Hello beautiful people. Are you looking to buy a house in Malaysia as foreigner? There may be different types of property offering in the market. Be it a house for sale in Seremban or a private condominium unit in Penang, as a foreign expat, you will need to take note of the buying regulations and process to buy a house in Malaysia. But let’s be honest, Malaysia is such a beautiful country to stay on. Here are some tips and guides when buying a house in Malaysia.
Buying a house in Malaysia
Before that, let’s define ‘foreigner’ in Malaysia. Based on the Economic Planning Unit (EPU) from Prime Minister’s Department of Malaysia, ‘foreign interest’ refers to associated group of interests or parties acting in concern which comprises:- 1. An individual who is NOT Malaysian citizen
- 2. An individual who is a Permanent Resident in Malaysia
- 3. A foreign company or institution
- 4. A Malaysian company or institution whereby the Parties stated in (1), (2) or (3) hold more than 50% of voting rights.
Let’s further list down the general guideline for foreign property buyers in Malaysia.
- 1. Foreign buyers are allowed to buy freehold and leasehold properties.
- 2. Foreign buyers are only allowed to buy residential or commercial properties priced above RM1million for peninsula Malaysia and RM350,000 for Sabah and Sarawak. Both type of properties can be purchased under a foreign individual’s name or company’s name.
- 3. Foreigners are required to obtain consent from State Authority’s before gaining full ownership or transfer of the property which will take up to between six weeks to six months, depending on the states.
Properties that foreigners not allowed to buy
1. Land or properties that are built under the land designated as “Malay Reserve Land”.
2. Low- and medium- cost properties determined by State Authority.
3. Properties that cannot be one which allocated for Bumiputera’s interest in any property development project as determined by State Authority.
4. Land which is deemed agricultural land except it is for commercial use with more than 5 acres.
For instances, the low cost housing programme, an initiative from Malaysia government for Malaysians where foreigners are not allowed to buy these properties although there are plentiful of low cost houses for sale in Seremban and Ipoh. Click here to check out a minimum property purchase.
However, don’t let this stop you from buying house in Malaysia. Malaysia government has an initiatives for foreigners to settle down in Malaysia, which is called Malaysia My Second Home programme (MM2H). With the intention to promote foreigners to reside and travel frequently to Malaysia unrestricted for extended period. The MM2H application for an individual is for a period of ten (10) years and it is renewable.
There are benefits for foreigners staying in Malaysia with MM2H programme, one of it is added incentive. You are able to withdraw partial money you need to place in a fixed deposit account in Malaysia, a MM2H requirement. Starting from the second year of your stay in Malaysia, check here out for the benefits of withdrawing your fixed deposit to purchase a house.
Here comes the financing part for foreigners, Malaysian banks and foreign banks do provide loans to foreigners that finance up to 70% or 80% of the property price. Apart from giving out loans to foreigners who have work permit in Malaysia, there are some local and foreign banks who would lend to foreigners under the MM2H programme. New developments are easier to obtain financing as there are developers who have arranged with selected banks to offer loans to foreigners. Click here to check out guide to open bank account in Malaysia.
Not sure which location to consider besides Kuala Lumpur? There are plentiful of new developments mushrooming further than Kuala Lumpur city centre to avoid residing in high density area, Seremban. Located 30 to 45 minutes drive away from KL bustling city by taking North South Highway with reasonable property prices. It’s an area with lower density and slower pace. There are new houses for sale in Seremban these days with the growing development, you’re definitely spoiled for choice when deciding your residential properties. If you’re more of a island person, Penang is the right place for you. Surrounded by the sea and a tiny island, it is no wonder the properties are booming over there. We can see there are always new development one after another in Penang.
