Real Estate Investment Environment in Malaysia

For international investors looking for real property in Southeast Asia, Malaysia can be an exciting destination. Investment environment in real estate market in Malaysia is very encouraging for expatriate investors as well as for local buyers. Some mind-popping facts about real estate state in this peace-loving country will follow.

The multi-ethnic population in Malaysia gets on admirably. About 50 percent real properties here are owned by non-Malays, that is, other ethnic groups and foreigners own half of Malaysia. International investors are attracted to Malaysia by its sunny climate, developed infrastructure, lack of natural disasters, the prospect of a very nice lifestyle, its low cost of living and attractive tourist destinations.

Malaysia's political stability and its fast-developing economy support a more than favorable atmosphere for local and overseas investors. A high literacy rate and widely spoken English makes the country a favored choice. Its GDP grows around 6% per annum. Malaysia’s nice beaches, hill resorts, rich forest diversity, good food and shopping heavens make this country a real attraction as well.

The government in Malaysian is also trying to attract more foreigners to the country by offering federal incentives and programs like Malaysia My Second Home. The Malaysia My Second Home program is designed to assist foreigners relocate to the country. More than 10,000 applicants have already relocated since the program commenced in 2002, according to its website. Approved applicants receive a 10-year visa (renewable), the right to one tax-free car and no taxation on their offshore income.

Malaysia has the advantages of a free market economy, land ownership registration based on Australia’s Torrens system, and courts based on English common law. The investment procedure in Malaysian real estate is very easy. Today any foreigner investing in property worth more than RM250, 000 does not require the approval of the Foreign Investment Committee. There’s no real property gains tax for investors in Malaysia as it was before.

Many second homers hunt for an exotic overseas home in the sun and find Malaysia the dream-come-true land. The stunning island of Penang or the resort town Port Dickson provide good real property investment opportunity with their sound short term rental rates and yearly proceeds. The capital city Kualalmpur is also very popular to expatriates in Malaysia.