Property in Malaysia can still be construed as being cheap, and choices
are still quite good, generally apartments, houses (linked, semi-detached,
bungalows) and condominiums are of good quality. Make absolutely
sure that you review the tenancy agreement if you are renting a semi
or fully furnished property to make sure everything is in order before
signing anything. If you plan to be in Malaysia in the long term
purchasing property may be a profitable option.
Renting
Renting a property usually entails the following:
- Signing a letter of offer and paying one month rent as an "Earnest
Deposit".
- Pay two months rent, as a "Security Deposit",
paying a "Utility
Deposit" (for electricity, power etc) the amount varies and
depends on the property and landlord and lastly the payment of stamp
duties and disbursements. All of which should be done within the
next 7 days.
- The Tenancy Agreement must then be signed and stamped
and a copy must be retained by both you and your landlord.
In Kuala Lumpur, besides the criteria mentioned above, your choice
of a property should also be influenced by traffic conditions. Quite
apart from the usual crawl in the city centre during rush hour, many
highways leading into and out from the city are also regularly congested.
Lately this problem has even spread to some primarily commercial
and residential areas in the suburbs.
Therefore it is prudent to find a location close to where you will
be working. If you are working in the city, the Bangsar, Bukit Tunku,
and Ampang areas are choice. Prices in Bangsar and Bukit Tunku tend
to be a little steep compared to Ampang but the dining and entertainment
facilities in Bangsar and the natural, quiet surroundings of Bukit
Tunku make up for it. Ampang is just straddling the city's commercial
/ financial centre as well as embassy row; unfortunately, all too
often it's also ground zero for the city's traffic problems. In the
city fringes locations like Sri Hartamas, Subang Jaya and Shah Alam
will be better if you're working in the more industrial parts of
the Klang Valley.
As a very rough guideline a comfortable house or apartment in the
parts of K.L which expatriates favor such as Bangsar, Sri Hartamas
and Ampang would cost roughly RM1500 to RM2000 in rental per month,
a similar property in a quiet, respectable township further from
the city centre such as Subang Jaya or USJ may cost RM1000 to RM1500,
on the highest end, properties in the very affluent suburbs of Bukit
Tunku or Bukit Damansara may go up to RM 15000 and beyond. However
as indicated previously, these are rough "ballpark" figures
and with time and a little effort you will definitely be able to
find an affordable property in an area of your choice that will meet
your personal requirements.
Rented furnished apartments (Sources: CH Williams, Talhar & Wong)
| |
Prime Urban Residential Area
in Kuala Lumpur (per month) |
Suburbs of Kuala Lumpur
(per month) |
| Houses : |
|
|
| Bungalow |
RM4,500 - 15,000 |
RM1,700 - 8,000 |
| |
US$1,184 - 3,947 |
US$447 - 2,105 |
| Semi-detached |
RM3,500 - 7,000 |
RM2,300 - 7,000 |
| |
US$921 - 1,842 |
US$605 - 1,842 |
| Terrace |
RM1,300 - 3,300 |
RM950 - 2,300 |
| |
US$342 - 868 |
US$250 - 605 |
| |
|
|
| Apartments /Condominiums : |
|
|
| 1-bedroom |
RM1,100 - 2,000 |
RM1,300 - 1,800 |
| |
US$289 - 526 |
US$342 - 474 |
| 2-bedroom |
RM1,800 - 4,500 |
RM1,900 - 2,800 |
| |
US$474 - 1,184 |
US$500 - 737 |
| 3-bedroom |
RM3,000 - 7,500 |
RM1,500 - 4,000 |
| |
US$789 - 1,974 |
US$395 - 1,053 |
Buying
Popular buying areas : High-end residential property in the affluent
Klang Valley continues to dominate the residential market. Other favoured
areas are Bandar Utama, Kota Damansara, Sunway Damansara and Mutiara
Damansara.
Price ranges : Vary as ever by quality and popularity of area but
Malaysia offers a very wide spread of pricing bands. A 20% deposit
of the house value is usually required.
Budgetary guide : Condominiums: US$ 66,000 to US$ 250,000, Bungalow:
US$ 66,000 to US$ 225,000, Two Storey Bungalow (5 to 7 bedrooms):
US$ 396,000 to $US 1.3 million, Luxury Villas: average US$ 925,000
upwards.
Overseas Investors : Foreign owners are permitted to buy up
to two houses at a cost of not less than US$ 66,000 each, which also
entitles them to a housing loan from a local bank. If selling a property
they are subject to 30% Capital Gains tax.
Service Fees : Stamp, Transfer,
Agreement and Registration Duty 1.5% to 1.75%, Loan Agreement 1.5%
to 1.75%, Estate Agents Fees 3% up to US$ 132,000 2% thereafter. Bank
loan processing fee US$ 13 US$ 53.
Mortgages : Loans of 60% of the purchase price are available to
foreigners on the proviso that the property value is RM 250,000 and
above. Current Base Lending Rate 6.8% per annum; loans are available
up to a period of 20 years.
