Bargain Retirement Overseas in Malaysia?

Forty years ago, International Living Magazine began popularizing the advantages of a bargain retirement overseas. They started promoting the idea that since many foreign countries have a much lower cost of living, it is possible to enjoy a better lifestyle even on just your Social Security.

Every January, International Living (IL) generates a ranking of the top countries in the world to retire based on a variety of factors, not just cost. After all, there are some very cheap places around the world, but you may not want to live there.

In their 2021 Country Index, IL ranked Malaysia as #7 behind Costa Rica, Panama, and Mexico. The rankings are from 0-100, with 100 being a perfect score. As you might expect, Malaysia ranked very well on their Cost of Living, receiving a 91%. So it certainly qualifies as a bargain retirement overseas.

Malaysia is located on a peninsula south of Thailand along with one of the most expensive places to live on earth, i.e., Singapore. So it is somewhat surprising that Malaysia is so affordable. But if you want an adventure, Singapore is close by.

Besides their cost of living, Malaysia also ranked well in a variety of other categories. For “Housing,” they got a 75%, for ease of acquiring a Visa/residence Malaysia earned an 82%, ease of fitting in also got an 82%, surprisingly “Development” earned a 92, Healthcare a 90, and Governance an 82.

The categories that didn’t fare as well were Benefits 64, Climate 62 (it is pretty hot and humid), Opportunity 78 (not the best place if you plan to start a business), but if you are retiring, you won’t be starting a business anyway. Overall, Malaysia earned 79.8%. But top-placed Costa Rica only did slightly better with an 85.2%.

IL strongly recommends that before you rush out and buy property in a foreign country that you rent for a while to see how well you will fit in and if that location is right for you.

Things to Consider When Renting in Malaysia

If you are looking to rent in Malaysia, it may benefit you to find out what you should do beforehand. It can be a great way to explore your local neighborhood before committing to long-term accommodation, but preparation is key as with any significant move. This can prevent you from wasting a considerable amount of time and money and even coming to regret your decision to rent down the line.

Kuala Lumpur, Malaysia by kangshutters @ Freedigitalphotos.net

Inspect the property before you move in

The instant you receive the keys to your new rental property, you should inspect it thoroughly. Inspection is critical, especially if it is a furnished property. If any furniture, fixtures, or fittings are damaged, you should document this and report it to your landlord to prevent them from charging you for the damages. Doing so will safeguard your security deposit and ensure its return upon your vacating the property. You may also be able to convince your landlord to carry out any urgent repairs before your move-in date so you can settle into your new home without worrying about any defects that may only worsen over time.

Find out how much your deposit it and when it is due

If you are a first-time renter, you may be unfamiliar with how much your deposit is likely to be and when to pay it. This can differ depending on several factors, including whether the property is furnished or unfurnished, how much your monthly rent payments will be, and, unfortunately, your landlord’s personal preference.

For example, if you are searching for a rumah sewa Puchong, (Rental Property in Puchong), which costs RM1,000 per month to rent, your deposit may be RM4,500. This will cover the cost of missed rent payments and damage caused during your tenancy.

Read your tenancy agreement thoroughly before you sign it

As with all legally binding contracts, you must read your tenancy agreement thoroughly before you sign it. This can ensure you are familiar with your duties and responsibilities as a tenant and are unlikely to be surprised by any changes made to your tenancy agreement by your landlord in due course. You should note which interior or exterior alterations are permitted and when your monthly rent is due. Also, note any general house rules and regulations. When renting in Malaysia, it may also benefit you to hire a lawyer to ensure the tenancy agreement has been drafted properly, as failure to do so can render the entire clause unrenewable.

Find out if your rent is likely to increase

Before you move in, you must find out whether or not your rent is likely to increase after 6 or 12 months. This is common in the rental world globally and, unfortunately, Malaysia is no different. Rental increases can be as little as 10% or as much as 50%. As a result, you should find out whether or not your landlord will be increasing your rent, especially if you are looking for accommodation on a long-term basis. This information should be stated in the tenancy agreement. This can prevent you from being taken aback by a sudden rent increase.

Ask who is responsible for regular maintenance, upkeep, and repairs

You may be responsible for rent and bills, but do you know who is responsible for regular maintenance, upkeep, and repairs in the event of an accident or emergency? Be sure to ask your landlord during the initial viewing or before you sign your tenancy agreement. Doing so ahead of time will ensure that you’re equipped to enjoy your retirement in Malaysia.

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