Ranked as the best country in the world to invest or do business for in 2019, Malaysia is a foreign investor favorite due to its steady economy, geographically benefited areas with easy access, tax-free zones, and more.
Before you commit to purchasing real estate in Malaysia, you must learn about the following:
There is no restriction on the number of properties that a foreigner can own in Malaysia, whether the purpose is of living in or for other investments.
A foreign national can purchase any property in this country!
Malaysian investors have to select from some types of investment according to their requirements, like their own needs, risks, and future aspects.
Cash investments, fixed assets, growth investments, and defensive investments are some investment categories to be chosen from.
If the requirements are met, foreigners’ homeownership in Malaysia is comparably easy than in other countries. Furthermore, there is a chance of owning 100% of the property!
According to the law, foreigners can own any type of properties EXCEPT —
So, foreigners can easily own a bungalow, condominium, flat, terrace house, landed property, studio unit, commercial property, industrial property, agricultural land (except Malay Reserved Land), industrial land (except Malay Reserved Land).
If you are a foreigner and want to buy a property in Malaysia, you would need to understand the scenario of Malaysia’s property market before making any decisions.
So, first and foremost, get some ideas by exploring properties for sale. Browsing is definitely a very good option in today’s tech-friendly world. You can check out juwai.asia, a platform to empower Asians to be global residents.
A form, which is called the developer’s sales form, the offer purchase form, or a Letter of Offer, needs to be signed and submitted.
The form will be given by the seller for sub-sale transactions. It is to show that you are clear about buying a property and agreeing to the upfront payment (usually 2-3%).
If it is necessary, you can apply for a loan. The accessible margin of financing with Malaysian banks will vary depending on your circumstances.
Usually, MM2H provides 80% financing of the total purchase price. It will be at a maximum of around 70% without MM2H. You can also avail an alternative option of sourcing your home loan overseas.
You have to provide your lawyer with the relevant documents:
Within a couple of days (usually 14 days) of signing the letter of offer, a Sale and Purchase Agreement (SPA) needs to be signed.
SPA covers all the terms and conditions of the sale. This phase includes a 10% down payment.
The 2-3% you have previously paid during the initial steps contributes towards this 10% deposit total.
At this stage, you may also have to come across mutual covenants (if needed) and other transactional documents.
When the agreement is made, your legal executive will then ask for final state authority consent. This consent is necessary since you have to ensure your property fulfills the noted requirements by the state prior to this point.
You have to provide some other documents in the meantime. The documents include –
In this step, you have to pay the remaining balance of 90% as per the property purchase price.
It is explained under the SPA, or Schedule H Housing Development (Control And Licensing) (Amendment) Regulations 2015.
At last, the developer will deliver the vacant property at the announced date.
For individual titles, it will be done within 24 months. It will take 36 months for strata title properties under development.
The transfer date is based on the negotiated time frame in accordance with the SPA and the signing of the Memorandum of Transfer in sub-sale/secondary market purchases.
In general, a minimum value of RM1 million is applied to all kinds of property in almost every state of Malaysia.
Nevertheless, the government has lowered the price level for foreign property ownership from RM1 million to RM600k in urban areas that began in January 2020. *This is only applicable to unsold units and remaining stock in the condominium and apartment categories.
However, there are exceptions for four states – Penang, Selangor, Negeri Sembilan, and Sabah. These states’ authorities remain in power to revise the minimum value.
Strata properties (including strata landed homes): RM1.5 million
Overhang residential properties: RM750,0000
Article by: Juwai