Do you plan to buy property in Malaysia?
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Malaysia is one of the top spots for retirees and investors alike. It’s not strange, buying a property here is fairly easy and the process comparatively transparent. You’ll also enjoy a great quality of life with costs that are surprisingly low. It’s not strange why Malaysia has been ranked as one of the best places to retire in the world.
A commonly asked question is how easy it is, or if it’s even possible, to get a local property loan as a resident or non-resident foreigner. I decided to do research on the matter and have presented the results in this guide.
Let’s have a look.
How can I obtain a property loan as a foreigner?
Malaysia has some of the most generous and favorable ownership regulations for foreigners in Southeast Asia (it’s basically the only country that allows foreigners to buy land, as I don’t count Singapore). Still, banks can be a bit restrictive handing out loans, this is mainly due to the current economic climate and the recession which hit hard after 2008.
I’ve personally been in contact with a number of big banks in Malaysia, and I can see a clear pattern: be locally employed, a permanent resident or an MM2H visa holder, and things will become remarkably easier. The same it goes in Hong Kong, where your source of income should preferably be in Hong Kong, to increase your chances of getting a loan.
If you haven’t heard about the MM2H visa before, you can find more exhaustive information by reading this interview with Andy Davison.
Simply put, the MM2H visa is a government backed visa program which allows foreigners to stay in Malaysia for up to 10 years. There are a few countries that offer similar visas in the region, a strong proof that Malaysia welcomes foreign investors.
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