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-   -   Thresholds for buying property as a foreigner (https://britishexpats.com/forum/malaysia-148/thresholds-buying-property-foreigner-813295/)

bakedbean Oct 26th 2013 8:56 am

Thresholds for buying property as a foreigner
 
It has been announced in the Budget (October 2013) that the minimum purchase price for foreigners* buying property in Malaysia be raised from RM 500,000 to RM 1 million.

As has been the case in the past, some Malaysian States may impose their own limits specifically for their own State.

*Currently (as at October 2013), Penang State is the only State, I believe, that differentiates between MM2Hers (those with the MM2H retirement visa) and other foreigners. See next post.

I'm going to ask Sue if she will make this topic a Read Me/Sticky which will be useful for those thinking of buying property here. I'll add extra info about other States as I can but, if anyone else has up to date info, anything to do with buying property, please add to this Topic.

bakedbean Oct 26th 2013 9:00 am

Re: Thresholds for buying property as a foreigner
 
How it is in Penang

The minimum limit of condo purchase for foreigners was raised to RM 1 million, and landed properties to RM 2 million in June 2012. However......

a) MM2H participants are allowed to purchase at RM500,000 threshold and limited to 2 purchases

b) Those holding Permanent Residence can purchase at RM250,000 and above, and

c) Transfers pursuant to distribution to Estate of deceased persons are not affected.

Those foreigners/MM2Hers buying in Penang are subject to a 3 Year Lock In from signing of S&P (Sale & Purchase Agreement). You cannot sell the property until the 3 years are up.

bakedbean Oct 26th 2013 9:08 am

Re: Thresholds for buying property as a foreigner
 
RPGT (Real Property Gains Tax) for foreigners (including MM2Hers)

As at October 2013, foreigners are subject to 30 percent RPGT if they sell their property within 5 years. Note: the tax is on the portion of the gain you have made (not the whole value of the property).

After 5 years, this tax reduces to 5 percent if the property is sold.

mikemike Oct 28th 2013 4:38 am

Re: Thresholds for buying property as a foreigner
 

Originally Posted by bakedbean (Post 10962400)
How it is in Penang

The minimum limit of condo purchase for foreigners was raised to RM 1 million, and landed properties to RM 2 million in June 2012. However......

a) MM2H participants are allowed to purchase at RM500,000 threshold and limited to 2 purchases

b) Those holding Permanent Residence can purchase at RM250,000 and above, and

c) Transfers pursuant to distribution to Estate of deceased persons are not affected.

Those foreigners/MM2Hers buying in Penang are subject to a 3 Year Lock In from signing of S&P (Sale & Purchase Agreement). You cannot sell the property until the 3 years are up.

B. has intrigued me can a MM2H holder become a Permanent resident?, if so what is the qualifying criteria?

bakedbean Oct 28th 2013 1:09 pm

Re: Thresholds for buying property as a foreigner
 
No, MM2Hers are not permanent residents per se, though some of us think we are :D. MM2H is just a long term social visit pass.

mikemike Oct 29th 2013 5:55 am

Re: Thresholds for buying property as a foreigner
 

Originally Posted by bakedbean (Post 10965092)
No, MM2Hers are not permanent residents per se, though some of us think we are :D. MM2H is just a long term social visit pass.

ok ty for that, I am now presuming that this would apply to non residents who set up business and after three years can apply for residency status. A very attractive option for sure.

kebi Oct 30th 2013 5:29 pm

Re: Thresholds for buying property as a foreigner
 

Originally Posted by mikemike (Post 10966431)
ok ty for that, I am now presuming that this would apply to non residents who set up business and after three years can apply for residency status. A very attractive option for sure.

If you want to know the rules for permanent residence in Malaysia you can check the Malaysian Immigration web page under ”Entry Permit”. One way would be to put US$ 2 Mio in a fixed deposit account with a Malaysian bank for 5 years.:ohmy:

JC3 Nov 1st 2013 6:38 am

Re: Thresholds for buying property as a foreigner
 
[QUOTE=bakedbean;10962400]How it is in Penang

The minimum limit of condo purchase for foreigners was raised to RM 1 million, and landed properties to RM 2 million in June 2012. However......

a) MM2H participants are allowed to purchase at RM500,000 threshold and limited to 2 purchases

###

I think this description applies only to Penang Island, not Penang State. In Seberang Perai the threshold for purchase of landed property by foreigners is RM1m with no limit to quantity.

Elsewhere in Malaysia (i.e. outside Penang) the October 2013 decision by the Federal Government to raise the minimum property price to RM1m is not effective until 1 January 2014, so there’s still two months left to buy at the lower threshold.

MM2H Participants can still buy stratified or landed properties on Penang Island or Seberang Perai at the lower RM 500,000 threshold, limited to two properties.

So I would imagine if you are an MM2H participant you could buy two stratified or landed properties priced between RM500,000 and RM1m on Penang Island or Seberang Perai

And then replacing your ‘MM2H hat’ with your ‘Foreigner hat’:
  • Some more stratified properties priced at RM1m + on Penang Island and Seberang Perai
  • Plus some more landed properties priced at RM2m+ on Penang Island and RM1m+ for Seberang Perai
  • Plus some more properties elsewhere in Malaysia (i.e. outside Penang) priced at RM1m+

It seems that as an MM2H participant from January 2014 you will be allowed to buy a property in Penang State at a lower threshold than elsewhere in Malaysia. I expect the Penang State Government will look to change this anomaly very soon.

JC3

bakedbean Nov 1st 2013 12:47 pm

Re: Thresholds for buying property as a foreigner
 
Good point about Penang mainland, JC :thumbup: Must admit I always think of Penang as Penang Island which is not correct.

roystevenung Nov 6th 2013 2:52 am

Re: Thresholds for buying property as a foreigner
 
Yes, the cost of landed property on the mainland within the Penang State are much cheaper as compared to the island itself.

Rm800k can get you a landed bungalow on the mainland, Simpang Ampat or Alma area. However due to the second bridge and rapid development in Alma (Aeon is coming up prolly in 2014, just opposite Tesco Alma), property prices there are expected to soar....

bakedbean Nov 6th 2013 11:41 am

Re: Thresholds for buying property as a foreigner
 
But presumably foreigners will not be allowed to buy the 800k ones.

roystevenung Nov 6th 2013 12:13 pm

Re: Thresholds for buying property as a foreigner
 
General population of malaysians can afford either. A fresh graduate earns in the range of Rm2.5k-Rm3k per month ...

bakedbean Feb 3rd 2014 12:06 pm

Re: Thresholds for buying property as a foreigner
 

Originally Posted by JC3 (Post 10972073)

It seems that as an MM2H participant from January 2014 you will be allowed to buy a property in Penang State at a lower threshold than elsewhere in Malaysia. I expect the Penang State Government will look to change this anomaly very soon.

JC3


I haven't kept up to speed with this. Did it get changed, JC3? Or anyone?

JC3 Feb 4th 2014 9:51 am

Re: Thresholds for buying property as a foreigner
 

Originally Posted by bakedbean (Post 11110654)
I haven't kept up to speed with this. Did it get changed, JC3? Or anyone?

Hi,

As far as I can see, there's been no change yet.


JC3

bakedbean Feb 23rd 2014 12:04 pm

Re: Thresholds for buying property as a foreigner
 
I got confirmation from a property agent acquaintance in Penang that indeed there is no change so far (as at Feb 2014) so MM2Hers can still buy here at 500K. Watch this space.

Bluenose1 Mar 7th 2014 11:06 am

Re: Thresholds for buying property as a foreigner
 
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 Mar 7th 2014 11:40 am

Re: Thresholds for buying property as a foreigner
 
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 Mar 7th 2014 11:44 am

Re: Thresholds for buying property as a foreigner
 

Originally Posted by Bluenose1 (Post 11162452)
r 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.

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 Aug 24th 2014 9:22 am

Re: Thresholds for buying property as a foreigner (for MM2Hers)
 
1 Attachment(s)
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 Aug 30th 2014 1:10 am

Re: Thresholds for buying property as a foreigner
 
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 :confused:

bakedbean Aug 30th 2014 1:25 pm

Re: Thresholds for buying property as a foreigner
 
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 Oct 11th 2014 4:22 am

Re: Thresholds for buying property as a foreigner
 
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 Oct 11th 2014 1:08 pm

Re: Thresholds for buying property as a foreigner (for MM2Hers)
 

Originally Posted by bakedbean (Post 11379967)
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

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 :blink: depending on which "zone" you intend to purchase in. Blimey.

OriginalSunshine Oct 11th 2014 1:11 pm

Re: Thresholds for buying property as a foreigner
 
It's 350k in Sarawak. But you can't get owt decent for that.

columbine Oct 11th 2014 4:12 pm

Re: Thresholds for buying property as a foreigner
 
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 Apr 1st 2015 3:18 am

Re: Thresholds for buying property as a foreigner
 
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. :thumbsup:

bakedbean Apr 1st 2015 6:18 am

Re: Thresholds for buying property as a foreigner
 
Hey...welcome to the forum Wraith :wave:

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 :blink:
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 Apr 3rd 2015 3:45 am

Re: Thresholds for buying property as a foreigner
 
"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 Nov 3rd 2015 9:45 am

Re: Thresholds for buying property as a foreigner
 
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 Nov 3rd 2015 10:12 am

Re: Thresholds for buying property as a foreigner
 

Originally Posted by triage (Post 11785299)
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...

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

eCdD Nov 10th 2015 8:13 am

Re: Thresholds for buying property as a foreigner
 
What about the process? This might be take a very long time.

So if you selected a property you want to buy under the current rules, you apply at MM2H and then wait many month for approval?

bakedbean Nov 10th 2015 8:34 am

Re: Thresholds for buying property as a foreigner
 
You're mixing two different things: MM2H and Buying A Property.

You don't have to have MM2H to buy a property. In fact, I think it's only Penang State that has some differences in that they treat MM2Hers differently.

eCdD Nov 10th 2015 10:55 am

Re: Thresholds for buying property as a foreigner
 
I know but according to my information there is a huge gap on the minimum price for foreigners with/without MM2H also in Perak.

bakedbean Nov 10th 2015 1:16 pm

Re: Thresholds for buying property as a foreigner
 
Noted.

bakedbean Nov 26th 2015 10:45 pm

Re: Thresholds for buying property as a foreigner
 
There are a few "extras" to be paid on top of your property investment.

Certainly if you live in Penang, there is a RM 10,000 state consent fee for Foreigners. And, if you buy in joint names and your spouse passes away, you have to shell it out all over again when the property passes to you, despite the fact you already live there. That's a good wheeze for the state government :sneaky:

Got some friends currently buying a landed house in Penang. There seems to be some horrendous additional costs involved these days. If anyone knows the details, do put on this topic to warn others.

columbine Nov 27th 2015 1:09 am

Re: Thresholds for buying property as a foreigner
 
Minimum Property Purchase Price For Foreign Interests Acquisition in KL, Penang and Johor | Halim Hong & Quek

PG has a 3% levy on top of the State Permission of rm10k.

InVinoVeritas Nov 27th 2015 7:38 am

Re: Thresholds for buying property as a foreigner
 
1 Attachment(s)

Originally Posted by columbine (Post 11803298)

I don't think this applies to MM2H.

Here is the current list of minimum prices from the MM2H portal:-

JC3 Nov 27th 2015 8:21 am

Re: Thresholds for buying property as a foreigner
 

Originally Posted by columbine (Post 11803298)

Hi Columbine,
Regarding the 3% - do you mean Stamp Duty?

JC3

columbine Nov 27th 2015 8:50 am

Re: Thresholds for buying property as a foreigner
 
Yes, IVV the article doesn't mention mm2h prices, mainly foreigners ( non Mm2H).
But I highlighted the 3% Levy as BB mentioned above the horrendous additional costs beside the rm10k for Pg State Permission.

JC3, if you scroll down the article it gives the Levy for 3 States including Pg. The Levy is on top of the rm10k

columbine Nov 27th 2015 9:06 am

Re: Thresholds for buying property as a foreigner
 
How To Calculate The Stamp Duty Of Your Purchase Property? | Property Malaysia

JC3, I found another article that explains more re Stamp Duties and the Big Levy/ Stamp Duty


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