Foreigners can purchase any kind of property in Malaysia with a minimum value of MYR250,000. Expats are allowed to purchase up to two residential properties - two condominiums with a maximum 50% foreign ownership within a block OR one condominium.
Malaysian property remains a more affordable option when compared to neighboring Singapore and Hong Kong. Malaysia offers a wide range of property types and locations for expats of all requirements. Choosing the right property and location to suit your needs is the key to making your time in Malaysia enjoyable.
The best way to start your search for property is to browse online listings. Both classifieds websites and real estate agencies list available properties online. Popular classifieds in Malaysia are listed below:
The Star newspaper lists real estate listings in print and they manage an online real estate property site at www.starproperty.my/.
The only common posting for Real Estate is on billboards. They are common to see all around Malaysia, even in rural areas. A phone number will be listed, as well as an address to the office.
A real estate agent will not only help you select a suitable property, they will assist you with every step of the process. They will advise you, help collect all documents, and arrange meetings with lawyers and accountants. Another good reason to work with an agency is to ensure that your new property safe and the seller has the legal authority to sell it. It is highly recommend you work with an agent if buying property in Malaysia.
A proper real estate agent should be registered by the Board of Valuer, Appraisers and Estate Agents Malaysia. The fee for service is 3 per cent on the first RM 500,000 transacted and 2 per cent on the residue over RM 500,000.
StarProperty.my offers an online tool to find an agent near you.
If you work with a real estate agent, they will make an offer to the seller on your behalf. The seller will decline it, decline it with a counter offer, or simply accept it. If the offer is accepted, your real estate agent will prepare a pre-sale contract outlining the details of the property, the buyer, and the seller, as well as the final date of purchase. Once you have chosen your property a Letter of Offer is signed and a 3% deposit payment is expected from the buyer. Within 14 days, the buyer must pay a further 7%. Deposits paid are non-refundable if the buyer withdraws
The real estate agent will draw up a final purchase contract to be signed by the seller and the buyer in the presence of a public notary on the date of purchase established in the pre-contract. The buyer will then pay the outstanding balance. It is wise to have your lawyer read the contract before you sign it. Foreign buyers are restricted on the type of real estate they can purchase.
On the closing day, the property will be transferred from the seller to the buyer. The buyer will sign a number of documents that will be explained by your real estate agent. Your real estate agent should ensure that all the proper paperwork is signed and turned in to the right agencies.
Public awareness of real estate auctions has increased in Malaysia, over the past few years. According to Auction Mart, there was approximately RM10 Billion worth of property up for auctions in 2011. With the influx of expats and Malaysia's population boom, it's easy to see why people are looking towards auctions as a way to find property for a price below market value.
There are several online websites dedicated to real estate auctions in Malaysia. Before deciding on a property, it's suggested to browse all online listings. Once you inspect the property in person, have a lawyer check into all legal matters.
On auction day, be prepared. Show up early to avoid disappointment. Bring a bank draft or check that's equivalent to 5% to 10% of the fixed price, depending on the requirements. Also bring your I/C and if you are bidding on someone's behalf, bring a nomination letter.