Real Property Gains Tax (RPGT) is one of the capital gains tax imposed in Malaysia. RPGT is charged on gains arising from the disposal of real property. RPGT is a move to stop the real estate market speculators.

Our country had RPGT in the tax system many years ago until 31 March 2007, when the government abolished RPGT to attract foreigners to invest in Malaysia,  but resulting in the disparity between the rich and the poor of the country more serious.


However, RPGT is re-imposed since 1 January 2010 at the rate of 5% on gains arising from disposals of chargeable assets. And the latest RPGT is revised to the following:

Properties held and disposed within 2 years, RPGT = 10%
Properties held and disposed after 2 years & up to 5 years , RPGT = 5%
Properties held and disposed after 5years, RPGT = 0%

The revised RPGT has hardly made the house price lower or stop the market speculators, because most of the construction takes time to complete, normally 2-3 years.

Low RPGT encourage rich people buy properties and sell it out to make fast money, resulting the price of the properties hike.

The government should revise the RPGT in Budget 2013, and charge a very high rate of profit tax if the owner of the property sell in a short time or is just using back the Real Property Gains Tax Act 1976 (Schedule 5)

You got the point! i like your statement. We really need to work harder or/and smarter to earn more. I do not have high qualification but i am leading a group of people with MBA certificate. It is not because i am smarter or luckier than them, it is because the strategy i used to get things done in the way that bosses like it. The environment will not change for you, is you to adapt or use the right strategies to alleviate the impact and survive from there. Keep complaining (i see it as releasing the negative energy) is useless, tell urself can do it ( i see it as positive energy) then one day you can do it too even when a normal condo reach 1mil or higher you can still afford it. This is what i always tell me wife, don't complain this and that because i do not need your negative energy.

---

Added on September 29, 2012, 2:24 am

i did similar things for my son too but i will not let him know and would like to see him earning his first house without asking for my support.

I always feel lucky to live in this country, I meet property players everyday, all I can say is we are very very conservative indeed, this is a good sign to our property mkt. Bout 80% of the home buyers complaint property prices, I am marketing a 3-storey SUPERLINK houses since 2003, the price has risen fr 563K - 1.4 mil to-date, 95% of my buyers were complaining the selling price fr day 1.
If > 40% of the people are bullish, then the mkt will burst. I think in general (whole mkt), optimistic constitute bout 15% now. My guess

Agree with you.. Although I do think that somehow our country salary growth is lagging behind.. But that is a diff story altogether..

There are 2 type if ppl who complain bout house being expensive that I despise..

Type 1: those who spent like 30-40% of salary in car instalment or don't mind paying 1k plus per month for cars, yet say house very expensive.. Just buy a much cheaper or 2nd car and save the money for house instalment la..

Type 2: those who want cheap house in prime location but yet complain those flat below 200k not for human live one.. If can't afford then they pretty much belong to the same as the "non human" who live in the low cost apt la.. Want to look down on ppl when ownself can't afford also..

Many also have the "tongkat mentality" wanting gov to give cheap house.. Like PR1MA, think in the end since its cheaper, then poorly maintained, then ppl complain again..

In the end is really down to your own mentality and perception.. Do something about it, or just sit there wait and hope property price will drop until the 90s price..

People compare time & price only. They forgot about other factors.

Let them be.

Market will tell. Market is always smarter than us. Need not argue.

I think better our government follow SG govn, all properties under govn so the price under control.