|Date: 27 November 2019||Published by: IBN|
The real estate industry in Malaysia is well-developed. The property market is flooded with so many tempting choices, but only some of them are good value investment properties. In this article, we will present to you some of the information on Malaysia property market to help you choose the right property on your investment journey.
There are many different types of property available in Malaysia, including condominiums, apartment and landed property. For condominiums, you are provided with some facilities that offers you a good quality of life, such as swimming pool, tennis court and gym; The apartment are generally for rent and do not come with these facilities; Landed property can be terrace, bungalow or semi-D houses that are single, double or triple storey. Condominium and apartment are more commonly found in the city whereas landed properties are more common in the semi-developed and rural areas.
We highly recommend you to study the local property market and understand the current scene before you purchase any overseas property even though this process is not legally required. Most banks will also conduct basic investigation on the property that you are applying a mortgage loan for before they approve it. You can also obtain a lot of relevant information from Malaysian government agencies before you start investing on the property.
Property law in Malaysia is adopted from the laws of UK and the Australian Torrens system is adopted for land title registration, which indicates that the legislations are fair and under constant monitoring. Purchasing property in Malaysia is different from purchasing property in Europe or US. The general procedure is as follows:
|1||Identify what is the right mortgage for you so that you can determine which property is within your financial capability;|
|2.||Choose the property you want to invest in;|
|3.||Agree on property selling price with the developer;|
|4.||Engage a local lawyer to draft a Letter of Intent to Purchase. Both you and the developer needs to sign on the letter and you need to pay 2-3% of deposit to secure the booking;|
|5.||You and the developer must sign SPA within 14 days. Upon signing SPA, you need to pay the remaining 7-8% of deposit;|
|6.||The SPA must be stamped as an instrument of transfer and loan agreement when you purchase a property. The purchaser must bear the stamp duty (maximum of 3% of property selling price);|
|7.||The property must be fully paid within 3 months from signing SPA;|
|8.||The transfer of property ownership must be done at Malaysia land registry.|
For foreigners, it is crucial to engage a reputable lawyer to help you in the process of purchasing a property because the property laws may vary according to the location of the property or the laws may be changed or updated periodically. You may also need advice from lawyers regarding some of the restrictions imposed on property purchase by foreigners.
Keyword: Purchase, Property, Property Price, Malaysia, IBN Corp