Buying property in Malaysia? An Overview

This is a guest post by Diana Perkins

Buying property in Malaysia isn’t difficult if you are able to follow certain norms that regulate the home buying process for foreigners in the country.

If you intend to take out a mortgage in Malaysia, you will be allowed to avail a mortgage of up to 80% loan-to value Malaysian Ringgit or the value of the property you buy should be worth MYR 250,000 (USD$67,977) or more than that. This requirement is as per the norms of the home buying process of September 2008. Find monthly payments on mortgage, with the help of an agent who can guide you in the home buying process.

The term of the mortgage can range between 15 and 30 years. The rate of interest can be variable, capped or fixed. So, depending on your requirement and affordability, you can choose the rate of interest that is best for you and won’t strain your purse or make you fall behind on payments.

Buying home with mortgage is better

If you have a stable income and your job is secured, it is better to opt for mortgage rather than buying a home with cash even if you have enough of it at your disposal. This is because you can use the cash for building an emergency fund or you can save it for future use. You can also invest it in any investment vehicle which promises to give good ROI or Return on Investment.

Staying current with your monthly payments on mortgage is of utmost importance. This is because if you fall behind on payments, you may lose your home in foreclosure. So, select a property, the repayment of which is within your reach.

A foreigner in Malaysia is allowed to purchase at the most 2 residential properties. Foreign investors are not permitted to own Malay reserved land. Excepting few such restrictions, home buying process for foreign investors is regulated in the same way as Malaysian property owners.