rightcoastconservative

Prior to Budget 2014 (to be tabled next month), speculation has rift up on a few proposal to tighten the rules, especially on property sector. Following the outcry from public stating the alarming high property prices, measure should be taken to tackle the issue before bubble was formed. The Bubbling Biz... Among the measures being proposed were: Non-other than Real Property Gain Tax (RPGT) Higher Stamp Duty : ~ 5% of purchase price for 3rd property ~ 7.5% for 4th property ~ 10% for 5th property onward Loan-to-Value ratio reduce to 60% for 3rd property onward While the above info need to be ascertained further, some banks already implemented their in-house ruling. What's that? It was to limit the maximum term for refinancing of property to 10 years . Yes. Sooner or later, all of the banks will follow. * Please note that the above 3 rules need to be ascertained further. Stay tune!

Ever since the property boom started in 2009, right after the global financial crisis, investors were laughing to the bank. But, can these sustain until next year? Many analysts doubt so. Why? The most crucial determining factors might uncover itself in the next few months, approaching year end. In short, we have summed out to the below 3 critical factors: Banning of DIBS This is not a secret anymore. Speculation rife up recently, saying that BNM may ban the Developer Interest Bearing Scheme (DIBS) by year end. BNM is studying the implications of DIBS which benefiting speculators more than serious buyers. Note: Singapore already banned such scheme few years back. Interest Rate hike BNM also may revised the Overnight Policy Rate (OPR), which determine the cost of financing in the country including Base Lending Rate (BLR) for mortgage loan. A 25 basis points hike was expected. This will affect all type of loans, except fixed interest loans. Let's get prepare for higher monthly loan ...

General election is around the corner. External environment was not so promising, following the no ending of European debt crisis, world economic slowdown, and recent tension between China and Japan. I believe all of these would be some key factors being taking into consideration to formulate the Malaysia Budget 2013. Goodies? Bonus? Cash handout? Themed as " Prospering The Nation, Enhancing Well-Being of the Rakyat: A Promise Fulfilled ". Our prime minister, who is also Finance Minister, tabled the 2013 Budget at Dewan Rakyat yesterday. Over here, Finance Malaysia blog would only touches on some key points: Economic growth projected to expand between 4.5% - 5.5% Federal Government's revenue in 2013 is estimated to increase to RM208.6 billion Continuation of BR1M of RM500 to households earning not more than RM3,000 a month and also extended the aid to cover a payment of RM250 for single unmarried individuals aged 21 and above, earnings not more than RM2,000 a month RM 1...

Property prices had been skyrocketing since 2009, creating more millionaires in Malaysia. The key factors behind the increasing properties prices were low interest-rate environment, attractive housing loan packages and ample of liquidity in financial system. These had prompt investors ,and general public too, to invest into properties searching for better return among all the investment instruments. Oppss... Favorable Real Property Gain Tax (RPGT) is one of the factor too. While creating millionaires, many middle and low income groups are facing difficulties to come out the higher capital required to purchase their homes. Genuine buyers , who are first-time house buyers, were being forced to delay their buying and ended up renting. This will resulted in widening wealth gaps between Malaysians. As such, government had proposed to increase the quantum of RPGT to counter the potential socioeconomic backlash. (see attachment) Curbing speculations? Traditionally, there are two important to...

Malaysia is known as "tax heaven" of the world. Why? Because Malaysia does not impose tax on any capital gains derived from investment, such as shares, unit trust... But, there is only one type of capital gains that attracted tax - property. PARC @ One South, Seri Kembangan Real property gains tax (RPGT) is a form of capital gains tax. RPGT is charged on gains arising from the disposal of real property in Malaysia. These so called real property is defined as: any land situated in Malaysia and any interest, option or other right in or over such land; or shares in a real property company How much? Actually, we have RPGT in our tax system many years ago until 31 March 2007, when government abolished RPGT to attract foreigners to invest in Malaysia. But then, from 1 January 2010, RPGT is re-imposed at the rate of 5% on gains arising from disposals of chargeable assets in respect of real properties that are disposed within 5 years of owning. What is real property company? It is ...

Due to Malaysian Government's efforts to promote unit trusts, most of the income received by unit trusts will be exempt from income tax. Basically, the income of unit trust may consist of dividends, interest or profit and gain from sale of investments and returns on bonds. Then, the income is assessed and charged to tax separately from the income of unit holders, which was governed by the Income Tax Act Gains on disposal of investments by unit trust will not be subject to income tax. The only exception is where the investments represent real properties which could be subject to real property gains tax (RPGT). Exempt Income Interest and discount derived by unit trusts from the following types of investments is exempt from income tax: Securities or bonds issued or guaranteed by the Government Debentures, other than convertible loan stocks, approved by the Securities Commission Bon Simpanan Malaysia issued by Bank Negara Malaysia Interest paid or credited by any bank or financia...

On 3rd November 2010, Bank Negara Malaysia wishes to announce with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70% , which will be applicable to the 3rd house financing facility onwards taken out by a borrower. Financing facilities for purchase of the 1st and 2nd homes are not affected and borrowers will continue to be able to obtain financing for these purchases at the present prevailing LTV level applied by individual banks based on their internal credit policies. Why? The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public.  At the national level, residential property prices have increased steadily in tandem with economic development and the rise in income levels.  This aggregate growth trend remains largely manageable and has not deviated from the long term trend in residential property prices.  In the more recent period, ...