Mantanani islands in Sabah for sale at RM12 million
I love Sabah… especially that one lady who’s now my wife
As my wife’s a Sabahan, I visit Sabah often (versus most Peninsular based Malaysians). Probably averaging over 3 times per year. Sometimes it could be more as I also visit Sabah when invited to give talks too. Yes, I have two high-rise properties in Sabah too. One is over 10 years and the other is over 8 years. I cannot say I love Sabah if I do not have a property or two over there right? 🙂
No more RPGT, fortunately.
Anyway, if I sell those properties today, I will not be charged any Real Property Gains Tax (RPGT) as announced by the current Finance Minister. Yes, both properties have gained in price. Previously, I was very unhappy when it was announced that RPGT will be 5% FOREVER by one former finance minister. I have no idea who advised him to make that decision. Will I buy another property in Sabah? I do think it’s a possible decision. Let’ see when as I have not been to Sabah for 2 years.
I can only afford one high-rise every few years yeah. Now, the next one up for sale is only for the super wealthy or a potential real estate developer who could somehow turn that purchase into a money generating asset, maybe. Article is in thevibes.com
Article in thevibes.com Popular diving spot Mantanani is going on sale for RM12 million, according to a listing. It consists of three islands, and is known to divers for its dugong sightings. The for sale listing is even open to non-citizens. In 2021, the island was also put up for sale at RM14.3 million and the seller claimed that the native title for the island could be converted to a country lease. There are other islands also up for sale. Please do read the full article here: Article in thevibes.com
What is native title and what is country lease?
It is our fortune that propertyhunter-my has written an article on native title and country lease. The full article can be referred here.
Country Lease (CL) are land classified outside town area. Leases could be freehold, 999, 99 or 60 years.
Native Title (NT) are land designated for native ownership. The restriction is that it could only be transacted between natives.
Town Lease (TL) are land classified within the town area. Leases are 99, 60 or 30 years.
When we look at these classifications, it is obvious that Mantanani island would be under Native Title or Country Lease. As per the article in thevibes.com, Mantanani island is classified under Native Title but the seller has indicated that it could be converted into Country Lease. This is also the reason why the sale is opened to non-citizens too.
Who could be a potential buyer?
Property developers could be one. Preferably a property developer who specialises in resorts or tourism related developments because building some residential units there really does not make any sense. The buyers of these residential units would have to be super wealthy too since the cost of purchasing may not be the main issue. The main issue would be maintenance…
If the island could be developed into a tourism destination, then it will make financial sense too. Just need to remember that it’s not an easy thing to do yeah. Imagine trying to get 100 guests to the island every month, each paying RM5,000 per visit? That’s RM500,000 per month. This has to cover all the staffing costs, maintenance costs, unforeseen costs and enough to pay bank loan and still leave some profits. Else, why do the resort?
Super wealthy buyer could be the other target. If this is the buyer, then the buyer could just buy it for the purpose of having a private island for a vacation. Since the price is RM12 million, perhaps the buyer could be someone with a wealth of RM1.2 billion. This buyer would not be overly concerned with spending 0.1% of their wealth on a vacation island for them and their loved ones. Plus another 0.1% to build a simple building with facilities. 🙂
Happy thinking about it. I have no idea who the buyer is. If you like to buy, do try and find that listing yeah. Cheers.
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