Kota Kinabalu

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Real Estate Agencies

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Real Estate Agencies in Kota Kinabalu

Kota Kinabalu, the capital of Sabah, Malaysia, has a vibrant real estate market catering to both locals and expatriates. Real estate agencies in the city offer a range of services, including property sales, rentals, and property management.

1. Finance Aspects

A. Costs Involved in Renting or Buying Property

  • Renting:

    • Monthly Rent: Depending on the location and type of property, monthly rents can range from MYR 800 for a basic apartment to MYR 3,000 or more for a luxury condo or house.
    • Security Deposit: Typically, a security deposit of one month’s rent is required, along with the first month’s rent upfront.
    • Agency Fees: Real estate agencies usually charge a fee equivalent to one month’s rent for their services.

  • Buying:

    • Property Prices: Prices vary widely based on location, size, and type. For example, apartments can start from MYR 200,000, while landed properties can range from MYR 500,000 to several million.
    • Stamp Duty: This is a tax on property transactions, calculated based on the purchase price. The rates are:
      • 1% for the first MYR 100,000
      • 2% for the next MYR 400,000
      • 3% for the next MYR 1,500,000
      • 4% for amounts above MYR 2,000,000
    • Legal Fees: Typically around 1% of the property price, but this can vary.
    • Loan Processing Fees: If financing through a bank, expect fees for processing the loan, which can vary by institution.

B. Financing Options

  • Bank Loans: Most banks in Malaysia offer home loans to both locals and foreigners. The typical loan tenure is up to 30 years, with interest rates ranging from 3% to 4.5%.
  • Eligibility: Foreigners can purchase property in Malaysia, but there are minimum price thresholds (usually MYR 1 million for residential properties).

2. Local Service Aspects

A. Procedures for Renting Property

  1. Search for Property: Use local real estate websites or contact agencies directly. Popular agencies include:

    • Borneo Real Estate
    • Kota Kinabalu Property
    • Sabah Property

  2. Viewings: Schedule viewings through the agency. It’s advisable to visit multiple properties to compare.

  3. Application: Once you find a property, submit a rental application. This may require proof of income and identification.

  4. Signing the Lease: Review the lease agreement carefully. Ensure it includes terms regarding maintenance, utilities, and termination.

  5. Payment: Pay the first month’s rent and the security deposit.

B. Procedures for Buying Property

  1. Engage a Real Estate Agent: Choose a reputable agency to help navigate the market and legalities.

  2. Property Search: Identify properties that meet your criteria. Your agent will assist in negotiations.

  3. Offer and Acceptance: Once you find a property, make a formal offer. If accepted, a Sale and Purchase Agreement (SPA) will be drafted.

  4. Deposit Payment: A deposit (usually 2-3% of the purchase price) is paid upon signing the SPA.

  5. Due Diligence: Conduct necessary checks, including land title verification and property condition assessments.

  6. Final Payment and Transfer: Upon completion of the sale, pay the remaining balance, and the property title will be transferred to your name.

3. Local Considerations and Tips

  • Cultural Sensitivity: Be aware of local customs and practices. Building rapport with landlords or agents can be beneficial.
  • Language: While English is widely spoken, especially in business, learning basic Malay phrases can enhance communication.
  • Market Trends: Stay informed about the local real estate market trends, as prices can fluctuate based on demand and development projects.
  • Legal Advice: Consider hiring a local lawyer to assist with the legal aspects of property transactions, especially for foreigners.
  • Neighborhoods: Research neighborhoods thoroughly. Areas like Likas, Tanjung Aru, and the city center are popular among expatriates for their amenities and accessibility.

Conclusion

Navigating the real estate market in Kota Kinabalu can be straightforward with the right information and support. By understanding the financial implications, following the correct procedures, and being aware of local customs, you can make informed decisions whether you are renting or buying property in this beautiful city.