Minimum requirement for the property value?
A minimum value of
RM1 mil RM600,000 (for year 2020) is applied to all kinds of property in every state. However, state authorities remain in power to amend the minimum value in the states that they control.
** To know the latest requirements and guidelines to apply, read “Malaysia My Second Home (MM2H): The Latest Requirements & Guidelines To Apply”.
How can foreigners buy at a lower price?
Malaysia My Second Home (MM2H) is a programme tailored to foreigners who wish to stay in Malaysia for a long time (10-year visa). A large number of foreigners who used to work in Malaysia have already applied for this programme for their retirement in Malaysia.
Before putting in an application, foreigners below 50 years of age are required to prepare a minimum of RM500,000 in their Savings Account / Current Account / Fixed Deposit whereas those aged above 50 years of age need to have at least RM350,000 in similar accounts.
Despite the relatively high requirement, one clear advantage is that MM2H gives foreigners access to the property with a lower value. The table below, taken from iProperty, shows the lowest value of property foreigners can buy with/without MM2H:
*Zones in Selangor
Zone 1 – Districts of Petaling, Gombak, Hulu Langat, Sepang and Klang
Zone 2 – Districts of Kuala Selangor & Kuala Langat,
Zone 3 – Districts of Hulu Selangor and Sabak Bernam
Financing with a home loan
The Margin of Finance (MOF) can go up to 80% for MM2H holders, while non-MM2H holders would generally get 70% MOF. In this matter, foreigners are usually better off taking loans from foreign banks in Malaysia. However, all these come with an exception when they are married to a Malaysian citizen. In this case, the spouse will be required to take part in loan financing to enjoy MOF as high as 90%.
Click the link to find a suitable home loan that meets your requirements in Malaysia.