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Writer's pictureGan Yin

5 Simple Steps To Buy Land in Malaysia



Property Malaysia

By Syarifah Aliaa Diyana


Buying any land in Malaysia, given the current economic circumstances, may be considered a risky decision. Yet, looking for high potential profits on your property investment and the legal space to build a home that is truly your own from scratch, is a satisfying feeling.


As a wise investor, you have to follow some guidelines which will help you to make the best deal whenever you want to buy property.


We have sorted out some essential steps to show you the best way of finding the right plot of land in Malaysia successfully, just for you.


Are you ready to explore the land of ownership in Malaysia?


1. Purpose of Land

Before buying a piece of land, the best thing you can possibly do for yourself is to question the purpose of said land.


Do you have a green thumb whereby you enjoy planting your own fruits and vegetables? Do you want to rent the land to other investors? Become a landlord by building a home or apartments?


By identifying these questions, you’ll recognize the common land choices such as Residential Land, Agriculture Land, Commercial Land, or Bungalow Land.


By reading through each land’s own unique set of rules and regulations, you can start to devise a long-term management plan.



2. Types and Location of Land

Congratulations! You have found the perfect land to start your investment; you can now begin writing down notes for your chosen purchase.


First of all, pay attention to the physical aspects of the landscape, such as the desired size.

If you are going with the green thumb route, check the fertility of the land to see if anything can be planted there. If not, do ensure the location is prime for whatever investment you are planning.


Secondly, determine whether it is a leasehold (owned for a fixed time before returning to the government) or freehold (the owner has complete control until the land is transferred to someone else).


BUT DO REMEMBER, these notes can affect the final purchasing price.


3. Buying the Land at the Perfect Price

Never compare buying land to the likes of window shopping on a Saturday afternoon at KLCC. You SHOULD never rush your decisions and salivate at the first offer.


Do not be a ghost! Visit the locations in PERSON and compare the prices.


Research and determine the average market rate of these lands, and then question yourself; do you need to change your budget to fit the plot of land?


And if you have any doubts, negotiate with the sellers by asking them questions from A-Z. If you are not satisfied with the answer, move your business elsewhere.



4. Buying the Land with the Right Finance

If you have the means to purchase your land, you go right ahead. If not, there are always ways to assist in your upcoming purchase.


In Malaysia, you have many choices to choose from in form of banks and financial centers, offering land financing.


For example with Maybank, the financing rates are very competitive with rates as low as BR + 1.75%.


Through their Fixed Rates packages with fixed rates of as low as 5.20% for the first 3 years.

Concerning any deals with brokers, you have to spend some additional amount for the broker fees.


PLEASE TAKE NOTE; while you ask your preferred bank on these inquiries, each bank will have different terms and conditions on such matters.




5. Important Documents for Land Ownership

The most important document to remember when purchasing property in Malaysia is the Issue Document of Title / Land Title, which shows the actual owner of land according to the law.


As you finalize the agreement between you and the seller, proceed to purchase and INFORM the Malaysian Land Registry. As the new owner, you will be heavily penalized for failure to do so,


This purchase should also include the identification cards of both buyer and seller, as well as the paid stamp duty


And if you play your cards right, this investment can be completed within one day!

Buying a plot of land for your future in Malaysia




FAQ


How I Find An Owner Land?

You can ask or go to a property agent to identify your landowner or the property developers. A property agent or real estate agent can help you settle agreements and documents as well.


Can Foreigners Buy Land In Malaysia?

Yes, foreigners can buy any property in Malaysia, and they can make any property purchase including property land.


How To Buy Property In Malaysia?

The first step is to familiarise yourself with the Malaysian property market. It is advisable to check the property prices to make sure it suits your budget. If you want to purchase property in Malaysia, you have to hire a real estate lawyer to assist with any transaction costs.


What Is Commercial Properties?

Commercial property is real estate that is used for business activities, which refers to buildings that house businesses.






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