Brief Introduction of Malaysia property

Housing purchase policy

1. According to Malaysian law, foreigners are free to purchase real estate, such as detached houses, townhouses, apartments, landed properties, commercial properties, etc .; which excludes:

A \ Real estate with a price lower than MYR 1 million; B \ Low-cost residential units designated by the state government; C \ Real estate built on the Malay reservation; D \ Real estate designated by the government as an indigenous unit.

2. There are two types of property in Malaysia: 99-year property rights (real estate certificate + title deed) and freehold property rights (real estate certificate). The 99-year-old property needs to be renewed after the expiration of the title, the freehold title does not need to be renewed, and can be left to the next generation without inheritance tax. 

3. Real estate in Malaysia does not calculate the shared area, only the actual use area is calculated, and most of them are decorated. 

4. Basically, no parking space is sold, and it is given free when the housing purchased. According to the size of the apartment, one or two parking spaces will be given to buyer. If not enough, rent a parking space from the management unit.

5. Foreigners can purchase a home mortgage loan in Malaysia with a maximum loan amount of 70% (80% for second home visa holders). If a foreigner marries a Malaysian citizen, they can also get a loan of up to 90%.

6. Buying any property in Malaysia requires hiring a lawyer to handle real estate transactions.

Tax on purchase housing

The total cost of buying a house in Malaysia is about 1.40% to 4% of the house price. Among them, the stamp duty is about 3%, and the title deed tax is about thousands of yuan.

Process

1. Sign a letter of intent to purchase a house, pay a deposit, and the unit will be reserved. After selecting the house, sign the letter of intent to order the house to choose the specific house number, sales price and payment time, and pay the booking fee according to the agreement. Usually, the party pays a deposit of 1% to 3% of the total purchase price. You can also apply for loans from banks at this time.

2. Sign the sale and purchase contract within 14 to 30 days {"House Sale and Purchase Agreement" and "Mutual Contract" (if applicable); (if the layered property rights have been issued) sign the "Property Transfer Letter"} and pay 10% of 7% to 9% The balance (10% of the house price must be paid to sign the sales contract), the developer's real estate needs to sign the sales contract within 14 days.

3. Submitted by the lawyer to the state government for approval: According to Article 433B of the National Land Code, non-Malaysian citizens who invest in Malaysian real estate must apply to the relevant state government for consent to transfer property rights. Note: It usually takes 2-3 months from application to approval by the state government.

4. Pay in installments in accordance with the prescribed procedures, and pay off the remaining housing payment in lump sum payment by cash or bank loan. If the property sufficient for non-Malaysian buyers is built before sale, the bank they borrowed during the construction period will directly enter the loan into the developer's account according to the progress of the construction.

5. Time limit for house delivery: The developer must deliver the completed house to the buyer within the specified time limit from the date of signing the sale and purchase contract (the time limit specified in Table G is 24 months and the time limit specified in Table H is 36 months)

Payment method

The payment method for Malaysia's existing housing and forward delivery housing is different. Existing housing requires the buyer to pay all the money within three months of signing the sale and purchase contract (such as applying for a loan, the bank also needs to pay the entire loan to the developer within three months).

The forward deliver housing is paid in different batches according to the progress of the project. When the project is completed, all the payments will be paid (if you apply for a loan, you only need to pay the deductible part, and the loan part is paid by the bank).

Loan mortgage

Application criteria

Loan percentage: The loan percentage can reach 60%, and the number of applicants participating in the second home is as high as 70%.

Loan duration: 5-35 years, or until the borrower is 70 years old.

Interest rate: 2% -4.5% (depending on the bank, this is a floating interest rate), participate in Malaysia's my second home program, low-interest loans. During the construction of the project, the designated bank loan developer bears the interest. Loan lawyer fees and other fees: about 0.8% of the total loan, loan stamp tax: 0.5% of the total loan.

Locking period: about 3 years, early termination of the contract will be fine by 3% of the loan (advance of the early cancellation of the loan is calculated from the payment of the house, not the first grant).

Apply process

1. After the buyer signs the purchase and sale contract, pays the down payment within 14 days, and submits the bank application loan documents at the same time.

2.The bank will complete the review in 2-3 weeks and notify the approval.

3. Buyers need to confirm whether to accept the loan within 14 days, and notify the lawyer to prepare the loan contract and arrange to sign the contract with the notary office.

Apply material

In general, developers in Malaysia do not help customers with loans, but only provide the names of several banks designated by the developers, and the customers themselves contact the banks to apply for loans.

However, the application procedures for applying for loans in Malaysia are very complicated and cumbersome, and the approval time is relatively long, so it is recommended that you must choose a large and trustworthy service agency to handle it for you.

The following list is for reference only:

1.Loan Application Table

2. Photocopy of passport (photo page).

3. Proof of employment (certificate of employment, income tax statement for the past year, tax payment and tax refund certificate, pay slip for the last 3 months). Note: If the occupation is of a business nature, a 6-month salary slip is required.

4. Proof of financial resources (cover and inner copy of salary deposit book, proof of deposit balance in English, other sources of income). Note: If the salary passbook is also the deposit balance, you do not need to apply for the English version of the deposit balance certificate.

5. Company information (certificate of company registration, financial report of the company for the past year, cover and inside pages of the bank deposit book of the company for the past 6 months, proof of the balance of the company ’s English version of the deposit, certificate of income tax and tax payment and refund for the company for the past year) . Note: If you belong to your own company or you are a shareholder, this project is necessary.

6. The original house sales contract or reservation form.

7. A bill (need to be consistent with the address on the sales contract).

8. Loan bank forms for various construction projects.

9. Application for approval letter and VISA (if any) for the second home MM2H.

10. Certificate of savings in Malaysia or financial company (if any).

11. If you are married, please attach a photocopy of your spouse's passport (photo and signature page).

12. Two business cards (if any).

Other instructions

1. If the client wants to cultivate a three-month income certificate, he / she needs to: remit a fixed amount at a fixed time every month; the amount of the amount can not be specified in cash, it is best to write salary or company name; must provide personal or company tax returns single.

2. The prepared documents should be provided in Chinese and English as much as possible. The speed of submission will be accelerated. The more complete the preparation, the more favorable the bank loan will be. Loan in Malaysia usually takes about one to two weeks.

3. If the customer has a HSBC HSBC Premium Account (PERMIUM ACCOUNT), they can omit the professional certification / financial certificate / company information, and only need to provide a bank account proof for an average of 10 million bank deposits for at least 6 months.

Transfer property right

There are two types of property in Malaysia: 99-year property rights (property certificate + title deed) and freehold property rights (property certificate). There are 2 certificates of 99-year property rights, namely the real estate certificate and the title deed, the title deed needs to be renewed after every 30 years. 1 certificate of freehold property rights, that is, real estate certificate.

Buyers usually check whether the developer ’s qualification procedures are sound. After passing the comprehensive completion inspection and acceptance, the residential area with complete procedures will usually receive a real estate certificate for three months, and a second month or so after the transfer of a second-hand house.

The "Commercial Housing Sales Management Measures" stipulates that the real estate development enterprise shall, within 90 days from the date of delivery of the commercial housing, submit to the real estate administrative department where the housing is located the materials required for registration of housing ownership. The real estate development enterprise shall assist the buyer of the commercial house to go through the land use right change and house ownership registration procedures.

Due to the developer ’s reasons, the buyer has not obtained the real estate certificate within the time limit agreed by the contract. If the real estate certificate cannot be obtained within a few days, the developer shall bear the responsibility for breach of contract.

Property trust

According to the CBRE report: Malaysia's house prices rank 99th in the world, but the rental return rate ranks sixth in the world, its rental income can reach 5% -7% per year, and the real estate appreciation is about 10% per year.

At present, the housing prices in Malaysia are still at a relatively low level, ranging from 10,000 to 30,000 yuan per square meter. The price of houses near the landmark Petronas Twin Towers in Kuala Lumpur is around 30,000 to 30,000 yuan per square meter.

Most condominium properties in Malaysia provide chartered custody, usually directly leased by the developer. The leasing party is mostly a hotel that is settled in and the hotel agrees to take care of it. The lease period is mostly 3 to 5 years, and some developers also provide a repurchase policy after the expiration.

In addition, there are now many agency company provided rental agency services, which can help owners manage property(included rent out and daily maintain.