The government's recent proposal to raise the floor price of property ownership for foreigners may see potential Malaysia My Second Home (MM2H) participants moving away from Perak, according to Gloria Choong, Managing Director at Hibiscus New Lifestyle (MM2H).
She said most of the participants are having second thought on settling down in Perak after Prime Minister Datuk Seri Najib Tun Razak proposed to increase the property price cap for foreigners to RM1 million from RM500,000 previously.
She also noted that these participants would likely opt to take their money to Johor Bahru or Kuala Lumpur should they be compelled to purchase properties worth over RM1 million.
“At least in these bigger cities, it is easier to sell off the property and they are assured of higher investment returns,” explained Choong.
To date, the government had not clarified if MM2H participants are covered by the proposal unveiled during the tabling of the 2014 Budget.
“We are a bit lost as to what will happen. It also makes it hard for potential participants to decide whether or not they should move to Perak,” Choong said.
“Of late, Perak has been receiving more MM2H participants because they favour its low cost of living compared to the Klang Valley, Johor and Penang...However, I am afraid that should the proposal include those buying property under the MM2H scheme, this positive trend will most likely see a reversal,” she added.
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