INFO BUYING A HOUSE
It´s easy to buy a house of apartment for a foreigner in Malaysia.
Very important to know, to purchase a property in Malaysia you do not
need a VISA and you can also apply for a loan with a bank in Malaysia.
The whole procedure to purchase a property will take some time, so take your time and be patience!
There are special projects for foreigner such as quality residences –
terrace houses, semi-detached, bungalows, apartments and condominiums
all over the country. There are also some of the finest residences
available in tourism zones – on beaches, near jungles and near theme
parks, recreational places and city centres.
SOME REQUIREMENTS;
1) Foreigners are allowed to purchase up to two units of residential
houses at a minimum prices above RM250,000 (± 55.000,- Euro ) each,
depending on the location of the property.
New! You´re allowed to purchase more than two houses in Malaysia per 12 may 2007.
Generally the minimum price for the purchase of houses in Malaysia
are as follows: above RM300,000 / RM350,000 each for certain areas in the
state of Sarawak, above RM250,000 each for the other states in Malaysia.
New! No need approval FIC anymore.
2) You need approval of the FIC (Foreign Investment Committee). No
need for participants of MM2H visa , only a recommendation letter to
Ministry of Tourism.
3) You need approval of the State Government , where the house is situated.
Before you decide to buy a house, ensure that: the developer and real-estate agent have a license and sales permit and if it is still valid. They should be registered under the Real Estate and Housing Developers Association , Rehda and National House Buyers Association, HBA.
Should a buyers have doubts about the developer, the projects or other matters, he should contact the Licensing and Advice Services Division, Housing and Local Government Ministry at +603-2547033 or fax +603-2523214 You can also write to the Monitoring & Enforcement Division, Ministry of Housing & Local Government, Level 3, Block B North, Pusat Bandar Damansara, 50782 Kuala Lumpur. Tel: +603-2094 7033 Fax: +603-2092 5049 enforcement@kpkt.gov.my
Please ensure whether it is: Freehold and not Leasehold or Malay Reserve.About your financing. There are a few local banks offer financing facilities to foreigner i.e. HSBC, Maybank & Public Bank.The loan margin range from 60 % or more of the purchase price.The bank has some requirements for having a loan.
THE PROCEDURE;
In Malaysia it´s normal to have a lawyer to complete the procedure of your purchase and you must engage your own lawyer. Lawyers cannot represent both vendor and purchaser. The lawyer establishes the required documents, he selects the legal matter and regulates the required documents and approvals of the governments.
The procudure go as follows;
The buyer shall pay some deposit of 2 % of the purchase price.
You can arrange your financing. After 14 days you will sign the SPA,
Sales Purchase Agreement you will pay the remaining of 8%. It´s normal
that the first payment of 10 % must be made upon signing of the Sales
and Purchase Agreement. Be aware by failure of the approval of the
FIC no payment or interest will be charged, to be written in the SPA.
Each
payment will be collected by the lawyer. The lawyer will apply the FIC,
Foreign Investment Committee. It will take 1 month upon 3 months.When
you´ve the approval of the FIC than the lawyer can apply for State
Government for example Penang. This will take normally 2 months.When
you´ve both of approvals the following steps will follow, such as the
payments of the remainder, the actual transfer (transfer or property)
and obtaining the property proof the "land title" (for a house) or
"strata title" (for an apartment). The remainder of 90% of the purchase
price has to be payed within 60 days after the approval of the
FIC. Delay of payment by one month you will be charged an
interest of 10 % per annum.To receive the " land title" or "strata
title" last generally 6 months after reception of your key. This is
very usual.
It depends on your lawyer how long this whole process will take,
normally ± 1 year. This procedure for Visa holders will not take that
long.
Additional costing to the lawyer;
Legal Fees , (SPA handling and Transfer of Ownership).The fees to be collected by lawyers for work done in handling the sale or purchase of house are based on the purchase price as follows: ( Spa handling )1% on the first RM100,000 , 0.5% on the next RM4,900,000 and 0.25% on the remainder.
For example the purchase price of RM250,000, 1% on the first RM100,000 = RM1000 and 0.5%
on the next RM150,000 = RM750 becomes total RM1700
Stamp duty is levied on the document of Transfer ( Transfer of
Ownership ) based on the purchase price as follows: 1% on the first
RM100,000 , 2% on the next RM400,000 , 3% on the next RM1,500,000 and
4% on the remainder
The purchase price of RM250,000, 1% on the first RM100,000 =
RM1000 en 2% on the next RM150,000 = RM3000 becomes total RM4000
Consent of FIC = ± RM200. Consent State = ± RM200 .Registration of Transfer = ± RM1000.
Other costs; Tax, Caveat, filling in forms, land search,bankrupty search, stamps, printing,courier etc ± RM1500
For a property of RM250,000 you will spend ± RM8750.
You´ve also to deal with annual charges of the government as; Quit rent and Assessment tax. These costs depend on the state, but can be ± RM500 per year.
Houses which are still in building and still must be produced, there´re other developments in the purchase procedure. Here 16 Tips.
You really want to know everything? It can be very useful to order the E-book by Juanita Chin Malaysia Property GuideIt is also possible to have a house insurance against fire, robbery
and floods. The costs are relatively expensive for foreigners, it can
be RM2000 per year, because you are the foreigner.
Changed per 1st of April 2007, no more
taxes when you want to sell your property between 5 years of the
difference of the purchase value and the market value!
When you want to sell your house within the five years, a foreigner
must pay taxes 30 % concerning the difference of the purchase value and
the market value. After that five years you must pay only 5% concerning
that difference or become even nil , when you have had some costs to
your house. Always good to know.
Any questions? Please don´t hesitate and feel free to contact
me!
E-mail; holidayhomemalaysia@hotmail.com
If you don't hear from me within 24 hours, there is a possibility
that the e-mail did not reach me or my e-mail did not reach you. Please
write to me again.
The unique e-book by Malaysian property expert Juanita Chin.The title of the
book – 'How To Own Properties In Malaysia
Without Being Ripped Off! – sums
up the content perfectly! The entire focus of the book is buying real
estate safely in Malaysia and it covers the research, investment potential
and purchase processes, how to profit from property in Malaysia and
everything else besides which makes this title simply invaluable for anyone
contemplating a property purchase in Malaysia.
CLICK HERE MALAYSIA PROPERTY GUIDE BY JUANITA CHIN
