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Buying a property in Malaysia: How to avoid scams?

Buying a property in Malaysia: How to avoid scams?

Old Jun 8th 2021, 3:44 am
  #16  
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Default Re: Buying a property in Malaysia: How to avoid scams?

An agent can do the work if the seller is absent or doesn't have the time, etc.
Which when it comes to second hand property very often is the case.
For me, coming in from overseas it was very good, I had a professional agent who took me around toquite anumber of properties so I am quite happy.
And I guess also the seller was satisfied. This agent even publishes videos of his objects on Youtube.
And as mentioned, they got recommended by my MM2H agent, who also recommended the solicitor.
Anyway, it is not mandatory and like going at it yourself, it could of course also be a risk.
One thing I find irritating here in MY is that so many small wheelers & dealers claim to be agents.

Regarding minefields, I would prefer a stranger (who shows he is familiar with the issue) to lead me through instead of trying this on my own :-)
There are thousands of properties sold and purchased every year here so the procedures are quite proven. But as you say, one is recommended to do ones own research.
There are risks with just about anything, one just has to find ones point of risk/reward balance and act thereafter. :-)
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Old Jun 9th 2021, 11:37 am
  #17  
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Default Re: Buying a property in Malaysia: How to avoid scams?

For the "normal" property buyer who is not set for a special unit/house it is very easy and safe to just buy a new property from a developer with a good reputation (like Sunway).

As far as I remember, I did not pay anything except a small booking fee before the SPA was signed.
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Old Jun 10th 2021, 3:00 am
  #18  
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Default Re: Buying a property in Malaysia: How to avoid scams?

Originally Posted by eCdD View Post
For the "normal" property buyer who is not set for a special unit/house it is very easy and safe to just buy a new property from a developer with a good reputation.
A developer might be reputable until he defaults on payments for the lease of the land owned by the landowner, or defaults to complete the project.

Indeed, it is a less costly and a much faster process to buy a finished unit from a developer than dealing with sub-sale unit. However, there is a big risk that your developer may get into a legal battle with the landowner and because of this the Master Title can not be partitioned and you may never get a title on your property. Also, home owners might be harmed by the judgement your developer will receive.

This is what happened with Sabah Beach Villas in Kota Kinabalu.

If it is a pre-construction property it is a risky investment because it may never be completed and you loose all your money. This is why pre-construction properties are usually much cheaper than already finished units. There are many other cons for buying a pre-construction property.
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Old Jun 10th 2021, 3:09 am
  #19  
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Default Re: Buying a property in Malaysia: How to avoid scams?

The best way to protect yourself is to hire an attorney from a big firm on the condition that SPA will be drafted for you at the time you already negotiated on the price for a property. If you don't see that this agreement protects all your money in this transaction, you walk away from this attorney and don'y pay for this draft.

But you must educate yourself on all the possibilities when you can be screwed. Basically, the transaction should be like in a grocery store: you get your item as soon as you pay the money. Do not release any money to the Seller until you get the transfer of the Title and the keys to the property.

In some cases, you may get the Transfer, but the owners are not moving out. This is a problem for you, not much for them.
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Old Jun 11th 2021, 4:07 am
  #20  
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Default Re: Buying a property in Malaysia: How to avoid scams?

Originally Posted by StillSearching View Post
However, there is a big risk that your developer may get into a legal battle with the landowner and because of this the Master Title can not be partitioned and you may never get a title on your property. Also, home owners might be harmed by the judgement your developer will receive.

This is what happened with Sabah Beach Villas in Kota Kinabalu.
Who was this developer? I agree on the risk, but with the top developers in Malaysia that already finished myriads of projects I think it is very small.

Originally Posted by StillSearching View Post
This is why pre-construction properties are usually much cheaper than already finished units. There are many other cons for buying a pre-construction property.
Yes, that was true. But I think it has changed in the last two years. Oversupply is already enormous and they just build more, more, more. COVID stopped any foreign buyers coming in, Chinese government closed the route to this investment also or at least made it much more inconvenient. Especially low floor units that have not been sold for a long time are kicked out now with 30 to 40% discount from the original price. I think we will continue to see a buyers market for quite a long time.
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Old Jun 13th 2021, 1:19 am
  #21  
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Default Re: Buying a property in Malaysia: How to avoid scams?

Originally Posted by eCdD View Post
Who was this developer? I agree on the risk, but with the top developers in Malaysia that already finished myriads of projects I think it is very small.
Not in the list of top developers: Nexus Bay Resort Karambunai SDN BHD, now changed to Clear Sky Development SDN BHD

Originally Posted by eCdD View Post
Yes, that was true. But I think it has changed in the last two years. Oversupply is already enormous and they just build more, more, more. COVID stopped any foreign buyers coming in, Chinese government closed the route to this investment also or at least made it much more inconvenient. Especially low floor units that have not been sold for a long time are kicked out now with 30 to 40% discount from the original price. I think we will continue to see a buyers market for quite a long time.
Yes, correct. In contrast with the condos, prices for landed properties, especially with the Titles, are holding up very well even in 2020 and first quarter 2021 according to my research. There is even a slight increase in price, ~1.5%. But this is off topic for this post.
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Old Jun 30th 2021, 7:09 am
  #22  
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Default Re: Buying a property in Malaysia: How to avoid scams?

Originally Posted by eCdD View Post
For the "normal" property buyer who is not set for a special unit/house it is very easy and safe to just buy a new property from a developer with a good reputation
Evidently it is not safe to buy a property from a developer because the laws here work against the purchasers. Here is an alarming article on how you may lose your investment completely if you buy a property without a title:
https://www.iproperty.com.my/guides/...d-disclaimers/
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