FAQ

Below are some frequently asked question encountered during our service, we hope this helps in your consideration!
​1. WIll the latest ABSD (Additional Buyer Stamp duty) rule affect me in my future Singapore property purchase?
No, Only residential properties in Singapore are included in the property count which is used to determine ABSD liability. Thus a unit at Raffles Suites Nusajaya or Twin Galaxy Residences will not be factored into your future ABSD calculations.
2. I have never bought a property before where do I start?
The first step is to determine your property location you want and affordability (budget), as most people need to buy with the help of a mortgage loan. As a general guide, the monthly loan repayment should not exceed about 35% of your gross monthly income (Excluding car, credit card, housing loan repayments etc.)​​
3. Can I buy property if I am not a resident of Malaysia?
Yes. Non-Malaysian & Foreigners intending to purchase a property in however Johor state consent is required. For Johor Bahru State Consent, the property purchased must be valued RM500,000 and above. Also a state levy of RM10,5000 is incurred.
4. How do I pay for the purchased unit and when should I pay (New launch projects)?
For all new launch project, a unit booking fee is first given to secure your desired unit, the amount varies between projects and developers, for example booking for the Raffles Suite Nusajaya is RM5,000 however for Twin Galaxy Residences is RM10,000.
You can pay for the purchase via cash or bank loan:

a) Via Bank loan
After unit booking you will proceed to secure a bank loan (Up to 85% for foreigners). Once loan is approved and during the sales execution signing of SPA, 10% less booking fee is paid to complete the sale. Remaining amount (E.g. Remaining 5% for a 85% loan approved) is usually paid on the first draw down on the date as reflected in the payment schedule as stated by vendor and agreed in the SPA. Also you need to pay a loan tax of 0.5% of total loan amount.

b) Via Cash
After unit booking and you have proceeded to execute the sale, during initial SPA signing, 10% less booking fee is paid to complete the sale. Remaining 90% is paid according to the payment schedule as stated by vendor and agreed in the SPA.​
5. What is DIBS (Developer Interest Bearing Scheme)
Developer Interest Bearing Scheme DIBS is such that the developer will bear the interest payable to the bank during the construction period. So besides the 10% upfront down payment you would not have to pay anything until the date of completion. The Raffles Suite Nusajaya and Twin Galaxy Residences both offer this scheme such that after the 10% upfront, you do not have to pay anything until TOP, at which you start servicing your loan.
Some developers also absorb legal fees for the sales and purchase agreement loan agreement and stamp duty Combined these can be great savings for many so be sure to ask.
6. What are the fees are associated with buying property?
a. Legal fees.
b. Gov’t Stamp duties
c. Loan agreement fee
d. Valuation fee
e. Agent’s fee
*Fees are subject to 6% GST.
*How much is the legal fees?
Legal fees is calculated according to the Scale Fees provided under the Solicitors Remuneration Order, 2006 (SRO) sets out the fees based on the purchase price of the property as follows:
Purchase Price Scale Fees
For the first RM150,000.00 = 1.0%
For the next RM850,000.00= 0.7%
For the next RM2,000,000.00= 0.6%
For the next RM2,000,000.00= 0.5%
For the next RM2,500,000.00= 0.4%
*For the schedule for legal fees it is advisable to consult your lawyers for the present calculation of the legal fees.
Please also take note that no discount is allowed under the SRO.
7. What is stamp duty and how much is it?
In Malaysia, all transfer of property is subject to Government Stamp Duty. Rate of Stamp Duty is based on the value of property.
1% on the first RM100,000
2% on the next RM400,000
3% on the next RM1,500,000
For the schedule for stamp duty it is advisable to consult your lawyers for the present calculation.

How much is the loan documentation charges? (Applicable only if you require bank financing).
Preparation of the Loan Agreement of the property and attending to stamping and registration.
1% of the purchase price on the first RM100,000
0.5% on the next RM4,900,000
0.25% on the next RM4,901,000 and above​
8. What about yearly local council tax?
All property owners have to pay local council assessment tax. Rate of assessment is based on the value of property. An average estimate property taxes are approximately RM380 (ringgits) per half yearly for an apartment of RM600,000 value. All assessment rates bills are issued & posted twice a year, at the end of December / June and must be paid in full not later than February / August, respectively.
​9. What documents do I need to apply for a housing loan?
We usually guide and facilitate this process for all our clients
The following is a checklist of the documents you will need to provide to the bank:
1) Identification Card (IC) or Passport for foreigner
2) Latest three months salary pay slip / Letter from employer
3) Latest Income tax statement (Form J/ EA )
4) Latest 3 months bank statement that shows salary credited (Savings / Current)
5) Sales & Purchase Agreement / Booking receipt
6) Business Registration / Form 24 & 49 (if-self employed)
The margin of financing for foreigner is maximum up to 80% and 65 years old or 20 years base on your age.
Premier Customer, the margin of financing is may be up to 85% and 70 years old or 25 years base on your age. ​
10. Real Property Gains Tax (RPGT) in Malaysia

RPGT is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:-
1. Acquisition price
2. Stamp duty
3. Legal fees
4. Renovation costs
5. Commission for sales and administrative payments
For Malaysian citizens and permanent residents, RPGT is exempted for the disposal of one residential property once in their lifetime.
Further, RPGT is also not imposed on gains from disposal of property between:-
Husband and wife
Parents and children
Grandparents and grandchildren
The current RPGT rates vary from 0% to 30%, depending on the holding period. The holding period refers to the period between the acquisition date and the disposal date of the property.
To further curb speculative activities, the RPGT rates on disposal of properties and shares in real property companies effective 1 January 2014 shall be as follows:-

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