Buying Property in Malaysia - Property for sale in Malaysia
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Summary
Malaysia is one of the most popular tourist destinations in South-East Asia. This multi-cultural country is rich in history, offers plenty to see and do and -- of course -- there is the warm climate too! In recent years many people have chosen the country as their location of choice when buying a property abroad.
Popular locations
Malaysia offers something for every property buyer. The East coast of the country is famed for its luxurious island retreats and the coastal areas of Sarawak and Sabah have plenty of beach-front properties on offer. The most popular resort here is probably Sepang -- canny investors are also buying properties in nearby Port Dickinson. And, of course, cities such as Kuala Lumpur also offer opportunities.

Property trends
International investment in cities -- especially commercially -- has resulted in a particularly buoyant market. Buying a city property is now popular -- the number of foreign workers in the country is rising so property investors have entered the sector en masse. The country’s coastal and tourist resorts are also in growth mode which has resulted in a steady stream of property investment opportunities. Many people buy a beach-front property as a second-home and then supplement their income by renting it out. It is estimated that investment in property is currently giving a 10% return. This, together with government incentives for overseas investors, makes Malaysia a particularly cost-effective place to buy property.

How to buy property
Having chosen a property, the buyer needs to sign a letter confirming offer/acceptance (which will be stamped at the Stamp Office where stamp duty will also be paid later) and to pay a deposit (usually 3%). A further 7% will become payable within the next 14 days -- these deposits are non-refundable but are paid subject to getting finance and title deed checks. It’s worth having a clause in the purchase agreement that has the vendor pay back the deposit (as well as the same sum again for inconvenience) if they pull out of the sale. It will take around three months to complete the sale/pay the balance. The Memorandum of Transfer form (14A) transfers the deeds.

Property taxes/mortgages
There are not many tax issues here as the country wants to encourage foreign investment. There is a second home capital gains scheme to attract foreign buyers based on 5% if the property is kept for 5 years and 30% if sold during that period. Stamp duty ranges from 1-3%.

Foreigners can borrow up to 70% of the property value -- most lenders look at around 50%. Be aware that the mortgage process here can take a long time and the standard three month purchasing agreement may have to be extended. Of course, there is no reason why an overseas mortgage can’t be used either.

Conclusion
Malaysia is a popular place to buy a second-home/investment property. The government is keen to encourage overseas investment and the sector is buoyant and shows good returns. It’s no wonder so many people are choosing to look for Property for sale in Malaysia - Sunshine Estates offer a wide selection of property in Malaysia.