silence.
Today, a quarter-century later, leaving home and hearth, loved ones (especially grandchildren) and everything familiar at this important phase of life no longer qualifies as nuts. More and more would-be retirees are recognizing the sense, even the wisdom in the idea.
Still, you might call it an outside-the-box strategy.
And, frankly, the more closely and seriously you consider your retire overseas options, the more intimidating the whole notion can seem.
I've been reminded lately just how daunting the idea can be not only by the reporters whose questions I've been answering, but also by a new friend, Brian, in Panama this month continuing his preparations for eventually moving to this country full-time...
"Sometimes, when the sun shines, you just have to drop everything and get outside!" writes France Correspondent Lucy Culpepper.
"This morning I dropped the children at school, then set off on my road bike into the Jurançon countryside in the southwest of France. This is rolling wine country. The vine growers use traditional grapes, such as Lauzet, Petit and Grand Mansengs, and Courbu. The vines are just starting to turn from woody looking sticks to the leafy boughs that will soon bear the fruit for both the golden sweet and the dry clear green Jurançon wines.
"Wine has been grown in this area since the Roman times, but Jurançon did not become nationally famous until it was used for the baptism of King Henri IV in 1553. The infant Prince had his lips rubbed with garlic and moistened with Jurançon wine. It was said that the wine gave him 'a vigor and ardent spirit that never left him.'
"Everywhere I explored on my bicycle this morning was bathed in the sweet smell of spring. At almost every turn there was a sign for a chambre d'hôte (bed and breakfast) or a gîte (a self-catered house or cottage), and I can easily understand why. This really is the most beautiful place to visit. Pretty villages with bakeries bursting with breads and pastries, streets lined with blossoming fruit and nut trees, towering ancient churches ringing out their bells, rivers and streams in full flow from the melting Pyrenean snow and the glorious mountains, with just a little snow hanging on, towering up in the distance.
"I took a break at a small farm offering samples of homemade goat's cheese, a delicious nutty, creamy variety made on the farm. The owner proudly showed me his flock, grazing in the valley below. I passed on the glass of Jurançon offered, not wanting to wobble off into the distance on my two wheels.
"This is France at its best..."
If you want to live on the beach (or elsewhere) in Brazil and are prepared to pay cash for your second or retirement home, go for it. This country's coast is beautiful, and beach life here could be everything you're looking for in a new life on the water.
If you're a big-time investor with deep pockets and the time and inclination to figure out how to navigate this market, again, go for it. This is a lively marketplace, and, as a friend says, lively marketplaces are the best places to make money.
If, however, you're an average individual investor, certainly if you're a novice international real estate investor, I'm with Lief. You're better off seeking opportunity elsewhere. And here's why...
PLUS: From Global Real Estate Investing Guru Lief Simon:
My dispatch to you last week about developer financing being offered at Sugar Loaf in Uruguay got the attention of another developer group that I've worked with for a long time. The VP of Sales for Gran Pacifica on the Pacific coast of Nicaragua, Kent Payne, wrote to me after reading my Sugar Loaf alert to propose details of a financing offer he'd like to make to the Live and Invest Overseas readership. Kent, too, recognizes that, in the current climate, the ability to arrange in-country financing can be critical to the purchase decision.
Not to be outdone by the 0% interest offer from Sugar Loaf last week, Kent has been inspired to make his own 0% interest offer for Live and Invest Overseas readers for a specific section of lots in his Gran Pacifica community. These lots are adjacent to hole 2 of the Emerald golf course, which is open for play, and they come with no build requirement (though most other lots in Gran Pacifica have one). So not only can you pay for your lot over time, but you don't have to build on it until you are ready.
Read more...
"You eye the ducks swimming in the irrigation canals and tilt your ear slightly toward the sounds of happy laughter, and other-worldly gamelan music softly carries from the banjar community hall in the distance. "Taking a deep breath, you sigh with contentment. The scent of flowers surrounds you, and a wisp of incense floats your way from the canang sari offering baskets that your housekeeper has carefully and reverently placed to invite balance and harmony into your home. "This place is called the 'Enchanted Land,' and, once you've seen it, you'll understand why. Despite its small size, this island packs in everything you expect of paradise, from coral reefs to the jungle-clad slopes of mighty mountains complete with tribes of naughty monkeys. Here, amid the most gracious and hospitable of people, you could live well for as little as US$1,500 a month. "Yes, this is one of the most charming and affordable havens on earth. "I'm speaking of the island of Bali, Indonesia. "If you're in search of an exotic but welcoming retirement haven on a fixed income or a modest budget, Bali offers a fine quality of life that could be just what you're looking for. "If you have a slightly bigger retirement budget, you'll find that you could live substantially better in Bali than you could most other places in the world today. "Certainly other overseas retirement havens offer more Western-style comforts and amenities, and, yes, some places qualify as more affordable retirement options than Bali. "But I'd say that perhaps no other place on earth offers more stunning beauty, gracious hospitality, or diversity of cultural and outdoor activities than this little island. "Fantastic festivals, mysterious jungles, and exotic foods are just some of the treats in store for the adventuresome retiree who seeks out these shores. "Of course, you aren't going to pack up and move to Bali without first experiencing life on this island firsthand. Most people initially head to Bali with a tourist visa and experience the area for a month or two before making a full commitment for permanent retirement...and I heartily endorse the strategy. "Thinking longer term, Bali is a great place to consider for part-time retirement overseas, spending maybe half a year or so on the island and the remainder of the year elsewhere. "Although it's not for everybody, thousands of foreigners have come to Bali for a visit and then decided to make it their home. Even if you aren't up for a retirement move this exotic, there's no denying that this is one of the most beautiful spots on earth." Kathleen Peddicord Editor's Note: Wendy's complete guide to the exotic charms and delights of this beautiful island is featured in this month's issue of the Overseas Retirement Letter, in subscribers' e-mailboxes today. If you're not yet an ORL subscriber, get on board here now in time to discover Bali. Continue Reading:
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