Procedure For Purchase Flow Chart Earnest Money (RM12k to RM50k) - - PowerPoint PPT Presentation

Procedure For Purchase Flow Chart

Earnest Money (RM12k to RM50k) Sign OTP upon Sale

Estimated within 2wks

Letter of Acceptance/ Sign SPA (Sales & Purchase Agreement)

Pay Balance 10% Downpayment minus Earnest Money Pay State Levy

Progressive Payment

Foundation Complete 10%

Next Progressive Payment

Structural Framework 15% (Bank Loan)

Disclaimer: Depending on Sales Package & Subject to Changes

Procedures For Purchasing Property

• 18 years for SPA/ 21 years for Bank Loan
• PP Form, LOA, NRIC & Passport Copy
• Earnest Deposit – SG or RM Cheque (RM12k to RM50k)
• OTP – Offer To Purchase (from Buyer to Developer)
• Estimated 2 weeks later – Sign SPA (10% Downpayment & Foreign State Consent

Levy)

• Get Bank Loan with Approved Panel Banks
• 1. SG Loan (Singapore Banks) – Subjected to TDSR
• 2. RM Loan (Malaysian Banks) – no IPA, minimum Purchase Price RM1,000,000 ppty

Payment & Charges

Type of Charges Amount (RM) Timing Payment Frequency Remarks Earnest Money 12k to 50k Upon Booking One Time Foreign State Consent Levy 12k Upon Signing SPA One Time 2% Effective 1st May 2014 Stamp Duty on SPA 3% Upon MOT One Time Est 2 years after TOP Stamp Duty on Loan 0.5% of Loan Amount Upon taking Loan One Time No payment if no Loan taken Legal Fee on SPA Est 1% of Purchase Price Upon signing SPA One Time Negotiable Legal Fee on Loan Est 1% of Loan Amount Upon taking Loan One Time Negotiable (No payment if no Loan taken)

Type of Charges Amount (RM) Payment Frequency Remarks Property Tax for Foreigner 0.14% of Property Value Yearly Subject to changes from 1st May 2014 Assessment Tax (City Council Tax) 0.26% of Net Property Value Half Yearly Charges deductible Rental Income Tax 26% of Net Rental Income Yearly Charges deductible Fire Insurance RM 120 for every 100k Loan Amount Quit Rent (Property Tax) Est 560/100sqm Yearly

RPGT – Real Property Gains Tax

Effective 1st

st Jan 2014

Foreigner Local (Malaysian) 1 to 5 years – 30% 1 to 3 years – 30% > 6 years – 5% 4th year – 20% 5th year – 15% > 6 years – 0%

Foreign State Consent Levy vy (J (Johor Bahru)

Current Effective 1st May 2014 RM10,000 plus Admin charges (RM12,000) 2% of Purchase Price

Minimum Property Purchase Price for Foreigner (J (Johor Bahru)

Current Effective 1st May 2014 RM500,000 RM1,000,000 (Except for Medini remains at RM500,000) Penang - RM1,000,000 Kuala Lumpur - RM500,000

Bumiputra

• Definition – “Son of the Soil” a Malaysian term

to describe Ethnic Malays & other indigenous people

• Bumi Quota – 40% of all Residential,

Commercial & Industrial developments

• Developer will apply for release at 50% completion stage (7% of Purchase Price

Effective 1st Jan 2014)

• Exemptions – Medini (no Foreign Quota)

Puteri Harbour (no Foreign Quota) Certain projects in Zone A (with Special Approval)