Buying a property in Malaysia: How to avoid scams?
#16
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Joined: Oct 2014
Location: Penang
Posts: 618
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. :-)
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. :-)
#17
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Joined: Oct 2015
Posts: 464
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.
As far as I remember, I did not pay anything except a small booking fee before the SPA was signed.
#18
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Joined: Dec 2018
Location: Kota Kinabalu, Sabah
Posts: 187
Re: Buying a property in Malaysia: How to avoid scams?
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.
#19
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Joined: Dec 2018
Location: Kota Kinabalu, Sabah
Posts: 187
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.
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.
#20
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Joined: Oct 2015
Posts: 464
Re: Buying a property in Malaysia: How to avoid scams?
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.
This is what happened with Sabah Beach Villas in Kota Kinabalu.
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.
#21
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Joined: Dec 2018
Location: Kota Kinabalu, Sabah
Posts: 187
Re: Buying a property in Malaysia: How to avoid scams?
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.
#22
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Joined: Dec 2018
Location: Kota Kinabalu, Sabah
Posts: 187
Re: Buying a property in Malaysia: How to avoid scams?
https://www.iproperty.com.my/guides/...d-disclaimers/