Exploring Malaysian Property: A Look at Buying Options and Regulations
This video explores the possibility of buying property in Malaysia, specifically focusing on Johor Bahru (JB), and aims to understand the rules, regulations, and differences compared to Singapore. The video emphasizes that it's not an attempt to sell or encourage investment in Malaysian property but rather an exploration of the current market and what's available.
Visiting Showrooms: Danga Bay Country Garden
The first stop is Danga Bay Country Garden, where one block of units remains available. The video showcases an ID (Interior Design) unit priced at around 1 million Ringgit, featuring a 3+1 bedroom layout. The presenter notes the high ceilings, a centralized air conditioning system (later corrected), and a helper's room with its own toilet.
- The presenter emphasizes that the video's purpose is solely to show the units and highlight differences between Malaysian and Singaporean properties.
Understanding Furnishing Differences: ID Unit vs. Standard Unit
The video then moves to a standard unit priced around 700,000 Ringgit. A crucial difference is highlighted: the ID unit showcases upgrades and features not included in the base price.
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Key Differences: Unlike Singapore, where developers typically provide a clear list of included items (flooring, cabinets), Malaysian developers offer varying packages.
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The standard unit includes a washing machine, stove, cabinets, and flooring, but lacks the upgraded finishes seen in the ID unit. The ceiling height remains a notable positive feature.
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The video stresses the importance of clarifying exactly what is included with each developer, as offerings are not standardized. For example, water heater points are provided, but the water heater itself is not.
Second Location: Near the RTS Link
The second property visited is near the future Rapid Transit System (RTS) link to Singapore, making it potentially more attractive due to its proximity to transportation. The presenter again emphasizes that it is not to promote the property.
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Building Strategy: Unlike the Country Garden, where units were built before being sold, this development sells units first and then builds, similar to a Build-to-Order (BTO) scheme.
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The location's appeal stems from its closeness to the RTS, potentially attracting Singaporean buyers.
Small Units, Big Surprises
A small unit (667 sq ft) is viewed next, featuring a surprisingly large living room and a study converted into a kid's bedroom. The presenter notes that developers may not include flooring or appliances like refrigerators. However, the high ceiling remains a consistent plus.
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Emphasis: The presenter stresses that the video is for informational purposes and not an investment recommendation.
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He recommends contacting a Malaysian agent for assistance if one wants to buy.
Key Learnings and Q&A
The presenter summarizes key information learned from discussions with property agents:
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Foreigner Purchases:
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Some land parcels have "O" (Ownership) approval, allowing foreigners to buy properties below 1 million Ringgit (e.g., 400,000 - 600,000 Ringgit). This is not universally applicable.
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Each land parcel has specific regulations. Some require a minimum purchase price of 1 million Ringgit for foreigners.
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Show Flat Differences:
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Developers offer different packages; there's no standardization.
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Included items (appliances, finishes) and their brands/designs vary. Buyers must clarify details.
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Taxes:
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Foreigners face a 4% tax, a 1% legal fee on the tax, a levy (20,000 Ringgit or 2%, whichever is higher), and other legal fees.
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Developers may offer subsidies or incentives to cover some costs.
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Resale Market:
- In the resale market, foreigners generally must purchase properties above 1 million Ringgit based on the government's valuation, not the agreed sale price.
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Loans: The speaker doesn't believe in Singaporeans taking loans to buy Malaysia property, due to the high interest rates in Malaysia.
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AirBnB is allowed.
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Maintenance Fee is around $100+ Singapore Dollar
Strategic Buying Considerations
The presenter suggests that if buying, consider units under 1 million Ringgit due to potential resale to locals. Buying with cash is recommended over taking out a loan, given the higher interest rates. Owning a property in Malaysia can be an advantage for vacation, retirement, or inheritance purposes. If you really like Malaysia, buying a smaller unit makes sense.
Concluding Thoughts
Overall, the presenter finds the Malaysian property market interesting and eye-opening. While not recommending it as a primary investment compared to Singapore, it could be attractive to those seeking a retirement home. Acting sooner rather than later may be advisable, as land approved for foreign ownership under 1 million Ringgit is limited. The presenter offers to connect interested viewers with Malaysian property agents.