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Taxing Time For Malaysia Homebuyers
June 19, 2009Article by Ray Withers
Malaysia property buyers have to fork out increased costs of up to 2% of the property value due to the government amending stamp duty rules and other building ‘taxes’.Stamp duty laws changed in Malaysia earlier this year when a 0.5% levy was set on every transaction – instead of a nominal charge.
The Master Builders Association Malaysia (MBAM) president Ng Kee Leen said the extra costs incurred would eventually be passed down to homebuyersAdd to this a 0.125% construction levy and a 5% tax on professional services, like employing an architect or structural engineer, and the cost of buying a home rises substantially at a time when bank finance is difficult to access.The MBAM expects the total effect of adding stamp duty and other levies to a house buying transaction to increase the property price by about 2%.
Malaysian property investments include a range of apartments in Kuala Lumpur, that are minutes from the business district and city centre in a portfolio offered by UK based international property consultants Property Frontiers:
Axis Pandan is two major developments – the midmarket Axis Residence Deluxe Kuala Lumpur, a 33-storey serviced apartment block including pools, gym and a sky lounge and the top-of-the –market Axis Crown Premier, Kuala Lumpur offering luxury living in a prime location with fantastic views over the city centre and the Royal Selangor golf club.The street levels of the blocks house the region’s largest shopping mall.
All apartments are delivered in a ‘ready-to-let’ offering gross yields of more than 8% and with 60% loan-to-value mortgages. Investments are available for just £19,000 cash plus purchase costs.Prices start at £50,000 for a two-bedroom apartment.
Sunway Vivaldi Mont Kiara is a six tower block development of 228 apartments over 7.7 acres.The apartments, due for completion in 2011, will be finished to luxury standards. The investment offers a range of spacious four bedroom apartments, all over 3,400 square feet. Finished to the highest standards, each bedroom has its own en suite bathroom.
To sweeten the investment, add to that, a 10% reduction on launch prices, a 75% loan-to-value mortgage and guaranteed yields of 7%, for four bedroom apartments starting at £545,000.