Foreigners Buying Homes in Kuala Lumpur
Originally established as a small tin mining town, Kuala Lumpur
today has grown by leaps and bounds into a global cosmopolitan
city. The capital of Malaysia, Kuala Lumpur is located on
the west side of West Malaysia. The country of Malaysia spans
across two landmasses, separated by the South China Sea. The Malay
Peninsula, or West Malaysia, is situated below Thailand and above
the island nation of Singapore, while East Malaysia takes up the
northern part of the island of Borneo. As the largest city in
Malaysia, Kuala Lumpur is approaching two million inhabitants
and is the commercial and financial capital of the country. The
best part about calling Kuala Lumpur home is its cost of living.
According to a recent report compiled by Swiss bank UBS, Kuala
Lumpur is the number one city in the world to reside in when it
comes to the lowest cost of living.
Just like anywhere else in the world, the closer the property is to urban centers the higher the prices are likely to be. Downtown Kuala Lumpur is no exception. Kuala Lumpur real estate investors will make good returns on their investments over time as the city's large expatriate population push up demand leading to rental rates in Kuala Lumpur to be on par with most major cities worldwide. And for Kuala Lumpur residential property, prices have generally risen between 15% and 30% in total over the last five years.
While there is a wide range of property available for both rental
and for purchase in Malaysia, the government does put restrictions
on foreign-ownership. All property acquisitions by foreigners
regardless of its value require Foreign Investment Committee (FIC)
approval and each state may impose additional requirements to
those listed by the FIC. As of March 2007, any foreigner
who wants to buy property worth more than RM250,000 no longer
requires the FIC approval! Luckily, since Malaysia was once
a British colony, their courts are based on English common law
and the English language is widely spoken. Furthermore, ING Real
Estate recently rated the Malaysia
property market as Medium risk and is the only developing
country in Southeast Asia not rated High risk.
Whether you are a local Malaysian looking for a new apartment or an international investor seeking new real estate opportunities abroad, Kuala Lumpur is not a city to disappoint. With its fusion of Malay, Chinese, Indian, and European cultures, gleaming skyscrapers standing side-by-side to old-world edifices, fine restaurants as well as open-air food stalls, start your search for Kuala Lumpur property now.
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