Investment Finance

Financing a investment property in Malaysia is an important decision. It could entail injecting your own capital resources or, as most serious investors prefer, a mortgage or equity release scheme.

Mortgages

The mortgage market is increasingly well developed in Malaysia and foreign citizens can obtain a mortgage relatively easily. However, recent conditions have pushed interest rates to 6.75% from about 6% at the start of 2006. Nevertheless Kuala Lumpur has still seen a boom in the kind of high-end condominium development that expatriate buyers and renters demand.

As a foreigner, you are normally allowed to borrow up to 70% and in most cases Malaysian banks are more than willing to finance your purchase. Loans are granted on the proviso that the property value is RM 250,000 or more. There is no upper limit to the cost of properties that may be purchased by overseas purchasers of property in Malaysia. The current base lending rate is 6.8% per annum (end 2006). Loans are for a maximum period of 45 years or up to age 75, whichever is earlier.

Off-Plan Financing

Some off-plan developmentsin Malaysia offer finance options and installment plans.The charges applicable vary according to developer and repayments are usually indexed. Sometimes the developer can often offer the most competitive finance options to investors and these are certainly worth considering when looking at mortgage alternatives to those from their own countries.

As always, before making a commitment, we recommend you discuss your investment strategy with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

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Click here to learn more about financing your Malaysian property with a mortgage.

Equity Release

Put simply, equity release is a method of releasing cash from the home without having to sell up and move house. If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in certain circumstances to raise money for a mortgage to finance your Malaysian property investment.

Alternative Finance

Not everybody falls into a category and some investors will need to raise finance in an alternative fashion to equity release or mortgage options. We can inform you of other borrowing facilities available to investors of Malaysian property, while taking into account your individual circumstances.