Buying New vs. Secondary Properties: What’s Better for Expats?

Introduction

When relocating to Johor Bahru (JB) under the MM2H program or simply for lifestyle and work reasons, many expats face this key question:

Should I buy a brand-new property from a developer?
Or go for a secondary (resale) property in a mature neighborhood?

Each option comes with its pros and cons — from pricing and financing, to rental yield, maintenance, and lifestyle. This guide helps expats make an informed decision based on their needs, timeline, and investment goals.

 1. New Properties – The Fresh Start

New properties are units sold directly by developers and usually come with:

• Brand-new finishes and appliances

• Minimal repair or renovation work

•  2–3 year defect liability period

• Potential for capital appreciation if purchased early (early bird prices)

Best For:

• Buyers who want modern amenities, smart layouts

• Short-term Airbnb rental units

• Foreigners who prefer simplified legal processes

 Image Suggestion: Modern new condo with facilities like pool, gym
Alt text: “New property in Johor with lifestyle facilities”

 2. Secondary Properties – Space, Character, & Value

Secondary (resale) properties are older homes purchased from individual owners. Benefits include:

• Larger built-up sizes, better room proportions

• Located in mature neighborhoods with full amenities

• Often lower price per square foot

• Easier to gauge rental demand (established area)

But they may come with higher renovation or maintenance costs.

Best For:

• Expats who plan to live long-term or retire

• Families who want landed space, garden, privacy

• Budget-conscious buyers looking for good value

 Image Suggestion: Renovated landed home in a leafy JB neighborhood
Alt text: “Secondary home with mature trees and garden space”

3. Legal Process Differences for Expats

Foreigners buying either new or secondary property in Malaysia must:

• Meet minimum purchase thresholds (e.g. RM1 million in some states, RM400k in Johor)

• Pay MOT (Memorandum of Transfer), stamp duties, and legal fees

• Use foreigner-eligible titles (e.g., strata titled, no Malay Reserved Land)

 New Projects usually include legal fees and are more "foreigner-friendly."
 Secondary Homes might require more checks on title and land status.

 Image Suggestion: Legal document review and signing for property deal
Alt text: “Foreigner reviewing Malaysia property legal paperwork”

4. Financing & Payment Differences

New Projects:

• Often allow progressive payments during construction

• Some offer 0% down payment, legal fee waivers

• Suitable for investors who want staged payments or “under construction” buys

Secondary Homes:

• Require full loan disbursement upfront

• Bank valuations are key to avoid overpaying

• Better suited for expats with lump sum funds or long-term view

For MM2H holders, some banks offer expat-friendly loan packages.

 Image Suggestion: Table comparing new vs secondary property financing
Alt text: “Financing differences between new and resale homes for foreigners”

5. Lifestyle Considerations for Expats

 Image Suggestion: Lifestyle shot of expat family in JB condo vs landed home
Alt text: “Expat family lifestyle in new vs old property setting”

6. Which Should You Choose? A Quick Guide

Ultimately, your budget, timeline, and usage goal will help guide the decision.

Conclusion: Know Your Priorities

There is no one-size-fits-all answer. For expats in Malaysia, both new and secondary properties offer solid opportunities. What matters most is:

• Knowing your goal: lifestyle, investment, or both

• Choosing the right area (e.g., CIQ, Medini, Mount Austin)

• Doing due diligence on developer or owner’s track record