I still remember the day when I decided to get involved in real estate investing in Malaysia. That was one of the defining moments of my life. I remember the early days when I was a new real estate investor and I have no idea what I was doing. Over the years, I have acquired a considerable amount of knowledge in the area of buying and selling a house in Malaysia. These are some of the important factors that a person should know before buying a house in Malaysia.
After my years of investing in property in Malaysia, I came to understand that there are different types of real estate market. The different types of real estate market would have their individual rules and regulations. For a real estate investor, it is good to know what can be done and what is prohibited so as not to get into trouble.
There are basically three types of real estate markets in Malaysia. One is the open market, which means that the property can be sold to anyone. This real estate market covers all residential and commercial properties in Malaysia. The second is the restricted market, which means that the property can only be sold to certain people, that is, land reserved for Malays that will be sold only to Malays; customary land for the skilled, as in the case of “adat perpatih” in Negri Sembilan; landing in Kelantan only to Kelantanese. The third market is the controlled market where property is controlled by law, for example, controlled rental property. In this type of market, the rent is fixed by law and the landlord cannot demand a higher rent from his tenant.
The above three types of real estate market are unique to Malaysia. For a real estate investor, it is important to know what type of property it is when doing your appraisal. Due diligence is an important step for a person to take when investing in property in Malaysia.