What Type Of Accommodation Is Available?
In Malaysia there is a wide range of real estate. It can be found from apartments, townhouses, bungalows and condominiums.
The condos are the favorite accommodations for foreigners. These are fenced have security personnel and cameras. Very often they also include swimming pools, tennis courts and other leisure facilities. They have been designed to provide a certain sense of security, but this, of course, often involves additional costs.
The apartments and houses can be presented fully furnished, semi-furnished or unfurnished. Furnished accommodation is the most convenient way, but the furniture does not always correspond to the taste of the consumer. Unfurnished housing may include kitchen furniture or be completely empty.
In the search for housing, you not only have to pay attention to the accommodation itself, but also to the conditions of the entire building or house. Keep in mind that traffic in some cities such as Kuala Lumpur or Penang can be very dense, so it is recommended to find accommodation that is close to your workplace, international schools, shopping and entertainment centers.
The real estate agencies are located in the urban areas of Malaysia, but of course you can also find them outside the big cities.
If you decide to consult with a real estate agent, you should know what exactly you are looking for in advance. Familiarize yourself with availability and prices before restarting the search with an agency, and be as specific as possible with the characteristics of the property. Before visiting the properties with the agent, we recommend visiting the area on your own to get an idea of the property.
Search for housing on your own.
If you do not want to spend money on a real estate agent, you can search for accommodation on your own. Although this may take a little longer, there is wide availability of housing in Malaysia on the Internet or in newspaper advertisements. Most rental property websites are available in English, as well as in nationally circulated English newspapers such as The Star or The New Straits Times.
You can also walk around the area in which you would like to live and search for “For Rent” or “To Let”. The signs are usually shown on the windows or doors of the property. If a property is rented the sign in Bahasa will say and for more info please click here https://speedhome.com/
If you are looking for student accommodation, visit the websites of the universities. There you can find links to the accommodation offices of the universities where you can register to request a room in the student residences.
Rent control in Malaysia was abolished a few years ago and rents can be negotiated freely. There is no specific law that regulates the duties and responsibilities of landlords and tenants, however, there are still basic guidelines for rental agreements that are usually followed.
After agreeing on the terms and conditions for the rents, the tenant will have to pay several deposits.
The first deposit is generally equivalent to the amount of one month’s rent and a reservation deposit. This means that the landlord cannot rent the property to another tenant after receiving this deposit. This deposit may eventually be used as the first month’s rent.
Within 7 days, the owner and the tenant will sign the lease. Subsequently, the tenant will pay a “security deposit,” which usually equals two months of rent, and half a month’s rent as “invoice deposit.”
The lease must eventually be signed by the Malaysian Revenue Authority to be valid. The tax of said seal is usually paid by the tenant.
The termination of rental agreements
In order to terminate the lease, the party that wishes to terminate the contract must give 2 or 3 months written notice. The renewal of the contract has to be agreed between the landlord and the tenant.
Contracts usually contain a special clause, which is known as a “diplomatic clause.” This takes effect if the tenant has to leave the country for various reasons and therefore requires early termination. The tenant has to show why he has to leave, for example, a job dismissal. In most cases this clause can only take effect after the first 12 months of the lease.
Electricity in Malaysia
The voltage in Malaysia is 240V with a frequency of 50 hertz. In rural areas, sometimes you can alternate between 220v and 240v.
Malaysia uses the same plug as the United Kingdom. Therefore, when traveling to Malaysia, a UK adapter will be required instead of one from Asia.
The electricity supply in Malaysia is good. However, you have to be prepared for occasional power outages. Electricity bills are received by mail and can be paid at a post office or at the electricity supplier’s office.
Gas and water
The main gas supplier in Malaysia is Gas Malaysia Sdn. Bhd). However, it is only for the supply of gas in the peninsula of Malaysia. All other regions use bottled gas.
The water supply is not managed by a main supplier but by individual authorities.
Waste collection and recycling
Household waste is normally collected once a week, although collection is more frequent in condominiums. Waste recycling in Malaysia in general and in Kuala Lumpur in particular is not as advanced as in Western countries, but is in the process of improvement. Recycling containers can usually be found in many apartment and condominium buildings. Otherwise you can bring waste recycling to the nearest recycling center. So far, only cans and plastic bottles are collected for recycling.
Properties in Malaysia
Reasons to buy a property in Malaysia:
The Malaysian government encourages foreign investment in properties by offering various incentives and tax advantages.
The Malaysian Government has reduced the old restrictions for foreign buyers, so now everyone can buy an unlimited number of goods, without any distinction between being a resident or tourist
However, a restriction that has been implemented as of the beginning of 2010 means that foreign investors are allowed to buy goods at a cost not less than RM 500,000, unlike the previous legislation where this restriction was set at RM 250,000 .
Since English is widely spoken, it is very likely that you can process the purchase entirely in English, including agreements in English and contracts written in that language.
The process of buying a property
The purchase process consists of several steps. Once you have selected the property you wish to purchase, you will have to sign an Offer / Acceptance Letter and pay a deposit of 3% of the total price of the property.
Within 14 days, the buyer must sign the Purchase and Sale Agreement and pay another 7% deposit. After this stage, the buyer has 3 months to complete the sale and to carry out the full payment of the agreed price.
The Purchase and Sale Agreement must be approved at the Coupons Office to become a valid document. This, however, cannot be done until the property has been examined by the Valuation Department.
If you are going to buy a new property in which the seller does not yet have full title to the property, this has to be reflected in the Purchase and Sale Agreement and the title has to be transferred as soon as it is available.
Additional cost of ownership
Stamp rights: When buying the property you will have to pay a stamp tax on the purchase documents that vary from 1% to 3% of the declared value of the property.
Capital gains tax: There is no longer any capital gains tax when selling property in Malaysia.
Attorney’s fees: If the buyer has consulted a lawyer to help with the purchase sale operation, he has to pay a fee that varies from 0.4% to 3%.
Agent fees: If the buyer has consulted a real estate agent to help him find the property, he has to pay a fee that varies from 2% to 3%.
Other expenses: additional expenses have to be included in the expenses, as well as the registration fee that is currently at around RM 100 and the award fee of around RM 10. All together additional costs, with some other charges, which usually add approximately RM 180.
Insurance: Insurance is mandatory, if your property is financed by a bank. Many Malaysian and international companies offer property insurance plans. There are three types of property insurance in Malaysia: fire insurance, homeowner’s insurance and home insurance.
Finance your property
In Malaysia, loan interest rates are currently at a record low.
In general, only foreigners who are in Malaysia with a work visa or in the “Malaysia My Second Home” Program are eligible to apply for a loan or a mortgage. The loan usually covers up to 80% of the purchase price. Some banks, however, also offer loans to foreigners without a work visa. However, the loan amount will usually be smaller. In fact, it is advisable to apply for a loan / mortgage at a local or national Malaysian bank, since Malaysian banks are making an enormous effort to attract foreign investors.