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I will update this thread from time to time, adding in what little i know in the meantime:
1. DIBS will be scrapped, most banks are starting to follow.
The thing is, even if scrapped, quite a few of the developers would still rebate 3% back to their sellers when they get their keys as a kind of move in bonus.
It may actually work out better financially for some if DIBS is scrapped.
2. The RM 1m limit for foreigners has NOT been implemented yet, it is still RM 500k as of today but will be revised from next year beginning of May, 2014.
3. At least certain developers bumi-release units are still being purchased and approved currently, just that there is going to be a 7.5% increase in the price. Some developers will help to bear at least a portion of this. Market rate currently is about 3% that the developer may help to cover. Some developers only cover 1.5%.
4. GST when implemented (2nd quarter, 2015) will affect primarily the commercial properties. Residential properties are outside of this but with the cost of transportation, labour and materials being hit by GST, it will impact the cost of the developers who will pass it on to their customers. Low cost housing, etc are exempted.
5. Please remember when buying properties, even condos:
a. Residential title versus commercial title = Aside from density restrictions, residential title condos usually have:
i. Lower maintenance fees even taking into account the sinking fund.
ii. Much lower utilities as compared to commercial titled units
b. Leasehold - When buying leasehold, try to find out if the lease that the developer has is from the government or a private company. Particularly if the land is actually freehold but leased from a private company. There are usually less restrictions financially wise but more restrictions when renewing the lease comes.
Majority of developments will have a foreigner ratio. Usually 40/60 or 30/70 or some (CG) managed to make it 20/80 ratio for foreigners versus local buyers.
For high rise the ratio it is typically up to 50/50.
I know many have seen this before already but still its a good guideline to refer to when buying properties:
http://www.hhq.com.my/wp-content/up...roperty-in-Malaysia-English-Version-clean.pdf
RGPT
The raising of the RGPT or REAL PROPERTY GAINS TAX is inevitable and likely here to stay.
However the silver lining here is that the RGPT rate is actually subject to the yearly budget and so may be revised up or down subject to economic and market conditions.
RM1mil policy only for projects approved after Budget
JOHOR BARU: The minimum price for foreign property buyers will remain at RM500,000 if plans for the development projects were approved before the announcement of Budget 2014.
Johor Housing and Local Government executive councillor Datuk Abdul Latiff Bandi said that the new minimum of RM1mil would not apply to development plans approved prior to the tabling of the Budget last month.
“Following the Budget announcement, the state government is reviewing property ownership policies for foreigners looking to invest in the Iskandar region.
“The minimum price for foreigners who wish to own a property here will increase from RM500,000 to RM1mil.
“With the price doubled, locals will have less competition and more opportunities to buy the properties,” he told reporters after launching Malaysia Property Expo (Mapex) here yesterday.
Mapex organising chairman Wong Kuen Kong said there were over 12,000 units of properties worth RM10bil offered to housebuyers throughout the three-day expo.
“Despite the recent Budget announcement, we are confident of getting a good response from visitors,” he said.
He added that the previous expo last May raked in some RM1.6bil in sales.
The expo, he said, allowed visitors to survey projects offered by 34 developers at just one place, saving them time and money.
“The expo also encourages property buyers to own their homes and space at affordable rates,” he added.
The expo, which is organised by the Johor Real Estate and Housing Developers Asso*ciation, is on until tomorrow at the City Square shopping complex.
http://www.thestar.com.my/News/Nati...-only-for-projects-approved-after-Budget.aspx
1. DIBS will be scrapped, most banks are starting to follow.
The thing is, even if scrapped, quite a few of the developers would still rebate 3% back to their sellers when they get their keys as a kind of move in bonus.
It may actually work out better financially for some if DIBS is scrapped.
2. The RM 1m limit for foreigners has NOT been implemented yet, it is still RM 500k as of today but will be revised from next year beginning of May, 2014.
3. At least certain developers bumi-release units are still being purchased and approved currently, just that there is going to be a 7.5% increase in the price. Some developers will help to bear at least a portion of this. Market rate currently is about 3% that the developer may help to cover. Some developers only cover 1.5%.
4. GST when implemented (2nd quarter, 2015) will affect primarily the commercial properties. Residential properties are outside of this but with the cost of transportation, labour and materials being hit by GST, it will impact the cost of the developers who will pass it on to their customers. Low cost housing, etc are exempted.
5. Please remember when buying properties, even condos:
a. Residential title versus commercial title = Aside from density restrictions, residential title condos usually have:
i. Lower maintenance fees even taking into account the sinking fund.
ii. Much lower utilities as compared to commercial titled units
b. Leasehold - When buying leasehold, try to find out if the lease that the developer has is from the government or a private company. Particularly if the land is actually freehold but leased from a private company. There are usually less restrictions financially wise but more restrictions when renewing the lease comes.
Majority of developments will have a foreigner ratio. Usually 40/60 or 30/70 or some (CG) managed to make it 20/80 ratio for foreigners versus local buyers.
For high rise the ratio it is typically up to 50/50.
I know many have seen this before already but still its a good guideline to refer to when buying properties:
http://www.hhq.com.my/wp-content/up...roperty-in-Malaysia-English-Version-clean.pdf
RGPT
The raising of the RGPT or REAL PROPERTY GAINS TAX is inevitable and likely here to stay.
However the silver lining here is that the RGPT rate is actually subject to the yearly budget and so may be revised up or down subject to economic and market conditions.
RM1mil policy only for projects approved after Budget
JOHOR BARU: The minimum price for foreign property buyers will remain at RM500,000 if plans for the development projects were approved before the announcement of Budget 2014.
Johor Housing and Local Government executive councillor Datuk Abdul Latiff Bandi said that the new minimum of RM1mil would not apply to development plans approved prior to the tabling of the Budget last month.
“Following the Budget announcement, the state government is reviewing property ownership policies for foreigners looking to invest in the Iskandar region.
“The minimum price for foreigners who wish to own a property here will increase from RM500,000 to RM1mil.
“With the price doubled, locals will have less competition and more opportunities to buy the properties,” he told reporters after launching Malaysia Property Expo (Mapex) here yesterday.
Mapex organising chairman Wong Kuen Kong said there were over 12,000 units of properties worth RM10bil offered to housebuyers throughout the three-day expo.
“Despite the recent Budget announcement, we are confident of getting a good response from visitors,” he said.
He added that the previous expo last May raked in some RM1.6bil in sales.
The expo, he said, allowed visitors to survey projects offered by 34 developers at just one place, saving them time and money.
“The expo also encourages property buyers to own their homes and space at affordable rates,” he added.
The expo, which is organised by the Johor Real Estate and Housing Developers Asso*ciation, is on until tomorrow at the City Square shopping complex.
http://www.thestar.com.my/News/Nati...-only-for-projects-approved-after-Budget.aspx
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