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            What You Should Know About Buying a Residential Property in Malaysia
            31/07/2015
            7 things I’ve learned in the real estate business
            04/08/2015
            Published by Property Empire on 02/08/2015
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            A new set of property buying rules that affect foreigners, permanent residents (PR) and foreign companies was recently established in the state of Selangor.

            Before 
            Jan 1, 2014
            After 
            Jan 1, 2014
            Effective
            Sept 1, 2014
             Residential Properties
            Zone 1 and Zone 2
              RM 500,000  RM 1,000,000  RM 2,000,000
             Zone 3 (limited to strata and
            landed strata only)
              RM 500,000  RM 1,000,000  RM 1,000,000
             Commercial
            Zone 1 and Zone2
              RM 500,000  RM 1,000,000  RM 3,000,000
             Industrial / Manufacturing
            Zone 1, Zone 2 and Zone 3
             RM 500,000  RM 1,000,000 RM 3,000,000

            Source : The Star Online

            The new rules restrict this market segment from purchasing all types of properties costing less than RM2 mil. This change came in effect on September 1, 2014.Previously set to RM1 mil, the minimum price is based on zones in districts affected by this policy.Foreigners, PRs and foreign companies can now only buy residential properties that are priced at a minimum of RM2 mil for Zone 1 and Zone 2.A minimum of Rm1 mil is required for purchases in Zone 3.Zone 1 consists of Petaling, Gombak, Hulu Langat, Sepang and Klang districts. Zone 2 consists of Kuala Selangor and Kuala Langat. Zone 3 consists of Hulu Selangor and Sabak Bernam.

            Furthermore, only strata and landed strata properties can be bought by foreigners, PRs and foreign companies, in addition to the increased minimum price threshold.

            Buyers from the affected group can also buy property from the commercial and industrial sub-segments; however, only properties above RM3 mil and above are purchasable in all the three zones.

            Properties set aside for bumiputras are not allowed to be purchased while not more than 10% of non-bumiputra units can be bought. In addition, agricultural land, Malay reserve land, non-strata landed residential and auction properties are also off the table for purchase by foreigners, PRs and foreign companies.

            Participants of the Malaysia: My Second Home programme are also to follow this policy.

            The rule states that they are to buy directly from the developers and not from the secondary market and only one family per residential unit is allowed.

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