RPGT

What is RPGT actually? It seems that it is now the magic word among property investors nowadays. Irony isn't it?

It's the way of the world unfortunately. Perhaps, you'll make substantial gain (amen to that!!) on selling your properties and the government decides to take 5% of your gain. It's nice to be the government eh? My experience dealing with some government agencies was, I think they suck and like to act as if they are some kind of big shot or whatever. Anyhoos, I'm not gonna dwell into that. The fact that I've been able to invest a wee bit of my hard earned money in properties is good enough considering how volatile the world economy nowadays.

Well, back to the topic, RPGT. What is RPGT? It's a short form of Real Property Gains Tax. Why it existed in the first place? I guess, it was there to deter steep hikes in properties prices in the 1970s. It was stopped in 2001 and 2007 as the govt thought that it would be a good idea to forgo the RPGT to boost the local economy. That's my opinion anyway (psstt...I'm not a tax man so I just know the basics)

In any way, it's good to pay tax don't you think so? By paying tax it means that you have money and the goverment thinks that you must share you profits with them. Who knows, your tax money might be used to build better schools or roads or whatever. Let's just wish that it does not go into some idiot's pocket. Hahahaha....Btw, it's only 5% apa....The argument is, 5% is still money maaaaaaaaaaa............dennngg!!!

RPGT for me, might deter some property investors to think twice or maybe a couple of times to sell their properties. If they have plans to buy one or two properties with an idea of selling it as quickly as possible, these guys are gonna be hit hard by the RPGT. Hehehe. ( i think I'm one of them......dennggg!!!) Unfortunately, it may be a barrier for some to be in the property market as they have the tax to think about.

Let's take an example. I wanna sell my condo in Hartamas (wooootttt!!!). After all the process done,obviously I need to pay the RPGT. I have some forms to be filled, deadlines, calls to be made to the tax department, bla bla bla....I have to think about the disposal date lah, the disposable asset lah and who knows, my cashflow will be affected by these. Well done MR tax man!!! -psssttt....gomen tak duit ke?....hehehehe..A point to ponder, after a short search in the internet, Hong Kong and Singapura have no Capital Gains Tax (which is similar to RPGT)...Why we always wanna be different eh? Their property market is way stronger than us (of course as 'space' and 'land' will always be an issue)

It will alwaYS be difficult for the some of us to be in the property market. Prior to this, there are quite a number of local property investors. But after this introduction of RPGT, the numbers might drop. We can't even buy a decent property in our country!! Damn you!!!!

I guess, the property market is a cash-cow market. It creates loads of opportunites. It creates jobs, it gives chances to people to earn higher income and it creates lots of hope for people like me who dreams to build his/her wealth through properties. Will RPGT be a hindrance (not HINDRAF!!) to people who plans to buy more properties in the next couple of years? (I read somewhere that properties over 5 years old are not subject to RPGT? Need to find out more about it though.......)

We Malaysians are gonna be taxed from every angle. I'm telling ya. Obviously, the rich would not feel the pinch but the averagely average income earners are the ones gonna be hit really hard!!! For every RM1 you earned, I wouldn't know how much can you actually bring home after deducting all the taxes. Hahahaha. This is the reality boys and girls!!

The economy seems to be on the road to recovery and suddenly we are hit with the RPGT!!!