Does the minimum $1.00 million ringgit purchase by foreigners apply to resale units?

JohorRookie · Sep 19, 2014

I was at City Square yesterday and a salesman pushed a brochure for the development known as "D-Tasek", going for RM500,000. I told him I couldn't buy because of the $1.00 million minimum purchase requirement imposed in May 2015. However, the salesman told me the development was registered before the RM$1.00 million minimum purchase took effect, and I could still purchase the unit for RM500,000.

I was in a rush and forgot to ask him. Does this mean that I can still buy a resale property in Johor for the minimum of RM500,000 instead ?

Would be pleased if one of you could clarify. The Johor thread is so long and I have no idea where to search for the information I wanted. I'm sorry if this issue has been raised before.

Thank you.

FHBH12 · Sep 20, 2014

Re: Does the minimum $1.00 million ringgit purchase by foreigners apply to resale uni

JohorRookie said:
I was at City Square yesterday and a salesman pushed a brochure for the development known as "D-Tasek", going for RM500,000. I told him I couldn't buy because of the $1.00 million minimum purchase requirement imposed in May 2015. However, the salesman told me the development was registered before the RM$1.00 million minimum purchase took effect, and I could still purchase the unit for RM500,000.

I was in a rush and forgot to ask him. Does this mean that I can still buy a resale property in Johor for the minimum of RM500,000 instead ?

Would be pleased if one of you could clarify. The Johor thread is so long and I have no idea where to search for the information I wanted. I'm sorry if this issue has been raised before.

Thank you.

Likely to be correct. As long as the developer applies for the $1 mil RM waiver if I recall correctly. Type A with balcony and facing golf course should be better choice. Plot area seems a bit small though.

cow138 · Sep 20, 2014

Re: Does the minimum $1.00 million ringgit purchase by foreigners apply to resale uni

Good question. I also interested in the answer.

RedsYNWA · Sep 20, 2014

Re: Does the minimum $1.00 million ringgit purchase by foreigners apply to resale uni

JohorRookie said:
I was at City Square yesterday and a salesman pushed a brochure for the development known as "D-Tasek", going for RM500,000. I told him I couldn't buy because of the $1.00 million minimum purchase requirement imposed in May 2015. However, the salesman told me the development was registered before the RM$1.00 million minimum purchase took effect, and I could still purchase the unit for RM500,000.

I was in a rush and forgot to ask him. Does this mean that I can still buy a resale property in Johor for the minimum of RM500,000 instead ?

Would be pleased if one of you could clarify. The Johor thread is so long and I have no idea where to search for the information I wanted. I'm sorry if this issue has been raised before.

Thank you.

I think the overall situation is still hazy. From what I gathered/guess, for HIGH RISE and NEW LAUNCH projects with planning approval obtained before 1 May 2014, they are exempted from RM 1m threshold, but still subject to RM 500k. Resale of these projects are also exempted from RM 1m threshold but still subject to RM500K. Developer will need to obtain an exemption letter from the State Govt to qualify for the exemption. For old/previous projects with no such planning approval exemption letter (eg condo bought in 2000), these are not exempted from RM 1m.

The above does not apply to new landed but only for high rise (purely my guess only).

malpaso · Sep 20, 2014

Re: Does the minimum $1.00 million ringgit purchase by foreigners apply to resale uni

RedsYNWA said:
I think the overall situation is still hazy. From what I gathered/guess, for HIGH RISE and NEW LAUNCH projects with planning approval obtained before 1 May 2014, they are exempted from RM 1m threshold, but still subject to RM 500k. Resale of these projects are also exempted from RM 1m threshold but still subject to RM500K. Developer will need to obtain an exemption letter from the State Govt to qualify for the exemption. For old/previous projects with no such planning approval exemption letter (eg condo bought in 2000), these are not exempted from RM 1m.

The above does not apply to new landed but only for high rise (purely my guess only).

I assume resale means subsale. My guess is that it is only allowed as long as strata titled not issued yet (it is a loophole), and for those with the planning approval exemption as you mentioned. Once the strata title issued, one can no longer subsale at below 1M threshold to foreigner.

OracleMasia · Sep 20, 2014

Re: Does the minimum $1.00 million ringgit purchase by foreigners apply to resale uni

JohorRookie said:
I was at City Square yesterday and a salesman pushed a brochure for the development known as "D-Tasek", going for RM500,000. I told him I couldn't buy because of the $1.00 million minimum purchase requirement imposed in May 2015. However, the salesman told me the development was registered before the RM$1.00 million minimum purchase took effect, and I could still purchase the unit for RM500,000.

I was in a rush and forgot to ask him. Does this mean that I can still buy a resale property in Johor for the minimum of RM500,000 instead ?

Would be pleased if one of you could clarify. The Johor thread is so long and I have no idea where to search for the information I wanted. I'm sorry if this issue has been raised before.

Thank you.

It does not apply to resale. If you buy from this developer and wish to sell below $1 mil to a foreigner, it is not possible. You can only sell to a Malaysian if the resale value is less than $1mil

malpaso · Sep 20, 2014

Re: Does the minimum $1.00 million ringgit purchase by foreigners apply to resale uni

OracleMasia said:
It does not apply to resale. If you buy from this developer and wish to sell below $1 mil to a foreigner, it is not possible. You can only sell to a Malaysian if the resale value is less than $1mil

BUT! if the strata title not issued yet, tehcnically the subsale buyer is still buying direct from developer. yes? no? :biggrin:

JohorRookie · Sep 21, 2014

Re: Does the minimum $1.00 million ringgit purchase by foreigners apply to resale uni

OracleMasia said:
It does not apply to resale. If you buy from this developer and wish to sell below $1 mil to a foreigner, it is not possible. You can only sell to a Malaysian if the resale value is less than $1mil

Many thanks for the clarification, Bro.

I'm looking at it from the point of view of a buyer, so it's resale in the old market that I'm particularly concerned, not buying from developer to sub-sell. That is to say, I can still have a go at the resale detached houses for prices between RM500K and above.

But does that mean even if I was to buy a resale house for, say, RM500K, I could only sell it to a Malaysian ?

Does the minimum $1.00 million ringgit purchase by foreigners apply to resale units?

JohorRookie

Alfrescian

FHBH12

Alfrescian

cow138

Alfrescian

RedsYNWA

Alfrescian

malpaso

Alfrescian

OracleMasia

Alfrescian

malpaso

Alfrescian

JohorRookie

Alfrescian

Similar threads