If you’re thinking about investing Malaysian property, here are some key tips on profiting.
As you may know, property investments are a wise decision for entrepreneurs to make. While investing in property can be a business idea on its own, it’s also a smart way to take advantage of your profits. Either way, the goal stays the same: you want to make a profit out of your investments. To do this, you should first consider where to invest in property. Right now, Malaysia is seen as a highly sought-after destination, with plenty of affordable properties and many new developments on the horizon.
However, you shouldn’t assume that investing in Malaysian property guarantees a profit. There are different factors to take into account, but the key to making money is understanding how taxes work. Specifically, Malaysia has a Real Property Gains Tax, charging a set rate on any profits made from the sale of real estate. You’ll see an infographic at the end of this piece that displays all the different rates and how they change based on who owns the property. From a profit perspective, your main concern is how long you hold onto the property. If you sell it within 5 years, you will be charged a much higher tax rate than if you held onto it for 6+ years. Again, the full figures and details are shown in the graphic, so feel free to read through it after.
As such, the key to making money from Malaysian property investments is learning when to sell your property to pay the least amount of tax. Not only that, but as the graphic shows, becoming a permanent resident can grant you the lowest tax rate! Check out all the information, here:
Infographic designed by: PropertyGuru Malaysia