There is no limit to what type of real estate expats can buy in Malaysia, however, there is a minimum-purchase price that varies by state. In some states, you can purchase a condo for a minimum of $135,000 but in others the minimum is $264,000. These guidelines are always changing so do some research before deciding on a new home. Financing can be available for 70% to 80% of the purchase price.
There is a lot of building going on in Malaysia and more condo units than buyers. The best way to find your dream home is by going to the area you plan to live in and renting. Get to know the ins and outs of the area.,/p>
Don’t buy online. The internet is not the best way to find a place in Malaysia, as many of the sites aren’t updated, and some projects might not even be online. It’s better to get your boots on the ground and see what there is to offer rather than depending on the internet for the most up-to-date info. Do your research and see as many projects as you can that interest you. Real Estate agents in Malaysia are not exclusive so you can work with as many as you’d like. It is also crucial to have a local real estate lawyer that you trust to walk you through every step of the purchase agreement.
You can sell your property at any time, but Real Property Gains Tax (RPGT) is only 5% after five years. If you sell before then, you are subject to 30% of the profits.
Basic steps to purchasing property:
- After finding your dream home, a Letter of Offer/Acceptance is signed, and a 3% deposit is expected from the buyer.
- Within 14 days, a Sale and Purchase Agreement (SPA) is signed, and the buyer must put down another 7% of the purchase price.
- The buyer then has three months to put down the remaining 90% of the total price.
- Once paid in full, the deed is transferred.
- Register the new owner with the Public Registry or Land Office Registry.
Renting in Malaysia is also a very good option and often is more economical that purchasing.