Malaysia Real Estate

[Schneak]

Hi All,

I want to invest in properties but I'm afraid of the legal issues such as being sued if someone slipped on the floor outside my door or the tenant's dog bite the neighbor.

Would it be possible to set up a Sdn Bhd to purchase the properties? What about the tax structure? Would there be additional expenses I can deduct off the income tax?

Please advise.

Regards,
Alvin

[overtime]

When i took up my household insurance, i remember there is a personal liability coverage given as well. Its meant to protect you against people sue-ing due to accidents that occurs in your home. Maybe thats what you're looking for?

[Schneak]

Well, yes. What I am afraid what if the insurance is not enough to cover. I'm sure I have nothing to worry about since most Malaysian aren't the suing type. I do plan to rent out to expats though (I just brought
Saffron) , and who knows what are they capable of, especially if their company rent out for them - then I would have to deal with company lawyers.

How about the tax structure? I read that as a Sdn Bhd I have more deductible expenses as a company than as an individual. Does anybody here have a good tax advisor that they use? Hopefully they give out free initial consultation .. hahaha.

[richpoordad]

Hi all, I am new to this forum. glad to know that they are some many people interested in Properties Investing.
I have some more questions regarding setting up a property management company and its benefit vs invidividual investment.

1. I know there is no more RPGT (Real estate Property Gain Tax) for individual, what about for company? is it also been abolished?
2. If assuming I am current holding 3 resident houses, and intend to get one more (make it 4) so that to qualify for Company tax expenses. Question: do I need to transfer my existing 3 properties to the Company or I can still keep the previous houses (b4 the company is setup) under the individual name and treat them as houses managed by the company [where the company is registered under the same individual name]??
2.5 if I need to transfer all those houses to the company, how can I do it?? Is it considered as normal Sales from the Individual to the Company?
==> Go thru the normal S&P, apply for land office consent, Loan agreement etc... ?


3. what is the different (in term of benefits) for Sole Proprietorship vs Partnership in Property Company?

4. For individual house purchase, we can buy MRTA, MLTA insurance etc.. to protect ourselve. But what about the for case of company, is there something (insuranc) similar to this where it can protect the owners/next of kin of anything happen to the company owner?

Hope someone can help to answer my doubt..

cheers,
_________________
Financial Freedom is the key to a balance life...

[darrenhee]

ya i also wanna know why no one reply?
_________________
iam a newbies and would like to know more about real estate invesment

[Yun Qi]

Hi there
The questions posed are very specialised and technical, I don't think I'm capable in answering most of them, but I shall just try to give my 2 cents on what I know, folks, dont believe me entirely, I've been out of the country for a year, things might have change significantly, besides, I was never a tax consultant
As usual, the 1st advice is, get a tax consultant, they dont cost as much as you thought, and they are definitely worth the fee paid
1. RPGT has been abolished, hence it applies to both companies and individuals
2. I believe that when you have 4 residential properties, your income would be classified under Section 4A (business income), even if you do not form a sendirian berhad, hence there are more deductible expenses. Not quite sure if you need to form at least a sole proprietorship for that. The way tax works for sole proprietor, partnership and sendirian berhad differs slightly. Generally if your income is high, where your personal tax bracket > 20%, it is more beneficial to have a sendirian berhad (you get first 500k at 20%, and thereafter 27%)
Of course, there are cost of setting up sendirian berhad that you need to consider, annual filing of accounts, getting audit and tax returns done, hiring company secretary etc
3. Sole proprietorship & partnership. Sole proprietorship is described briefly above, partnership is tax by partners. For example, if you have your wife (who is not working) as your partner, her tax bracket is likely to be low, and hence the tax to be paid on her portion would be low as well, as compared to if all income is taken as yours in soleproprietorship
4. I do not know the answer for this, I believe any agent would be happy to answer you

Hope this helps, I shall not say too much to spoil the market

[chrisngch]

Hi
I am Christine. I am a new investor and I also have some questions regarding tax. Now that the RGPT is lifted I wonder whether I should set up a company for my property investment. I would appreciate it very much if there is a tax consultant around who can shed somelight on this. thank you