View Full Version : Breaking news: Johor imposes property tax on foreigners
Beware of Iskandar, they may play u out.
JOHOR BARU (June 2, 2013): The Johor government will impose a new tax rate on about 130,000 foreign ownership of property in the state, which varies from the rate imposed on local ownership.
Menteri Besar Datuk Seri Mohamed Khaled Nordin said the move was to boost earnings for the local authorities while enhancing services to residents.
"The time has come for the state government to look at foreign ownership in the state because our people in other countries are also imposed a different tax rate.
"So, we are initially starting with the property tax rate," he told reporters after visiting the Permas zone here today.
Mohamed Khaled, who is also Permas state assemblyman, was confident that the local people would agree with the decision as it would provide returns for them while foreigners must learn to appreciate their ownership of property here.
Meanwhile, he said the state local authorities would re-assess the value of properties in their respective jurisdiction to determine the tax rate to be collected. He said the last assessment was made in the '80s, adding that the prevailing property value was now higher.
On the Permas zone, Mohamed Khaled said RM4 million had been allocated to rehabilitate the area, besides sealing and widening existing roads and building new ones. – Bernama
i think this is the beginning...suck all from :doh: the foreigners and put it into xxxxxx...:D :2cents:
Med to high end property in johor to be imposed with tax.
Low end property will escape.
http://business.asiaone.com/news/johor-raise-taxes-properties-owned-thousands-foreigners
Good, Singapore property going to chiong again.
Of course, this also meant the CLOB market facilitating buying of Malaysian shares on the Singapore market would be affected. CLOB, or Central Limit Order Book (don't ask me why it is so named... reminds me of Central Limit Theorem in statistics) was set up in Singapore to trade Malaysian companies over-the-counter in Singapore after the Malaysian and Singaporean exchanges separated in 1990. Over the years it had developed into the main avenue for veteran Singaporean investors to invest in Malaysian equities.
The amount of money in CLOB shares at the time of the suspension in trading in September 1998 gives a clue to the anguish that is still felt by many investors today. There were about 172,000 Clob investors on the books - as many as 95 percent of them Singaporeans - and the total shares had a value of approximately US$4.47 billion. That works out to about US$25,000 per CLOB investor (remember that the US$ was king then) .... an indication that these CLOB share buyers were not small fry. And yet they got killed by events beyond their control. Under the arrangements following the CLOB market suspension, all shares in CLOB accounts were to be eventually transferred to accounts in the Malaysian Central Depository for eventual trading on the Kuala Lumpur Stock Exchange (KLSE). However, the Malaysian government feared a massive share overhang in the KLSE (given the enormous amounts of money tied up) if liquidation was made possible en-bloc and hence things dragged on as the SES (the predecessor of SGX) and the KLSE worked to facilitate the share migration.
For a US$4.5B CLOB position (believe it was measured at 2000 market prices based on KLSE), Effective Capital offered US$1.5B to "take over the risk" of holding the long position.
http://stocktaleslot.blogspot.fr/2006/03/clob-saga.html
Just collect 1000 RM from 130,000 foreign ownership of property in the state a year means 130,000,000 RM
On the Permas zone, Mohamed Khaled said RM4 million had been allocated to rehabilitate the area, besides sealing and widening existing roads and building new ones.
Where will 126 million go to ? admin fee ?
I believe this is just the beginning ...
The best is yet to be (come) !
DKSG
I believe this is just the beginning ...
The best is yet to be (come) !
DKSGYou ACSian ah?
Johor better than Sarawak, don't have to chop tree just sent letter get 130 million a year.
maintaining the holiday homes will cost a little more now...
Shoeboxsupporter
02-06-13, 23:03
I think a few hundred ringgit more for foreinger is just peanut......:D
There is a reason for why target johor only. They might want to make life difficult in jb. Cant let opposition progress too much.
how about investing in Penang? but i heard prices there aren't cheap either.
I think a few hundred ringgit more for foreinger is just peanut......:D
Not when it's empty ;) or cannot rent out.
Not when it's empty ;) or cannot rent out.
.....minority might find no rental a problem, majority might not, after all what is additional $400SGD a year......anyway with additional 130,000,000 ...possibly more as more foreigners keep buying, at least part will go towards infrastructure plus the pay rise for the police force which will attract more to apply....hopefully leading to greater police presence....
I view this as a positive step in improving the environment and welfare (e.g. education) of locals, which in turn can increase the appeal of the neighbourhood and enhance the purchasing power of the locals. The only catch is the extra revenue must be channeled to these uses and not into corrupted officials' pockets.
E.g. I have been using the Coastal Highway which is very pleasant to drive but I don't pay any toll (versus the expensive ERPs and more gantries coming in Singapore), yet I can see that the government is doing a very good job in maintaining it. Someone has to pay for the maintenance. Since I'm using it often, I don't see any issue in paying more taxes to the government. In fact I'm worried that the government continues to lose money and abandons the maintenance of current infrastructure and future development plans.
The other aspect is the Iskandar region is growing very fast, and I'm not sure if the government services e.g. policemen can cope. I hope the extra revenue allows more hiring of the right people for the jobs to meet the higher demand.
Being able to buy a freehold landed in JB is a blessing. In Singapore, a lot of Singaporeans are not even allowed to buy HDB despite serving NS and paying a lot of taxes. But PRs and new citizens are allowed to buy. In short, I'm okay with higher property tax as sustainability is crucial and it can help to drive up the value of my properties many times.
Shoeboxsupporter
03-06-13, 08:28
At least Malaysia did not implement ABSD .........just increase a few hundred ringgit more.......
Dont quite understand what's the fuss in this forum over the property tax increase. As per today's ST article, property tax is levied based on 0.14% of property value. For RM $500k property, it's only RM 700.
Even if they increased from RM 700 to RM 5000 a year (7 times increase), that's only S$2k plus for the singaporean every year. That's honestly peanuts, compared to ABSD & SSD.
This could be termed CM 2 though, after the RPGT was raised from 10% to 15% (CM1).
Dont quite understand what's the fuss in this forum over the property tax increase. As per today's ST article, property tax is levied based on 0.14% of property value. For RM $500k property, it's only RM 700.
Even if they increased from RM 700 to RM 5000 a year (7 times increase), that's only S$2k plus for the singaporean every year. That's honestly peanuts, compared to ABSD & SSD.
This could be termed CM 2 though, after the RPGT was raised from 10% to 15% (CM1).
It won't be S$2k, more likely in the region of $1-2k RM for properties less than RM $1 mil, which is acceptable. I think zone B properties are going to bear the brunt of the tax increase. Beyond that investors will be deterred and it will kill of Iskandar.
Shoeboxsupporter
03-06-13, 09:50
It won't be S$2k, more likely in the region of $1-2k RM for properties less than RM $1 mil, which is acceptable. I think zone B properties are going to bear the brunt of the tax increase. Beyond that investors will be deterred and it will kill of Iskandar.
I believe only East Ledang and Horizon Hill will feel the pain..........but since they are stay inside a few million bungalow, RM1-2K is really peanut to them......
.....minority might find no rental a problem, majority might not, after all what is additional $400SGD a year......anyway with additional 130,000,000 ...possibly more as more foreigners keep buying, at least part will go towards infrastructure plus the pay rise for the police force which will attract more to apply....hopefully leading to greater police presence....
Until Sarawak case is close, I don't think the money is going towards anywhere except someone pocket.
First you sell land to one another to create money, in between pocket a bit, use this money to build the basis infrastructure and the building and sell it, pocket some more, than tax it pocket even more. Finally they learn a bit from us, Huat ah......
http://www.youtube.com/watch?v=FeMLaQTwIgU
CLOB saga all over again....
This is really shitty for Singaporeans buying into Johor.
darkseed73
03-06-13, 15:57
Dont quite understand what's the fuss in this forum over the property tax increase. As per today's ST article, property tax is levied based on 0.14% of property value. For RM $500k property, it's only RM 700.
Even if they increased from RM 700 to RM 5000 a year (7 times increase), that's only S$2k plus for the singaporean every year. That's honestly peanuts, compared to ABSD & SSD.
This could be termed CM 2 though, after the RPGT was raised from 10% to 15% (CM1).
The point is this could just be the beginning.
It proves Malaysia likes to change law as it wishes and usually not in favour of investors (even worst EXISTING investors)
Unlike ABSD & SSD they are creating barrier of entry usually does not affect ppl whom ALREADY OWN or INVESTED.
Hope u get it.
The point is this could just be the beginning.
It proves Malaysia likes to change law as it wishes and usually not in favour of investors (even worst EXISTING investors)
Unlike ABSD & SSD they are creating barrier of entry usually does not affect ppl whom ALREADY OWN or INVESTED.
Hope u get it.
Err......Singapore also revising its property tax system leh. I assume because it's Singapore, that's not changing the rules for EXISTING investors?
Umno is not so stupid to kill the goose. RM 1-2k more a year is peanuts really to appease the locals.
http://www.straitstimes.com/breaking-news/singapore/story/budget-2013-more-progressive-property-tax-rates-singaporean-households
Until Sarawak case is close, I don't think the money is going towards anywhere except someone pocket.
First you sell land to one another to create money, in between pocket a bit, use this money to build the basis infrastructure and the building and sell it, pocket some more, than tax it pocket even more. Finally they learn a bit from us, Huat ah......
http://www.youtube.com/watch?v=FeMLaQTwIgU
....the infra-structure like highway etc are visible and permanent.....but the additional hundreds of millions spent on SYOG event has since dissipated........perhaps ya...everywhere is the same...btw for singaporean who are used to paying tens of thousands for a piece of paper to use a car for 10 years...what is a thousand ringgit or two....
The point is this could just be the beginning.
It proves Malaysia likes to change law as it wishes and usually not in favour of investors (even worst EXISTING investors)
Unlike ABSD & SSD they are creating barrier of entry usually does not affect ppl whom ALREADY OWN or INVESTED.
Hope u get it.
Change law like for example Free Holds are meant only for local citizens which mean forever while foreigner FH only meant 60 years lease the longest .... He He ....
:banghead:
Change law like for example Free Holds are meant only for local citizens which mean forever while foreigner FH only meant 60 years lease the longest .... He He ....
:banghead:
alamak :banghead: over your silly remarks....xiao....only HDB do that kind of about turn policies to foreigners....now u can rent now u cannot...now u can buy now u cannot.....
as usual vested iskandar folks will come out in full force to rebut fiercely.comparing their spending on infrastructure vs ours on syog, brilliant.
as usual vested iskandar folks will come out in full force to rebut fiercely.comparing their spending on infrastructure vs ours on syog, brilliant.
...thanks for the compliment Mr Lee, possibly not of the Lee clan? There was a #1 and now #2...ur #3?....just stating a fact, vested or not not an issue here.....so u think its ok to over spend on SYOG by many folds?
All e negatives abt Iskandar might turn out to be true eventually. So buyers or investors have to weigh e risk n potential gains before going in.
V hard to tell what is in e mind of Malaysia govt. My sense is they will want to make Iskandar a success, so e tax announcement is likely to be more symbolic n helps in cost recovery.
Those buying for own use r e safest. Those not buying may also not be e safest. Afterall most lower n middle classes here have been screwed quite badly by own govt. Looking ahead what's coming, e scenario doesn't look v good. In other words, look after urself.
http://tropicalexpat.wordpress.com/2012/03/03/living-in-malaysia-choosing-whether-to-buy-a-condo-or-a-house-for-mm2h-visa-holders-andor-retirees/
Is this truth ?
Most condos have a certain number of people who don’t pay the service charge, and there is little that can be done to force them to pay.
http://tropicalexpat.wordpress.com/2012/03/03/living-in-malaysia-choosing-whether-to-buy-a-condo-or-a-house-for-mm2h-visa-holders-andor-retirees/
Is this truth ?
Most condos have a certain number of people who don’t pay the service charge, and there is little that can be done to force them to pay.
Note G&G landed (without facilities such as clubhouse) also have a small maintenance and security fees of $100-200 RM to pay. Every condo or G&G landed definitely has its own share of black sheeps, but G&G landed are less likely to run into such problems.
Shoeboxsupporter
04-06-13, 09:06
http://tropicalexpat.wordpress.com/2012/03/03/living-in-malaysia-choosing-whether-to-buy-a-condo-or-a-house-for-mm2h-visa-holders-andor-retirees/
Is this truth ?
Most condos have a certain number of people who don’t pay the service charge, and there is little that can be done to force them to pay.
Most of the time, High End Condo or GnG will not have this problems. They afford to buy million dollar property, and they care for the value of the property, and most of the time they will choose to pay in order not to affect the value of property. :cool:
Johor property tax hike won't hit S'pore demand
Published June 04, 2013
By ong chor hao (http://www.businesstimes.com.sg/reporter/ong-chor-hao)
http://www.businesstimes.com.sg/premium/top-stories/johor-property-tax-hike-wont-hit-spore-demand-20130604
Shoeboxsupporter
04-06-13, 12:23
Johor property tax hike won't hit S'pore demand
Published June 04, 2013
By ong chor hao (http://www.businesstimes.com.sg/reporter/ong-chor-hao)
http://www.businesstimes.com.sg/premium/top-stories/johor-property-tax-hike-wont-hit-spore-demand-20130604
Yes, compare to ABSD, Singapore investor will just laugh hahaha for this small amount of tax......
Johor property tax hike won't hit S'pore demand
Published June 04, 2013
By ong chor hao (http://www.businesstimes.com.sg/reporter/ong-chor-hao)
http://www.businesstimes.com.sg/premium/top-stories/johor-property-tax-hike-wont-hit-spore-demand-20130604
Ku Swee Yong, CEO at International Property Advisor (IPA) said: "Unless it really comes as a very large increase, I don't think people are deterred by it because your property tax is after all a very small component of your total cost of ownership, including your interest expenses."
Ku Swee Yong, CEO at International Property Advisor (IPA) said: "Unless it really comes as a very large increase, I don't think people are deterred by it because your property tax is after all a very small component of your total cost of ownership, including your interest expenses."....note the UNLESS some where in the quote...
Johor property tax hike won't hit S'pore demand
Published June 04, 2013
By ong chor hao (http://www.businesstimes.com.sg/reporter/ong-chor-hao)
http://www.businesstimes.com.sg/premium/top-stories/johor-property-tax-hike-wont-hit-spore-demand-20130604
How can this pty tax hike thing hurt S'porean??
Just a piece of COE paper already 60k.. and it only last 10-yrs.. meaning 1-yrs is 6k (RM15k).. and S'porean still chiong & go buy new cars no complain at all..
Sit on a piece of A4 size paper costed 6k/yr better.. or sleep in a bungalow which pty tax costed RM15k/yr (worst case) better?? Tell me :D
The joint venture project, leasehold infiniti, between temasek and Malaysian counterpart is hot with more than 1000 applications for units price between RM800 and 1000psf. :(
The joint venture project, leasehold infiniti, between temasek and Malaysian counterpart is hot with more than 1000 applications for units price between RM800 and 1000psf. :(
they smart, why let the pte developers enjoy their party, might as well join in the party too.
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