1997 report brought to you by
|This report introduces a cheap match-making service for
Singaporeans and others wanting to sell their
Malaysian/foreign properties and focuses on the latest
rules and regulations regarding residential Malaysian
Re-sale of Malaysian Properties.
Readers who wish to re-sell their Malaysian properties are welcome to place an advertisement in Asiahomes Internet - Foreign Properties (Malaysian) for Sale. The prospective buyer will contact you direct. Advertisement fees are as affordable as can be.
Malaysian Property Investment.
Advice to first-time foreign property investors. Singaporeans love Malaysian and London properties as at present. Be careful of the following unethical tricks of realtors trying to make you buy Malaysian, Australian or foreign properties.
1. Incorporate a private limited company with strangers. This advice to circumvent the ruling that foreigners must pay the MS$100,000 levy/Australian ruling that foreigners cannot own developed older properties has often by given by realtors selling Malaysian properties in the past. Lawyers are recommended.
The company will have Malaysians/foreigners as majority shareholders. These Malaysians/foreigners are paid a "fee" and have signed forms "resigning" from the company anytime. If these Malaysians/foreigners misbehave, the Singaporean shareholder quickly finds others to replace them. Sounds good?
What happens if the Malaysian/foreign shareholders die? The estate will claim the shares and you still pay mortgage while the estate claims the shares!
2. No more M$100,000 levy in the 1998 Malaysian Budget.
However, there will still be advices to incorporate a company with Malaysians as major shareholders in the purchase of Malaysian land and for those wishing to buy more than 2 condominiums.
3. 1998 relaxed measures by the Malaysian Government to attract foreign investors to property are:
3.1 50% instead of 30% of condominium projects are permitted to be sold to foreigners.
3.2 Foreigners can buy 2 condominium units instead of 1 previously. If they want to buy >2, they have to incorporate a company.
3.3 Permanent residents seeking Malaysian citizenship or with a Malaysian spouse can buy units below M$250,000 (S$120,591) but above M$60,000.
3.4 Foreigners pay property gains tax of 5% instead of 30% if they sell the property after the 5th year. Previously, non-residents pay 30% regardless of the holding period.
4. Depreciation of the ringgit makes investment in Malaysian properties unattractive unless you are optimistic. Many investors of Australian properties are not happy as the A$ has depreciated considerably over the last 5 years. This is one of the factors to be considered in foreign property investment. I did not mention this factor in my first report. Much depends on timing in investment as US$ has appreciated recently.
5. Each state has its own rulings for foreign property investors. It is not clear whether each State government has its own ruling for foreigners. It is best for Singaporeans to really do a thorough check. Previously, Malacca, Johor and Penang appeared to have different interpretation of the rulings.
6. Location. In any case, location is still most important in capital gains and property investment is still one of the best forms of investment for old age.
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