Before buying a property, it is important to know what you actually are spending your money on. In this section buying real estate in Malaysia is described. The main property types in Malaysia are: Residential properties, Commercial properties, and Vacant land.
Residential property include Condominiums, (serviced) apartments, residential houses, townhouses and luxury houses. IQI Global has a great supply of Condominiums and Apartments. Below, the difference of both the options of living is explained in more detail:
- Condominiums, are also known as ‘condos’. They offer a lot of the same features as a home ownership, but the process and community is managed by a development-team. This team assures that the condominium is build and the building is kept in good state. Buying or renting a condo is a form of self-investment, most people choose a condo because they want to make it really ‘their’ home. It provides benefits of being able to customize your condo with the features you want. Condominiums normally provide 24-hours security, sports facilities, laundry services, grocery stores and food courts which makes living here really attractive. A certain amount of maintenance fee will be charged for these facilities as this is not included in the price of the condo. Based on the prices of row houses, bungalows and villas, returns for condominiums in Malaysia are seen as highly attractive. For comparison purposes, gross rental yields for condominiums, if they are fully rented out, ranges from 4.50% to 5.44%, while bungalows can yield anywhere from 3.75% to 4.20%.
- Renting an apartment, on the other hand, is a great opportunity for non-permanent living. The same as with condo’s, the maintenance of the apartment is the responsibility of the landlord or property manager. If you find that you likely to move around from city to city, are not financially or career-wise set for making an investment step then renting an apartment might be your best option.
- Commercial property includes shopping malls, retail stores, shop offices and other commercial buildings. Usually this property costs more than residential property.
There are 3 types of land titles in Malaysia: Freehold, Leasehold and Malay Reserve. This kind of property is suitable for bigger families as it provides more room. A landed house also has open spaces for those who enjoy gardening or pets, and also allows room for renovations and extensions. Freehold estate is life-long ownership of a land. If you own a freehold land, you own the land, the building and anything what is on the land without any time-limit. A leasehold estate is an ownership of a temporary right to hold land in which a lessee holds rights of real property by some form of title from a lessor or landlord. Malay Reserve Lands (MRL) are lands, which can only be owned and held by Malays. There are several rules of owning a MRL including: Malay owners are not allowed to rent out properties built on MRLs or the lands to non-Malays and all businesses that operate on MRLs must be owned by Malays.