A common question among prospective Malaysia My Second Home (MM2H) applicants is whether purchasing property is a prerequisite for approval. Thegood news is, no, it is not necessary to buy a propertybefore applying for the MM2H program.

The MM2H program offers flexibility regarding property acquisition, allowing applicants to secure their visa first and then proceed with a property purchase. Here's a breakdown of the options and important considerations:

Option 1: Apply for MM2H First, Then Buy Property

• Grace Period for Property Purchase: Successful MM2H applicants are granted a one-year window from the approval date to acquire a property in Malaysia. This allows you ample time to explore options and make an     informed decision without the pressure of a pre-application purchase.
• Fixed Deposit Withdrawal for Property: A significant benefit of this approach is the ability to utilize a portion of your MM2H fixed deposit for your property purchase. Under current regulations, you can withdraw up to 50% of your fixed deposit to finance your property acquisition. This can provide valuable liquidity for your investment.

Option 2: Buy Property First, Then Apply for MM2H

Some applicants may choose to purchase property before formally applying for the MM2H program. If you opt for this route, here are the key points to remember：

• Two-Year Window for Fixed Deposit Withdrawal: To be eligible to withdraw up to 50% of your fixed deposit to reimburse yourself for a property already purchased, your MM2H approval must occur within two years of the property's purchase date. Failing to meet this deadline will mean you cannot utilize the fixed deposit     withdrawal for that particular property.
• No Time Constraint if Withdrawal Isn't a Priority: If the fixed deposit withdrawal is not a crucial factor for you, then there is no strict timeline for applying after purchasing a property. You can take your time with the MM2H application process.

Existing Property Owners and MM2H

For individuals who already own property in Malaysia prior to their MM2H application, you can certainly use your existing property to demonstrate yourcommitment and eligibility for the visa. However, it's important to note:

• No Fixed Deposit Withdrawal for Existing Property: You cannot withdraw funds from your MM2H fixed deposit to reimburse yourself for a property you already owned before your MM2H application if the property was purchased more than 2 years before the endorsement of the MM2H visa.

Key Requirements to Buy a Property

Before scouting for your new home, it is vital to understand the "dual-threshold"rule and the source restrictions that apply to your specific visa tier:

1. The Price Threshold Rule: Your property purchase must meet either the MM2H minimum (e.g., RM 600,000 for the Silver Tier) or the individual state’s minimum requirement for foreign buyers—whichever is higher. For example, if you reside in a state where the local government mandate for foreigners is RM 1 million, you     must meet that higher threshold even if your visa tier only requires RM 600,000.
2. Property Type and Source: * Silver, Gold, and Platinum   Tiers: You have the flexibility to purchase newly launched units, properties under development, or sub-sale (resale)  homes from the open market.

SEZ Category: This tier is more restrictive.  For those under the Special Economic Zone pathway which is  currently only Forest City, the property must be purchased directly from the developer. Sub-sale or resale properties do not qualify for the SEZ category requirements

In Conclusion:

The MM2H program is designed to be accommodating, offering various pathways for applicants with different circumstances. Whether you prefer to secure your visa first or already own property in Malaysia, understanding these regulations will help you navigate the application process smoothly. Always ensure you are up-to-date with the latest MM2H guidelines for the most accurate information.