New developments to share

[Polaris]

Stop DIBS with immediate effect or 2014 ?

Hi,

Why bumi-release must increase price by 7.5%? is this just pure profiteering by developer or a levy paid to govt?

90% banks I called up today already stop DIBS not just P bank.

For info sharing bro...

thanks.

 

[wolverine23]

What happens if the project you bought is already about 40% completed? Still can back out?

What will be the penalty? Is it just forfeit the first 10 - 20% that is already paid?

If the new measures are implemented and prices drop, developers will have to give discounts or sell at old price as their bumi release buyers may run off and foreigners who booked units under 1M will no longer be eleigible. My friend a Singaporean booked a bumi release unit @ 600K, looks liek she will have to back out as its due for completion only in 2015. Even Malaysian buyers may back out. I booked a Setia condo bumi release , the terms are I can back out with full refund if I change my mind when they get the bumi release. I am now thinking of doing just that.

 

[alnine]

I feel the current RPGT and min limit is a big disadvantage to non locals. I am currently more cautious with my next investment. Firstly if for whatever reason I need to cash out early I am 30% worst off and I now can only depend on the upper market which in general may take a little longer to sell. Nevertheless I truly appreciate where the Malaysian government is coming from.
In the upper market should also be more lucrative to invest if you have the means and risk appetite as it has the potential for higher gains.

Assess what you can afford and risk then go for it.

 

[shctaw]

I feel the current RPGT and min limit is a big disadvantage to non locals. I am currently more cautious with my next investment. Firstly if for whatever reason I need to cash out early I am 30% worst off and I now can only depend on the upper market which in general may take a little longer to sell. Nevertheless I truly appreciate where the Malaysian government is coming from.
In the upper market should also be more lucrative to invest if you have the means and risk appetite as it has the potential for higher gains.

Assess what you can afford and risk then go for it.

If you bought at RM1m and sold at RM1m. There are RM$0.00 tax.

Because there are no real gain.

 

[malpaso]

If you bought at RM1m and sold at RM1m. There are RM$0.00 tax.

Because there are no real gain.

that's right.
further if bot at 1M
and after 5 year, with renovation 50K, interest bank loan 50K, other misc cost stamp duty, tax, agent fee etc 50k,
sell at 1.15M
also tax 0.00RM.

 

[Newbie11]

And 1m is the spa price. Not after rebate.

 

[kawan2sgmy]

But honestly some type of expenses (e.g. reno, and broker agent's fees (those ppl who bring new tenants) have already been used to offset against rental received during income tax reporting. Still can claim 2nd time when selling off the property? Btw, record keeping is good for how many yrs in My?

that's right.
further if bot at 1M
and after 5 year, with renovation 50K, interest bank loan 50K, other misc cost stamp duty, tax, agent fee etc 50k,
sell at 1.15M
also tax 0.00RM.

 

[RedsYNWA]

But honestly some type of expenses (e.g. reno, and broker agent's fees (those ppl who bring new tenants) have already been used to offset against rental received during income tax reporting. Still can claim 2nd time when selling off the property? Btw, record keeping is good for how many yrs in My?

http://www.propertywtf.com.my/property-legal-processing/real-property-gains-tax-rpgt-t1255.html

http://www.kpmg.com.my/kpmg/publications/tax/42/a0169sc002.htm

Happy reading! If you don't want to read through, then dispose after 5 years lor......keke.......

 

[kawan2sgmy]

Kamsiah for the links!, Very informative for all investors!

A must read!

http://www.propertywtf.com.my/property-legal-processing/real-property-gains-tax-rpgt-t1255.html

http://www.kpmg.com.my/kpmg/publications/tax/42/a0169sc002.htm

Happy reading! If you don't want to read through, then dispose after 5 years lor......keke.......

 

[shctaw]

[video=youtube;QqCi3aRUiIY]http://www.youtube.com/watch?v=QqCi3aRUiIY[/video]

 

[shctaw]

[video=youtube;xv6OaksY-3Y]http://www.youtube.com/watch?v=xv6OaksY-3Y[/video]

 

[malpaso]

But honestly some type of expenses (e.g. reno, and broker agent's fees (those ppl who bring new tenants) have already been used to offset against rental received during income tax reporting. Still can claim 2nd time when selling off the property? Btw, record keeping is good for how many yrs in My?

good point, dunno.. later i try to check with people more familiar.

 

[RedsYNWA]

good point, dunno.. later i try to check with people more familiar.

Answer is in the KPMG guide that I posted earlier. But as there's lots of legal jargon, its hard to read through, but Kawan2sgmy seems an expert. Maybe he's a lawyer! haha.....

 

[kawan2sgmy]

Pls lah, I lawyer with this type of English! Real joker!
Oh but I believe in this: Ask and you shall receive! Many pple here are very helpful...

Answer is in the KPMG guide that I posted earlier. But as there's lots of legal jargon, its hard to read through, but Kawan2sgmy seems an expert. Maybe he's a lawyer! haha.....

 

[RedsYNWA]

Pls lah, I lawyer with this type of English! Real joker!
Oh but I believe in this: Ask and you shall receive! Many pple are very helpful here...

Or you are an accountant like me? hahahah.......

 

[kawan2sgmy]

Wah you are an accountant! Must be very good with figures! So investment wise, you must have made loads of $!
I smell no smoke, just a nobody, trying to learn lots of good stuff from virtual friends here!

Or you are an accountant like me? hahahah.......

 

[malpaso]

http://www.propertywtf.com.my/property-legal-processing/real-property-gains-tax-rpgt-t1255.html

http://www.kpmg.com.my/kpmg/publications/tax/42/a0169sc002.htm

Happy reading! If you don't want to read through, then dispose after 5 years lor......keke.......

good info.
looks like para 7 in the 2nd link means cannot include if already claimed under income tax deductible. Dang.

 

[wuqi256]

What happens if the project you bought is already about 40% completed? Still can back out?

What will be the penalty? Is it just forfeit the first 10 - 20% that is already paid?

If you are hit with this 7.5% increase for a bumi-release, it should be the same with most if not all the developers, you are eligible for a full refund.

 

[jade apple]

Seems to be alot of conflicting news lately so heres sharing what little i know:

1. DIBS will likely be scrapped, a bank starting with P has already done so but not the rest of the banks. This will depend on Bank Negara's plans and timeline.
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 and it still needs to go through a few levels before being approved.

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.

4. GST when implemented will hit 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.

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.

Need help on the bumi-released lot. My friend is a Singaporean, he bought a bumi lot from developer 2 years ago. Unit is going to TOP soon. He got his state consent approved. Today, he received an email from the developer to inform him that his bumi-released unit cannot be converted to international lot, it will be remained as bumi lot. The developer said this is the new rules and regulation from Malaysia Government. Anyone heard of this? Thanks.

 

[malpaso]

Need help on the bumi-released lot. My friend is a Singaporean, he bought a bumi lot from developer 2 years ago. Unit is going to TOP soon. He got his state consent approved. Today, he received an email from the developer to inform him that his bumi-released unit cannot be converted to international lot, it will be remained as bumi lot. The developer said this is the new rules and regulation from Malaysia Government. Anyone heard of this? Thanks.

aiyoyo my friend also bot a bumi lot.. now still processing. real kepala pusing. your friend is chinese? chinese singaproean own bumi lot??