| 5.
House Purchase
Q:
Are the participants
entitled to any special entitlements?
A:
All participants are allowed to purchase two units of
residential properties of value more than RM150, 000.00 each
except for certain states like Johor, Malacca, Penang (above
RM250,000.00) and for certain areas in Sarawak (above
RM350,000.00).
Q:
Can I purchase a house for residential purpose and a shop
lot to be rented out?
A:
No, you are only allowed to purchase residential properties.
Q:
Do I have to pay the yearly assessment and quit rent for my
houses like the local?
A:
Yes.
Q:
In the event of unforeseen death is the participant able to
hand over his Malaysian assets to any of his beneficiaries
smoothly. Does the Government have any restriction on this
matter?
A:
Yes, provided he/she has a Will which indicated clearly to
whom the properties are to be given. If not the next of kin
of the participant will have to apply to the Government to
have his properties released to them as the rightful heirs.
Q:
Must foreigners buy new
Malaysia property only, such as from developers, or can they
purchase any property, such as from individual owners
(second hand or third hand property)?
A:
Participants can purchase any type of housing properties
provided that it has been issued with CF (Certificate of
Fitness).
Q:
Is the RM150, 000.00 foreign property ownership regulation
applies to landed property only?
A:
No. It also applies to
other properties with strata titles such as condominiums,
apartments and service apartments.
Q:
If I buy a piece of land costing RM100,000.00 and to build a
house costing RM100,000.00, which is less than RM150,000.00
regulation, am I breaking the regulation?
A:
No, since the total cost of the whole house purchase is
RM200,000.00 which is more than the RM150, 000.00 and above
requirements.
Q:
Do I need to obtain prior approval from Foreign Investment
Committee (FIC) for the purchase and sale of my house?
A:
Participants under this programme are not required to obtain
prior approval for the purchase and sale of houses from FIC.
However, they must write to the Ministry of Tourism giving
details of the house (location as well as price) so that a
letter can be issued to them certifying that they are
eligible to purchase the said property this programme. In
addition, they are required to send a copy of the approval
letter obtained from the respective State Authority which
has authorized the purchase or sale of the property
concerned to FIC for information.
Q:
Am I subjected to the property gain tax if I make a profit
from selling my house?
A:
Yes.
Next:
FAQ on Car Purchase
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