Prices of property in Malaysia seem to be softening. This, coupled with a falling Ringgit presents the foreign investor with an opportunity to pick up one of Penang’s prized pre-war heritage properties or even a beach side condo. Therefore, as we come to the end of 2015, it would be timely to remind potential foreign investors of a few issues to bear in mind just in case a purchase is being considered:-
1) Malaysia My Second Home
This scheme is probably the most publicised visa in Malaysia and, consequently, the most requested one. It is also the most misunderstood. Some of the common misconceptions are that you need to qualify for the MM2H scheme in order to own a home in Malaysia; that it is only applicable to old people; or that it comes with a range of privileges. In a nutshell, MM2H is a long-term visa, which allows the holder to stay in Malaysia for up to 10 years whilst certain successful applicants are permitted limited work. A fringe benefit of this visa is that it allows the successful applicant the right to purchase certain cars tax-free. For instance, a brand new Volvo V40 would cost a Malaysian RM173,888 but is available to the MM2H visa holder for only RM108,193. This benefit does come with a condition that you are not to sell the car for 2 years from the date of purchase. (www.mm2h.gov.my)
2) Types of property available to the foreign investor
Purchase of property by foreigners are regulated by Section 433A & B of the National Land Code. Section 433B requires a foreign purchaser to apply to the State Authority in which the property is located for their consent to the acquisition. Each state, in turn, has its own guidelines. In Penang, the fee for such an application is RM10,000 with a further 3% of the purchase price being payable on the consent (effective from 1stFebruary 2014). Registration fee for transfer of title has also been increased to RM10,000 for the first RM1,000,000 of the purchase price and 0.5% subsequently. The respective States may further impose restrictions as to the type of property a foreigner can purchase. For instance, on Penang Island, foreigners can only acquire apartments above RM1,000,000 or landed properties above RM2,000,000 and may also attach conditions of ownership (For example, the state may require the property to be owner occupied or not be sold within 3 years of purchase).
However, if a foreigner holds a MM2H visa, he is allowed to purchase up to two units of residential properties in Penang at the lower minimum threshold of RM500,000 each.
Other things to look out for when purchasing property are whether the property is leasehold (the balance number of years left to run on the title may be critical as banks are reluctant to lend on titles with approximately 50 years or less) or freehold, whether the individual titles have been issued and whether there are any restrictions on the title which would require State Consent prior to sale (a typical restriction would be the requirement for the State to approve the transfer and charge of the title, whereby delaying the completion of a conveyancing transaction).
3) GST vis a vis residential and commercial properties
Malaysia, beginning 1st April 2015 has a goods and services tax (“GST”) governed by the Goods & Services Tax 2014 (“GST Act”). As this is usually borne by the consumer, the common belief is that the consumer legally bears the responsibility for paying this tax. Section 41 of the GST Act, however states that the “taxable person”, i.e. the supplier bears the burden for paying for the GST incurred during a sale transaction. Although residential properties are exempt from this, the investor hoping to purchase one of Penang’s heritage properties should bear in mind that some of these properties, which are also known as pre-war shop houses may sometimes be categorised as being for commercial use which attracts GST. Therefore, although the sale price should technically include this tax, the supplier may try to shift this burden to the foreign investor. The foreign investor should therefore make this clear and clarified in writing (ideally, when signing any offer to purchase, this should be clearly stated as a term of the offer letter, contract, estate agents’ earnest monies letter, etc.) when first making the offer to purchase. This could turn out to be a hefty saving!
As an illustration, if the Vendor tells you that the price of the property is RM1,000,000, you should clarify whether it is inclusive of GST so as to not be burdened with a further RM60,000 (hefty saving!).
Conveyancing procedures & timelines
For residential properties under construction (“off plan”), the Housing Development (Control & Licensing) Act requires the Developer to utilize a standard format agreement that aims to protect the Purchaser’s interest. The timeline from the time of signing to the delivery of vacant possession to the purchaser is usually 24 months for landed units & 36 (48 months if an exemption is applied for) months for stratified property.
For ready built properties, a sale and purchase agreement is to be drawn up by a solicitor on terms mutually agreed between the seller and purchaser. Typical terms & procedures include a land search conducted on the property, negotiations on commercial terms such as whether the purchase price include deposits with the developer, fixtures & fittings or is the purchase with vacant possession. Usually a deposit, being 10% of the purchase price is paid upon signing a conditional (on State Authority approval) sale and purchase agreement. The usual timeline for completion of a sale and purchase transaction by a foreigner would take between 3 to 6 months from signing to vacant possession.
Loans by local financial institutions are available to foreign purchasers for up to approximately 70% of the purchase price, provided that financial documents are submitted to support the application of the loan. Release of loan sums would usually take between a month or two prior to the banks releasing the amount.
The Solicitors’ Remuneration Order 2006 regulates fees for the solicitors acting on behalf of a purchaser in respect of the purchase and/or loan.
Sam Choong (email: [email protected])
18th December 2015
马来西亚的屋价似乎已经回软。再加上马币的兑换率低让外国投资者有机会购买一间珍贵战前的槟城文化遗产，甚至是一间在海边的公寓。因此，有鉴于2015年已到了尾声，我想现在是适当的时候提醒有潜质的投资者们牢记以下几个事项好让您在购买前考虑 :-
1）马来西亚我的第二家园计划
这项计划可说是在马来西亚最广为人知的签证，并且是最多人申请的签证。然而它也是最常令人所误解的。以下是一些最常令人误解的事项：您必须有资格参加马来西亚我的第二家园计划才能在马来西亚拥有一间家；只限于年老人士；或者设有一系列的特权。总括来说，马来西亚我的第二家园签证是一项长期签证，好让持有者居住在马来西亚长达十年并允许成功的申请者参与某些工作。这种签证的另一个优势是，它让成功的申请者有权购买某些汽车而无须缴税。举个例子，一辆全新的沃尔沃(Volvo) V40的售价是马币173，888，但是对于马来西亚我的第二家园签证的持有者而言只须付马币108，193就可购买此车。值得注意的是，此项优惠附带一个条件，那就是您不能在购买该车的两年内出售该车。
2）外国投资者可购买的产业类型
所有外资收购房地产项目均要受到“1965年国家土地法”第433A & B 条例的规制。第433B条 例规定外国购买者需获得州政府的事先批准方可购买。各州政府，又将，会有它们各自的准 则。在槟城，该申请所需的费用是马币一万，外加在获得州政府批准时需缴付购买价格的 3%（自1-2-2014开始生效）。若购买价格马币一亿的产业，其土地所有权转让的登记费已增 加至马币一万，而超过马币一亿的产业，其登记费是马币一万再加上随后价格的5%。 每一个 州都有可能进一步施加限制外国购买者可以购买的产业类型。比方说，在槟岛，外国人士只 能购买价格马币一亿以上的公寓或价格马币两亿以上的有地住宅（landed properties），而且该拥有权可能附带某些条件（例如，该州有可能规定该产业必须由屋主自己居住或者不能 在购买的三年以内出售该产业）。
但是，如果外国人士持有马来西亚我的第二家园签证，他是可以以最低门槛价每间马币五十 万的价格，在槟城购买高达两间的住宅产业。
其它该注意的事项是，在购买产业的时候必须确认该产业是不是属于有效年限地契（值得一 提的是，契约所剩的年限，可能会是银行不愿放贷的关键之一，因为银行在一般的情况下都 不愿放贷给年数五十年左右或以下的地契）或永久地契，无论是个人地契已经发出以及该地 契有没有任何限制，如在出售前需获得州政府的事先批准（典型的限制将会是须事先获得州 政府的批准转让和抵押该地契，从而推迟完成产业买卖的交易）。
3）关于住宅和商业地产的消费税
马来西亚，在1-4-2015开始，推出了由Goods & Services Tax 2014 (“GST Act”) 所管制的消费税。由于此消费税在一般的情况下是由消费者所承担，人们普遍的想法是消费者在法律上是有义务缴付此消费税的。但是，根据第41条法例，纳税人，就是说供应商，是有义务在销售交易过程中缴付所产生的消费税。虽然买卖住宅产业是豁免缴付此消费税，但是那些有意购买槟城文化遗产的投资者必须注意的是，该产业，也被称为战前店屋，有时会被归类为商业用途而引起消费税。因此，在技术上来说售价应当已包含了此消费税，但是供应商有可能会把此负担转移给外国投资者。有鉴于此，外国投资者必须在有意购买时以书面形式清楚并明确地写明（最理想的情况应该是当签署任何收购意向书，合约，地产代理的保证金信件时等等）。这有可能是一种巨额的储蓄！
作为一说明，如果供应商告诉您说产业的价格为马币一亿，您应该确认该价格是否已包含了消费税，从而无需多承担马币六万的负担（巨额储蓄！）。
4）产业转让的程序 & 时间轴
对于那些正在施工的住宅产业 (“off plan”), Housing Development (Control & Licensing) Act规定发展商采用标准格式的买卖合约以保障买方的利益。对于有地单位（landed units），从签约到交付锁匙予买方时的时间轴一般为24个月而分层(stratified)的产业一般为36个月（如果申请豁免的话，一般为48个月）。
至于那些已建好的产业，买卖合约将建立在买方和卖方都同意的条款下，并由一位律师所拟定。典型的条款和程序，包括对产业进行查册，在商业条款上协商，如售价是否需包含已给发展商的定金，固定装置与配件或者是否在购买时交出空置管有权。在一般的情况下，定金是购买价格的10％，并在签署附带条件（州政府批准）的买卖合同时支付。通常外国人士完成购买产业交易的时间轴，从签约到获取空置管有权是3至6个月之间。
在所有财政文件已提交以支持申请贷款的前提下，外国购买者在一般的情况下都可获得由本地金融机构所提供的贷款，一般可贷款到购买价的70% 。在一般的情况下，将会在一个月或两个月以内放款。
律师为买方所处理的购买交易以及房屋贷款的律师费是按照 Solicitors’ Remuneration Order 2006所制定的标准收费。
Sam Choong (电子邮件: [email protected])
18th December 2015
