Malaysia real estate market – A quick overview
Malaysia is one of the top foreign countries in Southeast Asia. It is widely considered as a potential place for property buyers. This place has got a natural, appealing characteristic as more expats including buyers and renters are showing their great interest to fund for the properties. Further, different varieties of housing structures like high-rise apartments, bungalows, condominiums, terraced housing, and both detached and semi-detached type of buildings are commonly found here and that too at an affordable rate. Prices as expected, are prominent in the city region like the capital Kuala Lumpur and comparatively lower while moving to the suburb sector. However, the property market of Malaysia has always been at a remarkably stable level.
Facts to know if one is interested in spending on Malaysia real estate
The country offers many benefits for those who are interested in spending on real estate.
- Foreigners can explicitly own any number of residential properties at the minimum price determined by the different states.
- Further, any constructions, hotels and even land can also be bought, by following the relevant local authority guidelines.
- Also, both external and internal finance sourcing is allowed for property acquisition.
- The property owners have to pay a yearly land tax or quit-rent depending on the land category and size one owns. This price is decided by the individual state government, and the value is usually less than RM100 especially for the residential type of properties.
- The foreign investors are free to make a direct investment for any property thereby bringing funds from their home country. No restrictions or extra taxes are being levied on them while converting their respective currency to Ringgit, the Malaysian currency.
- For all those eligible foreign investors, property loans can be availed that can finance up to 70 percent and has a loan period of almost 30 years or when the debtor turns 65, whichever reaches first.
- If one has an interest in renting out properties in this country, there exist many options that are diverse in both, price and quality. From gated estates of condominiums, apartments to bungalows everything comes with modern facilities like playing courts, swimming pools and a heightened level of securities. However, the luxury features are inevitably reflected in the rental value. Additionally, these properties may be categorized as furnished or unfurnished, and so, one has to look for the standard of furniture while opting out for a furnished rental property.
- This country adopts the Torrens land registration system. According to this, the ownership of real property should be registered, and associated transactions are recorded against the title rather than a deed.
- There is a well-planned economic planning unit for the country whose mission is to manage the socio-economic balance strategically and sustainably. Those properties valued more than MYR 20 million requires to be given for property purchase approval.
- Another category called Malaysian second home program allows foreigners to invest in residential property and allowing them a special multiple-entry social visit pass.