Are you ready to take your first steps towards land ownership in Malaysia and gain the rewards, such as significant potential returns on your investment and the legal freedom to build your own home? (Check out Industrial Land For Sale)
Step 1: For what am I purchasing land?
You may have a strong ‘Malaysia Boleh!’ spirit, but that doesn’t mean you should shout “Boleh!” to every deal involving the acquisition of land.
Before you buy a piece of property, the best thing you can do for yourself is to consider what you want to accomplish with it. Are you planning on using it for agriculture or renting it out? Are you going to build a house or a few apartments on the property to sell later?
This aim will not only assist you in developing a long-term management plan for a piece of property, but it will also assist you in determining the type of land you should be purchasing. Residential land, agriculture land, commercial land, and industrial land for sale are all popular options.
Each type of land is governed by its own set of rules, which is why the permissions required to utilise agricultural land for agricultural purposes varies significantly from those required to create properties on development land. The sooner you decide which investment category you want to go into, the better!
Step 2: What kind of property do I want?
You can start emphasising the main elements of your desired acquisition now that you know why you want a piece of land and what category you’re looking for.
The physical characteristics of the terrain, such as the specific amount of the land you’re looking for in hectares, acres, or square feet, the suitability and fertility of the land if it’s intended for agricultural uses, and the exact location of the land are all factors to consider.
You should also think about whether you require leasehold or freehold land. The former can only be owned for a certain time — typically 99 years — before being restored to the government, whilst the latter allows you complete ownership of the land until the title is officially passed to someone else.
Keep in mind that all of these considerations will have an impact on the final price you pay for the land. For example, a plot of land in the heart of Kuala Lumpur may easily cost RM2000 per square foot, yet a similar plot of land in Bentong could cost as little as RM7 per square foot.
Step 3: How can I get the best deal on land?
Always keep in mind that buying land isn’t the same as shopping during the Malaysia Mega Sale, which means you shouldn’t rush in and take the first offer you come across.
After you’ve finished Step 2, take a look around and consider your options. Visit other pieces of land and take note of their rates — especially on a per-square-foot basis — so you can figure out what the average market rate is and whether your budget needs to be adjusted. Also, don’t be afraid to haggle with dealers.
At this time, enlisting the assistance of a real estate or property agent is often a common choice. In exchange for a commission or charge of up to 3% of the land’s sale price, these agents can assist you in finding pieces of land that meet your demands and negotiating transactions with sellers.
Step 4: How will I pay for my land purchase?
You’re unable to come up with the exact quantity of money required to purchase the land you’ve chosen? Don’t worry — or, as the Malaysians say, “Chill la bro.”
This is when you should think about getting land financing loans to help you with your prospective acquisition. Land financing is available from a number of Malaysian banks and financial entities. Loanstreet would gladly compare them for you so that you can pick the one that best meets your needs and budget.
The extent of these loans is defined by the institution’s margin of financing (MOF), or the proportion of a land’s purchase price that can be borrowed. If you’re buying an RM300,000 piece of land and Bank X’s MOF is 70%, you can borrow up to RM210,000.
Consider: Some say you can use your EPF to buy land before you retire. Unfortunately, this is not the case. Your EPF can be used to buy a house or even build one, however land purchases with this fund’s money are absolutely prohibited.
Step 5: What documents do I require in order to purchase land?
Naturally, when landing a large deal involving the acquisition of land (yeah, that pun was intended), documentation will be required to ensure that the contract is official and that all parties involved have consented to it.
The Issue Document of Title is the most crucial document in transactions involving property plots since it specifies who the true owner of the land is and what rights he or she has under Malaysian law. The Land Title is another name for it.
Once you and your seller have reached an agreement and the transaction is finalised, you must notify the Malaysian Land Registry that a transfer of ownership has occurred and that the Land Title should be changed. This should include copies of your and the seller’s IDs and a Stamp Duty receipt. If all of the required documents are on hand, the registration process can be completed in one day.
Here’s a fascinating fact: You don’t always need a lawyer to make a land transaction go smoothly.
Conveyancing lawyers will guarantee that all aspects of the purchase are legal, preventing potential legal issues.
Anyway, that’s all there is to it! A brief tutorial on the land-buying procedure in Malaysia that can be utilised to learn more.
Just keep in mind that purchasing a piece of property, no matter how modest, is a significant financial investment. This is why, before making any decisions, you should always conduct extensive research. I hope this article helps you before make your purchase. Don’t forget to your friends/ colleagues who might interested on this topic. Thanks for reading !
Explore more interesting articles at The Trust Blog
Learn more: Industrial Land For Sale
