Malaysia is a great location to buy property if you are looking for an investment opportunity or somewhere in another part of the world for you to live. Whether you are considering buying a property to use for starting your own business in Malaysia such as vacation rentals, or are considering relocating to this vibrant and beautiful country, here are some of the main things to consider before buying a house.
Choosing an Area
It’s a good idea to choose a popular Malaysian area such as Penang, Kuala Lumpur, or Bahru. If you are considering buying an investment property that you plan to rent out, use as a vacation rental, or sell in the future, the population of the area that you choose will have a significant impact on the return on investment that you can earn from your property in the future. A large population in the area often means that there are more activities nearby, including restaurants, shopping, and supermarkets. It’s also a wise idea to choose a location that is closely located to transportation infrastructure. Kuala Lumpur is a good choice if you want to easily travel to Singapore with the Kuala Lumpur – Singapore High Speed Rail underway.
Finding Your Perfect Property
The best way to find a property in Malaysia is through an agent. Estate agents will typically charge fees that are set at around 2-3% of the property price. The fees are paid by either the seller or between both the buyer and the seller depending on the agreement that you make. First-time buyers in Malaysia can find specialist agents that can also help you with advice on the local market for a fee. Look for a real estate agent that is registered with The Malaysian Institute of Estate Agents, to avoid scams and fraud. You can use online portals like Property Guru as a reliable way of finding a rumah untuk dijual (house for sale) in Malaysia in popular areas. Property Guru is the number one service for buying homes in Malaysia, and offers a wide selection of available properties to choose from.
Type of Property
There are several different types of properties to purchase in Malaysia including landed properties, apartments and condominiums. Landed properties are typically higher in price compared to apartments, but they are recommended for first-time buyers due to the fact that they come with an individual title, and can be available immediately. On the other hand, strata titles for condos and apartments are usually delayed, which could cause problems if you are using a mortgage or loan to purchase the property.
Choosing a Developer
If you are buying a recently developed property or a property that is currently under development in Malaysia, one of the main things to look out for is a reputable developer. If you are new to the country and buying for the first time, many estate agents will offer advice and guidance on the best developers in the area. You should look for a developer who has a good track record and is committed to delivering high-quality developments on time.
Minimum Purchase Price
If you are a foreign buyer, it’s important to be aware that there is a minimum purchase price for buying property in Malaysia. This is set to at least RM1 million in Johor, Kuala Lumpur, Sabah and Sarawak. The minimum property price for overseas buyers on Penang Island and Selangor is RM2 million. However, if you want to get a property for less, the MM2H scheme allows overseas buyers to live and buy property in certain states for lower prices. In Malacca, Kalantan, and Sabah, foreign participants in MM2H will only need to spend a minimum of RM500,000 when purchasing a property. The minimum price is even lower in Perak and Sarawak.
Getting a Home Loan
Finally, it’s worth learning about the process involved with getting a home loan or mortgage to finance your property purchase in Malaysia. Financing can be obtained from the majority of Malaysian banks and interest rates are typically quoted at a percentage below the Base Rate. It’s a good idea to find a good independent mortgage advisor if you are thinking of getting a mortgage or home loan to finance your purchase. Find an advisor who works with all the banks to help you compare the property loan products and make sure that you are aware of all the best offers that are available. They will also help you go over your financial record to prevent any problems with applying. Consolidating your debt and clearing as much outstanding debt as possible can help you improve your chance of being accepted.
Malaysia is becoming an increasingly popular country for purchasing investment or residential property. If you’re thinking of investing or moving here, keep these steps in mind for finding your ideal Malaysian property.
