If you are buying a second home here in Malaysia, there are a few things you should consider.

Security
You’ll need someone to keep an eye on your property if you are planning to leave it unoccupied for long periods of time. It is generally recommended that you hire the services of a real estate company rather than an individual, unless you have a friend here you are sure you can trust. Be sure to draft an agreement outlining what is expected of each party. This company can also arrange to have the property cleaned and the cupboards stocked in preparation for each of your visits.

Buying a property in a gated community or condominium adds an additional layer of security. Electrical fittings which cause appliances to come on and off periodically, giving the illusion of someone being home, are not safe or practical over long periods of time.

Renting out your Property
If you plan to rent out your property when you are not living in it, be aware that non-resident status means you will have to pay around 28% tax on your Malaysian earnings. Also think about who will deal with any issues that arise when you are out of the country – consider paying your realtor a retainer to deal with the many things that could go wrong, from burst pipes to unruly tenants to pests.

Climate
It’s important that someone monitor the condition of the property while it is unoccupied – there are many bugs, moulds and pests that could establish themselves in your home in just a short period of time, particularly in this tropical climate, meaning your holiday home could look quite different upon the second visit! Build regular checks for these types of problems into the caretaker agreement. Your nominated caretaker will require a budget to deal with these types of issues as and when they arise.

Correspondence
Your caretaker should either forward to you any bills and correspondence relating to your property, or should have a budget for bills – don’t forget that you’ll still have to pay certain taxes and utilities regardless of whether the property is occupied. Ask your realtor to help you make an estimate of this type of cost for the year, and make sure your caretaker keeps all receipts and statements for the period you are away. If you are liable to pay taxes in Malaysia, don’t forget that taxes are due in April, and there will be a penatly for late submissions.

+ The Malaysian Property Market [ more info ]
+ To Buy or not to Buy [ more info ]
+ Where to Invest [ more info ]
+ Renting a Property [ more info ]
+ Furniture [ more info ]
+ Second Homes [ more info ]
+ Serviced Accommodation [ more info ]