Buying Property in Malaysia for Foreigners: Top 10 FAQs

Hello! I'm Elly, and welcome to my real estate sharing. Today, we're going to explore the top 10 questions foreigners often have when buying property in Malaysia. Are you ready? Let's begin!

1. Can Foreigners Buy Property in Malaysia?

Yes, absolutely! Malaysia is open to foreign property ownership. You can realize your dream of owning a home or investing in real estate in this beautiful country, often at surprisingly affordable prices.

2. Are Specific Permits or Approvals Required?

Yes, you need to obtain approval from the relevant government authorities to purchase property. This is known as the Foreign Purchase Approval. The approval usually requires meeting specific conditions and regulations related to nationality, property type, location, and price. Lawyers typically handle the application process.

3. Are There Extra Fees for Foreigners?

Many people ask about this! Here are some common fees:

• Stamp Duty (Memorandum of Transfer - MOT): This is paid during the property transfer and is based on the purchase price. This applies to locals as well.

• Legal Fees: You'll need a lawyer to handle legal procedures and documents. Developers often offer free legal fees for new units. This applies to locals as well.

• Foreign Purchase Approval Fee: This is the fee for obtaining the necessary approval.

• Loan Stamp Duty: If you're taking out a loan.

• Real Property Gains Tax (RPGT): Payable when you sell the property in the future, calculated based on the ownership period and profit gained.

These fees are generally calculated based on the property price. Contact us for a free consultation and cost calculation for specific properties.

4. Can Foreigners Rent Out Their Property?

Of course! The property is yours, and you can rent it out to suitable tenants. The Tenancy Agreement can be negotiated based on your and the tenant's individual circumstances.

5. What's the Real Estate Market Like in Malaysia? Are There Investment Opportunities?

The Malaysian real estate market is active and diverse.

• Variety of Properties: Foreigners can purchase various property types, including apartments, landed houses, villas, and commercial properties.

• Market Stability: Kuala Lumpur's property prices have increased by an average of 5-10% annually, with rental yields averaging 4-6%.

• Attractive Investment Hubs: Kuala Lumpur and Penang offer thriving commercial centers, quality education and healthcare facilities, rich cultural activities, and growing tourism, attracting both local and international investors.

6. Can Foreigners Get a Loan to Buy Property in Malaysia?

Yes, it is possible. Many of my clients have successfully obtained loans. Malaysian banks offer loans to foreigners, provided they meet certain conditions and requirements:

• Valid Visa and Residence Permit: Legal residency in Malaysia is a must.

• Stable Income: Proof of a stable income source to ensure timely repayments.

• Loan Tenure: Determined by the loan amount and the applicant's repayment ability.

• Down Payment: A specific down payment is typically required.

7. What Legal Issues Should Be Considered When Buying Property?

Pay attention to the following legal aspects:

• Foreign Purchase Approval: Obtain the necessary approval.

• Property Title Search: Your lawyer will ensure the property's title is clear and free from disputes, especially when buying a second-hand property.

• Land Use Rights: Understand the land use rights and lease terms, if applicable, before purchasing land.

• Will and Inheritance: Ensure your will complies with Malaysian inheritance laws if you plan to leave the property to your descendants. Malaysia has no property inheritance tax.

8. How Long Does the Property Purchase Process Take?

The process can vary due to several factors:

• Finding a Suitable Property: This can take days or months.

• Booking and Application: Reserving the property and submitting the purchase application.

• Loan Application: This can take weeks.

• Sales and Purchase Agreement (SPA): Lawyers will prepare the SPA and the buyer and seller will sign the SPA.

• Foreign Purchase Approval Application: Processing times vary, generally taking a few weeks to two months.

• Property Transfer: About three months for freehold properties and four to six months for leasehold properties (99-year leases).

9. Which Areas are Popular Among Foreign Property Buyers?

Many areas in Malaysia attract foreign buyers:

• Kuala Lumpur: A modern, thriving capital city with abundant commercial, cultural, and entertainment options. Popular for apartments and residences.

• Penang: A UNESCO World Heritage site with charming historical districts, delicious food, and rich cultural events.

• Johor Bahru: Located in southern Malaysia, near Singapore. It's a developing city with an active real estate market, especially for landed houses, villas, and industrial projects. The project Di Asakar, located in Johor Bahru, is said to be the first Grade A mixed development in the city centre.

• Beach Resort Areas: Langkawi, Sabah, Sarawak, etc. These areas are popular for holiday homes or investment properties, attracting international tourists.

• Kuala Lumpur Suburbs: Quieter areas close to the city center, suitable for those seeking a more spacious living environment.

10. What Makes Malaysia Attractive to Foreign Property Buyers?

• Multiculturalism: A diverse nation with a harmonious blend of cultures, languages, religions, and cuisines.

• Strategic Location: Situated in Southeast Asia, making it convenient for traveling to neighboring countries for tourism and business.

• Stable Economy: A consistently growing economy, providing investment and business opportunities.

• High Quality of Life: Stunning natural scenery, pleasant climate, abundant leisure activities, and a comfortable living environment.

• Affordable Cost of Living: Relatively lower than other developed countries, offering a high quality of life at a lower cost.

• Lower Property Prices: Property prices are generally lower compared to neighboring countries.

In summary, Malaysia's appeal to foreign property buyers lies in its multiculturalism, strategic location, stable economy, diverse property options, high quality of life, and relatively affordable cost of living.

That concludes today's sharing! Please like and subscribe! I'll be sharing more Malaysian real estate videos soon. See you in the next episode! Bye-bye! If you have more questions, use the form link in the video description. I'll create a second Q&A episode. Thank you!