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About Malaysia /

The Malaysian Property Market

The generally low pricing of real estate in Malaysia, combined with the fact that prices are on an upward trend, makes property an incredibly attractive investment. Like nearly every country in the world, prices for property in the capital city like Kuala Lumpur are generally the highest as the lows of demand and supply dictate.
The last 20 years have seen some significant changes in the Malaysian property industry. These fall into two main factors. Firstly, the quality and design have improved dramatically. That is not to say that all properties were badly constructed years ago or that all properties built today meet very high standards; however, there has been an increased focus on quality and the use of better materials.
There are now many developers that you can be confident will build quality homes without the worry of properties not being completed on time or having to face a host of problems that need fixing.
There are also many modern and innovative designs. In the last couple of decades Malaysian and foreign architects have produced something of a revolution in designs. Gated communities with a strong focus on the environment and landscaping are quite new to Malaysia, but are becoming more common. Second, the government is now actively encouraging foreigners to buy properties in Malaysia under Malaysia My Second Home. In the past they have placed restrictions on foreign purchasers but now nearly all barriers have been removed.
Currently there is no limit on the number of residential properties a foreigner can buy although certain categories are excluded and the purchase price must exceed RM500000. It is no longer necessary for foreigners to obtain approval from the Foreign Investment Committee (FIC) when they buy property. However, they still have to acquire consent from the State authorities and this can take up to six months.
The real estate capital gains tax is set at 5%. In Malaysia foreigners can buy freehold land. The sale and purchase agreement will be in their name and is written in English. In some areas leasehold land which is owned by the state can be obtained .The leases are usually for 99 years and can be renewed at the end of the term.
When you compare KL’s prime real estate with Singapore’s which can reach 10 times that price, it gives some indication of the value offered. Combine that with the generally low cost of living and it’s a powerful combination for people thinking of retiring here.
There are a few types of properties that foreigners are not permitted to buy. These include property priced below RM500000.This is to protect middle and lower income Malaysians from inflationary pressures on their typical home purchases. 


 

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