Individual Investor Opportunities
Property Ownership
Off-the-Plan
A common type of property investment where investors purchase assets at launch price directly from the developer. Investors can enjoy the benefits of possible capital appreciation between the period of construction to completion (approximately 3 years for residential projects).
Completed Projects
The majority of residential property transactions in Malaysia are made up of secondary sales i.e. sale or transfer of completed projects. Under this category, investors purchase through certified real estate agents at the market's asking price.
Buy-to-Rent Property
Condominiums are the favoured type of properties to rent out. It is common practice to sign 2-year tenancy agreement contracts for residential property. For commercial property, a 3-year contract is practiced. Investors who have the intention of renting out their property should consider the following:
• Locations that offer better returns
• Property that comes with good property management services
OWNERSHIP TITLES
Freehold
Freehold property belongs to the owner in perpetuity. Transfer of interest in the property can proceed without any restrictions or approvals from the government.
Leasehold
Land leased by the government for a specific term, most commonly in the duration of 33 years or 99 years. The land will automatically return to the State Authority upon the expiry of the leasehold term. Transfer of interest to another party may require state authority approval.
Landed
Issued for properties built on individual plots of land that is sub-divided horizontally.
Strata
A form of ownership commonly found within residential and commercial multi-storey buildings, as well as landed properties within a gated community. Strata title properties comprise individual lots owned by individual owners and common property which is defined as everything else on the parcel of land such as the common stairwell, driveways, roof, etc.
Malay Reserve Land
Article 89 of the Malaysian Constitution states that a person of the Malay ethnicity may own land or possess an interest in a Malay Reservation Area. A Malay Holding includes any alienated land within a Malay Reservation Area which has been duly declared and gazetted as a registered interest of a Malay citizen, a proprietor or co-proprietor. Once land is gazetted as a Malay Reservation Area, it can only be sold, leased or otherwise disposed of only to Malay individuals or corporations. |
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