 Expats and Foreigners
Buying Property in Malaysia |
1).
Restrictions and Regulations - |
Non-Malaysians intending to buy any type of property in Malaysia must obtain consent from the state authority in which the property is situated. This consent is almost always nothing more than a rubber stamp approval. You will be using a local solicitor/lawyer to handle the conveyance and you should instruct the lawyer to make the application on your behalf. Ensure that the contract is conditional upon approval being given. A minimum value of the property is imposed on foreigners to prevent prices of cheaper properties being inflated by foreign demand. While Penang requires a minimum purchase price of RM500,000 (US$160,000), other states have minimum values ranging from RM250,000 upwards. It is important that you confirm the eligibility before you even pay a deposit. You will be asked to pay "an earnest deposit" which is frequently no more than 3% of the purchase price, just enough to cover the fees payable to the agent. Once all details are confirmed, a "S&P" (Sale and Purchase Agreement) will be prepared by your solicitor (you must NEVER share the solicitor with the vendor). Upon signing the S&P, your deposit will then be increased to either 10% or 20% of the purchase price. The balance will be payable to the vendor normally upon your taking possession which can take up to 3 months from signing. If you intend to borrow a portion of the purchase price, banks normally require at least 20% equity. 2). What is a "condo"? In Malaysia, we refer to a stand alone house as a "bungalow" Two houses joined together by a common side wall is called a "Semi-D" Two houses joined together by a common back wall is called a "back-to-back" A row of houses joined together by common side walls, are called "terrace" or "link" houses. There are generally up to 12 such houses in a street, and they may be either single story, 2 story and sometimes 2 1/2 or 3 story. A "condo" is a high rise condominium development, usually high density with several hundred units. Condos also usually offer almost every facility you can think of providing a relaxing and pleasurable environment. Obviously, these are concentrated in the inner city areas. An "apartment" is somewhat similar to a condo but frequently is not as opulent and lacks many of the facilities that are associated with condominium developments. A "flat" is generally a 5 story low density development without a lift or any facilities. Sometimes referred to as a "walk-up", a flat is also sometimes referred to as an apartment. 3). Opening a Bank Account Opening an account in Malaysia is the same as in most countries. Your agent or lawyer will help you to select a bank, and a small deposit is required. With internet banking, you can access your account 24 hours a day, and perform all the normal functions. 4). Permanent residency for foreigners. It takes forever to be issued with "PR" status. For foreigners, we have the (MM2H) program which is discussed in detail here. Other questions? Email me as below |
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