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 a realistic island entry price once you're above the RM1M minimum for foreign buyers. It also brings the state levy, 1.5% at this price, or RM18,000, which 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: 1.5%) | RM 18,000 | RM 1,333,200 |
| State consent (COSA) fee | RM 10,000 | RM 1,343,200 |
| MOT / disbursements | RM 6,000 | RM 1,349,200 |
| Cash to close (100% cash buyer) | — | RM 149,200 above purchase |
| — with 70% bank loan option — | ||
| Down payment (30%) | RM 360,000 | |
| Above-price costs | RM 149,200 | |
| Cash needed at signing (70% LTV) | — | RM 509,200 |
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
Lumina Residence is a freehold condominium by VST Group in a joint venture with BSG Property, on a 3.38-acre site near the junction of Jalan Pykett and Jalan Westlands, just outside central George Town. It's two towers with 596 homes of 1,206 to 1,518 sq ft, targeted for completion around late 2027 to early 2028. Prices start from roughly RM1M, which puts the entry homes right at Penang Island's RM1M foreign-buyer minimum and inside the reduced 1.5% state levy band for foreign buyers. It suits buyers who want a new home close to the city, Pulau Tikus and the hospitals, rather than the beach. With nine homes per floor it's busier than the boutique buildings nearby, so choose your floor and facing carefully. The [Lumina vs Waterstone comparison](/blog/lumina-vs-waterstone-2026/) is worth reading if you're also considering Tanjung Bungah.
tanjung bungah
Waterstone
BSG Property
From RM 1.287 mil
Waterstone is BSG Property's freehold condominium on the hillside off Jalan Loh Poh Heng in Tanjung Bungah: two 45-storey towers with 365 homes and only six homes per floor, due in 2028. Homes are family-sized at about 1,334 to 2,195 sq ft, priced from about RM1.287M for a three-bedroom. The higher floors look out to sea. It suits families who want a new, low-density home near the international schools in Tanjung Bungah, at a lower price per sq ft than the seafront towers in Gurney. Foreign buyers can buy every unit, since the entry price clears the RM1M island minimum, and units from RM1M to RM1.5M carry the lower 1.5% state levy. The trade-off is the wait for completion and the drive into George Town.
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 (most units about 2,000–2,500 sq ft, penthouses from about 4,000). My take: this is a space-buyer's building — big freehold units at a sensible psf (asking about RM590–625; recorded sales 2021–2025 at a median of about RM569 psf and RM1.37M), from around RM1.14M. 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 unit 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 1,349,200 in total. With a 70% bank loan, cash needed at signing is RM 509,200. 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 RM149,200 = around RM509,200 cash at signing. Cash buyers at 100% pay purchase RM1.2M + about RM149,200 above-price = RM1,349,200.
Do I still pay the 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 state consent and what does it cost?
State consent is the approval a foreigner needs before the transfer can be registered. The Penang land office charges a RM10,000 application fee per title for an individual buying residential property, plus your lawyer's handling; it takes 3–4 months. Without it, the transfer cannot register.