Why buy property now?
After Malaysia Government new announcement lately on the extension of HOC, Free MOT and even Mortgage Loan for 3rd Property is more than 70% LTV... here is why buy property now.
The market is slow and economy is slow as well. It is getting worse with MCO is excited for months. Once the 6 month moratorium is end, you could foresee there are many property under urgent sales and Below Market Price.
Becoming a landlord isn’t easy, especially in Malaysia, where policies are friendlier towards the tenant. And it is a rite of passage for every fledgeling landlord to experience, once in a while, a tenant from hell. It is a learning process, and ultimately, we master the art of weeding out such bad apples from our pool of prospective tenants. But why learn from painful experience when we can learn from the mistakes of others. Here are a few tips to consider when looking for a reliable tenant.
1. Ability To Pay
Your tenants can only pay their rent on time if they can afford it in the first place. Hence, their monthly salary is a good indication of their ability to be good paymasters. Ideally, your rental amount should never be more than half of your tenant’s monthly income. This is to ensure that they are capable of comfortably meeting their daily expenses while having the surplus to pay for the rent. Give priority to potential tenants who are capable of furnishing you with a salary slip, best if it is verified by the human resource department.
Be careful of tenants who are too keen to sign the tenancy agreement. Possibly, they are about to be evicted by their previous landlord, thus their urgency to find the next roof. On the other hand, quality tenants often take their time exploring the available opportunities. They may ask many questions as they are interested in renting for the long term. So be there to answer all their queries.
When renting to a family unit, you may want to prioritize couples with dual-income as their purchasing power is stronger. Unemployment is a tragic but likely prospect in the current economic state. If a spouse happens to lose his or her employment, the other can serve as a backup. The same cannot be said to a household propped by a singular breadwinner. All the eggs are in a basket, and the monthly income may just be enough for the family to get by.
If you are renting to a college or university student, give priority to those who are studying full time, especially if their finances are being backed by their parents. Strangely, students who juggle work and education usually make bad paymasters. Possibly, their family is financially constrained, hence the need to pick up a vocation while studying. (This is merely a general guideline. Circumstances and factors, both internal and external, need to be taken into consideration.)
4. Get Their Referrals
Reliable tenants should have no trouble preparing a list of referrals that you can call for a background check. But then again, bad tenants are equally capable of handing you a referral list, complete with bogus individuals to exhort about their virtues. To get them at their own game, ask detailed information about their rental period with the so-called referral as well as the address of the previously rented property. Then, call up the referral and ask him the same question. If the information provided is contradictory, it is a red flag indication.
Greenhorn landlords may assume that relatives are more “reliable” when it comes to coughing up that monthly rent. They are in for a rude awakening as the opposite is often true. Relatives, especially, are notorious at not paying up on time due to the “relative factor” and they make you feel guilty for chasing them for the rent.
You can’t evict them either, not without causing a strain to the relationship, if not outright enmity. Opportunistic individuals are like a package deal, and they typically come with backstabbing tendencies too. They may inform the whole village and all your kin about the suffering that they endured (real or imagined) in your cruel hands, effectively ruining your reputation.
Placing the linchpin on this point is the fact that you have to meet them on festive seasons, exchanging fake smiles across the reunion table. To make matters worse, they usually demand unnecessary rental discounts on the reasoning of having similar genes with you, regardless of how watered down it is. Maintain a good relationship with your relatives by telling them that your properties are fully rented.
Articles refer from starproperty.com
Whether Property Prices Are Going Up Or Stagnating, These Home Updates Will Help You Achieve The Maximum Resale Value For Your Home
Even if you don’t intend to sell or rent your property out in the near future, these upgrades can benefit you and your family with a safer and more comfortable home environment. Here are some tips and tricks to help you maximise your property’s resale value.
Replace the Front Gate
First impressions count – especially when it comes to getting the maximum value for your property. Since the first impression is likely made when potential buyers arrive at your front gate, why not upgrade it? Get that manual front gate automated to get bonus points for convenience and to alleviate security concerns, and in the event of extensive corrosion, you could spend some time repainting it or go as far as replacing the gate entirely to achieve maximum allure
Refresh the Kitchen
You never know what a coat of fresh paint can do for your kitchen, especially when it has the ability to revive and brighten up a tired space. Choosing neutral colours such as beige, white, or light brown are universally appealing, enhancing your interiors while making your kitchen look polished. Another great way to make sure your kitchen stays relevant is by updating your kitchen cabinets or by replacing the countertops to give your kitchen a fresh new look. Additionally, you may also consider adding a kitchen island for more working space.
Replace the Bathroom Fixtures
Thanks to our humid weather, chromed items like towel racks, shower mixers, and toilet paper holders tend to look tarnished or dulled over time. Replacing these fixtures is one of the easiest ways to add sparkle to your property while working with a tight budget.
Update the Curtains
As practical and stylish decorative additions to any home, curtains are a great way of ensuring privacy. But after some time, the fabrics may present stains and signs of discolouration. Replacing old curtains with new materials and updated designs will give your home a fresh look at a minimal cost.
Add Some Storage
Extra storage is always appreciated. Whether you intend to expand your storage solutions to the kitchen, bedroom, or living room, try adding built-in cabinets. Make them ceiling-height for maximum storage, and include doors that complement the existing décor to do more than just keep the space looking spacious and clutter-free. Storage also benefits your home by imbuing every nook and cranny with functionality.
Repair any Cracks, Broken Seals, or Mould
Over time, walls can develop unsightly superficial cracks – sometimes stemming directly from the weather, holes made for hanging pictures, or even peeling paint exposing the wall's internal structure to the elements. Apply putty filler on exterior walls or Plaster of Paris over the cracks on interior walls and apply a fresh coat of paint to restore your walls to their former glory.
You should also check the sealant in bathrooms and kitchens as there could be mould growing and chipped wooden skirtings due to wear and tear. You can easily repair these with wood or plastic filler and replace the sealant to make everything good as new.
Replace the Electrical Switch Plates
A simple solution to modernising your home is to change up your switch plates. To enhance the lighting in your home, you could also choose to add dimmer switches to the dining area and hallways for additional lighting options during various times of the day.
To make your home ready for the most discerning of tenants or buyers, consider smart switches that will make the automation of the home's appliances a mere matter of plug-and-play.
Repaint the Interior and Exterior Surfaces
After all the upgrades and repairs, put on a fresh coat of paint! It’s an excellent way to refresh an outdated space while making your home look clean and welcoming. By painting the interior and exterior walls of your home, you can also cover permanent marks and stains.
Improve the Landscaping
A beautifully landscaped lawn can make a world of difference to the overall setting of your home – so try to belay the impulse to pave over or tile your garden. Even if gardening is not your forte, all you really need is a gardener to remove the weeds and tidy up the plants once a week. A modest garden boosts curb appeal and helps to make a good first impression. If you want to give your exterior a fresh new look, consider getting a professional landscaper to help you out.
Updates the Doors and Windows
You’ll never find a better return on your investment than updating your doors and windows. You could repaint the window frames and doors, replace worn hinges, or just replace door handles and doorknobs with shiny new ones. Also, doors with multipoint locks are harder to break into than those that use a singular lock.
This article originally appeared on Recommend.my - Malaysia’s #1 Home Improvement Services Platform.
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Found the property of your dreams? What can you do to ensure that the property particulars are what you are told they are? In Malaysia, under the Torrens system, the person named as proprietor on the title of the property is deemed the legal owner. It is advisable that you conduct a title search at the land registry or land office to verify the particulars of the title of the property before you pay any money or commit to a purchase.
A lawyer can assist you to do so or you can conduct the search yourself. When you are satisfied that there is no impediment to the vendor transferring ownership of the property to you, you can then pay and proceed to secure the purchase.A word of caution, though. Before you do that, you should inspect the crucial terms of the offer to purchase, which you will be asked to sign when paying an earnest deposit. If you are uncertain what they mean, you should consult a lawyer before signing or making payment.
Official search or private search?
Previously, a register was maintained in the land office (or registry). Lawyers would conduct a manual search of the title, presentation book or correction note book maintained by the land office. The person conducting the search will note down details contained in those books.
Today, most land offices have computerised their system and printed title search results can be obtained upon payment of a fee. An official search certified by the registrar costs more than a private search. It may or may not be more accurate or reveal more particulars. It also affords a claim for compensation under the National Land Code for loss due to an error or omission in the certificate.
What does a search report reveal?
> Ownership and title detailsFirstly, the title search should reveal who the registered owner is.
If the owner is an executor, administrator or trustee you can then make provisions to ensure that that he has the authority to enter into the transaction. Particulars derived from the title search such as the title number, mukim and district can be verified against the information provided by the vendor.
The title search will also show whether the property is subject to restrictions in interest i.e. whether there are limitations endorsed on the title. A property which is subject to restrictions in interest will be endorsed with words like the land cannot be transferred, leased or charged without the consent of the State Authority. If there is such a restriction in interest, the vendor must obtain the consent to transfer in favour of the buyer.
> Status and tenure
The search result will also reveal the status of the title i.e., whether it is freehold or leasehold. A freehold title is a title in perpetuity whereas a leasehold title is for a specific tenure (eg 99 years).
It is prudent to ascertain the expiry date of the leasehold term, particularly if you intend to obtain a loan as banks are reluctant to finance properties that have a short lease of, say, 40 years or less.
The margin of financing as well as the tenure of the loan may be significantly reduced.
> Encumbrances including caveats
If the vendor previously obtained a loan on the security of the property, the title will most likely be encumbered by way of a charge to the bank. A search will reveal if the property is charged to a bank. A search will also reveal if a caveat has been entered. A caveat is a form of notice entered by a person who has an interest in the property. It gives notice to the world that the caveator has an interest in the property. If you are buying free of encumbrances, you would want to investigate why the caveat was entered and to insist that the vendor gets the caveat removed.
> Other information
A title search will also reveal the area of the land, whether there are conditions affecting the use of the property, whether anyone has taken a lease of part of the property or, whether anyone a registered right of way across the property.
Where a separate title has not been issued, a search will be conducted on the master title. But, this search will not show who owns the property or whether there are any encumbrances on the property. To ascertain this information, one would have to write to the developer of the property to obtain the information. In conclusion, it is crucial that a proper title search be conducted and the particulars be verified before you commit to purchase a property.
The writer, Susan Joseph, a lawyer practising at Messrs Azman Joseph & Associates, is a member of the Conveyancing Practice Committee, Bar Council, Malaysia. This column is for your information only. It does not constitute legal advice.
The article is refer from starproperty.
"Freehold is definitely GOOD and Leasehold no need to consider"
It quite norm that elder generation property buyer frequently preferred "Freehold good, Leasehold bad."
This have been quite a debate for many years, is Freehold the main concern and the must factor to be considered?
Here, whether a piece of property is freehold or leasehold may or may not matter depends on why you’re buying the property for.
Freehold vs Leasehold: The Fundamentals
Freehold means that you have the ownership of that property forever, and you can pass it on to whoever you want.
On the other hand, if your property is leasehold, the tenure is limited – usually by (the maximum) 99 years if you bought your property from the developer, and much less unless you’re getting an extension.
For the lease is approaching the end or owner want to get extension of lease, the owner will need to apply to the state government for an extension of the lease. If the application is approved, a premium is payable depending on the prevailing market value of the land.
There have been argument that leasehold properties capital appreciation is must lesser than freehold properties.
Actually, there’s evidence that values of both freehold and leasehold properties appreciate at a similar rate for the first 20+ years.
However, nearing the end of its tenure, the value of a piece of leasehold property predictably stops going up. In this respect, freehold properties win in the longer run, as far as value appreciation is concerned.
Additionally, older leasehold properties are also harder to sell because of the uncertainty in the renewal of the lease (which is under complete discretion of the local authorities).
Also, bank loans are harder to come by for leasehold properties with shorter tenures. Even if you manage to get a loan, the margin of financing may be comparatively lower to that of freehold properties.
As with everything else, prices of property are determined by the sacrosanct law of supply and demand, and if freehold properties are more popular, naturally, they will fetch higher prices, both in the short run and the long run.
Location remains the biggest driver of demand in real estate, and you’ll see that some of the best locations in the Klang Valley are leasehold – for example: Bandar Sunway, (large swathes of) Petaling Jaya old town, Tropicana (near the golf course) and the Seputeh area in KL.
There is no doubt that the freehold status is a strong selling point for new projects. As such, developers understand the need to “make up” for the leasehold status of a new project that they want to launch. Therefore, for new projects at least, leasehold properties often give a better bang for the buck in terms of features, design, and concept when compared to freehold properties.
Finally, understand that freehold properties are limited in availability, and so the question of freehold vs leasehold will most probably be moot sometime in the future – simply because the buyers won’t get much of a choice. Actually as long as the whole area is same tenure leasehold, that shall not be an issue, unless the property you looking is the only limited leasehold in the freehold area, then that will be disadvantage on investment point of view.
So in the end, does it matter whether its Leasehold or Freehold?
If there is a comparison within same area, you should always opt for properties with freehold status. However, whether a property is freehold and leasehold should be secondary compared to other factors like different location, developer reputation, concept, amenities and upside opportunity.
Now with the price of houses being the biggest concern especially among first-time buyers, it’s a question of whether a piece of property is affordable and worthy, tenure like freehold or leasehold is no longer the main concern.
Also, freehold properties now is getting lesser and lesser. For developer properties, the sales package also take into the consideration as some giving more rebates and cash back. Some Guru have been teaching on multiple submission and cash out ideas which affect buyers view on the properties.
The extension of leasehold land is provided for under sections 76(a), 204B & 197 of the National Land Code (NLC) 1965. Section 76 (a) deals with alienation; section 197 details the procedures for a proprietor to surrender his/ her title to the State Authority and section 204B provides for certain powers to the State Authority to approve surrender and realienation.
Under the latest amendments to the NLC, which is yet to be enforced, there is a new provision under section 90A which specifically provides for the extension of leasehold land.
It is advisable for the owner to apply for the extension of lease before the expiry of the same. If the owner does not renew the lease and the lease expires, the land shall revert to the state government. The land is then available to any other persons who wishes to apply for ownership.
For Selangor, the formula for calculating the premium for the extension of leasehold land can be found in the Selangor Land Rules 2003 & Selangor Quarry Rules 2003.
The two options given by the Selangor government in their Guideline issued by the Selangor Department of Land and Mines (PTG Selangor), dated June 2011, for private residential ownership scheme are as follows:
In Selangor, the premium for lease extension for residential property is:
F: (1/4) x (1/100) x (Market Value of land) x (lease period – years remaining on the lease) x (land area). *Leases are usually renewed for a 99-year period.
As an example, let’s say you have a bungalow land with a land size of 7,000 sq ft in Petaling Jaya with about 45 years remaining on the lease. The premium that you would have to pay shall be as follows:
(1/4) x (1/100) x (220) x (99 – 45) x (7,000) = RM 207,900. After deducting the 30% rebate, it comes to RM 145,530 and this is what you would have to pay.
The above example is based on the assumption that the government has valued the land at RM 220 per sq ft.
The formula for the extension of lease for commercial and industrial land in Selangor is as follows:
F: (3/4) x (1/100) x (value of the land) x (term of new lease minus the balance of the existing lease)
For Kuala Lumpur
For Kuala Lumpur, the formula for calculating the premium for the extension of leasehold land can be found in the Federal Territory of Kuala Lumpur Land Rules 1995.
The formula for calculating the premium for the extension of lease for all categories of land use in Kuala Lumpur is as follows:
F: (1/4) x (category of land use) x (value of the land) x (1/99) x (term of new lease minus balance of the existing lease).
Renewal of lease for properties with strata titles (non-landed properties)
For the renewal of properties with strata titles such as condominiums and apartments, there is a new provision for this under the newly created section 90A(8) of the NLC, whereby the application may be made by the management corporation on the authority of an unanimous resolution, and such application shall be regarded as an application in respect of the alienated land and provisional block.
This basically means that the master title (that the condominium sits on) as well as all the strata titles of the individual units in that particular condominium must be renewed at the same time and the application shall be done by the management corporation concerned.
This article is refer from www.starproperty.my. Written by Christopher Chan.
Christopher Chan is an Associate Director and Registered Estate Agent with Hartamas Real Estate Group. He holds a Bachelor of Arts (Victoria University of Wellington, New Zealand), Post Graduate Certified Diploma in Accounting & Finance (CDipAF) (The Association of Chartered Certified Accountants (ACCA), UK), Master of Business Administration (MBA) (Edinburgh Business School, Heriot Watt University, Scotland) and is a Certified Residential Specialist (The National Association of Realtors, USA) and is a member of the Malaysian Institute of Estate Agents (MMIEA). He was an adjunct lecturer at UCSI University.
He can be reached at email@example.com.
Contributed by Stephen Chin
Refer from www.starproperty.my
From the very beginning of civilisation, Man has tried to understand nature and the world around him. He observed the skies, the land, the passage of time and developed theories on how to adapt to life and survive. Civilisations learned or perished from their mistakes.
Those who survive continue to refine their knowledge. Science was a lot more primitive then and unsurprisingly it is conflated with religious and superstitious practices.
Thus, every culture has its earth-science practice. The Western cultures have druidic practices and geomancy, the Middle Eastern cultures have ‘Ilm al-Raml or “science of the sands”, in Kazakhstan there is Kumalak, India has Vastu, and the Chinese have Feng Shui.
The term geomancy is linked to the idea of making divinations, and to some religions, considered a taboo. Chinese Feng Shui was translated as geomancy by 19th-century Christian missionaries in China because it was associated with local shamans and priests.
However, the right practice of Feng Shui does not have any religious, cultural or superstitious beliefs. It is practised in the Imperial Courts across many dynasties and treated as science for surveying landforms and making forecasts of weather, harvests and illnesses, based on observed natural patterns and mathematical calculations.
It has been in practice for over 5,000 years and even survived the purge of China’s Cultural Revolution.
The practice was given many names throughout history, and the one that stuck was “Feng Shui.” This came from a text on burial by Guo Pu where he was describing earth forces or “qi.” He wrote that they flow on solid ground and are stopped by bodies of water.
Strong winds can also disperse the forces. The task is to find a location that can collect and channel the energies appropriately. Therefore, when surveying landform one looks at the wind and water (or “Feng” and “Shui,” respectively).
Consequently, Guo Pu was credited as the Father of Feng Shui. His texts were merely a compilation of existing knowledge already in practice.
Unfortunately, in the present, the practice has been conflated with cultural and religious traditions. Little is explained about the scientific reasoning and mathematics behind the method.
It all became “appeasing the money god,” “not offending the grand duke” and placing religious items or trinkets like mirrors, pagodas, mythical creatures and what nots.
To truly understand the Feng Shui, one should make a visit to the Forbidden City in Beijing. The site was chosen according to proper scientific Feng Shui principles. The complex was constructed likewise. It was home to many emperors for over 490 years!
Look into the design and ornaments and there would be no hocus-pocus items used. You may find religious artefacts used for ceremonies, but they fall under a different ministry.
The stigma remains that “Feng Shui” is (a) a Chinese practice; (b) a Taoist tradition; (c) a superstitious practice; (d) not real science and is shunned by so-called modern thinkers.
I was once a sceptic until I met Prof Master David Koh. He hails from a few generations of practitioners and is one of the most respected in the industry. He questioned and challenged every teaching on Feng Shui, determined to uncover the scientific basis behind them.
He is an avid researcher, scouring books on mathematics, physics, geology, astronomy and so forth, to find evidence that can support the practice.
He was conferred a professorship by Jiaotong University and Tongji University in China.
Although Feng Shui practice is still banned in China, Professor Master Koh’s scientific approach won the approval of the academic community, and he decided to coin a new term to reflect the correct practice: Environology.
Environology today is a recognised subject at the universities. Locally, a group of architects under the auspices of Pertubuhan Akitek Malaysia (PAM) has completed courses on Environology so that they can apply sound principles in their design and offer an added service to their clients.
I am working with them to formulate a series of courses for the general public and to promote this branch of science among architects.
For my series of articles, I aim to continue exploring Professor Master David Koh’s work and extend a legacy he created. Hence, we will talk about Environology – the science and logic of the environment. Our interaction with our environment determines our harmony, prosperity and health, and it is about time we take this subject to a higher level.
About the Contributor
Stephen Chin is a consultant and director at Environology dot com Sdn Bhd.
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Be aware of the traps that may cost you your mortgage application
By Yuri Azrani
We have all heard of the horror stories from our uncles, our colleagues or from just about anyone wanting to buy a home. They show up at the bank with all the relevant documents and, BAM! Loan application rejected.
They are left wondering what went wrong.
Many things in your daily life could ruin your credibility, and once that’s gone it won’t be easy securing a loan.
Pay attention to these common factors that affect your loan ability and you may just save yourself from a slew of rejected applications.
1. Late payment of bills will affect your credit score
A credit account or credit card can be the best thing ever when you’re on a spending spree, but this could also be your bane at the end of every month.
Regardless of how heartbreaking it can be, you MUST pay your credit card bills on time.
Why does this matter? Because this will be a major determinant of your credit score.
The score system tells how well you manage your credit accounts. The lower your score, the less trustworthy you are to loaners and banks.
On-time bill payments will influence your score; the sooner you pay the better.
2. You have more credit cards than you can afford
Having many credit accounts to your name may increase your spending power, but it could destroy your loan ability.
Each time you apply for a loan, the lender will most likely conduct a credit inquiry. This gives the lender a rough estimate on how well you manage your debts.
Seeing mountains of credit accounts tied to your name alone may just frighten the lenders enough for them to reject your loan application.
3. Try not to spend over your credit limit
Credit utilisation gauges how much of your credit limit is used. A general rule of thumb is don’t spend more than 30% of your limit. So if your limit is RM10,000, try not to spend more than RM3,000.
Be a tad more frugal. Spending more than 30% can raise alarm bells when you apply for a loan.
4. Old is gold when it comes to your credit accounts
Just like your old car that has seen better times, you may be thinking about getting rid of that old credit card or account.
Stop right there. Hold on a bit longer to those accounts. One huge factor in a good credit score is your credit history, essentially how long you’ve managed that account.
The longer you maintain an active credit account, the more responsible you seem to the lenders. Old is gold when you show you can manage long-term loans and are able to make repayments.
5. You jump from job to job too soon
Variety is the spice of life, but take your time at your job. Hopping from job to job or employer to employer too soon can pose a threat to your loan application.
Banks and other lending agencies place a high stake on job stability, observing an applicant’s working consistency and gauging the security of their loans. Some banks even impose a condition that a person must be tied to a workplace for at least three years.
6. Consistent Rejection
As vague as it sounds, this is quite a common occurrence. Just like trying to get a boyfriend/girlfriend during your younger days, there is no doubt you’ve had to deal with the dread of rejection. In terms of loans, consistent rejection in a short amount of time may pose a major long term issue.
If you’ve been rejected by a lender several times before, this could jeopardise your future attempts as well. See it from the eyes of the lender, if a large percentage of your loan applications ended in failure, wouldn’t the current lender be weary of you as well?
It is advised to wait for some time after being declined before applying for another.
7. Being a guarantor for someone financially unsound
Relationships are the most meaningful things in life, but never let the maintenance of these relationships inhibit your goals. Before being a guarantor for another person’s loans, make sure he or she is trustable enough to handle that responsibility.
A guarantor is just what its name says, a guarantor co-signs a loan with the original applicant. The guarantor is responsible for assuring the payment is reimbursed. In any case the applicant does not manage to make the payment, this could harm your credibility in future transactions or loans.
8. Faulty Documentation
Papers, forms, documents, files, these are the modern day essentials in every transaction, even from the day you were born your name was written on a piece of paper. If anything goes wrong with those papers, it could wreck your life.
Same goes with loan applications, make sure every detail is spot on, double, or even triple check to assure you’ve got your facts right. Small mistakes, typos etc. can play a major role in hindering your progress as it might cause your information to be void.
Most importantly, stating false information or lying on your documents is a despicable act that could end your career if exposed and is borderline illegal. Be truthful in your papers and be the honest person your parents always wanted you to be.
9. You’re not making enough money yet
Say you’re applying for an RM300,000 loan which comes up to a monthly payment of RM1.500, all while your monthly income only hovers at RM2,000. Without a second thought, the lender declines your application.
When you apply for a loan, income will be a major determinant. The lender will evaluate whether or not your income is sufficient to make the monthly payment while also taking your personal needs into account. This is because the lender needs assurance that you can manage the payments and so that you don’t starve to death. Be patient, get that pay raise and soon enough you’ll be able to.
10. Maybe you’re growing old
Age can be another factor in loan applications. The closer you are towards retirement, there is a chance lenders may not approve of your loan. Once you hit retirement there’s no steady income, in turn there’s no guarantee for the lenders.
Refer from Starproperty.my