Your Basic Guide In Buying A Property In Malaysia As A Foreigner
Buying A Property in Malaysia as a Foreigner
They say that there is no place like home whether it is in a city or a rural place. Some even travel locally so they just discover the culture and people and see where they can fit in. For some people, they travel internationally to see beyond what is only in their home country. They travel to look different perspective and discover a lot of lifestyles and establish a good set of choices before fully moving in. When they, foreigners, already built a connection to a place, despite being how many miles away from their home country or how many flights away so they just go to Malaysia, they still decide to buy a property here. One of the most popular places that Malaysia residents like to stay in is G Residen in Kuala Lumpur. There are many g residence for sale. The second most popular area is in Cheras. Seni mont kiara would be the best place to consider living in. You can also consider seni mont kiara kuala lumpur for a place to live in.
It is because Malaysia has been welcoming to all foreigners, which encourage them more to stay here for good. However, regardless of country, may it be Malaysia or not, you still need to undergo a lot of processes so could buy and own a place here. But worry no more because you just visited the right place for your basic guide in buying a property in Malaysia as a foreigner. Trust us, your dream home is possible even if you reside on the different side of the globe.
Is it really possible for a foreigner to buy a property in Malaysia?
Of course, it is! We would not be writing this and wasting your time in case there is no way Malaysia is not a friendly place for foreigners who wish to stay here for good. But there is a catch, just like any other country who wish to prioritize their people, Malaysia offers their houses or lands but with higher pricing compared to a local buyer. So, please prepare yourself with dealing with housing agents about this. Do not be surprised when they offer you a lot more than what you saw in a television ad or social media ad. They are just following the rules set by the government and industry. Some of the agents will overcharge you for places like Pantai HillPark.
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Whether the price is more than or not, we still believe that moving to Malaysia is worth its price. Lately, Malaysia has a booming economy and they are becoming more of a business district just like its Asian neighbors. They offer more stable jobs and income, which is really a good catch for a place to stay for good or retirement. Investment industry, especially in real estate, is quite stable as well because a lot of foreigners just like you wish to buy a property in Malaysia and stay here.
As much as you want to buy a house, land, or property in Malaysia, you still need to become careful, not just extra careful, but very careful in dealing in this industry. No matter how many good reviews you may have read in the internet, scammers who will take away your chance for a good home or retirement plan are just lurking on the side waiting for their chance to take away your life savings. There are still bad guys in Malaysia despite its promising culture and happy citizens.
To address this, the government of Malaysia is thoroughly supportive of its foreign buyers or investors to the point that they offer Frequently Asked Questions or FAQ specifically for them. These FAQs will help you determine the things to look at in identifying whether an agent or a property specialist is a scammer or not. Moreover, the Malaysian government also has what they call The Malaysia Institute of Agents. This institute provides you with a complete set of agents who are legally operating in the country. You may want to check your agent’s name or affiliation before even proceeding to your initial deposit.
Is there any kind of property that you buy in Malaysia?
Malaysia offers you different choices or options to buy. It is also regulated by the government; this is why it is highly advisable to learn and understand the different kinds of property that you could buy. Moreover, you need to learn all of them for you to have extensive research on what are the other considerations that this article might have failed to cover and yet you need to know more about them.
Learning about these different kinds will also help you to choose or decide to whom are you going to reach out so you could cover everything about a certain property that you wish to buy. It is because some kinds of property observe different rules of compliance to the Malaysian laws, unlike your other choices.
Some even differ to the location where you can only buy them since some areas are not accessible to foreign buyers or investors. Since this industry is government regulated, please note that these kinds are not just based on a certain company but applicable to all real estate sellers or investors. For your reference, here are the different kinds of properties that a foreigner could buy in Malaysia:
- You are not allowed to buy any property that is lower than RM1 million. Just like what we mentioned before, Malaysia has a certain starting amount for foreigners. This is to give way to the local buyers and ensure that Malaysian properties are well invested. You can buy Z Residence for rent instead of buying the whole property too.
- You are certainly not allowed to buy land, house, or any property that is currently located in Malay Reserved Land. This is one of the government’s measures not to sell their lands to non-local buyers or investors. It helps them to keep the trust of their people and make sure that their lands are not wasted or abused.
- Just like with the previous criteria mentioned, the Malaysian government is exerting so much effort in protecting their people and culture. It is not to say that you are not welcome in their country. It is just that there are still people who do not have the conscience to destroy a foreign land because it is not from their own home country. With this, you are certainly not allowed to but any land, house, or any development and infrastructural project that is aimed for the sake of Bumiputera. All of these lands or properties are stated by the government. Bumiputera is a word they use to refer to indigenous people and protecting any properties that are connected to this group of people also means protecting the culture and future of Malaysia.
- Lastly, you are certainly not allowed to buy any property that will fall under low and medium price for any type of property. This is highly implemented in residential units. This is what connected to the first criterion that we mentioned, which is the higher pricing cost for any foreigners who wish to buy a property in Malaysia.
Is there a chance that local bank can finance a foreigner who wishes to buy land, house, or property in Malaysia?
We will be quite honest with you about this matter since our aim is to help buy or achieve your dream home in Malaysia. You may get financial support from a local Malaysian bank; you just have to go through the same process as what the locals usually do before getting approved. They may even ask you to provide other supporting documents because of your status as a foreigner. However, it is not highly recommended to acquire a housing loan in Malaysia for foreigners. Local banks usually just offer around 80% of financing support to foreigners unlike with locals who can receive around 90% of financial support or assistance. Some local banks even offer 70% of financing option to foreigners.
In this case, it is way better to ask or acquire a housing loan from a foreign bank that resides in Malaysia. You may want to consider different options or banks for your loan financing plan. There are a lot of foreign banks that you could use in Malaysia, for instance, HSBC Bank Malaysia Berhad, OCBC Bank Malaysia Berhad, United Overseas Bank Malaysia Berhad, Bank of China Malaysia Berhad, or Bangkok Bank Berhad. You may want to look into their offers because unlike with local banks they sure offer up 90% of financial loan support to foreigners. In this way, you will not have to worry about how to pay pricey or expensive monthly installment fees or even other charges that you may need to pay as you pursue buying a property in Malaysia.
Going back to our question before: is it really possible to buy land, house, or any type of property in Malaysia? It is possible and there is no way you cannot push through with your plan to stay for good or retire in Malaysia when you decided to leave the corporate world already. If you do not wish to stay for good, it is highly feasible to have a good real estate investment in Malaysia. It may be a little bit tricky unlike with the process for local buyers, however, the stress and long process of buying a property is surely worth it.