Dear all,

Please tell me, how would I have a tax advantage after my property has a depreciation cost and please also tell me how would i recover this depreciation cost???

if u say you are dealing with property as a business, then you can carry this loss forward to your next property purchase. but it will not help much as it's probably better to pay RPGT in your next purchase.

I was thinking.

If I got 4 rental property and sold one for a profit of 100k.
Could I spend all the 100k to buy another property and avoid RPGT?

simple answer. no.

but if you already sold property you will not have to pay any RPGT tax anyway. RPGT is for S&P date. so long as your s&P before 1jan2010 then you don't pay any tax.

Kalai, r u the well-known negotiator focusing at puchong?

thanks kalai, is there any tax refund program provided by the government to help and improvise the procedure.

Did you see the talk in the Star newspaper today of the likely full reintroduction of RPGT.Strong headwinds ahead it would seem for property.No surprise.At the end of the day,bailouts have to be financed from somewhere and the poor old taxpayer is the likely source of the required funds.

Apart from RPGT, the gov also collects 5% service tax for each transacted properties.

Poor real estate agents.

Seems the government wants to slow down foreign and local investment in property - it could kill any potential boom that was coming?

The govt is discouraging people from buying multiple properties. Holding them up and then resell at higher prices due to market demand. The good thing is to prevent speculation of property value.

chin kim keong

no, i'm not a negotiator and certainly not famous (except on thinkproperty!).

Actually the RPGT has come to existence in 1976, imagine, over 30 years plus.

If there is a statistics study on RPGT, wonder how the statistics will look like ?

The recent overall 5% on all properties regardless of duration of years of its disposal, do not differentiate the application of the RPGT Act 1976 Based on the gap between the acquisition date and the disposal date.

In other words, a 100 years property will be taxed accordingly in the same way as a 1 year property.

Two questions which remain unanswered :-

(i) Could this be leading to a study on the market value of properties Based on the number of years from the
date of its acquisition ?

(ii) Is this fair to properties that have reached beyond ten (10) years when the RPGT Act itself put the
taxable limitation to the first five years from its date of acquisition ?

Perhaps one could look at property valuation conducted in every five years to determine how much chargeable gains are worthed taxing and if so, where is the bracket of appreciation in value for the majority of middle class to lower class properties in comparison to high end properties.

Only by conducting a statistics study by identifying the key performance index of every locality and the loan service interests ( where bank interests accumulates with time ), only then, is the chargeable gain truly reflecting on the accurate figure of any real gain from property holding.

In other words, RPGT should be evaluated on the accumulation of actual monthly disposal of loan service interests over the YEARS to be truly reflective of any chargeable gains before the sale is subjected to taxable gains.

Without considering the TOTAL loan interests in the property valuation, RPGT will only add more burden on the consumer because without a carefuly study on property value appreciation together the deduction for loan interests, is there really such a gain into the average consumer pocket, the longer time lapses ?

Disposal of one property alone is not a form of investment. Otherwise all sale & purchase agreements will be comparitive to holding investment portfolios with the RPGT office as "agent of property investments".

I am looking at johor prpoerties and found that property tax is MORE than TEN TIMES Singapore???
Weird, you buy houses at lower prices but they get you to pay sky high property taxes forever. Not forgetting they can and "WILL" increase it as they like.
What do u think?

Singapore properties are much more expensive than Malaysia.
Imagine Sentosa area at SGD3500++ psf.
KLCC props only going at RM3000 at its peak.
Still, Malaysia is much cheaper.

A tax assessed on real estate by the local government. The tax is usually Based on the value of the property (including the land) you own.