- 50% exemption extended to 31 Dec 2014
- only for 1st time buyer for Residential property not more than RM400k (previously RM350k)
- from 1 Jan 2013, properties disposed within 2 years ~ RPGT raised to 15% from 10%
- and disposed within 2 to 5 years ~ RPGT raised to 10% from 5%
- after 5 years RPGT not applicable
Lets say you buy a property RM400k, stamp duty is approx. RM7k ~ 50% off ~ RM3,500 savings!!
Yeah, right....you think I'm stupid?
Nowadays, most developer absorb the stamp duty fees. So what savings you get??
RM400k property, say 5% increased per year, 2 yrs = RM441k, 3yrs = RM463k.
Sold within 2 yrs
~ say RM41k profit ~ you pay RPGT RM6,150 (previously only pay RM4,100). So you loss RM2,150 & minus the RM3,500 savings = only RM1,350 savings
RM1,350/ RM400k = 0.3375% (You might as well put in FD which get you around 3% interest per annum)
Sold after 3 yrs
~ say RM63k profit ~ you pay RPGT RM6,300 (previously only pay RM3,150). So you loss RM3,150 & minus the RM3,500 savings = even Better! only RM350 savings
RM350/ RM400k = 0.0875% (You might as well put in FD which get you around 3% interest per annum)
Good for Investor?
To me, definitely not. You are taking more risk now to invest in properties. What risk?
- High property price (some ppl might disagree with this)
- Higher RPGT (increased 50% for first 2 yrs & increased 100% for 2 to 5 yrs). Increase further in 2014??
- Higher BLR in future?
- Lower house loan ratio in future for 3rd or 2nd property?
More rules & regulations to come after election? I believe so. Beware & all these will only change to favour Investor when property market crashed.
By the way, above just simple calculations, I didn't take into account those lawyer fees, agent fees etc.
Good luck with your investment!!! ^_*
your calculations are flawed....u cannot compare to fd rate as 1350 is the marginal saving on top your capital gain
ReplyDeleteI'm telling you the difference you get with the new Budget 2013.
DeleteOn top of capital gain? How you know? Guaranteed? That is just my assumption.
Pls dun simply makes comment "your calculation is flawed".
Further to this.
ReplyDeleteThe RPGT rates will not burden genuine property onwers as they are given exemption and the payment of RPGT is based on net gains as follows:
i. RPGT exemption on net gains from the disposal of one unit residential property once in a lifetime by an individual who is a citizen or a permanent resident of Malaysia;
ii. RPGT exemption on gains from disposal of property between parents and children, husband and wife, grandparents and grandchildren;
iii. RPGT is charged only on net gains after deducting all related costs such as purchase price, renovation costs and incidental cost e.g legal fees; and
iv. Exemption up to RM10,000 or 10% of the net gains, whichever is higher, is given to an indivdual.
http://www.mida.gov.my/env3/index.php?page=real-property-gains-tax
I don't think the word "genuine" is right, should be "1st time buyer".
DeleteYour Blog is super and very informative I will have to read it all, thank you for the diversion from my studies!
ReplyDeleteInvestment Property
Thanks for the support ^_*
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ReplyDelete