Quit rent and yearly assessment

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Hi owners of property in Penang,

Please would someone explain to me what 'Quit rent and yearly assessment' is?

Also how is it worked out?

Take for example a basic 5000sq ft condo in Tanjung Bungah, rental rate 8000 per month - what would something like this cost me yearly (approximately)

Thanks in advance

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Hi
everything you want to know about quit rent and more:

http://www.my2home.info/index.php/topic,275.0.html

Cheers

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Quit rent and assessment tax are most of the time included in the rent you pay.
As is the fee to be paid at Indah Water and the management fee.

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Thanks for the replies

I am not looking to rent, I am looking to buy and wanted to get a ballpark figure of what a 2m freehold strata condo in Tanjung Bungah would cost me approximately

I must add that I went onto some Penang Government website and it may as well have been written in Latvian, I saw that rates/charges seemed to be based on what seemed to be a rental value so I just came up with a guessed rental figure. We've sold the house in KL and are now looking to buy the next home in Penang. I was hoping someone with a similar sort of property could point me in the right direction. I'm not planning on having a mortgage so am trying to work out what my approx liabilities will be.

The maintenance without sinking fund is over 1000rm pcm, I just didn't fancy having to pay the same again for rates and whatever else gets chucked on top.

Thanks

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Hi corporateangel,

Were you in Penang last week?  Hope Penang "treated" you well. 

Are you contemplating of moving to Penang from KL?  How is your house hunt in Penang so far?

Cheers!

Costa

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Hi Costa

Yes, I was in Penang last week. Got a rental place over there so we're flitting between KL and Penang at the moment on a weekly basis. The house in KL sold (not without a huge amount of stress which I shall elaborate on at a later date) with lessons learnt right left and centre.

We found what the wife wanted us to buy on the first day of looking, I still have doubts about three years min in Penang, and to be honest (no disrespect to the Penangites) I wasn't bowled over by the place - yet! However living on the outskirts of the Golden Triangle in KL for the past two years is enough. Hopefully a beachfront place in Penang will provide a better standard of living, failing that it'll be a case of open the atlas and start looking!

Got to spend some time with our close friends Mr and Mrs Qjumper, and their neighbours that used to look after me 40 years ago in Germany when I a little baby!

The plan is to buy something, not have to worry about maintenance, security etc.. And big bills, hence my query about Rates.

Cheers

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Corporateangel,

Hope the proposed purchase goes well & thanks for sharing all this with us.

My wife & I will be in Penang on 8th June to inspect some condos.

James

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Hi Costa

Yes, I was in Penang last week. Got a rental place over there so we're flitting between KL and Penang at the moment on a weekly basis. The house in KL sold (not without a huge amount of stress which I shall elaborate on at a later date) with lessons learnt right left and centre.

We found what the wife wanted us to buy on the first day of looking, I still have doubts about three years min in Penang, and to be honest (no disrespect to the Penangites) I wasn't bowled over by the place - yet! However living on the outskirts of the Golden Triangle in KL for the past two years is enough. Hopefully a beachfront place in Penang will provide a better standard of living, failing that it'll be a case of open the atlas and start looking!

Got to spend some time with our close friends Mr and Mrs Qjumper, and their neighbours that used to look after me 40 years ago in Germany when I a little baby!

The plan is to buy something, not have to worry about maintenance, security etc.. And big bills, hence my query about Rates.

Cheers

Thank you for sharing.  Do keep us updated of how everything goes. 

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Hi Corporateangel,

For comparison, there's a prop blog on Tg Beach Condo where some owners post their for sale units and tel Nos. /emails. Just a thought - as some of those units are in the 3,000-5,000 sq ft range and right by the sea front costing around RM1.6-1.8mil the owners would be able to give you a fairly good range of the quit rent and assessment rate for their properties.
If you already have targeted a property then the owner should be able to tell you easily because the seller has to give the 'Current year quit rent receipt & Current year assessment receipt' to the lawyer, so the information should be readily available.

Regards,
BB

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Hi CA,

Here are the figures for a smaller condo of 1110sq ft (Miami Green):

Assessment paid twice yearly is RM605 per annum (we pay once a year in MPPP Komtar office as not resident all year)

Quit rent works out at around RM50 per annum

If the developer still holds the title then I believe they pay quit rent on your behalf. Once strata title is issued the management body may allocate this to individual owners. In our case the MC chose to continue paying quit rent to save the costs and trouble of issuing separate bills.

Best wishes for your new life in Penang!

Alistair

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hi,

This is dated 05 Jan 2009 so the figures my be wrong but it explains what's what. As these are local taxes I guess that they will differ state by state.

1). Assessment Tax on Residential Property
The assessment tax is a local tax based on the annual rental value of the property, as assessed by the local authorities. It is generally levied at a flat rate of 6% for residential properties and payable in two installments.

2). Quit Rent
The quit rent is a local tax levied on all landed properties, payable annually at a rate of 1 sen to 2 sen per square foot, wherein RM1 is equal to 100 sen (cents). The quit rent liability is generally estimated to be less than RM100 per year.
http://www.globalpropertyguide.com/Asia/Malaysia/Taxes-and-Costs

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1). Assessment Tax on Residential Property
The assessment tax is a local tax based on the annual rental value of the property, as assessed by the local authorities. It is generally levied at a flat rate of 6% for residential properties and payable in two installments.

So if (for example) a property has an annual rental value of 120,000rm and based on the Penang Council website the flat rate is 7.5%, this would mean that the 'assessment tax' would be 9000rm or the equivelent of 750 per month, on top of possible 1100rm monthly maintenance charge and sinking fund. Jeez paying upwards of 1800rm per month for a place when you have no mortgage is a little silly.

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Hi again,

In our case the assessment is 7.5% on assessed rental of RM8060. This is not calculated on actual rental values, but on the council's figures which are much less.

Alistair

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Thanks Alistair

Thats helpful, we'll do a little more investigation on Monday and get the exact figure. In KL city centre our freehold landed bungalow on about 7500 sqft cost us 498rm every six months. I don't want any major shocks!

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"I still have doubts about three years min in Penang, and to be honest (no disrespect to the Penangites) I wasn't bowled over by the place - yet! However living on the outskirts of the Golden Triangle in KL for the past two years is enough. Hopefully a beachfront place in Penang will provide a better standard of living, failing that it'll be a case of open the atlas and start looking!"

Suppose its case of weighing up merit of buying or initially renting - given "min 3 years" time frame !

Good luck anyway,

James