bakedbean

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

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

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

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

bakedbean

No, MM2Hers are not permanent residents per se, though some of us think we are . MM2H is just a long term social visit pass.

mikemike

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

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.

JC3

[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

Good point about Penang mainland, JC Must admit I always think of Penang as Penang Island which is not correct.

roystevenung

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

But presumably foreigners will not be allowed to buy the 800k ones.

roystevenung

General population of malaysians can afford either. A fresh graduate earns in the range of Rm2.5k-Rm3k per month ...

bakedbean

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

JC3

Hi,

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


JC3

bakedbean

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.