5 Simple Steps to Buy Land in Malaysia
Buying any land in Malaysia, given the current economic circumstances, may be considered as a risky decision. Yet, looking for high potential profits on your 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 land.
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.
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 recognise 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 to 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 forms of banks and financial centres, in 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 buying land 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 penalised in 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!