I am in the process of buying a condo and I asked an estimate of the annual assessment tax.

The management showed me the latest assessment tax they paid, and the form also shows the "assessed value" of the condo unit.

My question is, how is this "assessed value" calculated? Does the government use a formula?

I am concerned because the property value from the bank was more than this "assessed value". The purchase price is close to the "assessed value". Did I get a good deal?

Thanks!

Government valuation usually lower than the "commercial" valuation used by banks, banks use market rate that's based on past transaction data and recent sales of surrounding property and/or retail price of similar properties. Government valuation is opaque and subject to the local council's view.

Whether "good deal" or not is very subjective. Just be "happy" that the price you bought it at is lower than bank valuation, means you can get higher loan on your unit if wanted and bank allows

Government valuation department's value is almost always lower than market value.

I believed you are asking about cukai pintu and not about property transfer tax (mot).

Read here ....

https://www.iproperty.com.my/guides/quit-re...-malaysia-30143

This post has been edited by mini orchard: Jan 12 2023, 07:07 PM

Banks valuation is always higher & kinda crazy...

I know one property...
Actual valuation & recent transactions all around 220k like that.... But u know what the bank valuation?? 350k 🎉👏🤪

So either people deal lower than market valuation or banks didn't do their job properly 😎

This post has been edited by nexona88: Jan 12 2023, 09:49 PM