What is the process of buying a house in Malaysia?

The process begins with booking a unit and paying a nominal deposit, followed by issuing a Letter of Offer. A Sales & Purchase Agreement (SPA) is then signed, with total down payment usually totalling 10%. Legal, valuation and loan processing fees apply, and official transfer of ownership typically completes within 3–6 months.

What is freehold property?

Freehold property grants permanent ownership of the land and building with no expiry, whereas leasehold is limited (usually 30–99 years). Freehold properties retain stronger resale value over the long term.

Which states in Malaysia are popular for property investment?

Highly sought-after states include Kuala Lumpur and Selangor for urban condos, Penang for seaside living, Johor Bahru due to its proximity to Singapore, and Sabah/Sarawak for emerging affordability and tourism-linked growth.

Which types of property offer the best returns?

High-rise condos in central locations offer steady rental yields, while landed residential or suburban developments—especially in growth corridors—may deliver better capital gains.

What features should a real estate website include?

Effective real estate websites include detailed search filters, neighbourhood profiles, mortgage calculators, agent listings, FAQs, legal guidance, property comparisons and easy contact or booking options.

How do foreigners purchase property in Malaysia?

Foreigners must meet state minimum thresholds (usually RM 1–2 million), avoid Malay-reserved lands, obtain state consent under Section 433B (process takes 1–3 months), and often provide at least 10% deposit. Some may be eligible for MM2H with slightly lower thresholds.

What should I do when renting a house in Malaysia?

Start with property inspection, negotiate rent and deposit, sign a written tenancy agreement specifying terms (duration, utilities, maintenance, pets, termination), and obtain official receipts.

How much deposit is typically required when renting?

Tenants usually pay a deposit equivalent to 1–2 months’ rent. Some contracts include additional non-refundable admin or agency fees. Tenants should request written receipts for all payments.

What terms are standard in a tenancy agreement?

A standard tenancy agreement outlines rent schedule and mode of payment, deposit conditions, lease duration, maintenance responsibilities, utility billing, subletting rules, termination clauses, and pet policies.

How do payment terms differ between residential and commercial leases?

Residential leases usually require first month’s rent plus one or two months’ deposit, paid monthly. Commercial leases often demand months of advance rent, higher security deposits, CAM charges, and longer fixed-term contracts.

August 2025

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