A property in Penang, Malaysia can be a good bet for those who plan to work, retire or live here. Apart from its great hawker fare, the island features many unique and interesting heritage attractions, a rising local art scene, and the growth of hipster F&B outlets.
Among investors in Singapore, Malaysia in recent years has become one of the most preferred destinations for real estate investments. There are a number of reasons behind this trend and the vital among these are for sure the relatively lesser costs in Malaysia as compared to Singapore and low interest rates with reduction in the Malaysian Ringgit. Although the SPA (Sale & Purchase Agreement) in Malaysia is fairly standard, it is wise to consider having a legal representative representing your interests prior to signing any agreements.
- If you are looking to move here under the Malaysia My Second Home programme, you will be allowed to make a lower Fixed Deposit if you have already purchased a property in Malaysia before applying for the MM2H visa and over RM1 million and do not have any outstanding loan on it.
- After getting the visa if you make a purchase, you can get your FD reduced after 12 months on showing proof that you have paid for and acquired a house in Malaysia. In this next case, the property’s worth is not a relevant factor and you can have a loan on the real estate property in Penang or any other state in Malaysia as long as the cash amount you have paid surpasses the amount you want to withdraw from your Fixed Deposit.
- There are some of the most liberal policies in the country when it comes to foreigners purchasing residential property, especially landed homes. Unfortunately, the regulations have been changed several times over the last few years and the present policies offer minimum price so that foreigners can invest in real estate property here.
- As per the Federal Government’s decision, the minimum property price was raised to RM1 million. Actually, over half the properties bought by foreigners was in the range of RM 250,000 to RM 500,000 and this hit the industry somewhat hard. Many foreigners are not aware that property is basically a State matter and this means individual States have the right to overrule the Federal rules.
- Penang used to permit people with Malaysia My Second Home visas to purchase property priced more than RM 250,000. But, as per the Penang State Government’s latest update, MM2H participants can only buy a residential property at a minimum of RM 500,000 (restricted to 2 units only).
As a direct outcome of the increased demand from overseas investors, the Malaysian government has imposed some restrictive or slimming down measures to control the local property market. In fact, some regions in Malaysia have experienced rapid price rises and are looking somewhat overestimated in light of the future supply. Nonetheless, in most of the countries, real estate is never fully homogeneous and as such there are prospects to be found given an investor does the essential due diligence.