Malaysia Property for Sale
Malaysia property market has softened as compared to the past few years. There are opportunities for property investors who are willing to look the longer-term at the Malaysian Property market that looks positive with a sustainable outlook. The Malaysian economy is at a period when it is able to grow sustainable, even during a global slowdown. At the beginning of 2018, the ringgit has started to strengthen due to Malaysia’s stronger trade performance and higher oil prices have helped lift the currency after a prolonged period of decline.
Can Foreigners buy property in Malaysia?
Before you start searching to buy Malaysia property, it’s good to understand some of the rules and regulations of Malaysia property for sale to foreigners.
Malaysia, probably the only country in Southeast Asia where foreigners can own land easily and directly from developer sales or resale. There is a wider selection from condominium, houses, and townhouses.
There are some restrictions;
A minimum purchase requirement for foreign purchasers. The purpose of this is to allow foreign buyers in the mid to high-end segment, while not letting them drive up the value of homes in the price range of normal, everyday Malaysians.
Typically the minimum purchase requirement is RM1 Million, but in the State of Selangor it’s RM2 Million and foreigners may only purchase landed properties if they’re in gated communities, etc.
In 2020, Malaysia may lower minimum purchase price for high-rise units for foreigners in urban areas to RM600,000, from RM1 million now.
Foreigner is restricted to buy property designated as “Bumiputra only” – Bumiputra meaning ethnic, Muslim Malays. At times, the property developer can apply to remove the restriction to enable the foreign buyer to purchase.
For any off-plan development, the developer will usually allocate the Bumi lots reserved. So it is rather safe to purchase without going through all the checks before purchase.
HDB Owner in Singapore
For HDB owners in Singapore, other than the regulation in Malaysia, you must also take note of the HDB regulation. If you are a HDB owner, you must fulfill your MOP (minimum occupation period), if you are buying any residential developments in Singapore as well as overseas. Typically the MOP period is 5 years.
Exception for the RM 1M threshold requirements
Medini Iskandar property for sale in Johor Malaysia has no restriction on foreign ownership, minimum price threshold for foreigner buying property in Malaysia. Medini Iskandar is designated as a special economic zone. But under this zoning, the property developments are mostly leasehold instead of a freehold property.
Taxes in Malaysia
Real Property Gains Tax
Real Property Gains Tax also known as RPGT, is a form of Capital Gains Tax that is chargeable on the profit gained from the disposal of real property in Malaysia.
In simple words, RPGT is basically the tax on chargeable gains derived from the sale of your land or property. While a chargeable gain is a profit that you make for selling a property at a higher price than the purchase price.
For instance, you bought a property in 2006 at RM 500k. A few years later, you sold the property to others at RM 700k, so, you gain a RM 200k profit from selling the property. Then you will be taxed of your RM 200k profit.
The holding period prior to its sale is from the date on the S&P Agreement till to the disposal date.
The guide on RPGT rates are as follows:
|Disposal of property||Malaysia citizen & PR)||Non-Citizens & Non-PR||Companies|
|Disposal within 3 years from the date of property purchase||30%||30%||30%|
|Disposal in 4thyear||20%||30%||20%|
|Disposal in 5thyear||15%||30%||15%|
|Disposal in 6thyear and subsequent year||0%||5%||5%|
Other charges when you are buying property in Malaysia.
A guide on estimated charges of buying property in Johor Bahru(JB) and Kuala Lumpur(KL).
|Stamp Duty(MOT)||Base on the Purchase Price|
First RM100k = 1%
Subsequent up to RM500k = 2%
Remaining = 3%
|one time||Simple Formula is Purchase Price (above RM500k) x 3% -RM6000|
|Registration Fee||Based on the purchase price|
RM1,000,000-RM 1,050,000=RM 3,100
any additional 50k=RM100
|one time||Registration Fee for Kuala Lumpur Properties is RM100 regardless of the purchase price of the properties.|
|Stamp Duty for Loan Agreement||0.5% x Loan amount (excluding MRTA)||one time||If taking any loan|
|Legal Fee for SPA||Based on the purchase price|
First RM 150,000 x 1%
Next RM 850,000 x 0.7%
Next RM 2,000,000 x 0.6%
|Legal Fee for Loan Agreement||Based on the total loan amount|
First RM 150,000 x 1%
Next RM 850,000 x 0.7%
Next RM 2,000,000 x 0.6%
|one time||If taking any loan|
|State levy||Application fee: RM1,000|
Upon approval: RM20,000 of 2% of the purchase price, whichever is higher.
|one time||Not applicable for KL property|
Property market investment in Malaysia
Malaysia as an Overseas Property market investment a has traditionally been a hotspot for Singaporean and overseas property investors for many reasons;
-Lower cost of hosing
-Lower cost of living
-Owning a property as a holiday or retirement home etc.
Singapore’s high cost of living is due largely to Singapore’s government high land price policy. REITS raise rents and retailers pass on the cost to consumers, Car price and parking fees, hospitals beds are more expensive than hotel suites, etc. Many Singaporeans cannot afford to retire in Singapore. Some want to retire in Bangkok or Malaysia for their cheaper healthcare cost and livable city conditions. That is partly the reason why Singaporeans had been investing in Malaysia property as a retirement home particularly in Johor Bahru with the close proximity to Singapore.
Reason to Invest in Malaysia Property
Affordable property prices in Asia
- Malaysia property is still one of Asia most affordable investment in the region with good growth amidst a resilient economy.
Robust and stable economy
- GDP had been around 4-6% in recent years which is at a healthy range.
- Ranking being the top 6th country in the world as the easiest and friendliness in doing business by World Bank.
- Malaysia rank top country to invest in with the top recipients of foreign direct investment, and its pro-business government offers a wide range of incentives to investors.
Undervalued Ringgit currency
- Ringgit is undervalued for quite a while making it one of the most undervalued currencies in the Asia market. With the weak currency exchange, investors are taking this opportunity to invest in Malaysia. It’s set to rebound in the coming years.
The Malaysia Government program, the Economic Transformation Programme (ETP), is on track to propel Malaysia to become a developed nation. Malaysia currency has weakened against Singapore dollars making it more attractive and affordable.
The Overseas investment potential in KL
When buying property in Kuala Lumpur for a foreigner, they will mostly take these factors into consideration;
-KL is the capital city of Malaysia, a gateway city for international companies to have their presence in Malaysia.
-A transformation of KL to Greater KL to cater for a higher population set to grow.
-Improvements to transportation networks within the city contribute to KL’s long-term investment potential.
The Overseas investment potential in JB
Johor Bahru will go through a transformation. Starting with the government initiative of the IIBD.
Train service from Singapore will link to JB.
Electrified Double-Track Project (EDTP) — a game-changer for Johor, Malaysia
The Gemas-Johor Baru (JB) electrified double-track project (EDTP), a “game-changer” for the state’s economy, looks set to play a big role in the real estate development.
The track runs from Gemas in Negri Sembilan to JB Sentral and covers 197km. It will have 11 intermediate KTM Southern Line stations. The stations are in Segamat, Genuang, Labis, Bekok, Paloh, Kluang, Mengkibol, Rengam, Layang-Layang, Kulai and Kempas Baru.
The Gemas-JB line, coupled with the JB-Singapore Rapid Transit System (RTS), would also boost travel between JB and Singapore.
With greater connectivity and increased traffic between the two capitals, industries such as retail, accommodation, tourism, and logistics would also be boosted, especially in areas located near the rail stations.
Click on the link to explore more; Overseas Development for sale.
JB Property for Sale
A Freehold Tri-Development consists of a 4-star hotel, mall and residential unit. at Johor Bahru City Center within the Ibrahim International Business District (IIBD). Along the corridors of Jalan Wong Ah Fook and Jalan Trus. A short walking distance to JB Sentral and Johor Immigration (CIQ).
Located at Johor Bahru City Center within the Ibrahim International Business District (IIBD). Along the corridors of Jalan Wong Ah Fook and Jalan Trus. A short walking distance to JB Sentral and Johor Immigration Checkpoint(CIQ).
Prices starting from only Rm 7xxk. Last few developments available to foreigner below Rm 1 million.
KL Property for Sale
The Luxe KL @ Kuala Lumpur City Center. Developed by Singapore developer with a steady track record, Infinitum, Macly Group & Roxy-Pacific Holdings.
Freehold mixed development(with retail outlets) beside a major shopping mall, Monorail(train) station, and hotels. Dual keys concept for all units to maximize rental yield. Own freehold condominium in KLCC, with attractive rebates and discounts (S$15K to start).
Click the below link to understand more on the country’s taxes, rules and regulation when buying overseas property.
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*Disclaimer*: Regulated by CEA. All forms of investments carry risks, including the risk of losing all of the invested amounts Such activities may not be suitable for everyone. This is an overseas investment. As overseas investments carry additional financial, regulatory and legal risks, investors are advised to do the necessary checks and research on the investment beforehand. Details of Guaranteed Rental Returns will be accompanied with respective Sales & Purchase Agreement.