Tips for Foreigners Buying Properties in Malaysia
Tips on Investing Properties In Malaysia
If you are foreigner and plan to invest in a property in Malaysia, here are some tips that you will find useful.
Financing your property
As a foreigner, you are allowed to borrow up to 70%. In most case, the banks are more than willing to finance your purchase of 50% of your property price.
Restriction in Disposing of your property
You are not allowed to sell your property less than 3 years from the date of your purchase.
Number of units you can own in Malaysia
As a foreigner, you are only allowed to own not more than 2 properties. Should you intend to purchase a third property, you will have to appeal to the Foreign Investment Committee and provide a valid reason for the third purchase. There is no guarantee that your appeal will be granted.
Remitting money into Malaysia
If you intend to purchase or have purchased a property in Malaysia, you are allowed to open a bank account to remit your funds from your domicile country for purpose of paying for the property.
Taxation of your property
Should you intend to dispose your property within the 5 years after the date of your acquisition, you will be taxed 30% of the gains only. If you dispose your property after the 6th year of your purchase, you will be taxed on 5%of your gains.
Minimum purchase price allowed to purchase
As a foreigner, you are allowed to purchase a property costing more than Ringgit 150,000. In some states such as Johor, Melaka and Penang, the purchase price of the property must be more than Ringgit 250,000.
Types of properties you are allowed to purchase
You are allowed to purchase residential apartments, condominiums, service apartments and landed properties such as terrace, semi-detached and bungalows.
Fees involved in purchasing a property
You are required to pay legal fees and disbursements for the preparation of the sale and purchase agreement whichis a percentage of the value of the property. Should you plan to take up financing from a bank, you will have to pay legal fees and disbursements for the preparation of the loan documents.
These are just some of the helpful information that
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By Juanita Chin
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