If you are relocating to Malaysia for an unforeseeable amount of time, you should consider buying instead of renting. Renting is the cheaper and more sensible solution for short stays and temporary work visits, but for long term/permanent relocations, it is both more profitable and convenient to buy. Taking a closer look at both situations should help in explaining these seemingly simplistic conclusions.
When and Why Renting is the Better Option
In the short term, renting is a more convenient way to own property in Malaysia because:
- It is cheaper
- A rented property can be left behind with short notice
- Foreigners do not have to worry about selling the property before or after they go back
- Foreigners do not need to apply for permits before renting a property
Therefore, renting is the way to go for anyone working short term in Malaysia.
Buying is the Better Option for Expatriates and Long-Term Workers
However, rent adds up and, after a few years, the tenant will have paid much more in rent money, than it would have cost them to buy the same property outright. On top of that, foreigners are always charged more rent than locals, and sometimes quite significantly so. Therefore, expatriates and long-term foreign workers really do have a lot more to gain by buying real estate in Malaysia.
Other than that, there is also the question of convenience, especially if you have a family, or plan to start one soon. It is difficult for children to grow up in a piece of rented property, and parents will find it difficult to get the permissions for making all modifications that they might need to make for their children.
Condominiums: Best Option for Most Foreigners Looking to Buy
Condominiums in Malaysia pretty much mean the same thing as they do everywhere else, which is to say that they are apartments. Condos for expatriates and foreign workers are generally located in a residential complex with a gated community. Most of them comprise of several apartment buildings, playgrounds, recreation rooms, parking facilities, swimming pools and more.
Despite there being differences between the state laws, all Malaysian states are quite open to providing foreigners with all the permissions they need for buying non-restricted properties within condominiums. They are all apartments of course, but potential buyers can choose between:
Studio Apartments – A single, large room which simultaneously acts as the apartment’s kitchen, living room and bedroom. Only the bathroom will have a separate partition. They are not ideal for families of course, and given the higher price tags which non-residential foreigners have to bear, studio apartments are not cost-effective properties.
Penthouse – A luxurious, multibedroom condo on top of an apartment building, complete with a high ceiling. The concept is quite similar to what a penthouse means in any luxurious hotel.
Duplex – Two entire consecutive floors of the apartment building which is part of a duplex condo. The staircase between the two floors almost makes these luxurious apartments feel like a two-story house.
Townhouse – The most unique housing option available to foreigners in Malaysia is what they call a townhouse. Two to four separate houses are stacked on top of each other to form a single wide building, which is known as a townhouse. Some of them are split in the middle for separate ownership and access routes.
Where are the Best Condos Located?
A large majority of foreigners stay in Kuala Lumpur for work, which is why the biggest and the best condominium complexes are also located in the capital itself. For example, the Bukit OUG Condominium Complex is one of the city’s most prospective investments for foreigners.
Anyone eligible and willing to buy can book a Bukit OUG Condo online from PropertyGuru. Along with the usual list of facilities, the place on Jalan Klang Lama Road has its own Mini-Mart and a café too. PropertyGuru also has several other luxurious condos and townhouses listed on the site for sale, all located in key sections of major Malaysian cities.
What Type of Properties for Sale are Not Available to Foreigners in Malaysia?
Foreigners need permission from the state government to own Malaysian property unless they already have resident status. Expatriates with resident status can go ahead and negotiate a real estate deal in the same way as any local, barring the restricted properties. However, it should be noted that the laws of land ownership differ quite a bit from state to state in Malaysia, given that the country has a federal structure.
As for the restricted properties, they cannot be obtained by any foreigner. They cannot buy or invest in real estate which have been marked as:
- Malay reserved land properties
- Properties reserved for and allocated to Bumiputera groups
- Low-cost housing and/or medium-cost housing developments by the state
Aside from buying, foreigners can also rent condos inside the gated communities. However, it will be more difficult than buying if they do not have resident status yet. Also, foreigners are charged more by default, as mentioned already.