One of the first things I have observed when I touched down in Malaysia is the high cost of rent. It drained my savings because apparently, the norm would be to pay 2 months deposit + 1 month advance + 1/2 utilities deposit. And usually rent for small rooms range from RM 500 – RM 700 (just imagine if you do the Math). All of these made me wonder “what if I procure a property – a condo perhaps – and leverage rents for arbitrage?” Besides, the real market bubble is still intact within Malaysia as lots and lots of condominiums are sprouting on every view you lay your eyes on, especially in Kuala Lumpur. So I researched on the Internet and even attended Malaysia Property Expo 2016 in Midvalley just to confirm the authenticity of the information I collected. Here are my findings on this matter to satisfy my curiousity.
I asked one of the idle sales agent on the Property Expo event – “Excuse me, I’m a foreigner. Is it possible for me/us to invest in real estate in Selangor especially on condominiums?”
He said “Yes it is possible. However the Federal State of Selangor set the minimum price of RM 2 million for foreigners to purchase properties like freehold or leasehold. Kuala Lumpur, on the other hand, has a cap around RM 1 million” with a smile.
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