What Happens to a Condominium After 50 Years? - ZipMatch
It's not a terminology thing, it's legally something different: I went to Ayala and they told me I can't buy an apartment (which I already knew), but only a condo (provide 60+% of the unit owners are Filipinos)
Anyways, a part from this legal aspects Malaysia is way cheaper than Philippines so more suitable for my (poor) finances
So what is an apartment then?
As far as I know it's the same thing just that Americans use condo while others use apartment.
In Malaysia, the generally accepted term for these high rise residential buildings are:
1) High rise with no facilities (e.g. swimming pool, gym, etc.) - Apartment
2) High rise with facilities - Condo
Then it is branched out to service apartments which might or might not have facilities but it is run like a hotel
Last edited by quantzie; 20-06-2017 at 02:57 PM. Reason: add quote
I think some of the posts are getting out of topic but if you have any questions on property in Malaysia, I will try to answer to the best of my knowledge. I don't know much about the requirements of a foreigner buying a property there but I do know that there is a minimum price you have to buy with no area limitations.
In terms of investing in properties in Malaysia, if you are looking at huge capital gains in the long run, buying a landed property such as terrace/link houses are best.
High rise properties are very popular right now but the capital gain is less but there is a higher demand on rentals and higher rental yields but these are also slightly offset by monthly maintenance fees by the management. Also, be sure to look out for the types of properties you buy. In Malaysia, high rise buildings are categorized using residential and commercial land types. With residential, you pay residential rates on utilities and annual land assessment. With commercial, you pay far higher commercial utility rates and also monthly maintenance rates.
Branching out from the commercial properties, there are different sub-classes such as SOHO (small office home office), SOFO, etc. All of which have different restrictions such as the tenant being able to live/stay in the unit for SOHO but not being able to in SOFO
Sorry going off topic but just to clarify.
Two identical blocks with identical dewellings.
In the first the dwellings are individually owned - these are condos.
The second block is owned by one person or corporation who rents them out - these are apartments.
That is my understanding. So yes Ayala are technically right. You can't buy an apartment because thry are rented, but you could buy the identical thing next door because it is a condo.
Anyway if Malaysia is cheaper (is that really true, seems very surprising to me) then there is your answer.
It's quite a risk to invest in a market like Malaysia where there are serious concerns about the future stability of the government and rule of law.
If it were me, I'd look to the UK for somewhere to invest. There are no restrictions on foreigners and there's a stable system of government. Cities like Bournemouth, Cardiff, York, Derby or Nottingham have relatively strong population and economic growth and have relatively low house prices. Seems like a good opportunity for growth while avoiding the (potentially) overheated market of London and the South East.