Top 10 Subsale Property Cases 2024

Here are some of the Year 2024 Subsale cases the Firm has handled:

#001 - Setia Alam, Two (2) Storeys semi-detached house - RM3,000,000.00

This property is a landmark case for property investor to study.

Owner bought in year 2020 at RM2.1 million, and sold off at RM3million in Year 2024. It is within first 4 years, there is a CKHT payable on the nett gain of 20%. 

The Owner did not pay any CKHT Tax on this transaction at the beginning, however they were assessed with a tax letter by LHDN later on.

Upon appeal, the tax assessed was dismissed. This is clearly some breach of law on the tax authority in raising tax assessment despite my client has opted for the CKHT Exemption.

They are now tax free. This is a classic example of what we call a successful real estate investment.

#002 - Damansara Jaya, Landed Property - RM1,160,000.00

This Property is situated within the Centre of Petaling Jaya, with three [3] malls surrounding - Atria Mall, Starling Mall, Taman Megah Mall. It is landlock, and space for development are literally scarce.

It is also convenient and has easy access to SMK/SM Damansara Jaya, Nobel International School, and BU School.

The Property went through a less than RM100,000.00 renovation, and it is valued at RM1,500,000.00. Another successful rehabilitation of property.

#003 - Plaza Damas 3 Service Apartment

This is a subsale property where it was sold below market value. It was bought by the owner at RM555,000.00 in year 2009, and subsequently sold at RM310,000.00 in year 2014.

The owner is willing to let go at a loss.

However, what turns interesting is that the buyer, was assessed at RM360,000.00 stamp duty. it means that the property value may have drop but still retains it value at RM360,000.00 and not at RM310,000.00. the buyer has to top up the stamp duty assessment at RM360K.

The conclusion we can get from this property is that the value has drop when it was bought 10 years ago at RM555K, to RM310K, so property buyer has to take into account the environmental factors of the property something like (whether the particular property has been auctioned off).

#004 - Danau Permai Condominium - RM420,000.00

This is a property where the Buyer purchase at RM420,000.00 and gets a stamp duty exemption. FYI, if you are a buyer, you should look for residential property below RM500,000.00 to buy as it allows you to get a stamp duty MOT exemption on fixed rate RM10.

The Property has to be residential in nature and not commercial as stated in the land search. You can literally save RM7,000- RM8,000 of stamp duty.

#005 - E-Tiara Serviced Apartment - Subang Jaya - RM350,000.00

This property located at USJ 1, is a good investment. The owner purchased from the auction market at RM290K in Year 2023, and subsequent sold at RM350K. There will be RPGT tax payable.

However it is an investment property, where the property has been tenanted with monthly rental of RM1,800.00 full unit. The instalment stays at RM1,390. there is even a positive cash flow of RM400.

However, the property does not enjoy for full stamp duty MOT as it is of commercial land in nature. 

Long term wise, the property price will increase as the developments surrounding the area are pooping up.

Investing in property is never about the high price or low price. it is whether there is positive cash flow to the property?

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