Hi Friends,
Renting in Malaysia is fairly simple. A rental agreement has an effective period ranging from half a year to a few years. Deposits for utilities and rental prepayment for one to two months is a normal.
Get to know whether the property is furnished or unfurnished. Usually you will be able to view the property before renting. If you are unable to view the property before arriving in Malaysia, you may appoint a professional property agent to view for you.
Properties bought from a developer will be unfurnished include no light fitting and no furniture unless stated otherwise in the sales and purchase agreement.
We advise buying homes which are already issued with certificates of fitness but if you intend to purchase from developers, ensure that it is a reputable company.
Also ensure that your lawyer does a thorough check with the local land office that you have ownership rights to any property that you are purchasing. Profit made on the sale of property is 5% (Real Property Gains Tax).
Interest on loans to buy your property is tax deductible from your rental income. The higher your loan amount the more interest deductible from your rental income. If you are eligible and is a participant of the MM2H program, interest on loans for expenses incurred for certain home renovations or improvements are tax deductible
Some expenses incurred for renovation of your property is not tax deductible, so be sure of what you are spending money on.
Keep a safe record of all the receipts for expenses incurred for renovation and other home improvement expenses if you intend to deduct from your RPGT. The Malaysian tax authority may audit you and there is penalty imposed for not keeping tax records.
I hope this information is useful for you. If you have anything to add or to comment, you may Contact Us.
