Real Estate in Malaysia
Malaysia is already a major international tourist destination and forecasts predict some 20 million tourist arrivals for 2007. With increased low cost airlines serving the island from 2007, property in Malaysian is set to flourish further from a strong tourist market, particularly with buy-to-let investments in coastal resorts such as Port Dickson.
Unlike some of its neighbours, it is fairly easy to buy property in Malaysia. Thailand, the Philippines, Indonesia and even Singapore all prevent foreigners from owning land, restricting them to buying apartments or to using leasehold arrangements.
It is relatively cheap to buy a house or apartment in Malaysia, and some expatriates have made good returns on their property investments over time. A wide range of properties is available, including large detached houses (known as bungalows), semi-detached and terraced houses, apartments and condominiums.
Properties for sale can be found via the real estate agents which are numerous in urban areas and advertise in the local and national press.
In addition to resort properties, overseas purchasers are also focusing on locations in the capital city, Kuala Lumpur, particularly within the central business district. Along with direct foreign investment largely from the US, Japan and China, a surge of business activity is bringing a high demand for both residential and commercial real estate. A growing expatriate community now needs quality new accommodation in up-market, central districts. Off-plan properties are now being sold to international property developers and offer good guaranteed rental yields of between six and ten percent.
Foreigners are eligible to buy 2 houses at a cost of not less than RM150,000 each. For this purpose, they are also entitled to apply for a loan from a local bank for 60% of the purchase price.
The standard procedure for purchasing a property is:
1) Sign letter of offer and pay 3% of purchase price as earnest deposit
2) After 14 days, sign sale and purchase agreement; pay 7% of purchase price
3) Pay balance of purchase price within three months
Legal fees, stamp duty and agency fees (if used) are also payable.
