Sunday, January 4, 2015

Housing is so much cheaper in Malaysia

I have a Malaysian friend, she told me her son is going to apply for a government house at RM140,000 double storey some more. She told me the rules have changed and for singles, they are able to apply for houses once they reach 21. For Singaporeans, our rules are more stringent, for singles, we need to be at least 35 before we can apply for houses. And with the same amount of money we can't even get a double storey house at all, HDB flats prices are known to be very high and even a three room flat (with two bedrooms), it is already selling at S$350,000. There are basically two types of HDB flats mainly BTO (Built to Order) or resale flats. Resale flats are more expensive because location wise, we are able to choose from a wide variety of mature estates whereas BTO are normally further away from city centre which is why prices are lower.

The Malaysian Government is on a drive to attract foreign nationals to stay in Malaysia on a long term Social Visit Pass under The Malaysia My Second Home programme.

The Participants of Malaysia My Second Home Programme are provided with various incentives to make the Foreigners stay more comfortable and enjoyable in Malaysia. For acquisition of residential properties under MM2H programme, purchase of residential unit is exempted from Foreign Investment Committee’s (FIC) approval.

Certain Banks are more actively involved with the expatriate community and the MM2H programme, and hence more willing to offer “softer” financing terms such as higher margin of finance.

The last 2 years has witnessed a spike in foreign ownership of residential properties in Malaysia. This is largely driven by the fact that Malaysia presents one of the most attractive upscale property bargains in the world. In addition, the abolishment of the Real Property Gain Tax (RPGT) has provided a further financial incentive for overseas buyers to invest widely in Malaysian property market.

In line with the Malaysian Government relaxation of the rules on foreign ownership of real estate, Lenders have become friendlier towards foreign buyers in term of their lending guidelines. Some lenders are even willing to offer Margin of Finance of up to 80% of the property.

However, the lending terms and conditions to Foreigners are still rather subjective and Banks may impose additional terms and conditions on a case to case basis.

The above information is obtained from here

I ever watched a documentary, a Singaporean married couple bought a property in Malaysia because they feel the Malaysian community is much more friendlier than their locals.

7 comments:

Filip and Kristel said...

I can only say that Malaysia is good price value. We have been in KL this year and were impressed.

Greetings,
Filip

RealGunners said...

Cannot compare like that lah, Malaysians not earning S$ salary..
But then, I'm surprised government housing has double storey, I thought it was supposed to be a thing of the past.

Libby said...

RG: No wonder there are many Singaporeans who went to buy housing in Malaysia

Libby said...

Filip: Hi Filip, I had hopped to your blog and saw your KL photos

Twilight Man said...

I am surprised you just found out this. It has been hot since 20 years ago with so many Singaporeans buying in JB.

Libby said...

RG: I had double check with my friend, yes government house do have double storey, last time don't have, now have

Libby said...

TM: Actually I already knew in the past that housing in Malaysia is so much cheaper just that I never blogged about it