Rules For Foreign Ownership Of Property In Malaysia
Whether you are looking for a home for yourself and your family or an investment property, Malaysia is considered one of the best places in which to buy in Asia. The housing prices are among the least expensive in the region, so you can purchase properties at a good price. If you are interested in buying a house, apartment, or any other type of property in Kuala Lumpur or other places in Malaysia, here is some information you will need to know.
Types of Property Titles
Even though the country boasts of having a liberal property ownership policy for foreigners, buying a home or condo can be confusing if you don’t understand the rules. There are two types of property titles offered in Malaysia: freehold and leasehold.
A freehold property title allows the buyer to have permanent ownership of the property. A leasehold title allows the buyer to have possession of the property for a limited amount of time. Currently, most leasehold properties have a time limit of 99 years and the lease can be extended by paying an additional fee.
A title for a house is issued once the transaction is complete, but if you are buying a condominium or an apartment, it is given a strata title. A strata title gives you ownership over your apartment or condominium and shared ownership of the building’s common spaces, along with the other owners. The shared spaces are considered the foyers, the gardens, the pool or gym, or any other spaces that are available to everyone in the building.
Rules for Buying
Malaysia is divided up into states and each state sets its own rules for property ownership. So, depending on where in Malaysia you want to live, you will need to find out what the rules are for owning a property as a foreign national and get approval from the state to make a purchase. There is usually a minimum purchase amount required for foreign owners and, in some states, foreigners have to pay double the amount for property purchases.
Types of Properties Available
Residents of other countries can purchase most types of residential properties in Malaysia unless they are on Malay reserves, are low to medium priced properties per state rules, or have been allocated to the Bumiputera, who are the indigenous peoples. It would help to retain a real estate agent and attorney in the state where you wish to make property purchases. The agent can help you find a property for sale in Malaysia that fits your needs and the attorney can make sure all of the rules are followed for purchasing it.
Whether you are retiring to Malaysia, moving there due to being transferred with your job, or buying investment property, you should be able to find affordable properties in most of the country. However, with the rule changes in each state, you should have local real estate experts help you handle the transaction to make sure everything is done according to the rules set by the state’s government.