If there was a choice, and you could only afford one and not both, which would you all prefer to invest in, Malaysia or Brazil, and why?

Hi Nick,

I´m not suggesting you will get one from me, but you are asking this question on a forum that has 10.000 agents with an interest in selling property in Brazil and none from Malaysia.

Two years ago, I would have said Brazil was the best option despite the lack of finance, lack of knowledge that we have now thanks to forums like these, and hints of corruption.

Now, I couldn´t touch it with your money.

The value has gone, everything that is being offered has "potential" capital growth and rental yields and we know a) how difficult it is to get your money out of Brazil and b) there definately is more than a hint of corruption.

I could bark all day about GNG and The Banana Club, but what good would it do? There are probably a couple of investment options that are still worth considering, but when the market picks up again, will they still be there?

Malaysia, and particularly Kuala Lumpur has the cheapest property like-for-like in SE Asia. Rental yields are proven as is capital growth. There is a strong domestic market (which is why you never see new releases advertised internationally - the developers don´t need to) and money is pouring in from Korea, Singapore, India and Pakistan. There is also an element from Dubai and The Middle East who are looking to take their profits out of the Emirates while they can.

Just to clarify, I´m not talking about the Banyan Curves and Gold Coast Palms (all though there is nothing wrong with these), I´m looking at mid-high end serviced apartments in KLCC, Johor and Penang.

The reason you probably won´t get a balanced view on this thread is that property in Brazil offers commission to agents of up 20% (that´s the highest I´ve been offered anyway), whereas commission in Malaysia is capped at 2% and most new developments won´t offer more than 1%.

So, IMHO, Malaysia because there is an established (domestic) market, you can get in and out without restrictions, no CGT, and finance up to 80% if required.

Interested to see the Brazilian agents views of my arguements!

Suerte,

Andy

It is not a like for like comparison even trying to compare Malaysia and Brazil. They are both at different stages in the property market cycle and both offer something completely different.

If you are a pure investor and all as you are looking for is little input and maximum profit, then of course malaysia is your best option for you.

If you are looking for something that will see steady growth over a period of time, generate some rental income (but not enough to cover costs) and of course something you can also use yourself for lifestyle enhancement, the Brazil is a great choice.

Property prices have risen dramatically in Brazil over the least 2 years but as most "agents" have learnt not everything is quite as it seems. It is difficult to do business in brazil, it is difficult to actually build in brazil (especially NE) and its is very difficult should you actually get the apartment that you have paid for, to get any money out of Brazil thus making the exit strategy limited. This will change though over time with more and more foreign investment.

As for malaysia, it is a strong market, good prices, finance options and rental yields that can cover costs (if care is taken in the finance option taken). The ringett is good for foreign buyers at the moment and returns on investment are excellent. this si not a lifestyle enhancement though, unless you are from Singapore or KLCC and wnat a local weekend retreat.

So pluses and minuses for both options...............it really depends what you want!!!

Thanks

OPH

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www.overseaspropertyhotspots.com

Malaysia without doubt.

Both were on my list before I settled on Mediterreanean Morocco. I actualy reserved on the Palm near Kuala Lumpa, but pulled out.

Brazil I looked at fairly in depth but I felt there would be masses of supply and too much opaquness for my investor tastes.
A very good freind of mine invested in an appartment in KL and has been well looked after, however, even he says there are plenty of sharks and pitfalls even there. He actuall also invested in Morcco with me in the same development!

If you want South East asia I'm hearing from probably the most succesful knowlegable investor I've ever come accross - he predicted the credit crunch and named it so back in 2004 on housepricecrash - (he's called Dr Bubb on there) that Singapor is a real goer just now, and tenmds to be a safe investment.

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Been investing abroad a few years. Always amazed people invest in places that produce just a few months rent per year