About Investing Overseas Property
3. London Property (Coming Soon)
4. Bangkok Property (Coming Soon)
5. Philipines Property (Coming Soon)
6. Tokyo Property (Coming Soon)
Why invest in Malaysia Property?
Mega Project agreement and special relationship between Singapore and Malaysia.
In Feb 2013, both leaders of Singapore and Malaysia have agreed to build a high-speed rail link (HSR) between Singapore to Kuala Lumpur that will significantly cut travel time for commuters to just 90 minutes, expected ready by the year 2020.
Prime Minister Lee Hsien Loong said: ”It’s a strategic project for the two countries. It will change the way we see each other. It’s the way people in London and Paris are able to think of it like twin cities where you can commute, go up there, do business, meet friends have a meal and come back, all within may be two-thirds of a day.” And I think it’s going to be a game-changer. It will transform the way people interact, the intensity of our cooperation and the degree in which we become inter-dependent on one another and therefore have stakes in each other’s success.”
High Speed Rail from Singapore to Kuala Lumpur
The HSR will transit at 5 stations in between Singapore and Kuala Lumpur(KL).
Tentatively, the proposed 5 stations to be located in Seremban in Negeri Sembilan, Ayer Keroh in Malacca, Muar, Batu Pahat and Iskandar Malaysia in Johor.
Rapid Transit System from Woodlands to JB Sentral
Another mega project would be Rapid Transit System(RTS) link which is targeted to be in operation by 2019, will be in the vicinity of JB Sentral, Johor Bahru and in the vicinity of Republic Polytechnic, Singapore.
The RTS link is planned to integrate with Singapore’s Thomson Line at its northernmost terminal station, i.e. Woodlands North Station.
Thomson Line is set to cater for 400,000 commuters daily.
More Reasons To Invest In Malaysia Property
More Reasons to Buy Malaysia Property
1) One of the cheapest property prices in Asia with resilient economy growth after fallen of Lehman brothers collapse in 2008.
2) Stable property price growth over decades, around 15% to 30% for the past 3 years.
3) Malaysia GDP growth rate was more than 5.0% since 2010.
4) Low unemployment rate at 3.3% with the inflation rate at 2.9% in 2013.
5) Next to Singapore and convenient to manage the property owned.
6) Increasing visitor arrivals at more than 26 millions yearly. (Malaysia was recently listed by Lonely Planet as one of 10 main destinations to visit in 2014.)
7) Malaysia ranked 1st on Best Place to Retire by the Japanese in 2013.
8) Malaysia is known as a politically stable and peaceful country.
9) Free from natural disaster such as Tsunami, Typhoon and earthquakes.
10) Relatively low living cost.
11) Education hub to many international universities campuses and international schools.
12) English language is widely used thus it is easy to communicate.
13) Excellent connectivity to other countries with world class airport and expressway.
14) World class private hospital and health care system.
FAQ about Malaysia Property
Below are some common questions encountered during my service to customers:
1) Will ABSD (Additional Buyer Stamp duty) cooling measure affect me in my future Singapore property purchase?
No, only your number of residential properties owned in Singapore will determine your ABSD rate.
So properties owned in overseas will not affect your future ABSD calculations.
2) I have never bought a property in Malaysia before. Where and how do I start?
The first step is to determine your property location you want and affordable budget.
From $200,000 to $1 million price range, you got plenty of choice to start with.
However, I would suggest you to start with property investment in Iskandar, Johor as the location is just next to Singapore.
Most people need to buy with the help of mortgage loan.
As a general guide, the monthly loan repayment should not exceed 35% of your gross monthly income.
You may choose Malaysia bank loan.
3) Can I buy property if I am not a resident of Malaysia?
Yes, you can even buy landed property.
Currently, minimum property purchase price still at RM500,000 (around $200,000) and state levy of RM11,250 for every purchase.
But the minimum property purchase price will be revised to RM1million on and after June 2014.
Also a state levy of 4-5% to be imposed from June 2014.
4) How do I pay to purchase Malaysia property (new launch projects)?
For all new launch project, booking fee is first given to secure your desired unit, the amount varies for every project, usually is RM5,000 or RM10,000.
Pay for the purchase via cash or bank loan:
a) Via Bank loan
• After unit booking you will proceed to secure a bank loan (Up to 85% for foreigners).
• Once loan is approved and during the sales execution signing of SPA, 10% less booking fee is paid to complete the sale.
• Remaining 5% (if 85% loan approved) is usually paid on the first draw down on the date as reflected in the payment schedule as stated by vendor and agreed in the SPA.
• Pay loan tax of 0.5% of total loan amount.
b) Via Cash
•After unit booking and you have proceeded to execute the sale, during initial SPA signing, 10% less booking fee is paid to complete the sale.
•Remaining 90% is paid according to the payment schedule as stated by vendor and agreed in the SPA.
Payment Schedule:
Under Housing Development Board 1965 of Malaysia, the construction schedule is 36 months from the date of signing purchase agreement.
5) What are the fees are associated with buying property?
a. Legal fees.
b. Government Stamp duties
c. Loan agreement fee
d. Valuation fee
e. Agent’s fee
6. How much is the legal fees?
Legal fees is calculated according to the Scale Fees provided under the Solicitors Remuneration Order, 2006 (SRO) sets out the fees based on the purchase price of the property as follows:
For the schedule for legal fees it is advisable to consult your lawyers for the present calculation of the legal fees.
7. What is stamp duty and how much is it?
In Malaysia, all transfer of property is subject to Government Stamp Duty.
Rate of Stamp Duty is based on the value of property.
For the schedule for stamp duty it is advisable to consult your lawyers for the present calculation.
8. How much is the loan documentation charge?
Loan documentation charge is applicable only if you require bank financing.
Preparation of the Loan Agreement of the property and attending to stamping and registration.
9. What about yearly local council tax?
All property owners have to pay local council assessment tax.
Rate of assessment is based on the value of property and the amount is relatively low.
An average estimate property taxes are approximately RM380 (about $150) per half yearly for an apartment of RM600,000 value.
All assessment rates bills are issued & posted twice a year, at the end of December and June and must be paid in full not later than February and August, respectively.
10. What documents do I need to apply for a housing loan?
The following is a checklist of the documents you will need to provide to the bank:
a)Identification Card (IC) or Passport for foreigner
b)Latest three months salary pay slip / Letter from employer
c)Latest Income tax statement (Form J/ EA )
d)Latest 3 months bank statement that shows salary credited (Savings / Current)
e)Sales & Purchase Agreement / Booking receipt
f)Business Registration / Form 24 & 49 (for self employed)
Note:
The margin of financing for foreigner is up to 80% and 65 years old or 20 years base on your age.
For Premier Customer, the margin of financing is may be up to 85% and 70 years old or 25 years base on your age.
11. What is Real Property Gains Tax (RPGT) in Malaysia?
There is misperception among people that Real Property Gain Tax in Malaysia is similar to Seller Stamp Duty (SSD) in Singapore.
Good news to you that, RPGT in Malaysia is totally different from SSD in Singapore.
SSD in Singapore is imposed based on the selling price within 4 years of the date of OTP/S&P.
Whereas, RPGT in Malaysia is taxed on the property price difference between selling and purchased within first 5 years from the date of purchase agreement.
For instance, the property was purchased 3 years ago at RM500,000 and selling price now at RM600,000.
The property price difference is RM100,000. So the RPGT is 30% of RM100,000 and not RM600,000, RPGT is RM30,000 only in this transaction.
Latest RPGT with effect from 1 January 2014 is shown as below:
Disclaimer
The information contained in this website is for information purposes oly and is not intended to replace any financial or professional advice. The views expressed are entirely those of the authors.Whilst the information is intended to be accurate and current, we are not responsible for any errors or omissions in this document. We may vary, withdraw or amend any information presented herein at any time without notice.To the fullest extent permitted by law, in no event shall we be liable for any damages or costs, including without limitation any indirect, consequential, special, incidental, or punitive damages arising out of, based on, or resulting from your reliance on or use of the information herein.No part of this document may be reproduced except as authorised by written permission.
