Foreigners wanting to own homes in the country may find the acquisition process confusing.
Not only are the criteria different for different applicants, they also differ from state to state.
What makes it more complicated is that some states don’t even have comprehensive guidelines.
On top of that, changes to criteria are usually not communicated to the public, causing uncertainty and more problems.
A case in point: The foreigner who signed a Sale and Purchase Agreement for a RM300,000 condominium in Bukit Pelinding, Kuantan in December 2006.
Sometimes this year, when it was time to drawdown the loan amount, it was discovered that the Pahang Land and Mines Office had increased the minimum price for property purchase by foreigners from RM250,000 to RM750,000 in late 2008.
According to real estate consultant, if the government want to achieve its vision to attract RM10 billion worth worth of property investments in Malaysia over a period of five years, the various states should ensure that they have easily accessible guidelines and policies on purchases by foreigners.
Check with the Real Estate and Housing Developers’ Association branch secretariats of Perak, Penang and Kelantan reveal there are no clear guidelines on this matter.
Even conveyancing lawyers admitted the lacunae although one Perak lawyers surmised that no such guidelines exist because very few foreigners are interested in properties there.
However, it is noted that Perak and Penang follow the federal limits, currently at RM250,000.
Additionally, foreigners who buy properties in certain states are not allowed to sell them within holding period. For example, foreign owners in Penang cannot sell within three years.
States that have comprehensive guidelines Johor and Malacca while Selangor’s guidelines are fairly simple to follow.
For personalised property investment sourcing opportunities in Malaysia, please visit http://www.malaysiapropertyinc.my
