by Propertyportal 
Buying a house in Malaysia is a significant milestone, but it can also be a daunting process. With various property types and financial considerations, navigating the Malaysian property market requires a comprehensive approach. Whether you’re a first-time buyer or an investor looking for rental yield, this guide will help you make informed decisions.
Understanding the Malaysian Property Market
Before diving into the property purchase process, familiarize yourself with the Malaysian property market. House prices vary greatly depending on location, type of property, and market trends. Semi-detached houses in suburban areas like Horizon Hills may appeal to families, while high-rise units in cities attract young professionals.
Additionally, keep track of property prices and market trends to evaluate your potential return on investment. Sites like Forbes offer insights into global property trends, while local portals and property agencies provide Malaysia-specific updates.
Assess Your Financial Stability
Understanding your financial capacity is critical when purchasing a property. Calculate your monthly household income and factor in other expenses such as credit card payments and personal loans. This will give you a clearer picture of your loan repayment ability.
Malaysian banks such as Bank Negara and Bank Simpanan Nasional require you to submit bank statements, CCRIS Reports, and CTOS Reports during your loan application. Ensure that your credit scores are healthy and that debts are paid on time to minimize credit risk.
Types of Properties in Malaysia
Freehold vs. Leasehold Properties
Freehold properties offer permanent ownership and are ideal for long-term investment. On the other hand, leasehold properties often come with a 99-year lease, after which renewal depends on relevant authority consent.
Residential vs. Commercial Properties
Residential properties like terraced houses and strata-titled properties cater to homeowners, while commercial units or commercial land are better suited for businesses. Each has distinct transaction costs, rental yield potential, and legal requirements.
Key Documents Needed for Property Purchase
Documents Required
- Booking form and sales form: These secure your interest in the property.
- Purchase agreement: Outlines the terms and conditions of the sale.
- Loan agreements: Includes details about your housing loan and loan tenure.
Additional Documents
- Authority for consent: Required for properties with restrictions, such as Bumiputera buyer quotas.
- Transfer of ownership documents: Ensure compliance with legal requirements.
Ensure all paperwork is accurate and complete to avoid delays during the transaction process.
Costs to Consider
Buying a house involves several initial costs, additional costs, and ongoing expenses. These include:
Upfront Costs
- Earnest deposit and balance deposit.
- Lawyer fees for legal services, including loan facility agreements and transfer of ownership.
Ongoing Costs
- Monthly payments on your housing loan.
- Annual land tax and maintenance fees for strata properties, such as high-rise units with amenities like swimming pools.
Don’t forget to factor in insurance policies like Mortgage Life Insurance to protect your investment.
Steps for a Successful Property Purchase
Step 1: Work with Professionals
Engage a trusted real estate agent and a competent real estate lawyer with a solid track record. Their expertise ensures smooth navigation through property types, strata titles, and other complexities.
Step 2: Research and Compare
Explore properties on the primary and secondary markets, including auction properties and sub-sale properties. Compare costs of applications, property purchase prices, and monthly payments to choose what aligns with your financial goals.
Inspecting and Finalizing Your Property
Before accepting vacant possession, inspect the property for faulty workmanship. Strata-titled properties often have a defect liability period of 12-24 months, allowing you to request repairs.
For individually-titled properties like a Bedroom House or Cluster House, ensure the Sqft house and overall construction match the specifications in the purchase agreement. Address any discrepancies with the developer immediately.
Tax Reliefs and Government Initiatives
First-time buyers in Malaysia can benefit from a stamp duty exemption on properties under RM500,000. Additionally, affordable housing schemes like Residensi Wilayah are tailored for eligible Bumiputera buyers and civil servants.
For more information on exemptions and benefits, visit Bank Negara Malaysia or other relevant Malaysian government portals.
Secure Your Dream House with Explore Malaysia
Buying a house in Malaysia is a major investment, but thorough planning ensures you make the best financial decision. With this easy-reference guide, you’re well-equipped to navigate the process confidently.
Ready to find your dream house? Contact Explore Malaysia today for expert guidance and insights into the property market!
