Property In Kuala Lumpur

Kuala Lumpur Property Market

Malaysia offers a real estate investment opportunity in one of the fastest growing economies in the world. We believe the following factors make Malaysian real estate an exceptional opportunity.

Malaysia's strong political stability and stable economy encourages a more than favourable climate for investors locally and from overseas. A high literacy rate and widely spoken English makes the country a preferred choice. Its GDP is expected to grow around 6% per annum in 2007.
The likely appreciation of the Ringgit: The Malaysian currency is the third most undervalued currency in the world and is 51% undervalued relative to the US Dollar, according to the latest "Big Mac Index" published by 'The Economist'. The Ringgit is widely expected to strengthen as government controls are gradually eased.
Recent abolishment of property gains taxes: Property gains taxes have been abolished from 1st of April 2007.
Liberal investment rules relative to other emerging markets: Malaysia has amongst the most liberal property-ownership regulations for foreigners in Asia, with the process of liberalisation continuing.
High development margins: Development margins are strong due to the increasing real estate requirements of a rapidly growing and increasingly-wealthy population.
Growing competition between banks driving down lending margins: Decreasing lending margins have a favourable impact on real estate valuations Increasing international interest in Malaysian real estate, particularly from the Middle East.
Malaysia is the only country in South-East Asia which offers both conventional and Islamic financing.


12 Points to look at before investing in Kuala Lumpur

To buy a property completed or under construction by a developer?
Are you purchasing the property for investment or for staying?
What sort of budget?
Location near KLCC or out of KL Central?
Leasehold or Freehold property?
• Freehold Land - Held in perpetuity. Most inner city lands are freehold.
• Leasehold Land - 99 years or 60 years in most cases of lands alienated from the Government prior to development.
What type of property – condo/bungalow/semi-D?
How many rooms/baths/land area/built up/furnished/partly?
What level of tight security?
Near schools, amenities, shopping malls and public transport?
Do you plan on purchasing the property in cash or mortgage? How many years for repayment? Best loan package?
What will be the legal fees and professional fee/stamp duties before acquiring the property?
Upon signing Sales & Purchase Agreement (SPA) with minimum 10% deposit the balance sale is to be completed within 6 months [+/-] with the relevant consent and approval from the relevant authorities then the balance purchase sum to be paid to the owner. If you are taking a mortgage loan then once state/developer’s consent has been obtained the bank will release 70% of the loan and you will have to top up the differential sum. This will be handled by the appointed lawyers/banks.

Buying & Selling Property In Kuala Lumpur

Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.
There are two choices:
Purchaser finds his own banker.
His lawyer can submit to his panel of bankers.
The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:
Purchaser’s & Vendor’s identity card or passport if foreigner.
A copy of the previous S&P from the Vendor
A copy of the title (if any)
Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.
Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.
The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.
As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.

Which areas offer the best long term prospects for capital appreciation?
Kuala Lumpur City Centre (KLCC), Ampang, Bangsar, Brickfields, and Mont Kiara (near the international schools) are all expat areas which have good appreciation and demand.