Procedure For Purchase Flow Chart Earnest Money (RM12k to RM50k) Sign OTP upon Sale Estimated within 2wks Letter of Acceptance/ Sign SPA (Sales & Purchase Agreement) Pay Balance 10% Downpayment minus Earnest Money Pay State Levy Progressive Payment Foundation Complete 10% Next Progressive Payment Structural Framework 15% (Bank Loan) Disclaimer: Depending on Sales Package & Subject to Changes
Procedures For Purchasing Property • 18 years for SPA/ 21 years for Bank Loan • PP Form, LOA, NRIC & Passport Copy • Earnest Deposit – SG or RM Cheque (RM12k to RM50k) • OTP – Offer To Purchase (from Buyer to Developer) • Estimated 2 weeks later – Sign SPA (10% Downpayment & Foreign State Consent Levy) • Get Bank Loan with Approved Panel Banks 1. SG Loan (Singapore Banks) – Subjected to TDSR 2. RM Loan (Malaysian Banks) – no IPA, minimum Purchase Price RM1,000,000 ppty
Payment & Charges Type of Charges Amount (RM) Timing Payment Remarks Frequency Earnest Money 12k to 50k Upon Booking One Time 2% Effective 1 st May Foreign State Consent Levy 12k Upon Signing One Time SPA 2014 Stamp Duty on SPA 3% Upon MOT One Time Est 2 years after TOP Stamp Duty on Loan 0.5% of Loan Amount Upon taking One Time No payment if no Loan Loan taken Legal Fee on SPA Est 1% of Purchase Price Upon signing SPA One Time Negotiable Legal Fee on Loan Est 1% of Loan Amount Upon taking One Time Negotiable (No Loan payment if no Loan taken)
Type of Charges Amount (RM) Payment Remarks Frequency Subject to changes from 1 st May Property Tax for 0.14% of Property Value Yearly Foreigner 2014 Assessment Tax (City 0.26% of Net Property Value Half Yearly Charges deductible Council Tax) Rental Income Tax 26% of Net Rental Income Yearly Charges deductible Fire Insurance RM 120 for every 100k Loan Amount Quit Rent (Property Tax) Est 560/100sqm Yearly
RPGT – Real Property Gains Tax st Jan 2014 Effective 1 st Foreigner Local (Malaysian) 1 to 5 years – 30% 1 to 3 years – 30% 4 th year – 20% > 6 years – 5% 5 th year – 15% > 6 years – 0%
Foreign State Consent Levy vy (J (Johor Bahru) Effective 1 st May 2014 Current RM10,000 plus Admin 2% of Purchase Price charges (RM12,000)
Minimum Property Purchase Price for Foreigner (J (Johor Bahru) Effective 1 st May 2014 Current RM500,000 RM1,000,000 (Except for Medini remains at RM500,000) Penang - RM1,000,000 Kuala Lumpur - RM500,000
Bumiputra • Definition – “Son of the Soil” a Malaysian term to describe Ethnic Malays & other indigenous people • Bumi Quota – 40% of all Residential, Commercial & Industrial developments • Developer will apply for release at 50% completion stage (7% of Purchase Price Effective 1 st Jan 2014) • Exemptions – Medini (no Foreign Quota) Puteri Harbour (no Foreign Quota) Certain projects in Zone A (with Special Approval)
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