How To Calculate Stamp Duty

How To Calculate Stamp Duty

How To Calculate Stamp Duty – Stamp Duty Waiver For First-Time House Buyer

Lots of people talking about buying a house. But, one thing a home buyer should know is how much the stamp duty will cost when buying a new house.

Today, we’re going to share the simple calculation of stamp duty and also the stamp duty waiver for first-time house buyer.

HOW TO CALCULATE STAMP DUTY?

Here is the stamp duty scale.

2017 STAMP DUTY SCALE

Stamp duty Fee 1% : For First RM100,000

Stamp duty Fee 2% : RM100,001 To RM500,000

Stamp duty Fee 3% : RM500,001 and above

We will show how simple the calculation for easy understanding.

For example, if you’re buying a house amounting RM300,000.The total stamp duty is :-

Stamp duty Fee 1% : For First RM100,000 = RM1000.00

Stamp duty Fee 2% : RM100,001 To RM300,000 = RM4,000.00

Total stamp duty have to pay is RM5,000.00

So this is total stamp duty, you can add legal fees, disbursement fees, valuation fees and other fees to estimate how much the cost of buying the house.

A good news for First-Time House buyer! Woohoo!

With the generosity of Malaysian Government and to increase the purchasing house for first-time house buyer, the government had implemented a stamp duty exemption started 1st January 2017 until 31st December 2018.

Criteria For First-Time House Buyer Stamp Duty Waiver

  1. Must be first-time house buyer. Never buy a house before and never inherited any property.

  2. The Property Price must be less than RM500,000.

  3. Stamp duty exemption is capped at RM300,000 on the property market value and also loan amount.

The house below RM300,000 don’t need to pay Stamp Duty?

Now, we’re going to give you a second example.

Let’s said, using the same example, based on RM300,000 purchase price.

Stamp duty Fee 1% : For First RM100,000 = RM1000.00

Stamp duty Fee 2% : RM100,001 To RM300,000 = RM4,000.00

Total stamp duty have to pay is RM5,000.00

Due to, for first-time house buyer there is an exemption of Stamp Duty for property less than RM300,000, therefore you’re not required to pay anything.

How about for Purchase Price Above RM300,000?

Okay for the third example, if the Purchase Price is RM400,000.00.

The Actual Calculation of Stamp Duty is ( before first-time house buyer stamp duty exemption):-

Stamp duty Fee 1% : For First RM100,000 = RM1000

Stamp duty Fee 2% : RM100,001 To RM500,000 = RM6000

Total stamp duty have to pay is RM7,000.00

And because of the first-time house buyer stamp duty exemption, you only need to pay:-

RM7000 (the actual stamp duty)-RM5000 ( Maximum Stamp Duty Exemption Amount) = RM2000.00

This is because RM5000 is stamp duty for RM300,000 property value and this is also the maximum amount of the exemption.

More Good News! Stamp Duty Exemption For Loan Agreement Stamp Duty!!

Yes, not only the exemption applies to Property transfer stamp duty but also to Loan Agreement Stamp Duty. Is that good or what!!

How To Calculate Loan Agreement Stamp Duty?

It’s actually quite simple to calculate Loan Agreement Stamp Duty. There are no scale fees, it’s a flat rate of 0.50% from the Total Loan Amount.

For Example,

If the loan amount is RM300,000.

The Loan Agreement Stamp Duty will be RM300,000 x 0.50% = RM1500.00

And if you’re first-time house buyer, this RM1500 will be exempted. Meaning, you’ll pay ZERO!

Another Example,

How about if the loan amount is RM400,000.

The Loan Agreement Stamp Duty will be RM400,000 x 0.50% = RM2000.00

And again, if you’re first-time house buyer, the amount you need to pay is:-

RM2000 (actual stamp duty)- RM1500 ( Maximum Stamp Duty Exemption Amount) = RM500.00

Do You Realise How Much Saving You Get??

Let’s do a calculation based on RM500,000 Purchase Price And Loan Amount RM450,000 ( margin of finance 90%) to see how much First-time House Buyer can save $$ on their Stamp Duty.

For Property Price of RM500,000

The Actual Calculation of Stamp Duty is ( before first-time house buyer stamp duty exemption) :-

Stamp duty Fee 1% : For First RM100,000 = RM1000

Stamp duty Fee 2% : RM100,001 To RM500,000 = RM8000

Total stamp duty have to pay is RM9,000.00

After first-time house buyer stamp duty exemption : RM9000-RM5000= RM4000 ( Stamp Duty to pay)

Saving Amount : RM5000.00

For Loan Amount : RM450,000

The Actual Calculation of Stamp Duty is ( before first-time house buyer stamp duty exemption) :-

RM450,000 x 0.50% = RM2250.00

After first-time house buyer stamp duty exemption : RM2250-RM1500= RM750 (Stamp Duty to pay)

Saving Amount : RM1500.00

Grand Total Stamp Duty Saving For first-time house buyer is RM6500.00. Wow!!

Buy Property RM1 million and above the Stamp Duty is ridiculous expensive ??

Effective 1st January 2018, the stamp duty scale fee will be changing again. The change is an increase in Property Value of RM1 million and above.

Please refer to the scale fees below.

2018 STAMP DUTY SCALE

Stamp duty Fee 1% : For First RM100,000

Stamp duty Fee 2% : RM100,001 To RM500,000

Stamp duty Fee 3% : RM500,001 and RM1,000,000

Stamp duty Fee 4% : RM1,000,001 and Above

Tip: Buy an RM1mio and above house in the year 2017 instead of 2018. You’ll save a lot on stamp duty!

I’m Rich, I can pay more. How Much You Are Paying More In 2018??

Let’s do the comparison calculation for both year, 2017 & 2018 for property price RM1.50 million.

Year 2017

Stamp duty Fee 1% : For First RM100,000 = RM1000

Stamp duty Fee 2% : RM100,001 To RM500,000 = RM8000

Stamp duty Fee 3% : RM500,001 and above = RM30,000

Total Amount To Pay : RM39,000

Year 2018:

Stamp duty Fee 1% : For First RM100,000 = RM1000

Stamp duty Fee 2% : RM100,001 To RM500,000 = RM8000

Stamp duty Fee 3% : RM500,001 and RM1,000,000= RM15000

Stamp duty Fee 4% : RM1,000,001 and Above = RM20,000

Total Amount To Pay : RM44,000

If you’re buying the property in the year 2018, you’re paying RM5,000 more.

As a property investor, it is best if you can optimise the opportunity and investment toward buying a house. This exemption will have an end date, so grab this opportunity fast or before 31st December 2018.

If you think this is helpful, feel free to share it with all your friends and family on all the social media platform.

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or visit our website www.malaysiahousingloan.com

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