Accommodation in Malaysia
Expats moving to Malaysia can rest assured that they will have no problem in finding comfortable, affordable accommodation while in the country. Moreover, the strong and stable Malaysian property market can offer expats good returns on property investments, should they wish to pursue the option of buying their own Malaysian home.
Types of Accommodation in Malaysia
All types of accommodation are present in Malaysia, from large, stand-alone houses (known as bungalows), to semi-detached and terraced houses, to apartments and condominiums. Generally, condominiums are most popular with expats in Malaysia, as they are secure, and often boast highly sought-after amenities, such as gyms, swimming pools and even tennis courts.
Housing prices are reasonable throughout Malaysia, especially when included in a lucrative employment package or when financed by a large expat salary! Expect to pay anything between RM 400 a month, for a single room in a house-share set-up, to RM 5,000 (for an upmarket condominium), to RM 10,000 (for a luxury serviced apartment in Kuala Lumpur's CBD). Property in central Kuala Lumpur is, obviously, more expensive than in any other area in Malaysia.
Completely furnished, semi-furnished or unfurnished accommodation is available – although expats are warned that the term 'unfurnished' is sometimes used more literally in Malaysia than elsewhere in the world, describing places that are completely empty, without kitchen units, cookers or even curtain rails.
Renting Property in Malaysia
The process of renting property in Malaysia is straight-forward. Expats can engage the services of a real estate agent to help them find a suitable place to stay, or else they can conduct Internet searches and check local newspapers and For Rent publications for rental listings. It's a very good idea to view a few properties, just to get a sense of how much to expect to pay for a certain kind of space – as often, rental prices in Malaysia are listed as 'View to Offer'.
Rental agreements are usually signed on a two-year basis, with an option to renew written into the lease. For this reason, in case you can't commit with 100 percent certainty to the full two years, be sure to get a termination clause written into your rental contract.
Usually, you will have to pay two month's rent as a (refundable) security deposit to secure your rental; however, estate agent fees (should you use one) are normally paid by the landlord. You will be responsible for your own water, electricity, sewerage, phone and Internet bills while in Malaysia, and you might also be required to pay a deposit (around RM 1,000) on these utilities before you move in.
Buying Property in Malaysia
Buying property in Malaysia is becoming an increasingly attractive proposition for expats, with the Malaysian government actively looking to increase foreign investment in the property market through the Malaysia My Second Home initiative. Although there are some (small) areas of the country in which expats are still not allowed to buy property, the only other constraint placed on foreign property puchase is that the value of the property to be purchased must be at least RM 500,000 (this is to protect low- to middle-income Malaysians from property inflation). Loans and mortgages are freely available from Malaysian banks and other financial institutions.
The basic process of buying a house in Malaysia proceeds as follows:
- Seek permission from the state authorities to purchase your property (can take up to six months)
- Sign an official 'offer to purchase' letter, and pay 3 percent of the asking price as an earnest deposit
- Within 14 days of your offer being accepted, sign an official 'agreement of sale' document, and pay 7 percent of the asking price (taking your total deposit paid to 10 percent)
- Pay the balance of the purchase price within three months
- Note that you will also be liable for stamp duty, legal fees and estate agent fees (should you use one)
- Note that capital gains tax in Malaysia is 5 percent
