Category: Malaysia (13)

CONGRATULATIONS! So you have finally sealed the deal on your new home. Now, how much should you spend on renovations before moving in?

Truth be told, hacking at and tearing down walls of a newly-bought property are a norm these days, be it a brand new or lived-in unit.

How extensive the renovations should be would rest on the new owner’s investment objective; why he or she bought the property in the first place. Unless the intention is to flip the unit as quickly as possible, do expect owners to invest in some form of renovation works, or at least fit-outs for especially the high-rise units, which face renovation restrictions and limitations.

Space utilisation is very individualistic and personal. Not only do needs and wants vary from family to family, diverse views are common within a family. Understanding this, some developers have been known to walk the extra mile by offering customers varied layout options of the plan – that is, before construction work starts. Unfortunately, such customisation options could and would develop into a pretty nightmarish experience for both the developer and the buyer in mass housing.

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The government is open to lifting the ban on the Developer Interest Bearing Scheme (DIBS) in the housing market ifthere are compelling reasons, according to the Urban Wellbeing, Housing and Local Government Ministry.

“There are some suggestions made by the industry, we will look into it. There are pros and cons, there’s no hard and fast rule on this. If it is not abused, it’s a tool for everybody to sell their houses and to make it more affordable for the people,” said its Minister Datuk Abdul Rahman Dahlan.

The housing ministry will look into this on case-by-case basis, he told the media at the 17th National Housing & Property Summit held yesterday.

“If there are some indicators that DIBS can reintroduced we have no problem with it but the most important thing is we must be flexible and nimble,” he added.

But Chang Kim Loong, Secretary-general of the National House Buyers Association, stands firm on his belief that DIBS should be permanently banned as it promotes speculation.

“In the event of an economic downturn, banks saddled with too much DIBS end-financing could collapse as the losses from such DIBS end-financing will erode the banks’ capital,” he added.

On the other hand, MKH Bhd’s Group Managing Director Tan Sri Eddy Chen is hopeful that DIBS will be reintroduced but with limitations to prevent abuses.

Notably, Prime Minister Najib outlawed DIBS during his Budget 2014 announcement. However, some property players suggested that first-time home buyers should be allowed to participate in this scheme.

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HOUSING prices are expected to go up by two to three per cent with the implementation of the six per cent Goods and Services Tax (GST) on April 1 next year.
 
Residential properties are tax-exempted instead of being zero-rated, leaving developers unable to claim the six per cent as part of input tax contributed to the GST, said Malaysia Property Expo (Mapex) 2014 chairman Datuk Ng Seing Liong.
 
“The developer, as a seller, cannot claim back input tax. It has to add the tax to the cost of construction and that will increase the selling price. The Real Estate and Housing Developers’ Association (Rehda) has proposed that properties priced at less than RM400,00 to be zero-rated.
 
“Zero-rated means the developers can claim back input tax so that they don’t have to pass on the increase to house buyers,” he said, here, Monday.
 
Rehda has submitted a memorandum to the government highlighting the impact of GST on housing prices.
 
It has organised meetings with the Urban Wellbeing, Housing and Local Government Ministry to discuss ways to cushion the GST impact on house buyers, which may involve a government concession.
 
Rehda has also proposed to the government to lower the proposed six per cent GST as the tax burden on the property industry is expected to be greater.
 
“In this line of business, we provide credit facilities of 30 and 60 days, and in some cases 90 days. But under the GST, you have to pay in under 21 days. Even though you have not collected the money, you have to pay the GST,” said Ng.
 
Rehda plans to hold a series of talks for prospective home buyers next month on the effects of GST to the housing sector. 
 
Rehda is the organiser of Mapex, the country’s largest property fair.
 
It will be held at the Midvalley Exhibition Centre from October 10-12 and is expected to attract as many as 50,000 visitors this time around, with sales estimated at more than RM300 million.
 
“Last year, we hit sales of RM380 million,” Ng said.

With the coming implementation of Goods & Service Tax (GST) in April 2015, many Malaysians are concerned with what this bodes for prices in general. It is inevitable that home prices will also be affected. In this article, we explain how home and property prices will be affected moving forward.

To properly appreciate how GST will affect home prices, it is necessary to first understand how GST works. (Click here for a detailed but simple-to-understand explanation of how GST in Malaysia works).

Aside from GST, one must also have an understanding of the Sales Tax, which is the existing tax scheme affecting the property sector. GST will supplant the Sales Tax come April 2015.

Tax Scheme on Residential Property – The Similarities

In comparing both tax schemes, we have to first identify their similarities.

One similarity between GST and the existing Sales Tax scheme is that no taxes are charged or will be charged to the consumer on the purchase of a home / residential property. For GST, residential properties fall under the “Exempt Rated” basket of goods. (But do take note that GST will be charged to the consumer for commercial property purchases as commercial properties are “Standard Rated”).

However, during the creation of the final product (also known as the input stage in tax parlance), under both tax schemes, developers would incur taxes during procurement of their inputs and materials. And this is where the differences start to become apparent between both tax schemes. The tax rate for inputs and materials vary between GST and Sales Tax.

Sales Tax VS GST for Residential Properties – The Differences

Based on the Sales Tax Act of 1972, basic building materials such as bricks, cement and floor tiles fall inside First Schedule Goods, in which all the goods in this category will not be subjected to sales tax. Meanwhile, other building materials fall inside Second Schedule Goods, in which all the goods in this category will only be charged sales tax of 5%.

Under the new GST implementation, all building materials and services (E.g. Contractors, engineers) will be subject to GST with a standard rate of 6%. This will invariably raise the production cost for developers.

If you understand how GST works, you will notice that in most cases, the additional tax cost is simply passed on to the final consumer (Standard-Rated goods), or is claimed back from the government (Zero-Rated goods). But in this case (Exempt-Rated), the additional tax cost is borne by the party before the final consumer – The developer.
The developer does not have a next “victim” in the supply chain.

This seems like good news for home buyers as they do not have to pay GST when purchasing a home. However, one should not be too happy about this. It is no stretch of the imagination to think that developers would try to build in the additional tax costs into the final sale price implicitly.

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KL & PJ

  • Berjaya Times Square
    • more of an experience than the utilitarian purpose shopping malls are made to serve, especially with its indoor theme park.

 

  • Avenue K
    • Recently re-launched to include stored link H&M (three levels) and Cotton On, even a bowling alley and a number of bars – perfectly encapsulating its “young, fun and affordable” theme.

 

  • Fahrenheit 88
    • not too big not too small, you can find some lovely gems and quirky and interesting stores here.

 

  • Kenanga Wholesale City Mall
    • sales, sales and more sales, plus bargains and best deals for head-to-toe fashion wear.

 

  • Mid Valley Megamall
    • the place to shop and be seen at with the number of cafes, eateries and restaurants; ideal setting for get-together with friends, family and loved ones; a real treasure trove where you can find good quality buys.

 

  • Sunway Pyramid Shopping Centre
    • not all about location but the way the mall satisfies the needs of its patrons, not forgetting the exciting mix of content (ice skating rink, bowling alley, cinemas, and the link to outdoor theme park door) as well as the design structure, amenities and facilities.

 

  • Main Place
    • a cosy neighborhood mall that has all the conveniences and just about the right mix of merchants to attract shoppers near and far.

 

  • The Curve
    • the stores here seem to engage with customers – friendly and inviting; the weekend bazaars are something to shout about, giving the mall an easy-going laid-back feel that puts one in relax mode; great place to chill out at.

 

  • Paradigm Mall
    • entertainment for all in the family appeasing all characters – from the cool gamer to the funky fashionista, the hobbyist, avid reader, picky eater, outdoor and activity buff, the movie-goer; great place for families with lots of activities to keep kids busy.

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(哥打峇鲁26日讯)中央政府已知会吉兰丹州政府,将建设一条从新加坡沿着东海岸,直通吉兰丹的“东海岸———新加坡高速大道”,纵贯新、柔、彭、登及丹州,全长估计超过700公里。
连接新马中三国
《南洋商报》探悉,计划中的东海岸———新加坡高速大道,是从新加坡连接到拟议中的马新第三大桥,再进入柔东、东海岸,乃至接近马泰边境的彭加兰古堡,最终目的地是通往中国。
该条跨国高速大道一旦落实,将衔接东协5国,包括新加坡、马来西亚、泰国、缅甸、越南,以及中国。

如果这条高速大道建设完成,料可加速带动及刺激东海岸三州及柔东经济发展。

大道起点在狮城白沙浮

目前东海岸及柔东的重点建设计划包括马中关丹产业园、关丹深水港、柔东边佳兰石油综合中心(PIPC)、拟议中可能落在柔东的马新第三大桥及首相拿督斯里纳吉今天宣布的边佳兰独立深水码头等。

“东海岸—新加坡高速大道”的起点是在白沙浮(白沙 Ris),位于新加坡东北部樟宜机场一带,接近柔佛州边佳兰“石油化工城”。

New Train Way

 

The video above give you some introduction about the caipital of Malaysia – Kuala Lumpur. Kuala Lumpur is not only a best location for property investment, but also one of the best city to live which consist of entertainment, delicious food and the harmony of the people around here.

 

The video is making by Grace Teo, you may follow his video channel on YouTube at https://www.youtube.com/user/gracemomentsblog/featured

THE trends for new properties have seen the mushrooming of landed, gated and guarded properties, projects clustering around upcoming MRT and LRT stations, green-rated buildings and branded residences, not to mention top-to-toe glass-clad residences.

Here are more innovative offerings which have caught StarProperty’s eyes:

1. Iconic sculptural structures

Iconic architecture is a dominant trend that’s set to stay, judging from the wave of new buildings such as The Capers and The Fennel (pic, above left) developed by YTL Land & Development Bhd, Datum Jelatek by PKNS (Selangor State Development Corporation), Angkasaraya by UEM Sunrise Bhd and Icon Residence Mont’Kiara (pic, above right) by Mah Sing Group Bhd. Few in number but growing in stature, they make their presence felt with creativity and imagination.

The Fennel, for example, alters the skyline with its sharp and angled towers. “Its form, while unique to high-rise towers in KL, is actually a composition of standardised floor plates for the units – albeit stacked in a manner where every floor is incrementally adjusted outward or inward in groups of eight.

The result is a distinct profile in the skyline – somewhat “gravity defying”– but the floor plans are typical and repeated,” shares Rene Tan of RT+Q Architects, the firm which designed the 38-storey residential towers. Continue reading ..

KUALA LUMPUR: The electricity tariff will be increased by an average of about 14.89% for Peninsular Malaysia, and by about 17% for Sabah and Labuan from next year, said Energy, Green Technology and Water Minister Datuk Dr Maximus Johnity Ongkili.

“The average electricity tariff in Peninsular Malaysia will be up 4.99 sen per kWh or 14.89% from the current average rate of 33.54 sen/kWh to 38.53 sen/kWh.

“For Sabah and Labuan, the average tariff will be up 5.0 sen per kWh or 16.9% from current average rate of 29.52 sen per kWh to 34.52 sen per kWh,” he told reporters at a press conference in Parliament on Monday.

Rates in Sarawak will not be affected because the electricity supply in the state is operated by state-run company, Sarawak Energy.

The new rates will take effect from Jan 1, 2014, he added.

However, Dr Ongkili noted that 70.67% of consumers in Peninsular Malaysia and 62% of consumers in Sabah and Labuan will not be affected by the tariff hike.

“There will be no tariff increase imposed on the consumers who use electricity at a rate of, or lower than, 300kWh a month.
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Property loan base on net selling price

PETALING JAYA (Nov 20, 2013): A new Bank Negara Malaysia (BNM) ruling that requires banks to give out property loans based on net selling price, which excludes rebates and discounts, rather than gross selling price may affect loans growth for banks this year, Alliance Research Sdn Bhd said.

 

Its analyst Cheah King Yoong said a BNM circular sent out to banks last Friday announced not only the expected ban on the developers interest bearing scheme (DIBS) and the interest capitalisation scheme (ICS), but also an unexpected rule for all banks to determine their loan-to-value (LTV) ratio based on net selling price rather than gross selling price.

 

Banks can no longer provide financing for projects approved by authorities with DIBS on or after Nov 15, 2013 effective immediately. While those projects approved before Nov 15 have until Jan 1, 2014 before the prohibition is effected.

 

“We currently project 2014 loan growth target of 9%, supported by stronger growth of business loans stemming from the ongoing implementation of Entry Point Projects under the government’s Economic Transformation Plan, which is expected to fill up the vacuum left by the moderation in household loans. However, in light of the more onerous property lending curb, we will be reviewing this target,” Cheah said in a note to clients yesterday.

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