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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

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

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.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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