In that circumstance, if I purchase a house for 100k, I sell it within five years for 200k, I have to pay 30k for RPGT (I earned only 70k overall), is that correct?

Up to end of 3rd Year ..... 30% of 100k

Start or 4th year ..... 20% of 100k

Start of 5th year ..... 15% of 100k

Start of 6th year.... 0%

This post has been edited by mini orchard: Mar 14 2022, 05:17 PM

Assume I purchase a house for 100k, renovate it for 30k, and sell it for 200k within six months.

After deduction of RGPT, I should be able to earn around 35-40k, am I right?

Selling price ..... 200k

Less Purchase price ..... 100k

Less Cost of Purchase (legal fees etc) ..... 6k

Less Reno .... 30k

Less Cost of Sale (agent comm etc) ..... 4k

Nett profit ..... 60k

Less rebate .... 10k

Taxable rpgt .... 50k

RPGT 30% x 50k = 15k.

Cash profit ... 45k.

Thanks miniorchard. It was such a detail info.

Do you think this is a good deal?

ROI is 45% within a year ...definite a good deal if sold.

But the RGPT pay to government like ouch

This post has been edited by Ryk: Mar 14 2022, 08:55 PM

Aiya~ if don't listen so much sin ka ling kam in forum la.

Go check with your lawyer what is low cost housing.

if you are buying 10 years old under dbkl, go ahead je.

100k in kl fraid not la, if under selangor 10 y/o freehold also go ahead. Leasehold then no no.

Other states then check with respective state office.

Everyone have one time waiver on RPGT, apply this wisely

Neither KL nor Selangor. Do you mean trading low-cost housing is different compared with others properties?

There are no further plans for the property at the moment huhu

It sounds like good deal. Currently I only have FD investment which I think like crap to growth my money.

the only different is low cost consent to transfer ownership.

The agent told me he had already double-checked with the lawyer that I could buy and sell that property whenever I wanted.

just look back at the previous comment to you.

After 10 years most low cost houses do not required low cost consent anymore.

Means u r good to go.

You're right. The deposit has already been made. The plan is:

I intend to buy over my parents' house A (let's say 500K), they will use around 300K to renovate house A, and 200K will be left for me to purchase house B (the low-cost house + renovation).

Good move. May I know where's the house B located at?

Alternatively, you can apply both loan altogether at the same time. Then you will have more spare cash on hand for more investment activities.

Apply 2 houses from different banks and if you worry about lock in period, you can always apply for islamic financing. It's without lock-in penalty.

Here's what I thought of applying for one loan:
If I apply for a loan for house A (let's say 500k, 300k for renovation, 100k for buying house B, and another 100k as backup), then even if I sell house B in the future (within three years), I won't have to pay the penalty.

Would you mind sharing your thoughts?

Same enquiry like previous post, what do you think?

I didn't know Islamic financing had no lock-in penalty, thanks for telling me. Doesn't that mean the rate is higher?