IanBlakeley

A follow up from my earlier introduction http://britishexpats.com/forum/welco...hoping-868414/

Having had a read around of the various threads we're not yet sure which way we'll do the visa either MM2H for me or LTSVP. If MM2H use an agent or not, agent would be easier whilst we're not in Malaysia but the charges would rankle more than a tad. As far as I can see LTSVP can only be started once we're there as we'd have to go down too the immigration to request the extension.

I guess the same also applies vis-a-vis accommodation, rental versus buying although we're edging more to using the income from letting in the UK to finance renting in Penang rather than selling a place here to buy one there. Still can't be sure which is the best way to jump on this, one day it's one way then the other...

Even our timing at the moment is TBD as I expect that until we have a date which will be governed both by work (or lack of) and the last child finally setting up independently it's hard to make proper arrangements, although hopefully it will happen within the next couple of years.

We do just have a current quote for medical cover at ~6500RM pa for the pair of us, that price holds for a few years and then of course increases with age 65 I think but don't have immediately to hand. I am trying to get my head around the property advantages or not of MM2H V LTSVP if buying, we can of course buy in my wife's name alone to avoid foreigner specific taxes but presumably the kids will be hit by that on inheritance or me if I survive beyond her.

We're back to Penang for CNY next year although some of it will also be down in KL so perhaps can put some more steps in progress along the way. Going to see if HSBC will let us open a premier account as it's easier to met the fiscal requirements in Malaysia don't know if they will while we're non resident but CIMB were okay about that and we have an account with them already.

A direct question to go along with my musings I was considering keeping myself occupied beyond eating and drinking too much and of course not getting under madam's feet, some of my previous past times are denied me, I think my bones are too old now and it's been too long to have another crack parachuting, the docs have come down strongly against diving anymore I was wondering is anyone off road motorcycling or know of groups who do? I've done a bit here and along with a road bike that would be interesting if possible (have to check medical covers the inevitable).

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Ian

bigwoofa

Hi IanBlakeley

More or less in the same situation as you. Still working but hope to call it a day in the next year or 18 months, depending on our son finishing university and getting independent.

Am I right that your wife Malaysian?. My wife is and we decided to apply through MM2H for me only. Even though we are not in Malaysia, I did all the paperwork, without an agent, took a bit of time to collate all the paperwork but easy enough. The longest wait was the police report, which was done online (10 GDP). Now waiting for MM2H approval.

Want to buy a property but am finding estate agents completely useless (don't answer emails or phone calls), so decided have to be in Penang to complete the process.

Don't think your insurance will cover "dangerous" sports

Regards

NeonHippy

Hi there, I cannot comment on the LTSVP but MM2H is a good way to go. If your quote is good for a few years and then increases at age 65, it implies you are close to 62. If you want insurance grab it now, many companies will not accept you once you attain 61 years of age. Then again, once you are 60 you do not have to take out medical insurance. Whether you do or not is a matter of personal choice and one that you want to measure against how much you visit your GP.

Off road biking? well it goes on, I've seen kamikaze Chinese bikers riding up the path to Penang Hill, 60 degrees and stepped inviting the inevitable fool to go over backwards. Just how you would hook up with one of these groups is hard to tell, but my advice would be "don't do it" there are few paths for walking, let alone riding, and they tend to be pretty steep.

Having just arrived in Penang people keep asking if we will buy here. It is a hard one to answer. I find it hard to make the economic case for buying. Prices in Penang are pretty inflated whilst rental prices, if you are tough in negotiating can be low compared to the return on capital. It is easy to put your English capital into a fixed deposit and make more than enough income to cover the rent. Invest wisely and in all but the most dire years you will make enough to cover the rent and grow your capital. Renting a house in the UK will make it harder to break free of UK taxation and add restriction to the number of days you can return in a tax year to see children and grand children. Also look carefully at the type of property you own. Is it an easy rental or one that will need a lot of management. The only downside to renting is you will probably need to up sticks and move every few years. Even that has its upside, nowhere is perfect and if you have purchased it will be much harder to move.

PS, has Mata Hari Restaurant closed down or is there still hope of it re-opening?

JC3

I think Matahari closed down.
As an alternative I recommend Thai Terrace (near the old castle), or for cheaper fare try Sir & Madam (also Thai) located in Jefferies Passage, an alley off Guildford High Street near the clock.

JC3

Davita

Hi Ian and welcome to the forum.
I just purchased medical insurance for my wife (aged 57) with Cigna Global. It appeared to be the cheapest at UKP1883/annum with UKP500 deductable and no exclusions. I'm too old (78+) to be insured.
I was therefore interested that you have insurance for both you and wife for MYR6500 (approx UKP 1,000)...do you mind to tell me what Company you use as I'd like to explore that option.

BTW if you plan to become non-resident UK when you come to Malaysia you might want to create an account with HSBC in Channel islands. You'll then be able to open a Premier account with them in Malaysia. The Channel Island account, and any others , will then automatically become Premier status.
If you are taking the MM2H Fixed Deposit (FD) route your MM2H FD can also be used to support the HSBC Premier FD requirement.

IanBlakeley

Yes she is, she's hung onto her citizenship rather than doing what some of her friends did and taking UK. I can't make up my mind which is best, perhaps I'll just apply for the police report anyway, I see it can take 40 days.

Same as everywhere I guess. I have viewed a few properties via agents but I think yep you need to be there to do stuff, perhaps even if buying a rental for a while is worthwhile unless you have family you can camp with for a few months.

I suspect not, I shall have to see if off road biking meets that description or not

56 for me 58 for my wife.

I am thinking that as long as the cost is reasonable it's worth having to cover something sudden and unexpected, accident, heart attack etc.

I thought access with vehicle to Penang hill was restricted to residents living there, I know of the footpath but I've not used it. The railway was far less stressful although I did try to convince madam we could walk down, unsuccessfully.

That was my thoughts I couldn't see that it adds up without capital appreciation and relying on that is what caused a lot of the issues for the west in 2007/8. We have my wife's house rented now, there's plenty of rental properties near to our current home so actually letting won't be difficult. Any rental income is subject to UK tax, less allowances so we should get the first £20k free of tax currently. Of course when they come through pensions will eat into some of that so I'll be moving any other liquid assets out of HRMCs reach.

I've walked past a few times but not been in, looks like it's permanently shut now.

Sure the quote was from AIA their A-med product, recommended by my wife's cousin's agent. The price holds for a few years and then climbs maxing out IIRC (don't have it hand here) at about double the initial price in our 70s but continues until 100 if we're that lucky.

Thanks, we're going to ask HSBC in Malaysia when we come back in January for CNY, if we can get one in Malaysia as I understand the criteria are 200K RM which is somewhat less than the UK requirement. My brother has it now and has to leave £50k in there.

Many thanks all for you thoughts and explanantions

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Ian

Davita

Thanks for the info on AIA...I'll see if I can get a quote for comparison and maybe when I need to renew.
Yes the HSBC has different levels of FD's for different countries. The home-bank for that FD can be moved around. I originally set-up in Canada then changed the FD to KL and used the MYR150,000 lien to MM2H plus a further MYR50,000. Since then I've again changed to Jakarta (I live in Bali) as it's IDR500M (approx MYR150,000) as it attracts a much higher interest and I do more transactions in that office and have established a relationship with that manager. IMO....The Global View and ease to transfer money around is worth the Premier status.

bakedbean

Always good to have the med insurance for sure, but don't get too hung up on it if you decide not to, or get past 60 without med insurance.

You talked about Having a Heart Attack The thing is to always have a plan for emergencies. Know which ambulance service you are going to call. Have the emergency number plugged into your phone. And of course when you or spouse goes into hospital, they will need to check and approve with insurance company your admittance. So, in other words, if it was an emergency, you just get on with it and maybe claim back later if you can. Ha....always have your credit card on you too.
http://britishexpats.com/forum/retir...penang-850093/

The above para is a little more tricky if you are on your own. But there are two of you, so no worries.

InVinoVeritas

Hi Ian, you've already had some excellent advice here.

In your position I would keep your house in Guildford and rent it out using the income to finance your expenses in Penang. The property market here is highly speculative with thousands of condos being built even though a large percentage of existing condos stand empty. As a consequence rents are lower than a conservative investment of the sales price equivalent would yield.

Because of the fast development here, renting also means you can easily move when a 30 storey block is built between you and that fabulous seaview!

OK you'll pay UK tax on the UK rental and you'll have to live with a fluctuating GBP/MYR exchange rate but you will still have an exit route if you decide at some future date that you want to go back to Blighty and the Guildford/GBP property market has to be a safer bet than the Penang/MYR equivalent.

Anyhow we're all happy to muse together on this forum so do keep your thoughts flowing in this direction.

JC3

Hi Ian,
Reading betweeen the lines, it sounds like and your wife may own two houses in the UK between you.

If that is the case, Capital Gains Tax would normally be payable were you to sell the second home (i.e. not the home you nominate to be treated as your main residence, the other one).

However you may find that by being non-resident for a minimum of five complete UK tax years, and disposing of the second property whilst non-resident, you could avoid CGT on disposal of the second home.

If you have made a substantial capital gain on the second home it could be worthwhile getting some tax advice about this sooner rather than later and planning carefully.

JC3

NeonHippy

I perhaps should have made clearer that we saw the off road bikers on the footpath. Not the road up from the botanical gardens. I've not been back to that path for a while but I'm pretty sure there is a sign saying no bikers. But as I cannot think of any other road sign that bikes here obey it shouldn't have surprised me to see them.

InVinoVeritas

I'm afraid that all changed on 5th April 2015, JC3.

Since then non-residents are liable for CGT on all property sales in the UK.

But Ian does need to consider whether they should sell their UK properties before becoming non-UK resident and then invest the money offshore (but outside Malaysia) such that future income and capital gain is tax-free.

JC3

Hi IVV,

Yes, some changes came in in April 2015.

Essentially from 6 April 2015, non-UK residents are liable to capital gains tax on the disposal of UK residential property. However CGT only applies to that proportion of the overall gain that relates to the period after 5 April 2015.

My understanding is that the capital gains (on a second property) made prior to April 2015 would not be subject to CGT provided the individual does not return to the UK within five complete tax years of leaving and disposes of the property whilst non-resident (i.e. and by doing so is not caught by the HMRC temporary non-residence rules).

This all gets tricky fast, so expert advice is essential.

JC3

InVinoVeritas

Yes, I agree capital gains prior to 5th April 2015 will still be exempted, but I don't see anything different for second homes.

JC3

It's really that for UK residents the main home is exempt from CGT anyway.

That said it has now become harder to choose which of your homes is your main home. Under the old rules if you had two homes you had two years (from purchase date) in which to nominate which one should be recognised as your main residence for CGT purposes making any gain on it tax-free. The home that you nominated did not have to be the one you lived in most of the time.
From April 2015, the home that qualifies for CGT relief must be the one that really is your main residence, which also applies to people who fail to make a nomination in the two-year time limit.

JC3