Malaysia My Second Home Ownership process Minimum prices threshold Costs involved
To understand certain policies and legal fees imposed by the government, this article serves to guide you through the types of properties available to foreigners, the minimum purchase value imposed by state authorities and the property financing procedures in Malaysia.
What Kind of properties would select
Foreign ownership of property is liberal (foreigners can even own 100% of the property) in Malaysia as long as minimum requirements are met. In law, foreigners can own any type of properties with the exception of:
- Properties valued less than RM1 million in most of the major states.
- Properties built on Malay Reserved land
- Low and medium cost residential units as defined by the state authority
- Properties distributed to Bumiputera interest in any development project as determined by the state authority.
Foreigners can own a studio unit, condominium unit, landed properties including terrace houses and bungalows, commercial property, industrial property, agricultural land and industrial land (except Malay Reserved Land)
What is the minimum requirement for the property value
A minimum value of RM1 mil is applied to all kinds of property in most states. However, state authorities remain in power to amend the minimum value in the states respectively.
Foreigners Buying a Property in Malaysia Updates
Government will be lowering the price threshold for foreign property ownership from RM1 million to RM600k in urban areas, beginning January 2020.
However, this only applies to unsold units and existing stock in the condominium and apartment categories. Property projects that have yet to be launched will not qualify for this treatment.
The complete details on which neighborhoods qualify as “urban areas” have yet to be confirmed by the respective state governments.
On January 24 2020, the Chief Minister of Selangor that the state government is reducing the price threshold for strata properties, including strata landed homes to RM1.5 million from RM2 million previously, effective Jan 1, 2020.
This new ruling is for overhang units that have received a certificate of completion and compliance as at 2018 and has a leasehold title.
How foreigner can buy homes at lower price (minimum threshold)
Malaysia my second home (mm2h) is a programmed tailored for foreigners who wish to stay in Malaysia for a long period of time (10-year visa). Quite a few expats who have worked in Malaysia for a number of years have applied for MM2H as they wish to retire here.
To understand certain policies and legal fees imposed by the Government on property purchases, this article serves to guide you through the properties available to foreigners, the minimum purchase value imposed by state authorities, and the property financing in Malaysia.
The minimum threshold of RM1 million.
The minimum threshold of Rm2 million for zone 1 & 2 and Rm 1 million for zone 3.
*Zones in Selangor
Zone 1 – Districts of Petaling, Gombak, Hulu Langat, Sepang and Klang
Zone 2 – Districts of Kuala Selangor & Kuala Langat,
Zone 3 – Districts of Hulu Selangor and Sabak Bernam
Minimum threshold of Rm2 million for landed properties in international zone.
Rm1 million for strata title & landed properties within non-international zones, except for Medini.
Rm1 million for all with mm2h status.
Minimum threshold of Rm1 million and Rm 350,000 with mm2h status.
Minimun threshold of Rm600,000 (kedah) and Rm1 million (Langkawi).
There's no minimum with mm2h status.
Minimum threshold of Rm1 million on mainland and Rm2 million on island.
Rm350,000 for all with mm2h status.
minimum threshold of Rm1 million.
Rm500,000 with mm2h status.
Minimum threshold of Rm500,000.
Rm300,000 with mm2h status.
Minimum threshold of Rm1 million (landed title) and Rm500,000 ( strata title).
Minimum threshold of Rm1 million.
Before putting in an application, foreigners below 50 years of age are required to prepare a minimum of RM500,000 in their Savings Account / Current Account / Fixed Deposit whereas those aged above 50 years of age need to have at least RM350,000 in similar accounts.
Malaysia is still a foreigner-friendly country with relatively cheap living costs. Make sure you are fully prepared with your funds and don't forget to enjoy the interesting life of mingling with the multi-racial community here in Malaysia!