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Purchase Process in Malaysia

Below is the standard purchase process in Malaysia and issues that may affect that purchase:

• Once you have selected your property, a 'Letter of Offer and Acceptance' is signed and a 3% deposit payment is normally expected from the purchaser.
• Within 14 days, the buyer must pay a further 7%.
• From the date of the signing, the buyer normally has a maximum of three months to complete the sale and make full payment.
• Upon signature, the Sale and Purchase Agreement must be stamped at the Stamp Office. After examination of the property by the valuation department, stamp duty must be paid to the Stamp Office. The Sale and Purchase Agreement is then sent to the land registry along with the Memorandum of Transfer form 14A to transfer the title deeds into your name.

Costs of a standard property purchase in Malaysia include the following:

• The stamp duty payable for transfer of real property is 1% to 3% of the market value of the property.
• If a buyer uses an estate agent to help them find property for sale in Malaysia they may be liable to pay agency fees of up to 3% of the property's underlying purchase price.
• Rental income derived from properties situated in Malaysia is subject to income tax, and may be taxed as business income or investment income. Depending on the circumstances of each case, earnings in excess of $1,500 a month are liable for a 25.1% tax, with rental income under this amount subject to a 22.4% tax.
• Lawyer/solicitor fees are between 1% and 3%.
• A further measure taken by the government was the abolition of capital gains tax on property, from April 1st 2007.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.