The Costs of Buying a Property as a Foreigner
May 8th 2016, 9:02 am
#16
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Re: The Costs of Buying a Property as a Foreigner
Where have you heard this?
May 8th 2016, 11:21 am
#17
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Re: The Costs of Buying a Property as a Foreigner
MOT (Memorandum of Transfer) is the Stamp Duty you will have to pay 2 to 5 yrs (hopefully) when the Title of the purchased property is transferred to your name.
Value and Rate
1st RM100,000 1%
Next RM500,000 2%
Amount thereafter 3%
(Based on Original Purchase Price)
Last edited by columbine; May 8th 2016 at 11:29 am.
May 8th 2016, 11:56 am
#18
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Location: Far North Queensland
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Re: The Costs of Buying a Property as a Foreigner
I was told by lawyer (this year) the 2 percent was on the next 400,000. Might want to check.
May 8th 2016, 3:04 pm
#19
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Re: The Costs of Buying a Property as a Foreigner
As well as the restrictions/thresholds for buying property for foreigners and we have an existing sticky thread on that subject here:
http://britishexpats.com/forum/malay...eigner-813295/
there are numerous other costs and taxes to think about.
Here is how it is, as at April 2016.
(If I've missed anything, let me know)
1. Agents Fee. In Penang that is generally 1 percent plus GST. (I think the Seller will also pay 1 percent?)
2. Penang State Government Levy. 3 percent of the property price.
3. Penang State Consent Fee (for foreigners). RM 10,000.
4. Legal Fees.
5. Moving Costs.
6. Stamp Duty (Malaysian Government)
1 percent on the first 100,000
2 percent on the next 400,000
3 percent thereafter
7. Renovation costs (if applicable)
I reckon on buying a new unrenovated property of say RM 2 million, you would need to fork out something like RM 200,000 to 300,000 in extras. Anyone want to query my maths?
In addition to that, you need to be really really really sure you want to live there as there will be:
1. In Penang.... a 3 year lock-in. You cannot sell for 3 years.
2. If you do sell after that, RPGT (Real Property Gains Tax) will kick in.
For foreigners, in years 1 to 5, that will be 30 percent*. From Year 6, it reduces to 5 percent and stays at 5 percent.
*RPGT is taxed on the profit you make from the sale (less renovation and other costs).
Is it worth buying a property here?
http://britishexpats.com/forum/malay...eigner-813295/
there are numerous other costs and taxes to think about.
Here is how it is, as at April 2016.
(If I've missed anything, let me know)
1. Agents Fee. In Penang that is generally 1 percent plus GST. (I think the Seller will also pay 1 percent?)
2. Penang State Government Levy. 3 percent of the property price.
3. Penang State Consent Fee (for foreigners). RM 10,000.
4. Legal Fees.
5. Moving Costs.
6. Stamp Duty (Malaysian Government)
1 percent on the first 100,000
2 percent on the next 400,000
3 percent thereafter
7. Renovation costs (if applicable)
I reckon on buying a new unrenovated property of say RM 2 million, you would need to fork out something like RM 200,000 to 300,000 in extras. Anyone want to query my maths?
In addition to that, you need to be really really really sure you want to live there as there will be:
1. In Penang.... a 3 year lock-in. You cannot sell for 3 years.
2. If you do sell after that, RPGT (Real Property Gains Tax) will kick in.
For foreigners, in years 1 to 5, that will be 30 percent*. From Year 6, it reduces to 5 percent and stays at 5 percent.
*RPGT is taxed on the profit you make from the sale (less renovation and other costs).
Is it worth buying a property here?
1. Penang command a very good rental yield however selling yield is poor.
It seems like a trend that people prefer to rent more than buy in Penang.
However you have a spare cash and would like to get a weekend/retirement crib, YES, Penang is a good place.
May 8th 2016, 10:59 pm
#20
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Re: The Costs of Buying a Property as a Foreigner
Welcome to the forum AhXiong 
Yes you are correct. With ringgit interest rates the way they are currently (May 2016) it's a bit of a no-brainer from a purely financial point of view. You can put the money in the bank and generate more than you require to rent the property that the money would buy.
Equally, as you say, if you are retired, why worry lah? You can buy the property you want, fit it out the way you want, and enjoy the senior days without any thoughts of what the landlord might have in store for you
Yes you are correct. With ringgit interest rates the way they are currently (May 2016) it's a bit of a no-brainer from a purely financial point of view. You can put the money in the bank and generate more than you require to rent the property that the money would buy.
Equally, as you say, if you are retired, why worry lah? You can buy the property you want, fit it out the way you want, and enjoy the senior days without any thoughts of what the landlord might have in store for you
May 9th 2016, 8:57 am
#21
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Re: The Costs of Buying a Property as a Foreigner
https://investjohor.wordpress.com/20...s-in-malaysia/
MOT (Memorandum of Transfer) is the Stamp Duty you will have to pay 2 to 5 yrs (hopefully) when the Title of the purchased property is transferred to your name.
Value and Rate
1st RM100,000 1%
Next RM500,000 2%
Amount thereafter 3%
(Based on Original Purchase Price)
MOT (Memorandum of Transfer) is the Stamp Duty you will have to pay 2 to 5 yrs (hopefully) when the Title of the purchased property is transferred to your name.
Value and Rate
1st RM100,000 1%
Next RM500,000 2%
Amount thereafter 3%
(Based on Original Purchase Price)
1. Stamp duty for transfer of ownership title (also known as memorandum of transfer or MOT) = 1% for the first RM100,000; 2% on the next RM400,000, and 3% on the subsequent amount.
So it seems, that MOT and Stamp Duty is the same.
May 9th 2016, 9:48 am
#22
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Re: The Costs of Buying a Property as a Foreigner
Stamp Duty for many things ;0) So MOT is another type of Stamp Duty ie "tax" collected by the Govt
You need to check with the real estate lawyer to find the current rates as these can change without notice.
You need to check with the real estate lawyer to find the current rates as these can change without notice.
May 10th 2016, 5:29 pm
#23
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Re: The Costs of Buying a Property as a Foreigner
There is something more that is not mentioned in the starting post: Property Assessment Fee
But for you up there in Penang it is not so high:
Official Website of Municipal Council of Penang Island - Property Assessment
But for you up there in Penang it is not so high:
Official Website of Municipal Council of Penang Island - Property Assessment
