Around 59% of Maltese people aged 18 to 34 live with their parents, according to research by the Foundation for Affordable Housing. Malta’s co-residence rate is one of the highest in Europe, however, since it allows younger people to save money, it also leads to a higher homeownership rate when compared to the rest of the continent. In 2022, Malta’s homeownership rate stood at 82.6% – compared to the European average of 64.1% and the Southern European average of 75.5%. The findings were published in Entryways to Homeownership by the Foundation for Affordable Housing, a social enterprise that aims to provide sustainable market solutions for today’s housing market. The publication emphasises the crucial role of the family in Malta’s housing system and explores how family networks adapt strategies to facilitate homeownership amid rising property prices. It notes that while some young people rely on their families for accommodation to save up: 10% of properties acquired between 2010 and 2020 were gifted by parents. The percentage of property acquisitions via gift or inheritance more than doubled from 10% in the 2000s to 21% in the last decade. Financial support from families, through cash transfers and loans, helps mitigate the challenges of rising property prices and provides prospective homeowners with higher purchasing power, according to the report. Beyond financial aid, families leverage social networks to connect prospective homeowners with skilled professionals in the housing industry. This access can lead to financial benefits, such as favourable loan terms or reduced fees, and supports new homeowners through the intergenerational transfer of skills and expertise. The report also highlights the historical context, noting that past initiatives led by the state and the Church significantly boosted homeownership in Malta by offering land at reduced prices and subsidising loans for home construction. However, due to the depletion of undeveloped land and reduced direct involvement from the state and Church, there is now a greater reliance on familial support, exacerbating wealth inequality in access to housing. Last year, a report by the accounting firm KPMG found that young, single people on an average income cannot afford 95% of properties on the market. Recognising the need to address these challenges, the Foundation for Affordable Housing introduced LoanUp, a program offering subsidised loan rates to improve housing affordability. This initiative aims to reduce barriers to accessing the housing market and provide innovative solutions to Malta’s housing affordability crisis.

Looking to retire in Malaysia but not that rich? Here’s the cheapest route to your MM2H visa package

KUALA LUMPUR, Aug 2 — Many people think the revamped Malaysia My Second Home (MM2H) programme only aims to attract more affluent foreigners to South-east Asia’s third largest economy to boost its high-end property segment.

Contrary to popular opinion, the new four-tier programme isn’t solely for the ultra-rich.

Malaysia’s Tourism, Arts and Culture Ministry (Motac) has also put together a package to cater to those wanting a more affordable option; the Special Economic/Financial Zone category comes with the lowest price tag in the revised package.

Here’s the route to the cheapest MM2H package for foreigners above 50 years old keen to reside in Malaysia long-term and don’t want to break the bank for it.

Getting started

First, you need to find a licensed MM2H agency to gather, assess and submit your documents as per Motac’s guidelines.

According to some MM2H consultants, the application takes three to four months for the relevant authorities to approve.

Approved, now what?

The applicant must come to Malaysia and open a bank account with a fixed deposit amounting to US$32,000 (RM151,000) within the given time.

The applicant must then buy property in the special economic/financial zone within a year from the approval date while staying in Malaysia.

One of the cheapest property options available in the country right now is in the Forest City enclave in Johor Baru, next door to Singapore.

Malay Mail’s check of property listing websites shows a home there can be bought for RM320,000.

Other payments to be aware of

As an applicant, you’ll need to pay a RM1,000 participation fee, a security bond of between RM200 and RM2,000 based on your nationality, as well as the cost of a mandatory medical examination.

There is also a RM40,000 consultation fee charged by the licensed MM2H agency handling the applicant.

To avoid scammers, you should know that the Malaysian government has fixed the consultation fee to ensure all licensed agents charge a standard rate.

Bought the property, next

Following the property purchase, the applicant is allowed to withdraw 50 per cent of the fixed deposit amount.

The remaining 50 per cent would have to remain in the bank account until the visa termination.

But the applicant is entitled to earn an income from the interest on the fixed deposit, which depending on the bank, is usually between 3.5 and 3.8 per cent a year.

How much can you get in return from your initial investment?

Based on just the fixed deposit alone, the maximum withdrawal is RM75,500.

The income from the annual interest on the fixed deposit is RM2,642 minimum.

And with your property purchase, the potential real estate appreciation after real property gains tax deduction.

The MM2H programme was introduced in 2002, allowing foreigners to buy property and live in Malaysia for an extended period.

It was then temporarily frozen in August 2020 to allow the Home Ministry and Motac to review and update the programme with new terms and conditions.

The programme then made a comeback in October 2021, but had a short and slow run of under two years before Motac decided to give it a fresh look again.

 

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