FAQ when purchasing Malaysia real estate


Kuala Lumpur,  the capital of Malaysia
Kuala Lumpur, the capital of Malaysia

With the high property prices in Hong Kong, many Hongkongers seek to invest in overseas real estate markets. Markets near Hong Kong, like Japan real estate market and Taiwan real estate market, are popular choices. Yet, in recent years, investments in the Southeast Asian market has been on the rise. More people are looking for real estate equity investments in Thailand, Vietnam, and Malaysia. These countries usually have a lower property price and low language barrier, making them the new favorite for Hongkongers.

To suit the high demands of immigration applications from Hong Kong, the Malaysian government has launched Malaysia My Second Home Programme to allow foreigners to stay in Malaysia for a longer period of time, making it more appealing than ever to invest in Malaysia real estate market. Based on what we sourced from our experts and community, let’s look at some FAQs related to real estate equity investment in Malaysia.

Q: Are there any limitations for Hong Kong citizens when investing in the Malaysia real estate market?

A: Yes. Although foreigners are allowed to purchase real estate in Malaysia or even enjoy permanent land ownership, there are still limitations regarding the price of the property. The limitation amount varies among cities, yet it is a general rule that foreigners cannot purchase the low-cost properties reserved for Malaysian citizens.

Q: Should I find a real estate agent from Hong Kong or Malaysia?

A: It is always recommended to find a real estate expert that specializes in the Malaysia real estate market, or preferably has experienced living in Malaysia. The easy way to go will be to check out the directory on Denzity and look for Malaysia real estate market experts. Real estate experts will share their insights on their expertise, including tips for Malaysia real estate equity investment, rent returns, or even visa problems and MM2H programme.

Q: Can I apply for a mortgage when investing in the Malaysia real estate market?

A: Yes. You can do it from a local Malaysian bank, or some of the banks in Hong Kong like HSBC and Standard Chartered Bank. Usually, Malaysian banks tend to favor Malaysian citizens when it comes to a mortgage. Locals can apply for a 90% mortgage easily, yet for foreigners, it is usually 70%. If you do your mortgage through a Hong Kong bank, then the mortgage amount will be even lower. We advise you to consult your real estate expert to find out the best solution according to your financial status.

Q: What kind of fees do I have to pay?

A: It is more or less similar to Hong Kong. You have to pay various types of taxes regarding the type of property you purchase, including stamp duty, property tax, and land tax. You will also need to pay legal fees, land registry fees, and some administrative fees for the government. Double-check with your real estate expert before you confirm the payment of anything.

Q: What are the return rates of letting my property in Malaysia?

A: That highly depends on the location of your property. According to the Annual Property Market Report published by Malaysia National Property Information Centre in 2019, the average return rate would be 3-6%. Yet, for properties in the “Golden Triangle”, it can go up to 10%. After earning your profit, make sure to check out the tax deduction criteria to see if you can be exempted from paying your taxes. In case of any problems, you can consult Malaysian real estate experts and other real estate equity investment enthusiasts from Denzity.

Investing in the Malaysia real estate market is easy and convenient, but it can be confusing as well. If you have any questions, be it big or small, go ahead and post it on Denzity Directory (https://www.denzity.io/directory) for real estate experts from all over the world to answer your doubts.

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