New rules set to affect overseas investors buying property in Malaysia

  • 12 years ago
  • Uncategorized

Over recent years, the Malaysian government has launched a
number of initiatives to encourage foreigners to buy property in Malaysia.  However, new plans to raise the minimum
value of property that overseas investors can buy flies in the face of recent
state policy.

If you’re looking to buy a property in Malaysia, you may in
the future have to spend around £200,000 as a minimum.  However, this may be less in a new
development on the southern tip of the country, as we explain here.

Many expats
considering Malaysia ahead of Singapore

At present, non-Malaysians can buy a home as long as it
costs RM500,000 (about £102,000) or more.   However, the government plans to raise this threshold
to RM1 million. This is because it has faced pressure from Malaysian residents
who feel they are being priced out of the property market by foreign buyers.

The Daily Telegraph
also reports that ‘many British expats based in Singapore are choosing to
relocate to Malaysia because property prices and living costs are much
cheaper.’

Property agents say they were aware of the new rules but
remain unconvinced that they will become law. One agent said: “I think we are
at an early stage to gauge public response. Not all states will agree.”

Government
encouraging foreign buyers of property in Malaysia

While the government may seem to be keen to deter foreign
buyers, other initiatives are actually encouraging overseas investment.  The Ministry of Tourism recently
launched a scheme called the ‘Malaysia My Second Home Programme’ to encourage
more foreigners to settle in the country.

The country is looking to attract foreign buyers to
Iskandar, a new development on the southern tip of the country.  Iskandar will be three times the size
of neighbouring Singapore and will feature a financial district, the first
overseas branch of Marlborough College and a Legoland theme park.

It is believed the minimum price that foreigners can buy
property here will be lowered to RM800,000 (around £164,000) to attract more
overseas customers.   Iskandar
will house the first overseas branch of Marlborough College along with
faculties from many British universities, and a Legoland theme park.

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