- An income tax as of 20% of the profit they make on the transaction. (previously home sellers can chose between paying 20% tax on profit or 1% - 3% tax on the selling price)
- Potential home buyers who can't show proof of paying tax for at least one year will not be able to make a property purchase.
- Down payment and mortgage rates on loans for second home buyers in cities will be raised.
The announcement caused a massive tumble on property related stocks both in China and Hong Kong today. The Shanghai Stock Exchange Property Index have already lost 9.25% as of writing.
How does that announcement impact us Malaysians Investors?
