Buying Johor Properties, Malaysia Iskandar Properties in Johor Bahru
Nowadays, many foreign investors are looking into buy Johor properties and invest in Malaysia Iskandar properties in Johor Bahru.
With property prices rising in many countries, more foreigner especially Singaporean has begun looking to Malaysia for investment or to buy their second homes. The weakening Malaysian Ringgit, the lure of owning land property and familiarity with the country are the reasons, Singaporean cites for looking north.
The Iskandar Malaysia is set to become Southern Peninsular Malaysia’s most developed region, where living, entertainment, environment and business seamlessly converge within a bustling and vibrant metropolis. Iskandar Malaysia was designated as a special economic zone in Johor in 2006. Besides upmarket housing, plans are in the pipeline to build universities, top-notch medical facilities and theme parks.
Apart from Kota Iskandar, Legoland and Puteri Habour Family Theme Park, nestled within Nusajaya are Educity a spacious campus housing some leading schools and tertiary institutions, including Newcastle, Reading and Southampton universities, Singapore’s Raffles University, Marlborough College, Afiat Healthpark, Medini central business district, Puteri Harbour and Southern Industrial and Logistics Clusters (SiLC).
Iskandar Johor is populated with a multi-lingual (including English) and educated workforce, providing skilled people ranging from the services, technical to the professional sectors. Investors and business operators venturing into Iskandar Johor are able to take advantage of the competitive cost structures of doing business here. Many foreigners are attracted to the residential cities such as Nusajaya, where big houses and a quality lifestyle. Half of the residents in Nusajaya are made up by expatriates and of the foreigners, 80 percent is Singaporean.
WHAT BUYERS NEED TO KNOW
Q: What is MM2H programme?
Malaysia My Second Home Programme (MM2H) is promoted by the Government of Malaysia to allow foreigners who fulfil certain criteria, to stay in Malaysia for as long as possible on a multiple-entry social visit pass. The Social Visit Pass is initially for a period of ten (10) years, and is renewable. Foreigners married to Malaysians are not eligible and are required to obtain a spouse permit. Read more …
Q: How can a buyer get financing?
Buyer will be referred to a banker through property agents, sales executives working for the developer, lawyers, or via walk-ins at bank branches.
Q: What is the rate for a home loan?
Rates range from 4 per cent to 6 per cent per annum.
Q: What loan-to-value (LTV) ratio can buyers get?
For foreigners, most financial institutions grant loans of 70 per cent to 80 per cent of the purchase price.
Q: What is the minimum purchase amount?
That depends on the state. It ranges from RM500,000 (S$210,000) to RM1 million.
Q: how much is the stamp duty?
Stamp duty from starting from 1 per cent to 3 per cent for purchases applicable to both local and foreigner
Q: What other fees are there?
There is a tax of 5 per cent if Foreigner sells the house after holding it for less than five years. The tax is 10 per cent if the house is sold within two years.
Buyers also have to pay property tax. This is generally 6 percent of the annual rental value of residential properties and payable in two instalments.
Property experts say that buyers of property in the Iskandar Malaysia project should see their purchases as long-term investments and not expected to realize its potential within the next 5 to 10 years.