Any minimum period before reselling property?

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I am in the process of buying a house in Penang (due to pick up the keys when I get back from Singapore next month), with the intention of staying there at least a few years. However, with the current dire global situation (and GBP dropping like a stone) who knows what's around the corner.

My question is - is there a minimum period that MM2Hers must keep their Malaysian property before reselling? I can't recall reading that on this site and I can't find any reference on the Motour site, but some other expats here have mentioned a 3-year minimum before you can resell.

Any confirmation on this welcome - just want to know where we stand in case everything goes tits-up and we have to leave prematurely!

regards,

John

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hi,

You're correct. There's nothing about a minimum period on this site. I've never come across such a requirement. There's nothing about this in the MM2H rules.

Obviously it would be good to have an authoritative answer. As there's nothing on the MM2H side, maybe there's something on the tax side. Capital gains tax is currently still suspended but, maybe, there was previously something there.

All posts welcomed.

regards, Scott

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John.

When we bought here in Penang in 2005 we needed permission from both FIC and Penang State. The permit from Penang specifically states that "The Foreigners are only allowed to dispose off the property after three years from the date of the Sale and Purchase Agreement, which is 12/2/2005"

I believe this is still correct, though your lawyer should advise you on this point.

Cheers,

Alistair

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There is no minimum period between buying & selling any Malaysian property. You won't find any documentation on this because there has never been any such requirement for Malaysians or non-Malaysians, including 2nd homers. A phone call to any real estate agent or solicitor would have resolved this issue.

The requirement mentioned by Alistair was  related to his purchasing a property without the need for FIC approval, a "privilege" granted to 2nd Homers at a time when all other non-Malaysians needed that FIC approval. This privilege apparently came with a minimum holding period.

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hi,

Thanks folks for sorting it out.  It's great when questions are asked, and answered, on the forum so that we all know and can move on.

I'm still getting hammered on the head from the multiplicity of requirements involved in selling my place in Portugal (the deal may still be on, or not). A lawyer says one thing, the town hall says another, and the other lawyer says something else. The estate agents have their own limited views - as long as the commission is paid, they don't gives a .... And they take their commission from the deposit.

I've tried the local forums. Same (of course) questions that I want answered have already been posted, usually several times. And most answers are never complete enough.  So at the end of a day's reading and surfing it's one step forward ...   

 

regards, Scott

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Megalink,

Please reread my post. We bought before applying for MMSH and did require FIC approval as this was a requirement for everyone at the time. The three year period I mentioned has therefore no connection with the MMSH programme.

Regarding your statement that there is no documentation on this anywhere I refer you to:

http://www.penangcentral.com/Penang-Property.html

where it says "Time restriction on selling the property. You are not allowed to sell a property less than 3 years from the date of your purchase."

also to:

http://www.penangproperties.com/realestate/news/fic_malaysia.htm

which has similar information.

I realise that these are not official pages, but assume that estate agents are not trying to make it appear more difficult to buy and sell property! I do know of a case where this rule was relaxed for an early resale in order to upgrade to another property within the three year period.

Cheers,

Alistair

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Alistair,

Thanks for the information. We are in the market for buying a property and we have been confused by the permissions required. Now its made clear.

Bob

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hi,

These could also be state-specific requirements, just as the costs and time taken for state approval varies between states. The penangcentral site also states a limit (2) on the number of properties with more needing reference to FIC. This is out of date, as is the reference to CGT.

The penang-properties site seems pretty clear. The 1 to 2 months approval time may, or may not, be accurate.

A Malaysian property developer once told that the rule of thumb was : (a) bumiputra 1 month, (b) Chinese Malaysian 2 months, (c) All others 3 months. 

regards, Scott

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Thanks for all the helpful replies. My lawyer has confirmed that the 3-year minimum is indeed a Penang state requirement.

For your info, the state consent took 5 weeks to be granted and the application cost RM300.

I am now the proud owner of a 'bungalow' (aka detached house) in Batu Ferringhi, just down the road from Uplands School which my kids attend. Renovations (approx cost RM200k) will start next week; hoping to move in there in January. If the GBP continues to fall it may well prove to be a good investment, if I ever sell and convert the funds back to GBP! As a landed property, probably a safer bet than a condo; as others have commented there is a glut of condos on the market here and there are still more being built.

regards,

John

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Well done on the house purchase John, we signed our S&P yesterday and have plumped for a landed freehold bungalow in KLCC. Having looked at all the various options and considered timescales we are very happy to sit things out here in Malaysia and will then review in a few years time.

Paul

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hi, John B and Corporateangel,

Thanks for the updates, and congratulations to both of you on the house purchases.

regards, Scott