This is my retire early on 1025 Month in Kuala Lumpur Malaysia information.
We were last in Kuala Lumpur in March 2019 so I decide to do some research and update my information in case the prices have changed during the coronavirus.
Some people believe that Malaysia will be open in the Spring or Summer of 2021.
We usually rent an Airbnb Apartment in the Ampang area a few kilometers east of the Petronas Towers. But there are many great neighborhoods in Kuala Lumpur so make sure to check out our Kuala Lumpur Malaysia Retire Cheap Report, for our Google map of the best areas to stay in Kuala Lumpur.
There is no need to take notes as you listen. I will provide you with my written notes for the things I discuss at the end of this video.
Kuala Lumpur has great public transportation and the Grab Taxis are relatively cheap but you should try to stay in one of the highly walkable areas we suggest to get a real understanding of what it feels like to live in Kuala Lumpur.
Some areas of the world have seen a drop in accommodation pricing because of high landlord competition during the coronavirus. Fewer tourists mean more vacancies so some landlords are offering lower rents. So I decided to see if that was also true rentals on Airbnb in Kuala Lumpur.
Bukit Bintang, Kuala Lumpur
On October 27, 2020, there was a 1 Bedroom apartment with 100 MBPS wifi for $456 per month with a pool and gym in the complex.
It is in one of the desirable areas for new people exploring KL for the first time called Bukit Bintang.
It includes A/C and a fully equipped kitchen and has nice decorations, amenities, and a balcony where you can enjoy the evening.
As shown, the bedroom is separate from the living area so it is a true 1 bedroom apartment.
Plus, $456 per night breaks down to about $15 USD per night.
$15 per night for this apartment supports my theory that rents are cheaper during the coronavirus.
KLCC Studio Apartment
In the KLCC area, one of the most desirable areas of Kuala Lumpur, just a few blocks from the Petronas Towers, I found this Studio Apartment for $462 USD per month.
It includes a swimming pool with a view of the Petronas towers, a gym, and a small kitchen. $452 for a month breaks down to about $15 USD per night.
Everything not walkable from this apartment is accessible via public transportation.
The huge markdown on this apartment indicates that the coronavirus is having an effect on rental prices in Kuala Lumpur.
So I took this new rental data and inserted it into our actual cost of living data from our last visit in 2019, so see what our cost of living in Kuala Lumpur would be today.
Kuala Lumpur CoronaVirus Cost of Living 2020
As you see in the below table, it cost us (Qiang and I) $1244 USD per month to live in Kuala Lumpur. If we were to rent the above Bukit Bintang apartment in Kuala Lumpur in November of 2020, our monthly expenses would be reduced to $1025 USD per month.
Thus, the market caused by the coronavirus epidemic seems to have reduced the cost of living in Kuala Lumpur by about 20%.
Of course, this assumes that all costs other than rent would be about the same same as 2019. Also, there is no guarantee that the rental market won’t bounce back to more typical levels once a vaccine is available.
Also, make sure to audit our expenses and make sure to add any expenses that you would have living here that we don’t have. You’ll notice, for example, that we were not carrying any health insurance in 2019. So look at the list carefully and add any expenses you would have that we did not.
We had just returned from traveling the world for 16 months and we did not go out to eat in restaurants much when we returned. We were too busy enjoying all the dishes we love to make at home when we have access to the fully equipped grocery stores in KL and a functioning kitchen.
Kuala Lumpur Condo Glut
Finally, I wanted to recommend that you not buy a condo in Kuala Lumpur. One of the things I immediately noticed in Kuala Lumpur when I first visited in 2016, is what appears to be an immense oversupply of luxury unoccupied condominiums.
I just checked online and I found a few articles to confirm this. In 2018, there were more than 34,000 unsold units which was a 56% increase in unsold units from just one year before. The Star.
Some legislators have even proposed a vacancy tax on luxury high rise condo units. The Malaysia Reserve. Taxes on unsold condos has been used in other countries to reduce overbuilding by the private sector and to encourage housing supplies for moderate-income tenants.
There is even talk of lowering the minimum price that foreigners must pay to buy condos in Kuala Lumpur from 1 million RM ($250k USD) to $600,000 RM ($150k USD). Keeping foreigners away from the low priced units is meant to keep a supply for moderate incomes in KL.
Thus, you should not buy real estate in Kuala Lumpur because I believe that a big correction in real estate prices is about to occur.
Make sure to read my post, The Top 10 Mistakes International Retirees Make, and my post, Why Retired Expats Should Not Buy Real Estate Overseas. I am not a financial advisor but these are the things I have learned traveling the world for the last 13 years.
You see, I left the USA in 2007 and I have lived in or visited 65 countries so far in my life. So I know a thing or two about International Living.
Please grab a free copy of my eBook “How I Fired My Boss and Traveled the World for 13 Years.”
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This is Dan from Vagabond Awake, the Youtuber Channel for VagabondBuddha.com. The world is your home. What time will you be home for dinner?