Malaysia Real Estate
Everything you Need To Know About Properties in Malaysia
Hi Friends,
Edwin here to talk about the hype and craze surrounding the property market in Malaysia.
Are you looking for a property for sale in Malaysia?
More are saying that this is the perfect time to buy a property in Malaysia, as the property for sale in Malaysia's tag seems to be sprouting over the place.
With more and more expats preferring to rent as opposed to buying a property, the prices of rental are skyrocketing and property ownership is becoming more attractive. That said a typical price tag is not cheap in places like Kuala Lumpur and Penang. Both saturated with expatriates.
It is not quite the highs of her neighbour Singapore yet, but it is getting there. Many Malaysians working in Singapore are coming back and buying properties in Malaysia. The earning power of Malaysians in Singapore is almost 2.5 times on average more than their Malaysian counterparts made properties in Malaysia attractive for them.
You must have come across many ads featuring property for sale in Malaysia.
Of late, such ads seem to have increased in their frequency as everyone wants to get in on the bandwagon and make a bit of money on the side.
There is nothing wrong with using your property holdings as an investment option as opposed to staying there. If you are looking to purchase a property of your own, the first thing you will need to do is to evaluate your reasons for wanting to do so. The purpose behind your purchase will define the locality you wish to purchase from.
Buying a property in Kuala Lumpur for high returns is not the same as purchasing a residence as you would want a central location for the latter. The recent changes in the legislation mean that foreigners can now own properties in all areas more than RM 500,000 threshold.
Recent trends of the Malaysian Property Market
All Malaysian landed houses are gated, unlike those in Western countries. Just a couple of years back, the emphasis on security was so great that there is a rising trend of guarded housing community. Security guards are hired with a fee imposed on the community. Nonetheless, highly secured areas generally fetch a higher price tag.
High end condominiums in the KL vicinity reached to more than RM 1,000 per square feet while landed properties at other suburbs around KL is around RM 600-800 per square feet. At any economic cycle, high rise condominiums and apartments are dependent upon supply and demand while landed properties will continue to appreciate. Meanwhile rental at prime locations could range from RM 2,000 to RM 8,000 per house depending on location and furnishing of the house.
There are landed properties (link houses, semi-detached and bungalows) and high-rise properties (apartment flats and condominium). Condominiums are preferred rental choice for expats as well as young working Malaysian adults. Condominiums are usually located near offices and most of Malaysian condos offer a variety of amenities such as swimming pool, gym and other sporting facilities.
Apartment flats usually do not offer amenities and are cheaper to rent or buy. All condominiums and apartments are guarded and maintenance fee of around RM 0.10-0.30 per square feet is imposed on all owners.
If you are a foreigner intending to purchase a property in Malaysia, the minimum price of properties that can be purchased is currently at RM 500,000 and requires permission from State and Federal. Federal approval is given by the Foreign Investment Committee (FIC). Once Federal permission is granted, state approval is sought. Each state may impose additional requirements to those listed by the FIC.
Many expats that I know in Kuala Lumpur are making use of the Malaysia My Second Home (MM2H) program. Incentives that are given by the Malaysian Tourism Ministry to attract foreign settlement in Malaysia largely focuses on purchases of properties and cars besides the grant of a multiple-entry social pass that enables expats to travel in and out of Malaysia as they wish for a total of 10 years and renewable.
Since 1974, Malaysia has tax on properties to curb speculation. This tax is called the Real Properties Gains Tax (RPGT). The RPGT rate gets smaller as you hold your property longer so that genuine long term capital buyers (as opposed to speculators) can benefit from having to pay lesser tax or zero tax if held for more than 5 years.
Top Property Developers in Malaysia - Find out who the largest developers in Malaysia are and what they have to offer
Where to buy or rent properties in Malaysia - Find out where are the hotspots for properties in Malaysia
Tips and advice when buying or renting properties in Malaysia - Important tips and advice and tax matters you need to know before you buy or rent a property in Malaysia
The Malaysian Real Properties Gains Tax (RPGT)- Detailed information on the Malaysia tax on properties including current tax rates
Would you like to know more information about buying or renting properties in Malaysia? Write your question and post it in our Ask Us section. Your contribution is important in shaping this page and the Malaysia Information Site. I hope you find this information useful.
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