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</iframe--> <!-- end #sidebar2 --></div> <div id="mainContent"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td><img src="images/title_buying_guide_msia.jpg" title="Buying Guide Malaysia"></td> </tr> <tr> <td><img src="images/main_img.jpg"></td> </tr> <tr> <td class="main_txt_border"> <p>Before going ahead with a property purchase in Malaysia, it is important to be familiar with the buying process and what fees and agreements will need to be met. Sortium will assist you throughout this process from start to finish but this guideline will provide you with an overview of what procedures to expect. </p> <p>Unlike some of its Asian neighbors, Malaysia makes it fairly easy for foreigners to purchase real estate. The Malaysian government is constantly looking to improve conditions for people wishing to purchase property in the country and this is of course good news to foreign investors. </p> <h2>What You Can Buy</h2> <p>Foreigners are allowed to purchase any kind of property with a minimum value of MYR 500,000 and can buy up to two residential properties – two condominiums (max. 50% foreign ownership within a block) OR one condominium and one of the following:</p> <ul><li>Terraced or linked houses above two storeys</li> <li>Land/bungalows and semi-detached houses</li></ul> <p>Should you wish to purchase a third property, you will need to apply to the Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department and provide a valid reason for the third purchase for permission to be granted. Property on Malay reserved land cannot be owned by overseas foreign investors. Other than these restrictions foreign owners of property are treated in the same way as Malaysian owners and both are protected by the same real estate laws. </p> <h2>Using a Sortium Agent</h2> <p>When buying a property, a good agent is invaluable. A Sortium agent will carefully examine your particular requirements, listen to your needs and provide you with a selection of appropriate options. In addition, our agent will recommend all the related professional services you will require in Malaysia to make a safe purchase. </p> <h2>Appointing a Lawyer </h2> <p>As mentioned above, foreign investors interested in the Malaysian property market are subject to certain restrictions on the type of real estate they can purchase while great care and attention to detail have to be given to the entire buying process in Malaysia. Sortium has a panel of approved solicitors that will assist with your transaction. </p> <p>Legal fees and disbursements for the preparation of applications to the Foreign Investment Committee and the sale and purchase agreement are calculated at a percentage of the value of the property. Should you plan to take up financing from a bank, remember that you will also have to pay legal fees and disbursements for the preparation of the loan documents. A full breakdown of fees is described below. </p> <h2>Finance</h2> <p>As a foreigner, you are allowed to borrow up to 80% LTV from banks in Malaysia and they are eager to lend to overseas borrowers. With interest rates currently amongst the lowest in Asia, property purchases in Malaysia are an attractive option for many investors. </p> <p>Sortium has agreements in place with a number of banks to make this part of the buying process as hassle free as possible. </p> <h2>The Buying Process</h2> <p>Once you have selected your property, a Letter of Offer and Acceptance is signed and a 3% deposit payment is normally expected from the purchaser. </p> <p>Within 14 days, the buyer must pay a further 7%. Deposits paid are non-refundable if the buyer withdraws from the sale but are subject to obtaining finance and checking of title deeds. From the date of the signing, the buyer normally has a maximum of three months to complete the sale and make full payment. </p> <p>Upon signature, the Sale and Purchase Agreement must be stamped at the Stamp Office. After examination of the property by the valuation department, Stamp Duty must be paid to the Stamp Office. The Sale and Purchase Agreement is then sent to the land registry along with the Memorandum of Transfer form 14A to transfer the title deeds into your name. </p> <h2>Transaction Costs and Fees</h2> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td>Stamp Duty (Buyer Pays)</td> <td> </td> <td>1% - 3% </td> </tr> <tr> <td>Lawyer/Solicitor's Fees (Buyer Pays) </td> <td>First 150,000 </td> <td>1%</td> </tr> <tr> <td> </td> <td>Next 850,000 </td> <td>0.7%</td> </tr> <tr> <td> </td> <td>Next 2,000,000 </td> <td>0.6%</td> </tr> <tr> <td> </td> <td>Next 2,000,000 </td> <td>0.5%</td> </tr> <tr> <td> </td> <td>Next 2,000,000 </td> <td>0.4%</td> </tr> <tr> <td>Real Estate Agent's Fees (Seller Pays) </td> <td> </td> <td> 2% - 3%</td> </tr> </table> <h2>The Guidelines for Foreigners to Buy Property in Malaysia are as follows:</h2> <ol><li>Acquisition of properties <strong>costing less than RM10 million</strong> by Malaysian citizens is exempted from FIC approval. (Previous limit was RM5 million limit). The intention is to facilitate and expedite the completion of all transactions of less than RM10 million at State Authority level. </li> <br/> <li>The following property sale transactions of<strong> less than RM20 million</strong> need only be reported to the FIC Secretariat. In such cases, State Authority do not have to wait for FIC approval.<br/> (a) Sale by Bumiputera to Bumiputera; <br/> (b) Sale by non-Bumiputera to Bumiputera;<br/> (c) Sale by non-Bumiputera to non-Bumiputera; and <br/> (d) Sale by foreign interests to Malaysian citizens.</li><br/> <li>Foreign interests undertaking manufacturing activities who have secured exemption from manufacturing licenses from Ministry of International Trade and Industry, <strong>are allowed to own industrial lots or factories for manufacturing activities only.</strong> This is to facilitate acquisition of industrial properties by foreigners, without equity conditions, but for the purpose of manufacturing and not for rental.</li> <br/> <li>Further relaxation of the 22 April 1998 Special Guidelines: <br/><br/> 4.1 Foreigners are allowed to acquire all types of residential units, shop houses, office space and retail space in either old or <strong>newly launched projects</strong> costing more than RM500,000 each without having to set up a company with local equity. (Previously foreigners were only allowed to acquire properties in projects that had already been completed or 50% completed.)<br/> <br/> 4.2 Foreigners are allowed to obtain their funding for the above acquisitions <strong>from local sources</strong> (previously funding provided by external sources). </li> <br/> <li>To encourage the establishment of<strong> headquarters or regional offices</strong> in Malaysia, foreign companies are allowed to own offices or office space, including for their branch offices (costing more than RM500,000 each) without any limit on the number of units they can any equity conditions.</li> <br/> <li>Foreign companies incorporated in <strong>ASEAN countries</strong> intending to set up joint ventures or engage in trading and commercial activities in Malaysia are allowed to own office or office space (costing more than RM500,000) without any equity restrictions.</li> <br/> <li><strong>Residential Properties</strong> The latest government stimulus package announced in 1st Jun 2010 allowed foreigners to purchase residential properties valued above RM500K instead of RM150K. </li><br/></ol> </td> </tr> <tr> <td class="main_bg_footer" valign="top"> </td> </tr> </table> </div><!-- end #mainContent --> <!-- This clearing element should immediately follow the #mainContent div in order to force the #container div to contain all child floats --><br class="clearfloat" /> <div id="footer"> <img src="images/footer_img.jpg"> <div id="footer1"> <!--ul> <li><a href="newsletter.php">Newsletter</a></li> <li>| </li> <li><a href="careers.php">Careers</a></li> <li>| </li> <li><a href="privacy_policy.php">Privacy Policy</a></li> <li>| </li> <li><a href="terms_of_us.php">Terms of Use</a></li> <li>| </li> <li><a href="sitemap.php">Site Map</a></li> </ul--> </div> <div id="footer2">Copyright © 2010 - 2012 Sortium. 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