As tenant, besides the normal rental and utility deposits required by the landlord, you do not need to bear documentation costs such as legal fees for preparation of sale and purchase agreement and loan documents and stamping charges for ownership transfer and yearly taxes like assessment rates and quit rent. No maintenance charges and structural repair costs either as these costs are also to be borne by the landlord.

The disadvantage is that you may have to move out if the landlord decides to sell off the house or take back the place for his own use by just giving written notice to your or even increase the rentals upon expiry of tenancy. And each time you move, relocation or moving costs will be incurred.

It is certainly a better alternative to rent rather than buying if your stay is intended for short-term period or you are subject to transfer to other workplace by your employer. However, buying would be better option if and when you are going to remain in one place for a long time. As new buyer of the house, you acquire the interest of the property which means you have the benefit of security and ownership of the house and it provides stability for your family. The property is a good investment only for long term as it is a good hedge against inflation.

Advantages of renting out
The main reason for renting a house is you can gain a large steady income. Many people buy rental houses in areas that have a constant flow of tenants and rent them for much more that the cost of the mortgage. Or, you have decided to sell, but the property value is lower than you expected. Over time, a house rental will increase in value and you will gain capital appreciation in addition to a steady rental income. Typically, a house will rent for a lot more than an apartment. They generally will offer more space and they are usually rented by groups such as families, professionals or students as an alternative to buying or renting smaller spaces.

Another benefit of renting a house is to use it as a vacation home and only rent for part of the year. Many people buy shore homes and rent them expect for a few weeks of the year. Don' t forget about tax advantages. Any tools, supplies and services you purchase for the house can be a tax deduction.

Before you rent a house make sure your insurance covers your house as a rental. Take time to validate the rents in that particular area to give you an added benefit for your own rental pricing.

If you are looking to buy or sell a house, a real estate agent is usually able to offer advice on available properties within your budget. The fee for real estate agent service is 2.75% on the first of RM500,000 and 2% on the residue over RM500,000.

The more difficult decision to make is which agent to use. With charges typically between 10-17% of monthly rent ( and often various administration charges as well ) it is often easy to wipe out any profit, so you need to choose carefully.

By letting the agent to handle the property sale you could benefit from advertising through means of potential tenants, newspaper and websites notification. An agent will arrange viewings and accompany the potential tenants when they view the property. They will get the tenant to sign up their agreement at the beginning and end of the tenancy. As for the Dispute & Emergency Management the agent will arrange for repairs to made on your behalf. The agent will organize a legally current lease agreement to be signed by landlord and tenant and also carry out tenant vetting.

Ask the agent how long the house or flat has been for sale.This may indicate to you the price or potential of the property.

Foreigners who wants to purchase a property in Malaysia needs to obtain the respective state consents where the property is situated before the purchase is considered valid and lawful. ( Your solicitor may submit your application on your behalf).

When you have agreed on the terms with the seller, and you have arranged the financing if required, you may need a solicitor to advise and act on your behalf when signing the Sale & Purchase Agreements and making payments until transaction is completed. The money is paid to lawyer who will forward the money to the seller when the transaction goes through.

Whether you' re the first-time renter or an experienced apartment hunter, it' s worth taking the time to think through what' s important to you in an apartment and plan your search with those priorities in mind. Here are some things to consider when planning your next move:

In all case avoid paying too much or ending up with a bad apartment.

The Malaysian government has introduced major changes to rules on foreign ownership of property.

Foreigners can purchase residential properties valued above RM250,000 a unit without the Foreign Investment Committee' s approval from Dec 21, 2006 onwards.

The move was to encourage foreign investors to purchase high-end residential properties, increase the inflow of foreign currency as well as spur the development of the property and construction sectors, it added.
“Malaysia : My Second Home Programme” facilitates people from all over the world who fulfill certain criteria, to stay in the country as long as possible on a social visit pass with a multiple entry visa. The Social Visit Pass is initially for a period of ten years depending on the validity of the applicant' s passport and is renewable. The programme is open to all citizens of countries recognized by Malaysia regardless of race, religion, gender of age. Applicants are allowed to bring along their spouse and children( provided they are below 18 years of age and unmarried)

Important considerations in planning to buy a property: