Guidelines for foreigners buying a house in Malaysia

1. What kind of properties can foreigners own?
Foreign ownership of property is liberal (foreigners can even own 100% of the property) in Malaysia as long as minimum requirements are met.

2. What is the minimum property purchase price in each state?
Generally speaking, a minimum value of RM1 million is applied to all kinds of property in almost every state, except for the some States (refer to the table A below).

STATE	MIN VALUE	WITH MM2H
WP KUALA LUMPUR	RM 1 million	RM 1 million
SELANGOR	RM 2 million (for Zones 1 & 2) RM 1 million (for Zones 3)	RM 2 million (for Zones 1 & 2) RM 1 million (for Zones 3)
JOHOR	RM 2 million (for landed property in int. zones) RM 1 million (for strata title & land prop. Within non-int. zones, except for Medini)	RM 1 million
PENANG	RM 2 million (for island) RM 1 million (for mainland)	RM 500,000 (2 units)
PERAK	RM 1 million	RM 350,000
MALACCA	RM 1 million (landed title) RM 500,000 (strata title)	RM 1 million (landed title) RM 500,000 (strata title)

3. What are the costs involved?
A. Stamp Duties
B. Legal Fees
C. Real Property Gains Tax (RPGT)

4. What are the home loan financing options?
The Margin of Finance (MOF) can go up to 80% for MM2H holders, while the rest would generally obtain a 70% MOF. In this matter, foreigners are usually better off taking loans from foreign banks in Malaysia. However, should a foreigner be married to a Malaysian citizen, the spouse will be required to take part in the loan financing to enjoy a Margin of Finance as high as 90%.

At WOLDCATION, we help you to determine the best and suitable property for you to live in.