Foreign Buyer · Full Cost Sheet
The Foreign Buyer's Full Cost Sheet — RM1.2M in Penang
Every ringgit above the purchase price. Printable, saveable, and honest about what nobody else shows you.
RM1.2M is the first price at which the island is legally open to you. It also brings the 3% island levy — RM36,000 the brochure will not print. Here is what actually clears at signing.
The full cost stack
Every line item a foreign buyer clears at RM 1,200,000, in the order it hits your bank account. This is what you will actually pay — not what the sales gallery told you.
| Line item | Amount (RM) | Running total |
|---|---|---|
| Purchase price | RM 1,200,000 | RM 1,200,000 |
| SPA stamp duty (foreign: flat 8%) | RM 96,000 | RM 1,296,000 |
| Loan stamp duty (0.5% on RM 840,000 at 70% LTV) | RM 4,200 | RM 1,300,200 |
| Legal fees (SPA + Loan) ~1% | RM 12,000 | RM 1,312,200 |
| Valuation fee | RM 3,000 | RM 1,315,200 |
| Foreign buyer levy (Penang Island: 3%) | RM 36,000 | RM 1,351,200 |
| State consent (COSA) fee | RM 15,000 | RM 1,366,200 |
| MOT / disbursements | RM 6,000 | RM 1,372,200 |
| Cash to close (100% cash buyer) | — | RM 172,200 above purchase |
| — with 70% bank loan option — | ||
| Down payment (30%) | RM 360,000 | |
| Above-price costs | RM 172,200 | |
| Cash needed at signing (70% LTV) | — | RM 532,200 |
Loan stamp duty and legal fees assume 70% LTV; a cash buyer drops the loan stamp line and pays roughly two-thirds of the legal fees. COSA is a Penang state fee — foreign buyers only.
Year-1 holding costs
What you pay just to keep the keys in your pocket for the first twelve months. Modelled on a typical 1,150 sqft unit at this price band.
| Item | Annual |
|---|---|
| Assessment (MBPP) | ~ RM 1,200 |
| Quit rent | ~ RM 200 |
| Maintenance (RM 0.35 / sqft × 1,150 sqft × 12) | ~ RM 4,830 |
| Home insurance | ~ RM 500 |
| Total year-1 holding cost | ~ RM 6,730 |
Exit RPGT preview (foreign owner, +20% hypothetical)
If you sold this RM 1,200,000 unit at RM 1,440,000 (a hypothetical +20%), your gain would be RM 240,000. The Malaysian RPGT bill by holding year:
| Sold in | RPGT rate | RPGT bill | Net after RPGT |
|---|---|---|---|
| Year 1 | 30% | RM 72,000 | RM 1,368,000 |
| Year 3 | 30% | RM 72,000 | RM 1,368,000 |
| Year 5 | 30% | RM 72,000 | RM 1,368,000 |
| Year 6+ | 10% | RM 24,000 | RM 1,416,000 |
This is a preview. The RPGT calculator has the full grid — including allowable costs and the year-5 vs year-6 comparison for your exact numbers.
Penang Island projects worth seeing at RM1.2M
A short list of Penang Island projects that price in at or around RM1.2M today.
georgetown
Lumina Residence
VST Properties & BSG
From RM 1.030 mil
Freehold residential title in Georgetown at this price point is genuinely rare. Pykett Avenue puts you 1km from Gleneagles and 3km from Gurney Plaza. Units start from 1,200sqft which is large for the area. Unlike serviced apartments, residential title means no commercial TNB rates and no HDA restrictions.
tanjung bungah
Waterstone
BSG Property
From RM 1.287 mil
Waterstone is a 365-unit freehold condominium in Tanjung Bungah, selling from RM1.287M. Tanjung Bungah sits between Tanjung Tokong and Batu Ferringhi — quieter than Gurney, with beach access and good sea views from higher floors. Freehold at RM1.287M in Tanjung Bungah is reasonable for sea-view product here. 365 units is mid-sized — not boutique but not oversupplied either. The neighbourhood is popular with expat families for the international school access (Uplands International, Dalat International, Sri Utama). This is a good-value proposition for buyers who want the northern beach strip without the Batu Ferringhi remoteness and the Gurney Drive price premium. Ask me for current floor availability and view orientations.
tanjung tokong
Fettes Residence
IOI Properties
From RM 1.139 mil
Fettes Residence is IOI Properties' freehold tower on the Tanjung Tokong / Mount Erskine edge — 195 units, completed 2011, and known for its large layouts (standard units around 2,400 sqft, penthouses to roughly 4,200). My honest take: this is a space-buyer's building — big freehold units at a sensible psf (about RM542–850), from around RM1.14M up to RM1.8M, with the typical unit around RM1.50M. It suits a family that wants square footage and a settled address near Gurney and Straits Quay without paying new-launch premiums. Ask me which stack has the cleanest aspect.
Want the full sheet as a printable PDF + Zac's notes on the 3 specific projects at this price band?
I'll send you the RM1.2M sheet as a proper PDF, plus my private notes on the specific units, floors and stacks that are worth looking at right now — including what I'd skip.
Send me the RM1.2M sheet on WhatsAppZac usually replies within a few hours during Penang business hours.
Bottom line at RM1.2M: cash buyer clears RM 1,372,200 in total. With a 70% bank loan, cash needed at signing is RM 532,200. Year-1 holding around RM 6,730. If you sold at +20% in year 6, RPGT bill would be RM 24,000.
FAQ — RM1.2M foreign buyer
Is RM1.2M the minimum for a foreign buyer on Penang Island?
Effectively yes. The state minimum is RM1M, but almost no island stock exists at exactly RM1M — the practical entry tier is RM1.1–1.3M once you include cost of the unit you actually want to live in.
What is the 8% stamp duty on RM1.2M?
Foreign buyers pay a flat 8% SPA stamp duty regardless of price band — Malaysians pay a tiered 1–4% instead. On RM1.2M that is RM96,000, not the RM24,000 a citizen would pay.
How much cash do I need at signing for a 70% LTV loan?
Down payment RM360,000 plus above-price costs of about RM172,200 = around RM532,200 cash at signing. Cash buyers at 100% pay purchase RM1.2M + about RM172,200 above-price = RM1,372,200.
Do I still pay 3% levy if I marry a Malaysian?
The levy is on the buyer named on the SPA. If a Malaysian spouse is the sole named buyer, no foreign levy — but they must also qualify for the loan and any future sale is theirs to control. Talk to a lawyer before assuming this route.
What is COSA and why is it RM15,000?
COSA is the state consent required for a foreigner to be registered on title. Penang charges RM10,000–15,000 processing per transaction plus legal handling; 3–4 months to receive it. Without COSA, the transfer cannot register.