"UGA OMO ROOR TAP" (Oops! Sorry, I thought I was writing to aliens, until I realise... NOT the UFO kind. Let’s try again...If you are a foreign purchaser, it is more likely than not that you will find buying a property in Malaysia is totally....well....alien! Well here are some tips to help you out.
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No matter what, you need permission!
Just like getting permission to land your alien spaceship, you need to get consent from the state authority to purchase any property in Malaysia. Don’t get confused. This consent is different from the consent given by the Foreign Investment Committee. This consent comes from the state authority. So if you decide to buy in Kuala Lumpur, you need to get the Wilayah Land Office’s Consent. Every State has different requirements on the consent, so make sure you find out before you pay that 2% down payment.
You can only buy properties within a certain price range
I know that the title above is particularly vague but different rules apply for different states! Generally, foreign purchasers can only purchase property with the purchase price of RM250,000.00 and above.
IMPORTANT NOTICE: The Selangor Government has made it a policy that all purchases of property in Selangor by a foreign national (including Permanent Residents) shall only be allowed to purchase residential properties RM500,000.00 and above. This policy is enforceable from 1st June 2009 onwards.
It will take you longer
Because of the extra consent required to purchase a property in Malaysia, the foreign purchaser must be patient. It will usually take 6 months or more to complete a sale. So make your necessary arrangements. You can either rent the property you intend to stay in or prepare the rent to stay elsewhere.
You may not get 90% loan
More often than not, unless you can show proof that you intend to stay in Malaysia permanently, have lucrative businesses in Malaysia (if you do...call me!) it is unlikely that the banks here will give you 90% margin of finance. Expect about 60-70% margin of financing unless you can get a bank from your home country to finance the purchase. But this rule does not apply to everyone. Different banks have different requirements. Do check with the bank first before you part with your $$$.
That’s the tips for today. It’s not exhaustive but I hope it helps!
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