Many foreigners try to invest money in another country, especially in property. They invest in property for a better lifestyle and future. There is no doubt that people need necessities and facilities, such as education and health care. Therefore, they buy property in other countries where the facilities are available, and they can plan a better future. Some people even buy property to live after their retirement. If you are looking for an Asian country to invest in the property, then you might have searched about Malaysia. Malaysia is one of the best Asian countries to invest in the property, and many foreigners are attracted to it.

Malaysia allows foreigners to own a property in the state. Foreigners can buy property or land in Malaysia and live there. Due to the fast-growing economy, health facilities, education system, modern lifestyle, and affordable property, people are ready to invest in Malaysia. Your investment will surely provide you a great return. Today, we are going to discuss everything that foreigners should know about property investing in Malaysia.

Reasons to Buy Property in Malaysia

There are many reasons for buying a property in Malaysia, some of the important reasons are,

• Affordable: Property is still affordable to buy in Malaysia. People can buy property at a low cost as compared to other famous Asian countries.
• Full Property Ownership: You can own a property in Malaysia like Malaysian people. You can have full ownership of the landed property.
• Safe Country: Malaysia is one of the safest countries in the world. It is a famous tourist spot where people come from every corner of the world. You can live here peacefully.
• Home Loans: Forefingers can easily get a home loan for the property.
• Return on Investment: The property will definitely pay off if you want to live there. You can also get a return on investment by renting out your property. The rental yield is 2-5%, depending on the type of property and state.
• Health Care and Education: Malaysia has world-class health care and education system, which attracts foreigners to spend their lives in the country.

Conditions for Foreigners

Malaysia allows foreigners to buy property anywhere in the country, but there are some conditions. Before buying a property and planning something, you should know about the conditions.

Minimum Price

The first condition is the minimum price of the property. In general, foreigners are not allowed to buy a property that has a price of less than RM 1 million. This is a general minimum price, but it varies with the decision of the state. So, every state has its own minimum price for foreigners. But after the budget of 2020, the price has been reduced from RM 1 million to RM 600K only for the unsold properties of the urban areas. It’s not for the properties that are going to be launched.

The minimum price for buying a property in Selangor is RM 2 million, which is the highest minimum price in Malaysia for residential properties. After the budget, this price is now RM 1.5 million only for unsold units of zone 1 and zone 2.

In Sabah, the minimum threshold is 1 million, but for overhang units, it’s RM 750K.

So, due to the budget 2020, foreigners have an excellent opportunity to buy properties at a lower price. Thus, 2020 is the best time to invest in the property in Malaysia. The price of unsold properties has been revised in some states. Therefore, you need to know about the minimum price of the state for new launch properties and overhang properties. Foreigners cannot buy any property less than the price threshold set by the state government.

Properties of Malay Reserved Land

Foreigners cannot own a property in the Malay Reserved Land. This land is only for Bumiputras.

Properties Reserved for Bumiputras

If there is an allocated property in any project to the interest of Bumiputras, then foreigners cannot buy the property.

Low to Medium Cost Properties

Foreigners also have restrictions on buying low to medium cost properties. These properties are indicated by the authorities.

Agricultural Lands

Foreigners cannot own agricultural lands in Malaysia.

Property Financing for Foreigners

Not everyone has enough money to buy property; therefore, many people take loans. If you have enough money that you can bring from your homeland, then there is no problem in buying a property. But if you don’t have money, then you need to approach banks. As a foreigner, you can open an account in Malaysian banks and get a loan for your house. You can approach a bank for the home loan. Usually, banks provide loans on 70-80% Margin of Finance (MOF). The MOF depends on the bank, so you need to visit or search about different banks and their policies. If you are married to a Malaysian, then MOF can be higher than 80%.

Steps to Buy a Property in Malaysia

We are going to share a few steps that will help you in buying a property in Malaysia.

Meet a Lawyer

We recommend meeting a real estate lawyer. The lawyer can tell you about the rules and regulations of the states. He will guide you through the steps and tell you about the cost that is required to buy the property. You should also know about the taxes, legal fees, and stamp duty.

Agreement with the Owner

After choosing the property, you need to sign a sales form, which is basically an agreement. The seller and the purchaser will sign the form.

Property Finance

You need to know about the property finance before you think about the property. But you should apply for the home loan after knowing the price of the property.

Sales and Purchase Agreement (SPA)

This is the most important agreement for property purchasing. You should have a lawyer with you representing your conditions and interests. At the moment, you need to pay 10% to the vendor or developer. You might need to sign other transaction documents. SPA is signed within 14-30 days of signing the sales form or offer to purchase form. The buyer needs to pay the remaining amount in three months.

Looking for Property Investment in Malaysia? Contact KCC Realty

If you want to invest in the right place, then contact KCC Realty today. KCC realty has introduced many successful projects in Kuala Lumpur, Johor, Selangor, and many other cities and states of Malaysia. Some of our successful projects are Verge 32, RiverCity Business Park, The Senai Garden, and Klover 18. We have been in the business since 1983, and we have tried to make the housing affordable. We can help you in buying the right property in Kuala Lumpur. You can contact us today, and our team would love to guide you.