Too good to be true? Malaysian property investment

secreticicle

I'm very aware that the UK property market doesn't have much steam left in it and as a first time buyer with a deposit I've been toying with the idea of buying in Brussels, Berlin or a capital city in Eastern Europe for a few months. I'm ideally looking for something that would have a semi-decent rental income. Capital gain is obviously important, but it's secondary.

Just came across this in Malaysia. http://www.bandbw.co.uk/properties_malaysia.html

I'm assuming it's too good to be true? It seems to be there must be more risk involved in this other than it being a non European market.

I may just be being ridiculous, but would appreciate your thoughts on it.

Thanks
x

ManAtHome

Think the world in general has realised the Brits will sign up for absolutely anything property-based. Depends on your view of "decent income" I suppose - but if returns were that good, why would "they" be cutting you a deal..?

secreticicle

No idea why... that's the bit I don't get...

ManAtHome

If you don't get it (and I don't either), stay well away...

Tiger_greeneyes

It seems above board to me but it never hurts to dig deeper http://www.offduty.co.uk/policelife/bandb.shtml

It may be worth trying to find some of their past purchasers to hear their stories. I'm just a cynic though

Tiger_greeneyes

Another link you may find interesting:

http://www.mybulgaria.info/modules.php?name=Forums&file=index&sid=5ac0dc12d1d6883452e10df808ee6132

I know it's Bulgaria, but the company has properties there, too.

lynzpower

the bit that bothers me about these sort of properties is who is going to rent them.

Bulgaria and Malaysia. they both have a lot of holidays on the market at the package end for cheaps. My sister went on a 5* multicentre holiday in pure luxury ( own room on legs in the middle of the sea, massuers on hand, very conde nast in malaysia and it cost only 600 including flights & trasfers, tax etc.

TBH you can pay that for the flight only to malaysia.

If you buy a hotel room thats the only way you can have guaranteed returns really, as if you are managing it yourself you will know the pitfalls of your room vs umpteen other ones. In a tsunami season or similar demand will wane and your income canty be guaranteed at all. If you buy a hotel room, you will only have a short amount of time yourself to enjoy there and you get the crap weeks as the guaranteed return of renting out the good weeks are needed for the % to be ensured.

if you are also buying into a hotel room, you HAVE to pay thier management and operational fees too, and you are contracted to this - this is key. What is there to stop them charging you a arm and a leg for service bills?

Guy_Montag

Beware about BTL in Germany, the rules are very different there & tenants have the sort of rights that would make your average British BTL numpty weep.

German tenant: You vant to evict me?
British BTL Numpty: Yes, here's your two month S21
GT: I laugh at your Z21, I vill leave in 5 years
BBN: Then i'll see you in court
*five years later*
GT: vell, time for me to go zen.

Britian has some of the most liberal letting laws in Europe. There's a reason why potential BTL material in Germany is so cheap.

mystic_trev

The frightening thing is a lot of people will believe this hype!

"Annual Rental Return is guaranteed at 8.00% per annum gross for 13 years, which amounts to 104% of the total purchase price"

What happpens if the developer go Bankrupt after year one? Where's the "guaranteed return" then? You've coughed up (say) £89,950 on a mortgage they've arranged using your home as security (so no good for OP) and suddenly you find your staring financial ruin in the face!

If it sounds too good to be true.......it probably is.

Google "Banyan Curve"

I rest my case!