New developments to share

[Steventlk]

Now with Rpgt for foreigners at 30% for first 5 years and 5% thereafter, should hold 5 years and can wait for MRT at the same time.

Sounds good on plan but however the longer the holding period, the greater the risks involved. Risks such as the flip flop policies... Change in rate of RPGT? Ability of investors to get tenant? And if tenanted, at what rental rate? Is it enough to cover the instalment?

The ultimate question to ask: do you have the risk appetite? Each investment holds its own risks...

Sorry to be a wet blanket... I am vested in jb property but I do so with these other due considerations.

 

[whoami]

Well said Frodo. Very well put it. Why fight for a pigeon hole? Why follow the other pigeons? At the moment if you want to have a decent life in Singapore, you need at least S$15k income.

But be sure u dont fall seriously ill too! At 15K a mth, the cost of medical would easily wipe it off in no time!

 

[alnine]

Those who had paid booking fees or deposit for their units below the 1mil mark and now with the new rules, they are restricted to buy. Will the developers refund the buyers in full?
Similarly, for that Country Garden project, with easily more than 1,000 smaller 2 and 3 bedroom units below the 1mil mark, wonder how are they going to market them when foreigners can't buy and locals with that kind of money will go for landed. Even local investors will not be keen knowing now they are not able to resell easily later without the foreign buyer's market.

I believe it should be based on when the SPA is signed.
Anyone here knows if the rules applies when the SPA is signed or state consent is given ?

 

[Frodo]

Well said Frodo. Very well put it. Why fight for a pigeon hole? Why follow the other pigeons? At the moment if you want to have a decent life in Singapore, you need at least S$15k income.

Oh no, that means my life have been less than decent the past many years and for many years to come!

Well, I certainly did manage to get by all these years with much less than $15k a month, though I also have equally less to boast about. So I am contented to be able to buy a little piece of real estate in nearby Johor, which as mentioned would be entirely impossible for me back in Singapore.

 

[alnine]

Well said Frodo. Very well put it. Why fight for a pigeon hole? Why follow the other pigeons? At the moment if you want to have a decent life in Singapore, you need at least S$15k income.

Now I know why MP are paid like that.

 

[Frodo]

I believe it should be based on when the SPA is signed.
Anyone here knows if the rules applies when the SPA is signed or state consent is given ?

I believe a lot depends on the state consent, because if that is delayed or rejected, your purchase will be in limbo or failed and that would upset many things.

 

[Newbie11]

It has nothing to do with bumis and non bumi quota. If it is Iskandar zones, there's no quota I think. What I mean is the rich will buy only from the rich > 1.0m. The developers will build high end units to attract the rich. Which charitable developer will build for the not so rich on a high cost land?
The poor who cannot afford can only buy cheaper ones which would be in the outskirts.
I am sure the State Government would squeeze the developers to contribute towards building cheaper homes.

Only in medini no quota. Bumi quota still exist.

 

[alnine]

I believe a lot depends on the state consent, because if that is delayed or rejected, your purchase will be in limbo or failed and that would upset many things.

In practical terms you are right. But if you look at the current practice the date of purchase is when you signed the spa and pay that 10% deposit. So if the developer did not complete the unit within 24 months of spa you gain right of compensation.
If state consent is rejected then the spa is null and void.
Rpgt effective dates calculation is based on spa dates provided state consent is given.

I am just wondering about the min limit as highlighted by formers what happen to those folks who booked something last week below rm 1 m.

 

[Daydreamer]

Now I know why MP are paid like that.

You should phrase it "thats why they all fight for a place in the parliament".

 

[FHBH12]

The GST impact is going to be big: http://blog.limkitsiang.com/2013/10/27/gst-will-up-prices-even-with-sales-tax-gone/ Don't expect prices to come down.

 

[shctaw]

RPGT Tax Budget 2014.

Year 1 - 30%
Year 2 - 30%
Year 3 -30%
Year 4 -20%
Year 5 -15%
Year 6 onward - 5%

http://www.btimes.com.my/Current_News/BTIMES/articles/20131026153012/20131026153012.pdf

 

[shctaw]

Increasing Home Ownership

187. I hear the grouses of the rakyat who wish to own a comfortable home, especially from those in the low and medium- income groups. Various concerns have often been raised, such as soaring house prices, inadequate supply of houses and difficulties in getting financing.

188. The recent sharp increase in the prices of houses has affected the ability of the rakyat to purchase houses. In addition, speculative activities have an impact on house prices and can adversely affect the real estate market in the long term.

189. To increase the ability of the rakyat to buy a house and ensure stable house prices, as well as to control excessive speculative activities, the Government will implement the following steps :

First: Review Real Property Gains Tax (RPGT). For gains on properties disposed within the holding period of up to three years, RPGT rate is increased to 30%, whereas for disposals within the holding period up to four and five years, the rates are increased to 20% and 15%, respectively. For disposals made in the sixth and subsequent years, no RPGT is imposed on citizens, whereas companies are taxed at 5%.

For non-citizens, RPGT is imposed at 30% on the gains from properties disposed within the holding period of up to 5 years and for disposals in the sixth and subsequent years, RPGT is imposed at 5%.

Second: Increase the minimum price of property that can be purchased by foreigners from RM500,000 to RM1,000,000;

Third: Increase transparency in property sales price, where property developers will have to display detailed sales price including all benefits and incentives offered to buyers such as exemption of legal fees, stamp duty, sales agreements, cash rebates and free gifts; and

Fourth: Prohibit developers from implementing projects that have features of Developer Interest Bearing Scheme (DIBS), to prevent developers from incorporating interest rates on loans in house prices during the construction period. Therefore, financial institutions are prohibited from providing final funding for projects involved in the DIBS scheme.

 

[kawan2sgmy]

With the new announcement, some of us are being caught with our pants down, jialat...
Malaysia is not so friendly afterall, esp to small investors, save for those who bought the higher-end properties.
Many have bought condos and landed below the 1 mil mark. It may not reach 1mil for many years to come.
So long as it's below 1m, we can't sell to foreigners, neither can we 'gift' it to our children, as one forumer kindly pointed out.
How come the policy makers never give due considerations to small investors like us? They should have banned all properties below 1m to foreigners from the very start. We are the ones who help them form the base of the property scene, and now we are being treated like that!

How do we move on from here? Get stuck...

Increasing Home Ownership


For non-citizens, RPGT is imposed at 30% on the gains from properties disposed within the holding period of up to 5 years and for disposals in the sixth and subsequent years, RPGT is imposed at 5%.

Second: Increase the minimum price of property that can be purchased by foreigners from RM500,000 to RM1,000,000;

 

[Frodo]

In practical terms you are right. But if you look at the current practice the date of purchase is when you signed the spa and pay that 10% deposit. So if the developer did not complete the unit within 24 months of spa you gain right of compensation.
If state consent is rejected then the spa is null and void.
Rpgt effective dates calculation is based on spa dates provided state consent is given.

I am just wondering about the min limit as highlighted by formers what happen to those folks who booked something last week below rm 1 m.

Everything hinges on State Consent which once given then can make reference to SPA for other legal matters. Until that happens, the SPA is very tentative. For those who just booked something below RM1 million, can only hope to get State Consent quickly. Send runners in might help, though no guarantee.

http://www.starproperty.my/index.ph...o-you-need-a-lawyer-for-property-transaction/

 

[RedsYNWA]

How come the policy makers never give due considerations to small investors like us? They should have banned all properties below 1m to foreigners from the very start. We are the ones who help them form the base of the property scene, and now we are being treated like that!

How do we move on from here? Get stuck...

My observation is that most JB properties are bought by the locals. With this new rule, we will see clearly if my theory is correct in the next few new launches. It depends on what you want to do with your property as well. Flip, rent out or for own use? Safest proposition is for own use.

 

[kawan2sgmy]

My initial intention is to rent out, then later own stay (optional), and then pass on to children. But now it seems can't pass on to children, this really makes my blood boil! Now my children has no interest in My becos it's kind of flip and flop suddenly. I was checking with forumers last week if there is any withholding tax if I were to place the proceeds in fd(if I managed to sell in future), but receive no answer. Looks like nobody quite know all these income tax thingy! So sad to be caught in this situation. No wonder people said JB is untested!

My observation is that most JB properties are bought by the locals. With this new rule, we will see clearly if my theory is correct in the next few new launches. It depends on what you want to do with your property as well. Flip, rent out or for own use? Safest proposition is for own use.

 

[RedsYNWA]

My initial intention is to rent out, then later own stay (optional), and then pass on to children. But now it seems can't pass on to children, this really makes my blood boil! Now my children has no interest in My becos it's kind of flip and flop suddenly. I was checking with forumers last week if there is any withholding tax if I were to place the proceeds in fd(if I managed to sell in future), but receive no answer. Looks like nobody quite know all these income tax thingy! So sad to be caught in this situation. No wonder people said JB is untested!

You can pass on to your children, but they need to inherit it. You cant just transfer the property to them like that, while you are alive. As for withholding tax, I am not sure of the rules too but you don't need to be so on, as to TT it over to SG right? You can keep the interest in MY and subsequently withdraw out to convert in SG mah.

http://tunheang.com/2012/12/04/interest-from-fixed-deposit-taxable/

 

[shctaw]

Why all the fuss?

Can still sell to locals. You guys think locals are so poor?

If prices go up quickly; locals will still buy from you; just that your price may "be at" or "slightly below" market price.

It not only affect JB; it affect the whole of Malaysia.

Don't make it sound like the end of the word.

 

[kawan2sgmy]

Thanks for your help!
I did a google search last week on this fd interest under My for non-resident but could not find any satisfactory answer.
I think I will just have to bear with this situation for the time being... but I really hope they can fine-tune something...
I remembered many years back, they also wanted to increase state levy from 5k to 10k, but subsequently, they drop off the idea.
Anyway, not sure when they actually impose the 10k levy again after that.

You can pass on to your children, but they need to inherit it. You cant just transfer the property to them like that, while you are alive. As for withholding tax, I am not sure of the rules too but you don't need to be so on, as to TT it over to SG right? You can keep the interest in MY and subsequently withdraw out to convert in SG mah.

http://tunheang.com/2012/12/04/interest-from-fixed-deposit-taxable/

 

[kawan2sgmy]

Not say fuss lah, it's just not so happy to hear this kind of policy so suddenly, feel abit uncomfortable.
why suddenly got so many hiccups lor... I am small investor, so in way not so steady! Must burst out than feel good, share share my problem!

Why all the fuss?

Can still sell to locals. You guys think locals are so poor?

If prices go up quickly; locals will still buy from you; just that your price may "be at" or "slightly below" market price.

It not only affect JB; it affect the whole of Malaysia.

Don't make it sound like the end of the word.