More like knee jerk effect.

thx for sharing.
i read this a few times i find it hard to understand... due to my education bground..

can pls digest for me ka ? thx in advance...

can flip once in a lifetime means ?
what happen to the people who have many property to sell ?
taxable, if transfer by will or inheritance ?
the 5% tax will apply no matter how old the property ?

IPOH:The real property gains tax, effective Jan 1 next year, is only 5% irrespective of the year when the property is disposed, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

“The real property gains tax for the first year is 5% and is the same for the second, third, fourth and fifth year,” he said when clarifying a news report in the business page of The Star yesterday.

He said the real property gains tax as announced by Prime Minister Datuk Seri Najib Tun Razak when tabling the 2010 Budget in Parliament on Friday provided exemption for the sale of a residential property for the first time and transfer of properties among family members like father to children.

Star’s BizWeek had reported that the Government proposed to re-impose the real property gains tax for monetary gains from property disposals.

The report said that based on the Finance Bill, disposal within two years of acquisition would be taxed 30%, 20% in the third year and 15% in the fourth year while disposal after five years and beyond would still be subjected to 5%.

On the non-payment of bonus for civil servants, Ahmad Husni said the country’s financial situation did not allow for bonuses to be given out.

He was responding to cries of disappointment in the civil sector over the RM500 special contribution given out only to officers in Grade 54 and below instead of a bonus across the board.

if you all think that you will see some reduction of selling price from the current price pressure, think seriously again and VERY HARD!

Be prepared to pay 5% more for the selling price. The current investor or buyer who already taken in the current price pressure that rapidly up since 2007 is unlikely to pick up this cost of sales.... especially now its clear that its a straight 5% and not progressive reduction.

but i thought if you were a first time seller u would be exempted from the 5% rite? so if the person selling to u is first time seller no worries, if seasoned seller then may kena 5% increase from initial price of sale

This post has been edited by CyberKewl: Oct 25 2009, 10:05 AM

So this 2 months time is the time to hunt for some bargains?

I don't know about that. With easy loan and low holding cost what make u think there will be bargain? Worst even I'm selling it the first time I will Jack up 5% for mor gain using same excuse the mamak down the street jacking up his canai when petrol hit the roof and the price remain the as today.

Yup, that is what I read. Lucky for me

Does anyone know if this tax would affect owners selling off their 1st property. I know last time, there was some tax exemption for the 1st property sale.

agree... get some stability in the market..
its crazy the real estate prices these days... thought the worldwide recession will make it fall a lot more but turned out didnt really affect malaysia much after intervention and stuff..

if its 5% flat on the gain, then i reckon the effect will be lightly felt by the seller, and in most cases this cost will indirectly passed to the buyers.

For a 100-150 capital gain, the tax will be less than 10k, so i'm pretty sure the seller will jack up the selling price...moreover i think some ppl are also first time sellers, so they will take advantage of this scenario...

not so good days ahead for buyers....

I see there is advantage as now there is only 5% fixed tax compare to last time 25 to 30% if flip on this 1st year of owning the property.

Does this will cause the property appriciate more faster?

Now lawyer and stamp duty department will enjoy more business.

hmm...not sure sure whether its so bad news for the buyers......i mean ya sure now sellers can jack up the price and all to cover the 5%.....but how many can really afford these prices? Many are buying without having "real money" What about when the banks starts to increase back the interest rates....how many of these sellers are able to "keep" up with their loans? They can afford the current rates....are they ready for the increased rates?

just a tot....ignore me

tat would be a good news to "poor" buyers like me....?

You see ah.. this Gmen veli smart one... One side they say reduce income tax and increase tax relief, on the other hand impose RPGT of 5%

Money from left pocket masuk right pocket onli mah...

The issues if they have realmoney or not to sustain the holding power has nothing to do with the rpgt. The reduction in selling price on subsale is unlikely to happen because it's only 5%. the sale out will only happen if blr goes up by 2-3%. On want basis will u think the govt want to Jack up the blr and create a meltdown? That would be one serious fatal move. And with ur loan agreement signed with reduction of 2.x% that give a lot of investor holding power.
So I reiterate the sale out or meltdown will not happen with rpgt. So ur mooted points can be ignored as u wanted. Intact brace urself for a higher subsale price. Those seller dupe into quick sale are fools who did not know what they doing. Investor like this always exist. Ill informed and misguided.

Nah..i didnt say that rpgt will create a meltdown.....i am adding all factors. Sorry when i said interest rates, i really meant blr.....
Oh well...yea...lose hopes...not gonna happen...sad sad sad

The once a lifetime exemption from RPGT need not be profit from your first property. To max position, should not exercise this exemption for say a property that gives you only a small profit if there is a high possibility of future transactions that may give you a better profit

Actually it is not impossible. When inflation hits, BNM will not hesitate to increase the BLR.

its good what..
for a first time buyer like me who cant afford my first house yet, means i can save more to get that first house.
if the investors and flippers get taxed more thats fine by me, coz theyd already be a bit well off i reckon. also tax on first property means less speculation possibly in the market if i got my judgement right.

i think its a good move to help the middle or lower income group like myself to have higher chances of gaining more. the 5% rpgt doesnt really come to play for someone or a family that can only afford 1 house for a very very long time.

definitely a move to help the less fortunate