by Dato' Chris Chin
One should know that transfer of a property will not only incur legal fees but also stamp duty on the instruments of transfer, which is to be paid to the Collector of Stamp Duty. Indeed it is very important for one to know the rate of stamp duty and cost which will incur on the transfer of property transaction.
Following Budget 2017, there is an increase from 3% to 4 % for the rate of stamp duty on instruments of transfer of real property worth more than RM1.0 million with effect from 1st January 2018.
If you intend to invest or purchase any property at a price exceeding RM1.0 million, it is advisable to get it done now before the implementation of the new rate on the stamp duty instruments.
For better understanding, please see Scenario 1 below:
Peter of age 62 intends to transfer his property, a factory at Rawang, worth RM2.5 million at market rate to his beloved daughter Mary.
Besides the legal fees involved, how much stamp duty he can save on the instruments of transfer if the transfer is made in 2017 compared to 2018?
In conclusion, year 2017 is definitely a right time for your to purchase a property worth more than
RM1 million. As such, you may go for it if you have one in your mind now.