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There are three main types of land in
Malaysia, namely freehold land, leasehold land and Malay
Reserve land. There are usage restriction for most of the vacant
land, it can be categorized to residential, commercial, industrial,
agricultural and public amenities usage. The status of lands that
are to be purchased must be checked in order to make an informed
investment decision.
Land status in
Malaysia can
be checked at the Land Office or the State Land Registrar.
Here are the
explanations of types of land in Malaysia:
Freehold land
The tenure of freehold land is for life. The owner of the land owns the
land, the building and anything that is on the land. There is no time
limit for the owner and the freehold land lies with the title holder
until he transfers it to someone else. Investment in freehold property
tend to generated higher return as it posted perpetual tenure.
Leasehold land
Leasehold land is held by a person by virtue of a lease agreement
between him and the owner permitting him to hold the land for a period
as said in the lease agreement. The difference between leasehold and
freehold is that for leasehold, the land is to be returnable after the
expiry of the period. This type of land also belongs to the government
and the least is usually for 99 years. When the lease expires, the
government can take back the land or lease it further. The lesser the
number of years left on the lease, the less valuable the land becomes.
Malay Reserve Land
Basically Malay Reserve Land is land that cannot be sold to other races,
even foreigners except for Malays or Bumiputras. It is land exclusively
meant for Malays and Bumiputras. This type of land posted lower
investment return as compared to freehold and leasehold property as it
can only be transfer among Malays and Bumiputras and limit its marketing
prospects.
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