Property Investment

• As a foreigner, you are allowed to invest in any residential property as long as the price is above MYR 250,000 for other states in Malaysia (or above MYR 350,000 for certain parts of Sarawak and above MYR 500,000 for the state of Selangor)

• Foreigner can invest in raw land zoned for residential purpose, landed bungalow, semi detached villa, terranced house, townhouse, apartment unit of any size and condominium. The property can be bought off the plan from the developer or as a completed property. The property can be either leasehold or freehold.

• The only restriction is that any property that is restricted to bumiputra (native) ownership cannot be bought.

• Currently all property transactions in Malaysia are exempted from real property gain tax. Thus the seller does not need to pay any tax on the profit on disposal of property. However, as part of the condition of ownership imposed by individual states of Malaysia, foreigner will need to apply for an approval to sell the property if the ownership period of the property is less than 3 years.

• Aubella can assist you in organizing an exploratory trip in the following states of Malaysia to understand the property market of the particular area:
  

  • Kuala Lumpur & Selangor

  • Penang

• Aubella could also specially designed a trip for you if the pre-arranged exploratory trips are not up to your satisfaction. Please click here for more information.

• Once you have decided on the investment, the standard property purchase procedures is as followed:

1. Buyer sign the sales form of the property, a deposit of between 2% to 5% is placed, depending on the terms and conditions of the property sales.

2. Aubella will then introduce a qualified lawyer to execute the sales and purchase agreement for the buyer (if need be) and arrange for bank loan (if need be).

3. Once the prevailing conditions on the sales form are fulfilled, Buyer will need to sign the sales and purchase agreement. At this stage, the remaining of the 1st 10% of the selling price of the property will need to be paid by the buyer.

4. The rest of the payment schedule, delivery of the title etc will be spelt out in the sales and purchase agreement. For completed property usually the remaining 90% of the selling price is paid within 90 days from the date of the agreement. For property currently under construction the developer will collect up to the progress billing.

• Once you have taken full ownership of the property, Aubella can then assist you in getting tenants who are currently participating in Malaysia My Second Home, or long-stayer who intend to join this program.

Benefits for Malaysia My Second Home Program

• As a participant under Malaysia My Second Home program, you will be entitled to withdraw MYR 50,000 if you join Malaysia My Second Home as an over 50 years old participant; or MYR 150,000 if you join as a below 50 years old participant, after owning a residential property in your personal name or jointly with your spouse.

• Alternatively, if you haven't join Malaysia My Second Home yet, and your total investment in residential properties in Malaysia under yourself or jointly with your spouse exceeds MYR 1 Million, then you are eligible to join Malaysia My Second Home by just placing MYR 100,000 if you are above 50 years old; or MYR 150,000 if you are below 50 years old.