Impact of 5% RPGT on Property Investment in Malaysia
12 November 2009 | Category: Property Investment
New fixed rate of 5% Real Property Gain Tax (RPGT) has been proposed in Budget 2010 presentation recently. It will be implemented start from 1st January 2010. So, what are the impacts of 5% RPGT on property investment in Malaysia?
For Home Buyer who,
Scenario 1: Buying New House from developer
- If buying for own stay, you are not really affected as you may notice the developer and banker still offering attractive packages for new property
- If buying for investment purposes, at least you are now aware about the 5% RPGT and it should be taken into consideration.
Scenario 2: Buying Second Hand house from sub-sales market
- As a buyer, you are not affected directly because the RPGT will be imposed only on the gains from the disposal of the property for seller.
- However, it has a minor impact on sub-sales market. Sellers start to hold back their selling plan due to the changes and uncertainty. Both seller and buyer are now in the ‘wait-and-see’ mode, hope for good news from Government of Malaysia.
For Home Seller who,
Scenario 3: Selling their house bought from developer or sub-sales market within short period (5 years, 3 years or earlier)
- I think it is fair for Government to impose tax on those Investors who are making money from their property investment at a reasonable rate.
Scenario 4: Selling their house which has been bought/built for own stay many years ago (20 years, 30 years or even longer time)
- RPGT was introduced mainly to prevent the property investor over speculates the market and cause bubble. Therefore, it is not fair to impose RPGT on home seller who bought their house thirty years ago. Some of them bought for own stay, not for investment.
- Generally, most of the property experts believe the sub-sales market will be slow down for this coming few months but for short term only.
Well, don’t be surprise; anything can be changed over the night in Malaysia. Just imagine, 30% of RPGT was imposed on foreigner few years back, and then become 0% after announcement of RPGT Exempted started from 1st April 2007, but now 5% of RPGT is coming back. The inconsistent policies of RPGT have confused our foreigner investor and affected their confidence to invest in Malaysia.
Tags: budget 2010 rpgt 5%, foreigner rpgt malaysia, impact of rpgt, latest rpgt, property tax malaysia, real property gains tax, rpgt for foreigner in malaysia, rpgt malaysia
Related Articles:
Similar posts you may be interested in based on past browsing
3 Comments
What says you? Drop your opinion in the comment box.
Leave a Reply
Visit Fiscal WISE Home Loan Finder for an instant comparisons of the current home loan products from more than 25 Malaysia Banks and Finance Institutions. Find the lowest interest rates and input the data into the calculator above.
- Bonds Investment
- Car Loans Malaysia
- Credit Card Reviews
- Financial Book Review
- Financial Planning
- Free Membership Card
- Gold Investment
- Home Loan
- How To.. Tutorials
- Insurance
- Interesting News
- Property Investment
- Tax Management
- Telco Prepaid and Postpaid Plan Reviews
- Uncategorized
- Unit Trust
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
Friends
Property
sock peng
on November 13th, 2009our government always confused us
keep on change the RPGT
ur article is very good for us to understand the situation
Horlic Lim
on November 13th, 2009TQ Sock Peng!
suresh
on February 5th, 2010i support u…sock peng