"Oh no, my loan got rejected again."
"The bank reject my application."
Kind of familiar huh? Nowadays, mortgage loan approval is the main issue for property pruchasing. So how to get or increase the chances of approval for your mortgage loan?
Here's some advice from Malayan Banking Bhd (Maybank) head of consumer finance Abdul Razak Mohd Nordin.
Raise your debt service ratio to get that loan
By Lum Ka Kay from Theedgeproperty
Thursday, 20 April 2017 19:34:41 PM
KELANA JAYA: The most crucial factor in securing a housing loan with the desired financing margin is to have a high debt service ratio, according to Malayan Banking Bhd (Maybank) head of consumer finance Abdul Razak Mohd Nordin.
Speaking as a panellist at the Real Estate and Housing Developers’ Association Malaysia (Rehda) Property Forum 2017 titled “Status quo or road to recovery?” held on April 19, Abdul Razak said one thing is to have a good credit record and the other is to have a strong debt service ratio.
“For single [loan] applicants, you can consider having a joint application with your significant other or family members to increase your debt service ratio.
“Applicants can also choose affordable homes such as those priced RM500,000 and below. For us [bankers], when we realise you are unable to service the loan based on your debt service ratio, we will reject you.
“And if you are living in an urban area with a monthly household income of less than RM5,000, you’re under the vulnerable segment,” he said.
He added that for the vulnerable segment, the debt service ratio that banks consider ranges around 40% to 50%.
“For the higher income earners, we go as high as 70%.”
The general trend among Malaysians when they start working is to get a new phone and then a car, he said.
“All these will eventually affect your ability to repay the housing loan. We also have to look at your Central Credit Reference Information System (CCRIS) report.
“It all boils down to responsible lending. Banks would love to take the risk but we are regulated by Bank Negara Malaysia,” added Abdul Razak.
The other panellists at the forum were Malaysian Industrial Development Finance Bhd (MIDF) chief economist Dr Kamaruddin Mohd Nor, Jones Lang Wootton executive director Malathi Thevendran and property investor Ahyat Ishak. The forum was moderated by Rehda deputy president Datuk Soam Heng Choon. The forum was held following the launch of Rehda’s Property Industry Survey 1H2016 and Market Outlook 1H2017.
The panel members had mixed views on when the property market would recover from the current slowdown.
According to MIDF’s Kamaruddin, from a macro and global perspective, “things have hit rock bottom in 2H2016” hence he expects a recovery of the general economy from here onwards.
“As far as the domestic market is concerned, we expect 4.9% or 5% growth in terms of gross domestic product (GDP). Looking at the property sector, it will recover but perhaps not in 2017,” he said, adding that the property market may rebound in 2018.
Ahyat, however, said the Malaysian market “has yet to see the worst”.
“For me, the market cycle is experiencing a long flat,” he said.
For Jones Lang Wootton’s Malathi, there will be “nothing much” to show for 2017.
“There will still be launches going on as there will be upgraders and a limited number of investors. And if you really market it properly, the foreign market will also see opportunities.
“With our climate and other factors, we are a haven for Malaysia My Second Home (MM2H) but we are not marketing our country well enough,” she said.
Maybank’s Abdul Razak said the property market will mostly bottom out by the end of this year.
Article refer from TheEdgeProperty
Refer from TheEdgeProperty
By Tan Ai Leng
Thursday, 20 April 2017 19:53:36 PM
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) aims to launch Tria, the second phase of its 9 Seputeh project, in May.
The five-acre Tria project will feature three towers with 734 condominium units with built-up sizes ranging between 1,500 sq ft and 2,000 sq ft, said MRCB COO Kwan Joon Hoe.
“We haven’t finalised the selling price yet, but it is expected to be about 5% to 10% higher than phase 1 — Vivo,” he told TheEdgeproperty.com.
Vivo and Tria form part of the 17.3-acre 9 Seputeh mixed development located at Jalan Klang Lama, Kuala Lumpur. The entire development, which comprises high-rise residences and retail units, has a gross development value (GDV) of RM2.1 billion.
The 7.7-acre Vivo had offered 1,111 condo units with built-up sizes ranging from 775 sq ft to 2,500 sq ft. Launched in 2014, it has achieved a take-up of 80% at an average price of RM800 psf.
Kwan noted that Tria will offer bigger units to cater to upgraders from landed homes to high-rises.
Over at its Semarak City integrated development on Jalan Sultan Yahya Petra, Kwan said the company is now deciding on the launch date for the 27.41-acre freehold development in Kuala Lumpur city centre.
“During a slow market, we have to be careful on the launch timing as we do not want to hold too much stock. Tentatively, we hope to launch Semarak City at the end of the year,” he added.
According to MRCB’s annual report,
Semarak City comprises 3,400 serviced apartments, shops and SoHo (Small-office Home-office) units as well as a shopping mall.
Kwan said the residential component of Semarak City will be targeted at the middle income group with indicative prices from RM500,000 to RM600,000. Phase 1 will offer 1,200 apartment units.
He added that MRCB is performing well despite the soft market and the property development segment was able to sustain healthy growth and contribute to the group’s revenue and profit.
In 4Q2016, MRCB recorded a revenue of RM1.032 billion, a 166% increase from the same quarter in the last financial year, while profit before tax in 4Q2016 was RM238.6 million, mainly driven by its property development segment.
Kwan expects the growth momentum to continue as the company will be rolling out various projects catering to different income groups, including Tria, Sentral Suites, a new development at Kwasa Sentral as well as Semarak City.
“We have a landbank of 468 acres in prime areas in Malaysia with a GDV of RM50 billion. This could keep us busy for the next 20 years, and we are always looking out for prime land to increase our landbank,” he added.
Johor people is going to benefit from this. Great to hear that Lee Chong Wei International Sports City is going to realized in JB.
UMLand inks MoU with Chong Wei Binajaya to develop Lee Chong Wei International Sports City
(From left) UMLand Seri Alam head of subsidiary Freddie Lee, UMLand director Datuk Syed Ahmad Khalid Syed Mohammed, Chong Wei Binajaya chairman and founder Datuk Wira Lee Chong Wei, UMLand group managing director Dennis Ng Yew Khim, chairman Tun Musa Hitam, Chong Wei Binajaya executive director Datuk Lee Chong Hoon and project director Datuk Wayne Chew at the MoU signing ceremony. (Image by UMLand)
PETALING JAYA (March 6): United Malayan Land Bhd (UMLand), via its wholly-owned subsidiary Seri Alam Properties Sdn Bhd, has inked a memorandum of understanding (MoU) with Chong Wei Binajaya Sdn Bhd to develop part of the proposed Lee Chong Wei International Sports City.
According to a statement by UMLand, under the MoU Seri Alam Properties will contribute a parcel of 16.38 acres of converted commercial land to Chong Wei Binajaya where the latter will develop the commercial portion to form part of the proposed Lee Chong Wei International Sports City.
Located in Bandar Seri Alam, Johor Bahru, Lee Chong Wei International Sports City is the brainchild of Malaysia’s badminton star Datuk Wira Lee Chong Wei. It is envisioned to be a one-stop ecosystem that blends sports and lifestyle elements.
According to UMLand, the integrated sports city will host world-class badminton tournaments, provide wellness therapy, advanced fitness training — all in a purpose-built complex — along with accommodation, leisure, entertainment, recreation, retail shops and offices.
“The development will see the establishment of an international class sports arena in Johor, allowing the state to host more international tournaments such as the Malaysia National Circuits and Grand Prix Gold.
“It will also be a professionally managed training hub for international and local badminton players — with a sports academy as a new education initiative, offering degree certification for courses.
“Other facilities will include the development of a multipurpose hall, serviced apartments, a hotel, hostel, office tower, commercial spaces and shops for retail, food and beverage, entertainment and recreation, and ample car parking,” said the developer.
Bandar Seri Alam is a 3,800-acre mixed township development with prime commercial, residential, institutional and industrial buildings by UMLand, located in the prime growth corridor of the Eastern Gate Development of Iskandar Malaysia.
The township is recognised as a City of Knowledge with the establishment of educational institutions including University Kuala Lumpur, University Technology Mara, Masterskill University College of Health Sciences, Malaysia Art School, Excelsior International School, Nam Heng Chinese Primary School and the upcoming Foon Yew High School.
Refer from theedgeproperty.com.my
Shawn Ng | TheEdgeProperty.com
Sunday, 2 April 2017
AS land costs in urban centres like Kuala Lumpur, Penang and Johor Bahru have risen significantly due to land scarcity, property developers have little choice but to go vertical and construct high-rise projects, be they residential, commercial or integrated developments.
“Within the context of the current soft market conditions where affordability is a key consideration for both house buyers and investors, developers have been focusing more on smaller-sized units where the unit price is less prohibitive,” Henry Butcher (M) Sdn Bhd COO Tang Chee Meng tells TheEdgeProperty.com.
A little bit further away from urban centres, new township developments still offer mainly landed homes, but within the city there has been a growing trend of small-sized units within high-rises, he says.
“Studio units, 1-bedroom and 2-bedroom units — we are seeing more of these within the development mix of high-rise residential projects located within urban centres.
“These high-rise homes cater to first-time homebuyers such as young singles and new couples as well as small families and elderly people whose children have all left the nest,” Tang adds.
According to data from the National Property Information Centre (Napic), the total existing supply of non-landed/high-rise residential units in the country, including low-cost flats, flats, apartments and condominiums, stood at 1,422,560 units as at the third quarter of 2016 (3Q2016), which translates to about 28.99% of the total existing residential stock of 4,906,722 units in the country.
If the existing supply was to include commercial-titled Small-office Home-office (SoHo) units and serviced apartments which totalled 89,359 units, the figure would rise to 1,511,919 units.
Looking ahead, the future supply of all non-landed residential properties (not including SoHos and serviced apartments) stands at 523,645 units as at 3Q2016 consisting of incoming supply of 306,554 units and planned supply of 217,091 units.
Meanwhile, the future supply of SoHos and serviced apartments are 269,507 units in total as at 3Q2016, and comprises incoming supply of 164,113 units and planned supply of 105,394 units.
Nawawi Tie Leung Property Consultants Sdn Bhd managing director Eddy Wong points out that the future supply of high-rise properties shows a significant number especially considering the prevailing weak market sentiment amid tight credit conditions.
“There will be a significant pressure on prices to adjust, though the actual impact on the various sub-markets would vary depending on locality, demographics and income levels,” he says.
Interestingly, based on the Malaysian House Price Index, the high-rise residential sub-sector has registered the second highest price growth among all residential property types from 2000 to 3Q2016, coming in next after detached houses.
According to data from TheEdgeProperty.com, over the years, the average transacted price of non-landed residential properties in KL had risen by RM176 or 49.72% to RM530 psf in 3Q2016, from RM354 in 1Q2012.
Similarly in Selangor, the average transacted price had shot to RM313 psf as at 3Q2016, RM113 or 56.5% higher than RM200 psf in 1Q2012. However, since 4Q2014, the average transacted price has seen no significant growth in Selangor.
Meanwhile, as at 3Q2016, the transaction volumes of non-landed residential properties in KL and Selangor had declined 68.33% and 70.07% respectively year-on-year, to 623 and 1,196 transactions, respectively.
Looking for good buys
Wong notes that the current slowdown in the property market is a good opportunity to look for good buys, as developers are more amenable to offering good incentives to move their inventory.
He advises investors to consider the key factors such as location, connectivity and accessibility to amenities when selecting what to buy.
“High-rise developments which are centrally located, with good connectivity and with easy access to amenities such as shopping, dining and entertainment, are very well sought-after. Meanwhile, the properties around the RM500,000 price point is currently very popular given the tight credit condition which places a constraint in the purchasing power among homebuyers,” he says.
Meanwhile, Tang says investors should look for areas that offer good growth potential. In the Klang Valley, such areas include Cheras, Kepong, Setapak, Wangsa Maju, Ampang, Bukit Jalil, Puchong, Old Klang Road and Bandar Malaysia, he offers.
These areas, he adds, are able to cater to the middle income group and will see vast improvements in infrastructure and accessibility especially areas along the mass rapid transit (MRT) lines as well as the recent light rail transit (LRT) extensions.
Based on his observations of new launches over the past year, Tang says smaller-sized units with built-ups of less than 1,000 sq ft and priced in the RM300,000 to RM600,000 price segment appear to have recorded the best sales in the Klang Valley.
In the mid to longer term, the market for non-landed residential property in KL and Selangor looks positive, says Wong. He believes the market will be supported by its young demographic and the growth in household incomes.
Tang concurs. Although demand may be temporarily disrupted due to the slowdown in the economy, tighter credit availability and poorer consumer sentiments, the future will see high-rise residences becoming a more popular choice among developers and homebuyers.
“As land cost is not likely to go down, we foresee that high-rise residential properties will remain the affordable option for residents in the main urban centres,” Tang says, adding that this high-rise residential property development trend will also likely continue.
Tolerance and understanding ensure harmony
High-rise living is becoming a norm as increasingly more people are moving into high-rise homes nowadays.
However, when large groups of people live close together and share the same facilities, there may be some discomfort and strain due to the differences in age groups, cultures and behavioural preferences.
Hence, Nawawi Tie Leung Property Consultants Sdn Bhd managing director Eddy Wong says the residents should have tolerance and understanding plus civic-mindedness to ensure a happy and pleasant living experience for everyone in the community. This is especially crucial when dealing with disputes that may arise.
According to Henry Butcher (M) Sdn Bhd COO Tang Chee Meng, one way to overcome the challenges of living in high-rises is to outsource and employ a good and effective manager who is firm, fair and able to secure everyone’s cooperation while implementing rules and policies according to what has been set by the Joint Management Body or Management Corporation.
The common problems faced when staying in high-rises involve getting all residents to pay their maintenance fees on time; and residents who lack civic-consciousness and a sense of pride and ownership of the common facilities like the lifts and recreational equipment.
There could also be difficulties getting the full cooperation of residents in following house rules like keeping pets, parking of vehicles in the designated bays and adhering to security arrangements, Tang says.
Hence, he urges every owner to play their part in observing house rules and paying their maintenance fees and sinking fund in full and on time, otherwise the management and maintenance of the property will deteriorate due to lack of funds and in the long term this could have an adverse impact on the property’s value.
In addition, adequate and clear communication between the management team and the residents is also very important, he adds.
This story first appeared in TheEdgeProperty.com pullout on March 31, 2017.
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