Best Areas
Which areas offer the best long term prospects for capital appreciation?
Kuala Lumpur City Centre (KLCC), Ampang, Bangsar, Brickfields, and Mont Kiara (near the international schools) are all expat areas which have good appreciation and demand.
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Foreign Ownership in Malaysia
As a foreign citizen, are my property rights different than those of Malaysian residents?
No, whether you are a foreign or local investor, basically all are subject to and benefit from the same property rights. Malaysia’s land tenure is based on the
Australian system of land ownership – the Torrens system. A small percentage of lands mainly in the rural areas are reserved for the
indigenous people (Malay Reserve land) and cannot be owned or purchased by the non-native locals or foreigners. Most properties that are investment generating lie predominantly in the urban areas of the larger cities like Kuala Lumpur, Penang, Malacca and Johor Bahru (adjoining Singapore) and have no ownership restrictions.
Is financing available for investors who wish to purchase property? If so, how hard is it for foreigners to qualify for this financing?
Yes, financing is available for foreign investors and there is no hard and fast rule about it. For the potential purchaser to qualify he must show proof of possessing some source of income to enable repayment. For foreigners, the maximum loan normally allowed is 70% and the term of loan depends on the age of the purchaser.
Have you noticed any increase in the numbers of foreigners interested in investing in and/or moving to Malaysia recently?
Yes, there is an increase in foreigners interested in investing and moving to Malaysia. Some of them come under the Malaysia My 2nd Home (MM2H) Programme and others come in for investment purposes or move to Malaysia to take up a job.
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Buying & Selling Property In Malaysia
1. Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.
2. There are two choices:
1. Purchaser finds his own banker.
2. His lawyer can submit to his panel of bankers.
3. The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:
1. Purchaser’s & Vendor’s identity card or passport if foreigner.
2. A copy of the previous S&P from the Vendor
3. A copy of the title (if any)
4. Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.
5. Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.
6. The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.
7. As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.
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