Property & Email Marketing: Login or Register Telephone Number Tel: (+34) 952 471 774 | UK Freephone UK Freephone: 0800 047 0597 | US Toll Free US Toll Free: +1-866 656 7152
IPIN Left IPIN Middle IPIN Right
Header Corner
Home > Malaysia > Property : Buyers' Guide to Malaysia
SubscribeRegister for Email Updates
   
 
 
Find Property in
  e.g. Manchester or Marbella or Spanish Property

Popular regions in Malaysia

Let Us Search For You

Fill in a short form telling us what you are looking for and we can do all the hard work for you.

USA Income Properties Fully Managed From $22,000

Buyers' Guide To Malaysia

Before going ahead with a property purchase in Malaysia, it is important to be familiar with the buying process and what fees and agreements will need to be met. Below is a general overview of what procedures to expect.


Unlike some of its Asian neighbors, Malaysia makes it fairly easy for foreigners to purchase real estate. The Malaysian government is constantly looking to improve conditions for people wishing to purchase property in the country and this is of course good news to foreign investors.

What You Can Buy

Foreigners are allowed to purchase any kind of property with a minimum value of MYR 250,000 (US $67,977) and can buy up to two residential properties – two condominiums (max. 50% foreign ownership within a block) OR one condominium and one of the following:

  • Terraced or linked houses above two storeys
  • Land/bungalows and semi-detached houses

Should you wish to purchase a third property, you will need to apply to the Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department and provide a valid reason for the third purchase for permission to be granted. Property on Malay reserved land cannot be owned by overseas foreign investors. Other than these restrictions foreign owners of property are treated in the same way as Malaysian owners and both are protected by the same real estate laws.

Using an Agent

A good agent can prove invaluable when you buy a property in Malaysia. Propertyshowrooms.com working with IPIN Global always carefully examines your particular requirements and provides you with a selection of appropriate options in your chosen country. In addition, we can recommend all related professional services you will require in Malaysia to make a safe purchase. Most of our properties for sale in Malaysia are within off-plan developments located near Port Dickson and in Kuala Lumpur, as they offer the best value for money and represent general demand from international property investors in Malaysia.

Appointing a Lawyer

As mentioned above, foreign investors interested in the Malaysian property market are subject to certain restrictions on the type of real estate they can purchase while great care and attention to detail have to be given to the entire buying process in Malaysia. It is therefore imperative that a good IPIN recommended local lawyer is used to assist with your transaction.

Legal fees and disbursements for the preparation of applications to the Foreign Investment Committee and the sale and purchase agreement are calculated at a percentage of the value of the property. Should you plan to take up financing from a bank, remember that you will also have to pay legal fees and disbursements for the preparation of the loan documents. A full breakdown of fees is described below.

Surveyors

When looking for property for sale in Malaysia it is wise to have a structural survey carried out on any property that meets the investor’s objectives because many homes are known to have structural problems and they may not be apparent at first glance. Once you are satisfied your chosen real estate is sound, you can then sign an offer letter that will be submitted to the vendor for acceptance. Should you wish, we will gladly help you find a reputable surveyor through IPIN.

The Buying Process

Once you have selected your property, a Letter of Offer and Acceptance is signed and a 3% deposit payment is normally expected from the purchaser.

Within 14 days, the buyer must pay a further 7%. Deposits paid are non-refundable if the buyer withdraws from the sale but are subject to obtaining finance and checking of title deeds. Make sure that there is a clause added to the standard agreement, stating that if the vendor pulls out, they must pay back the deposit plus an amount equal to that to the investor for the inconvenience. From the date of the signing, the buyer normally has a maximum of three months to complete the sale and make full payment.

Upon signature, the Sale and Purchase Agreement must be stamped at the Stamp Office. After examination of the property by the valuation department, Stamp Duty must be paid to the Stamp Office. The Sale and Purchase Agreement is then sent to the land registry along with the Memorandum of Transfer form 14A to transfer the title deeds into your name.

Transaction Costs and Fees

Who Pays?
Stamp Duty 1% - 3% buyer

Lawyer/Solicitor's Fees

First 150,000

1%

Next 850,000

0.7%

Next 2,000,000

0.6%

0.4% - 1% buyer

Next 2,000,000

0.5%

Next 2,000,000

0.4%

where the consideration or adjudicated value is in excess of MYR7,500,000

negotiable on the excess (but shall not exceed 0.4% of such excess)

Other Fees MYR180 (US$49) buyer
Real Estate Agent's Fees 2% - 2.75% seller

Costs paid by buyer

1.4% - 4%

Costs paid by seller

2% - 2.75%

ROUNDTRIP TRANSACTION COSTS

3.4% - 6.75%

* Malaysian currency is the Ringgit. Exchange rate is US$1=MYR3.6777 as of 26th October 2006.

Finance

As a foreigner, you are allowed to borrow up to 80% LTV from banks in Malaysia and they are eager to lend to overseas borrowers. With interest rates currently amongst the lowest in Asia, at 3.5%, property purchase in Malaysia is now an attractive option for many investors.

The mortgage application process takes longer than in many other countries and you would be well advised to extend the three month period from your initial deposit payment to final signature of the Sale and Purchase Agreement, to allow for normal delays in obtaining your Malaysian loan.




 

15%+ returns with complete deposit protection

  

Propertyshowrooms.com recommends the IPIN Global Secure Exit Strategy - enabling you to profit from the current economic climate and generate 15%+ annualised returns with no risk to your capital, low entry levels and no ongoing costs. Already proven on 15 UK projects with no capital loss.



Let us search for you Let Us find Property in Malaysia for You

Fill out a requirements form and our experts will help you find a great selection of Properties for sale in Malaysia.
Find Property in Other Countries Malaysia Home Property in Malaysia
Buyers' Guide to Malaysia
Malaysia Property Enquiry Mortgages in Malaysia Property Tax in Malaysia Malaysia Property News FAQs Malaysian property Malaysia Real Estate Articles Removals Services in Malaysia Investment Property in Malaysia Development Showcase in Malaysia Guide to Property in Malaysia Rent Your Property in Malaysia
As Featured In

The Sunday Times
ITV
Channel 4
Living Abroad
A Place in the Sun
Realestate TV
The Independent
the guardian
International Herald Tribune
The Wall Street Journal
International Homes
Daily Mail
OPP Overseas Property Professional
The Sunday Express
The Daily Telegraph
Independent.ie
scmp.com
homes overseas
H!Society Magazine

Best Property Portal
Receive your free Halcyon Palms brochure
Investment Property

Property in Malaysia




Real Estate Agents

Sell your properties in Malaysia

Property Developers

Sell your developments in Malaysia

Find Property for YouLet Us Find Property For You

Fill out a requirements form and our experts will help you find a great selection of properties for sale in Malaysia.

Help me find property in MalaysiaGo

Foreign ExchangeForeign Exchange

 Considering a property purchase in Malaysia or need to transfer currency to/from Malaysia?

Save Thousands in Currency Transfers Go

Malaysia flagGet a Mortgage Quote

When considering a buying property in Malaysia, you are well advised to get expert mortgage advice from a mortgage broker.

Get a mortgage quote in MalaysiaGo

Holiday Rentals in MalaysiaHoliday Rentals

Owners Direct is one of the UK's leading direct from owner rental websites and the first choice for holiday home owners who want a cost effective and easy way to fully book their properties.

Find out more Go

Insurance QuoteGet Insurance in Malaysia

If you own or are about to purchase property in Malaysia, you get an insurance quote using our online insurance quote form.

Get Insurance in MalaysiaGo

WillsLooking for a Will?

 Do you have your British assets covered by a will?
Do you have your movable foreign assets covered by a will?
Have you made plans to protect your family in the event of your death?

Get more information on Wills Go

PensionsGot a UK Pension?

Everything you need to know about transferring your UK Pension is in our downloadable guide.

Get more information on Pensions Go