30.6% is considered a very nice figure.. but if without any upfront payment collected from developer, the risk is still there..

Agree this is a great deal, just take the deal!

Alternatively, there's an option to take cash also - not the whole RM10.1 mil lah, maybe RM2 mil cash + RM8.1 mil worth of assets?

i dont think is foreigner buyer issue, is the bank with the developer issue. your buyer should get those panel banks with the developer unless quota full. Outside banks may look at the encumbrance of the land especially leasehold land in Melaka. Then the viable of the project. Look like the risk assessment from bank is high to the project, worst come to worst, tell your buyer pay in cash.

i hope i interpret your question correctly. Melaka is tough market.

EW no hiew fat cat.
apa itu law development.

Law development sdn bhd or aka TS Law Holding @ kuchai lama, got few key vacancy.

They are planning something big at prime land.

you lead, i follow.
ada kang tao, just pm me lor.
serious punya. not play play

Landowner is still negotiating with the developer. Will prefer to have upfront cash payment + units as per your suggestion.

Still clarifying with customs on the GST issue. Seems like customs themselves DO NOT HAVE A CLEAR ANSWER. Bastards really.

Anyway, based on their VERY GENERAL guideline, landowner supposed to charge the developer if it is applicable based on the total value that landowner will receive. So if 10mil, then will need to collect 6% from the developer and submit to customs.

The thing is the land is a agriculture land which based on their VERY GENERAL guideline, no GST is applicable.

Really dislike dealing with govt departments. Vomit blood.

If foreigner is purchasing, they will need to apply for the foreigner's consent under s.433B of the National Land Code. Certain conditions will have to be met, including the minimum threshold, i.e. house price must be more than a certain price and this minimum threshold differs from one state to another.

For KL and Sel, you can apply for such consent even before the issuance of the strata title. Not sure about malacca as each state authority have their little napoleons dictating different rules.

This post has been edited by jason1986: Jul 3 2015, 05:56 PM

Threshold is definitely. Its rm500k capping for high rise residential at Malacca. The main issue with Malacca project now is the foreigner consent part. The authority there would only accept the application of consent together with either strata or individual title. So, new project would definitely facing this issue especially if the target buyer is foreigner because bank cant disburse the loan without foreigner consent. Anyhow, we've just found some solution for that.

Care to share the solution?

The only plausible way from my view is that the authority processes the application.

Why Not.. here is the platform to share and learn together!

The recent changes to Strata Titles Act 1985 which enforced towards all the new development to hand over VP together with strata title helps in this case.

Based on the latest amendment, developer is required to:-

(a)               apply for the certificate of proposed strata plan to the Director of Survey within three (3) months from the date of issuance of the document that certifies the super structure stage (applicable to the case where the sale and purchase agreement of any parcel that takes place and the document that certifies the super structure stage is issued after the commencement of the Strata Titles (Amendment) Act 2013); and

(b)               apply for subdivision of building or land within one (1) month from the date of issuance of the certificate of proposed strata plan.

So, With proper followup in the midst of the application, the strata title can be issue within 4 to 6 months. Depends on how the developer liaise with the authority..

So, with the issuance of strata title, then the issue of foreigner consent would be solved and no further issue for bank to disburse the loan. Anyhow, this scenario is not applicable to all the case. Its applicable to the case of my client as their foreigner buyer able to purchase with 50% cash so the margin of loan they need is only about 50%. Hence, during the stages of super structure which is normally about 30% of the progress, the developer can start to apply for the issuance of strata title already. So, the timing is around there which can match the disbursement of the other 50% loan from bank.



This post has been edited by Tavia88: Jul 3 2015, 11:03 PM

Thank you for the info. But this will be applicable to your case only due to 50% loan margin of finance and not to all cases. Anyway, good info.

hi bro, you mean if you received 10mil value prop, gov will charge 6% GST, thus you get developer to pay?

please include me in your update if you have a clear answer in future thanks

Based on the guidelines issued by the customs, landowner is supplying land to the developer n landowner must charge gst on the supply. But this is a very general statement. Need to clarify on issues I have highlighted in my earlier posts.