News & Articles Basic Guide for Foreigners Owning Property in Malaysia

Basic Guide for Foreigners Owning Property in Malaysia


8 Sep 2015
Basic Guide for Foreigners Owning Property in Malaysia
The Malaysian government’s policies on foreigners owning property is pretty relaxed and open compared to many other places. This is in line with the welcoming Malaysian spirit and also the tolerance this multi-racial country’s citizens have for different cultures and ethnicities.

The one policy that has come about in recent times is the raising of the minimum property price that can be purchased by foreigners. There used to be no rules guiding this, so many foreigners were keen on buying property valued between RM250 000 to RM 500 000. However, now the minimum property price that a foreigner can purchase is RM 1 million. This came into effect on January 1st 2014.

In the state of Selangor, certain areas namely Gombak, Petaling, Hulu Langat, Sepang, Klang, Kuala Selangor and Kuala Langat have higher minimum purchase requirements, which is RM 2 million.

Individual states have some unique laws pertaining to foreigners owning property, so it is wise to check with a local lawyer.
Speaking about lawyers, foreigners purchasing property will have to pay legal feels and engage a lawyer to help mitigate the purchase processes and the signing of the Sales and Purchase agreement.

In Malaysia, if you purchase property, you will be granted a title, either Leasehold (limited period of ownership) or Freehold title (unlimited period of ownership) for landed property and a Strata title for apartments and condos.

Foreigners are also required by law to seek a Malaysian Property Purchase approval from the local government and this process may take up to half a year.

States like Penang offer the Malaysia My Second Home (MM2H) programme that comes with an easy visa package and various discounts and deals on local houses.

Obtaining a loan from a local bank is not a major issue as most banks will offer up to 70% or 80% financing margin, especially to foreigners working in Malaysia. Some banks will make an exception and give loans to those who are retired in Malaysia under the MM2H programme.

In summary, if you are a foreigner wanting to own property in Malaysia, know that it is relatively hassle free and very welcoming too. Just make sure you get sound legal advice to guide you through the various processes. Welcome to Malaysia!

Source: DurianProperty.com

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