Tips for Foreigners Buying Properties in Malaysia

Tips on Investing Properties In Malaysia

If you are foreigner and plan to invest in a property in Malaysia, here are some tips that you will find useful.

Financing your property

As a foreigner, you are allowed to borrow up to 70%. In most case, the banks are more than willing to finance your purchase of 50% of your property price.

Restriction in Disposing of your property

You are not allowed to sell your property less than 3 years from the date of your purchase.

Number of units you can own in Malaysia

As a foreigner, you are only allowed to own not more than 2 properties. Should you intend to purchase a third property, you will have to appeal to the Foreign Investment Committee and provide a valid reason for the third purchase. There is no guarantee that your appeal will be granted.

Remitting money into Malaysia

If you intend to purchase or have purchased a property in Malaysia, you are allowed to open a bank account to remit your funds from your domicile country for purpose of paying for the property.

Taxation of your property

Should you intend to dispose your property within the 5 years after the date of your acquisition, you will be taxed 30% of the gains only. If you dispose your property after the 6th year of your purchase, you will be taxed on 5%of your gains.

Minimum purchase price allowed to purchase

As a foreigner, you are allowed to purchase a property costing more than Ringgit 150,000. In some states such as Johor, Melaka and Penang, the purchase price of the property must be more than Ringgit 250,000.

Types of properties you are allowed to purchase

You are allowed to purchase residential apartments, condominiums, service apartments and landed properties such as terrace, semi-detached and bungalows.

Fees involved in purchasing a property

You are required to pay legal fees and disbursements for the preparation of the sale and purchase agreement whichis a percentage of the value of the property. Should you plan to take up financing from a bank, you will have to pay legal fees and disbursements for the preparation of the loan documents.

Article Source: http://EzineArticles.com/?expert=Juanita_Chin

Property in Malaysia

Reasons to invest or live in Malaysia
One of the main advantages of investing in Malaysia property is the fact that real estate laws protect Malaysians and foreigners in equal measure. Foreigners may purchase properties with a minimum value of RM250,000 (USD75,000) and may own multiple properties in freehold or leasehold, depending on the land tenure in question. Property laws are based on British law.

With the introduction of the Malaysia My Second Home (MM2H) programme, the decision to invest in Malaysia is effortless, and is open to all non Malaysians looking to live permanently in Malaysia or simply come for well deserved holidays.

Applying to invest or live in Malaysia
MM2H applicants must first apply for a conditional approval letter which is issued by the country’s Immigration Department. Documentation proving your financial situation is also required.

Financial requirements for those BELOW 50 years of age

• Open a fixed deposit account of RM300,000
• After one year, you may withdraw up to RM150,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM150,000 in the account, which must be maintained throughout your stay in the country.

Financial requirements for those ABOVE 50 years of age

• A choice of either putting RM150,000 into a fixed deposit account or show proof of a government-approved monthly off-shore income of a minimum of RM10,000.
• After one year, you may withdraw up to RM50,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM100,000 in the account, which must be maintained throughout your stay in the country.

Living in Malaysia
Great weather. Malaysia enjoys a truly tropical climate with warm days and cooler nights. The average temperature during the day is 27°C.

Political stability. Malaysia is a constitutional monarchy with a system of parliamentary democracy, and has enjoyed political stability since independence in 1957. The rule of law follows the British system of justice with an independent judiciary.

Low crime rate. With a relatively low crime rate, Malaysia is considered to be one of the safest countries in the region, making it ideal to raise children.

High standard of living. While the cost of living well in Malaysia is comparatively lower than most developing countries, the standard of living is high. Overall, spending power has progressively improved.

Medical facilities. World class medical facilities and care is available at a reasonable cost and the country is gaining a reputation for being the top healthcare hub in the region.

Accessibility and infrastructure. Every major city has an airport and train station. Islands can be flown to or have regular ferry / boat services. Landmark developments include KLIA (Kuala Lumpur International Airport), Cyberjaya, Putrajaya and the MSC (Multimedia Super Corridor).

English speaking. The national language is Malay (Bahasa Melayu) and English is widely spoken and considered to be the country’s second language.

Education. Pre-school through to university with a choice of either public or private, are available. There is a variety of international schools including British, Australian, American and French amongst others, systems of education.