General Guidelines for Foreign Buyers of Malaysian Property

Malaysian property has been experiencing solid growth year after year, as foreign investors caught on to the massive potential of its luxurious developments in areas such as Mont’ Kiara. Outlined here are some quick guidelines about what foreigners can and cannot do when buying, selling, and renting property in Malaysia.

Any foreigner who is not a Malaysia citizen or resident is eligible to purchase any type of property in Malaysia, ranging from exclusive condominiums to bungalows, as well as a choice of residential or commercial property registered in their own names or their companies.

They are, however, subjected to a minimum price threshold of RM 250,000 for the invested property. Foreigners are also required to obtain state authority consent before gaining full ownership of the property, which takes between 6 weeks to 6 months depending on the different states.

When committing to any property buying decision, foreigners will have to sign the Sale and Agreement, which can be done at any Malaysian High Commission in their country of residence, hence not requiring a trip down to Malaysia. In some countries, it is not even necessary to go to the Malaysian High Commission - a notary public is all that is needed to witness the signatures.

A key benefit of buying property in Malaysia is that financing is readily available to foreigners. Many Malaysian and foreign banks now provide attractive packages and loans that finance up to 70 -80 percent of the property price, and sometimes as high as 85% for investors with very strong credit and significant value of the invested property. Interested parties will normally be required to open a bank account with the bank financing their property investment.

Great care and attention to detail has to be given to the entire buying or selling process in Malaysia, making it imperative that a good recommended local lawyer and reputable estate agent are recruited to assist with the transactions. These professionals will ensure that the procedures are well taken care of when you are unable to be present in Malaysia, and will prove to be invaluable, ensuring that you get the best value for money deals, safe and secured transactions.

With the Malaysian government pushing out a series of incentives and making its property market more attractive to foreign investors, it holds many upsides and very few notable downsides. The property market in Malaysia possesses a very bright future, and is perfect for foreign buyers considering an investment, or a lifestyle purchase in Malaysia.

Back to Articles