Bluenose1

Not quite sure whether to raise this here, or on the MM2H thread!

A question for the MM2Hers. If you have held the MM2H visa for a few years, and now want to buy a house, are you able to do so under the terms that existed when you obtained the visa, or are they those applicable under the new rules?

My wife thinks it is the former, but I would have thought the latter. The request is on behalf of friends of ours, currently in the UK, but looking to move here later in the year.

bakedbean

Buying a house doesn't actually come under MM2H rules. Any foreigner can buy a house in Malaysia. You don't have to have MM2H.

Having said that, Penang state (currently) is the only state that differentiates between MM2Hers and Other foreigners. So whatever rule is currently in place in Penang for MM2Hers will apply for any current MM2Her.

Err...I hope that makes sense.

bakedbean

The terms that stay the same will be in your friends' MM2H conditional approval letter, such as you must keep xxxx amount on Fixed deposit. You won't find anything about housing in the letter.

bakedbean

I sure get confused with the thresholds. I've just seen on the MM2H government site that there seems to be different minimum purchase levels for MM2Hers in various states. The doc is dated May 2014 so it is presumably current.

The link to the Gov site is here:
Purchase a House - MM2H Official Portal

I'll attach the doc below.

What may be interesting for some is that there are several states with minimum 500K, and Perak 350K, and Sarawak 300K.

Note that RPGT rules now apply (Real Property Gains Tax). That's on the profit. Years 1 to 5: it's 30 percent. Year 6 onwards: it's 5 percent.

mikemike

From Reading the above:

If you are on the MM2H scheme you can buy up to 2 properties for not less than the approved minimum figure.

If you have extra cash to throw around, then even as an MM2H holder you can buy additional property but without the benefit of the lower threshold figure that may apply to MM2H holders, subject to State laws.

Or am I going back to remedial skool

bakedbean

The only place where two properties is mentioned is in Penang so, if you have the dosh and wish to do so, with MM2H you can buy maximum two properties at min 500K each. This is only in Penang.

I'm not aware of restrictions in buying multiple properties elsewhere in Malaysia.

columbine

Shucks, the different agents I talked to still are as confused as me. Too late now ;-/

In the Budget 2015, there might be an increase again in the RPGT?
"In order to rein in speculation, the authorities could also further increase the Real Property Gains Tax (RPGT), said Kenanga Research. In 2013, this tax was raised to 30 percent for properties held for less than three years. For those sold within four to five years the rates, sellers have to pay 20 percent from 15 percent previously.

But if Budget 2015 will introduce more stringent measures to stamp out speculation, it could negatively affect consumption and domestic demand, noted Affin Investment Bank".
(PropertyGuru Daily Market News Oct 10, 2014)

bakedbean

Note that the doc in my previous post #19 has now been superseded by one dated September 2014. You can find it on the gov website if you follow the link above.

I've been flicking back and forth and I think the only change is to Selangor where you now have to fork out min RM 1 million or a whopping RM 2 million depending on which "zone" you intend to purchase in. Blimey.

OriginalSunshine

It's 350k in Sarawak. But you can't get owt decent for that.

columbine

Thanks BB for the link. Wished I saw this earlier. No, don't want to own 2 properties here as a 'long term visitor'. I can consider replacing one if I sell one.

Wraith1

I'm considering Ipoh in 3 to 4 years; there its 350,000 correct me if I'm wrong. Penang at 500,000 is not bad second choice for me plus there's more expats that live there. I could go either way just doing research right now. Love your forum.

bakedbean

Hey...welcome to the forum Wraith

Think you are correct about Ipoh, provided you have the MM2H visa. I've just checked the Gov website and looks like the thresholds were updated again in January 2015. I'll put a link here:
http://www.mm2h.gov.my/pdf/minimum%2...20property.pdf

As of the moment (April 2015) the minimum thresholds for MM2Hers are:

Selangor - zones 1 and 2: 2 million
Selangor - zone 3: 1 million

Terengganu, Johor, Pahang, WP Kuala Lumpur, Negeri Sembilan, WP Putrajaya, Kedah, Kelantan: 1 million

Perlis and Sabah: 500,000

Melaka: Strata: 500,000
Melaka: Landed*: 1 million

P. Pinang: 500,000 (can buy two)

Perak: 350,000

Sarawak: 300,000

For those not in this part of the world, "landed" means a house.

Somewhat confusingly (for me at least), the Penang threshold doesn't seem to differentiate between condo and landed though I thought that was the case. Anyone know anything?

columbine

"Somewhat confusingly (for me at least), the Penang threshold doesn't seem to differentiate between condo and landed though I thought that was the case. Anyone know anything?"

I think they know very well there is no landed properties that's priced at 500k, on the island.
To add on to the confusion, Penang, does that mean island and mainland? There are obvious price diferences between the two locations.

triage

I have been told by a real estate agent that foreigners cannot buy any non-strata property in Selangor. Can anyone confirm? This would mean that e.g. Valencia houses can no longer be purchased...

JC3

That sounds correct to me. There's more information on this topic here:

Selangor imposes restrictions on foreigners buying properties in some districts - Business News | The Star Online

JC3