Kuala Lumpur (KL), the capital city of Malaysia is quickly and quietly turning into an attractive city for property investors from around the world. The main reason for this is the Iskandar project (Special Economic Development Zone) and the fast-growing local economy. We have overlooked it for some reason compared to neighboring Thailand and Singapore. The city offers a unique experience of a mix of Asian and Western cultures. That’s the reason expats too fall in love with the city.
Real Estate in KL
In recent years, Kuala Lumpur has become popular among property investors due to its existing infrastructure and a plethora of huge developmental plans to bolster the city’s economy. The biggest attraction is the construction of High-Speed Rail (HSR) linking KL to Singapore in just 90 minutes and an exclusive financial district, Tun Razak Exchange. Furthermore, the fact that Malaysia is literally the only country in Asia that permits foreigners to own land, makes it even more a favorable place for real estate investments.
Factors to consider when you buy property in KL
There are some important points to consider before making a final decision of buying a property in KL –
- Select a strategic location –
Choose a popular area in KL like KLCC, Bukit Bintang, KL Tower or KL Sentral. Observe if the population in the area is on the rise, as a rising population is directly proportional to property prices. The more the population, the more developed in the area. In addition, the area should be easily accessible to transport networks.
- Find a Property –
You can find a property through an agent. Their fees range between 2 to 3% of the purchase price of the property. It will be for your own safeguard to you employ the services of an agent who is registered with The Malaysian Institute of Estate Agents. The “Malaysia My Second Home” MM2H Retirement Visa website has a list of registered agents who deal with foreign investors.
You can also look online for property for sale in Kuala Lumpur on reliable websites
that show you properties area-wise and type-wise (condominium, landed property and so on) and upcoming projects separately.
- Type of property to buy –
Decide whether to buy a landed property or an apartment or condominium. If you are a new buyer, buying a landed property would be convenient to get your loan sanctioned faster, as you will get an individual title.
- To go for an under-construction or completed project?
Both have their own advantages. An under-construction project comes with freebies in the form of free stamp duty and legal fees. It reduces transaction costs. If you choose a completed or resale property, you can see the ready property with its layout, other residents, nearby facilities and more, before deciding to go ahead with the property.
- Which Developer to go with?
Search for Property Developers who have a good track record of fulfilling their commitments, delivering on time and maintaining good quality.
- Is there a minimum purchase price?
If you are a foreign investor, you have to buy a property which costs a minimum of RM1 million. In Selangor and Penang island, the minimum is RM2 million. In Penang mainland, it’s again RM1 million.
- Go for a property based on your finances –
Buying a home is a huge financial commitment. You should consider all aspects, including monthly loan installments and repayment schedules. It is better to go for principal approval from the bank beforehand.
- Going for a Bank Loan?
Malaysian banks give MYR loans for buying Malaysian properties. They are quoted as a percentage below the Base Rate. Another factor to consider if you are a foreign investor and if you believe that the MYR will continue to weaken against your national currency, you can take advantage of the currency exchange rate.
When it comes to buying a property, proper research is very vital. You have to take all the aspects into consideration. Kuala Lumpur is undoubtedly a destination worth settling down. After all, it’s ranked 5th on the World’s Top 10 Retirement Havens as per the retirement index generated by International Living.