Costs of buying a property in Malaysia

When buying property in Malaysia as a foreigner, there are several costs and considerations to keep in mind. Firstly, the type of property and its location will significantly influence the price. For instance, properties in Kuala Lumpur, the capital city, are generally pricier compared to other areas.

The total transaction costs for purchasing a property in Malaysia are relatively lower compared to many other countries. These include:

• Stamp Duty: Ranges from 1% to 3% of the property price.
• Lawyer Fees: Typically between 0.4% and 1% of the property price.
• Other Administrative Fees: Around 180 MYR (approximately 49 USD).
• Real Estate Agent’s Fees: Usually paid by the seller, these fees range from 2% to 2.75%.

It's important to note that property prices vary greatly depending on the city and the type of property. For example, prices per square foot in city centers like Kuala Lumpur, George Town, and Johor Bahru differ significantly from those outside city centers.

Additionally, foreigners are limited to owning a certain number of properties and types of properties. For example, there are limits on owning terraced houses, land, bungalows, or semi-detached houses, which can't exceed 10% of units built in their type. Condominiums are a more common option for foreigners, with restrictions on the percentage of foreign ownership in a block.

To ensure a smooth process, it's advisable to engage a real estate lawyer or agent who is familiar with the local property market and regulations applicable to foreigners