Category: Tips (52)

property finance

There are hundreds of different home loan products on the market that fit into each of the types of loans explained below. With so many loan packages offered by Banks and Financial Institutions, how do you know which one suits you best? We have provided some pro’s and con’s to help you understand each loan type.



Refinancing your home loan to save on your current interest rate and reduce monthly repayments and/or loan tenure and to tap into your home equity for additional funds for emergency and other ventures if your home has increased substantially in value. If your home loan is more than 5 years old, it is likely that you are servicing your loan at a higher interest rate than what is on offer by financial institutions today.

However, with the many competitive home loans products on offer especially ones that will cover any refinancing costs including the exit penalty fee exploring refinancing is a worthwhile for loan which is still under lock-in period. Refinancing is to reduce your current interest rate, monthly repayments and/or loan tenure and also consolidate your debts and deposits for better cash flow management


Longest Loan Tenure

Ability to redraw all that you have paid into your loan. Revolving credit limit increases as your property appreciates. Older borrowers. Those with insufficient retirement savings.Revolving credit that increases as home value increases. Re-use all sums paid into loan.Penalty for prepayment fees.


Zero Payment (During Construction)

Allow you to pay nothing during the whole contruction period. Construction property. Borrowers who are low on deposits but still want that dream house. Also those who may have money in high interest yielding investments and prefer not to cash-out to raise the deposit for the new house. Pay nothing during construction period.


Fully Revolving Credit Loan

Fully revolving credit term loan. Prepay and redraw as much as you like. Free personal accident insurance. Any home buyer.Flexible repayment. Full revolving term loanSlightly higher rates.


100% Margin of Finance (SPA Price)

Enjoy up to 100% of loan financing. Suitable for those who are strapped for cash at the beginning of the home loan.0 or low outlay from your ownA high margin, which is rarely disclosed, can result in a substantially higher interest rate than you were expecting.


Deposit Linked Flexi Home Loan

A home loan and Checking Account combined into 1. The more money you have in deposit, the lower interest you pay on the loan. Allows pre-payments and withdrawals of pre-paid amounts anytime. Suits business / self-employed people. Those who sometimes have excess cash and who are cash-strapped at other times.You can achieve cost savings if you have a windfall, while having the flexibility to redraw on the money should you need it.Require discipline in managing funds. Interest rates may be higher than loans without such features.


Fixed Rate Loan

Enjoy a peace of mind knowing that your repayment will never fluctuate with the economy. Enjoy the lowest fixed rate in history. Anyone who values certainty in his monthly payments.Ease in budgeting and assurance that you won’t be paying more, allows you to hedge against future interest-rate hikes.For insurance lenders, insurance is compulsory.


Islamic Home Financing

Syariah compliant Home Financings. Those wishing to have syariah compliant financing.”Halal” and rates are fixed. No penalties chargedMay appear more expensive, however, some lenders offer “rabates”.


Floating Rate Loan Packages

with rates that fluctuate with Base Lending Rate or BLR less a spread. Any home buyerUsually have a low interest rate. Repayments are also lower.May not offer the features or flexibility of other home loans. Plus installments will increase as rates increase.


Investors’ Home Loan / Low or 0 Lock In

Buy and sell, then turn in a quick profit. Check out home loans with zero or low ‘Lock-In’ periods. These home loans allows you to sell the property and pay off the loan early without penalties. Suitable for those who buy and sell, then turn in a quick profit. Allows you to sell the property and pay off the home loan early without penalties.This home loan normally is higher in interest rates.


Low Deposit Loans Low on deposit?

Check out home loan that offer high Margin Of Finance or interest servicing only. May benefit 1st Time Owners. Suitable for those who are strapped for cash at the beginning of the home loan.You may be able to take on a bigger home loan, on the assumption that your income will grow.Payments usually increase after few years. May revert to standard.


Hybrid Loans (Fixed & Floating)

A home loan to enjoy fixed rates for a few years then revert to floating rates subsequently. Those who value certainty for a fixed period or think that interest rates may drop in the medium term.This type of home loan provide certainty for a fixed period of time. Be prepared for a jump in installments when the rate reverts to floating status, especially if interest rates creep up during the fixed-rate period.

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 ..

在预算案公布前,市场就已流言四起,短线投资者早已杯弓蛇影,更有市场人士劝请计划购屋者趁预算案公布前提前购屋,期间,Should sell now or buy也有不少人担忧成为“打房”受害者,赶紧在10月前脱售房产套利。


政府打房虽出狠招 房产不会急降温

























New Project visitor

An Option to Purchase (“OTP”) is the first document between the seller and the buyer which stipulates the basic terms and conditions of the sale of a property. Therefore, before entering into a formal Sale and Purchase Agreement (“SPA”), it is often common for a purchaser to sign an OTP with the seller indicating that the buyer is interested in buying the property from the seller. Sometimes, an OTP will also includes some special clauses or conditions depending on the circumstances.


For example:-
1. The sale is subject to loan approval by the financial institution; or
2. The sale shall include the fittings & fixtures and etc.

However, most of the time, the OTP is usually prepared by the real estate agents instead of the parties’ lawyers. The lawyers will only take over the further negotiations after the OTP is signed. Hence, an important advice for you here is that it would be advisable for you to get a lawyer to read your OTP before you sign the same. This is because the real estate agents may not be sufficiently trained to advice you about the legal terms involved and thus might not adequately reflect the real intentions of the parties.

Unlike verbal agreements, OTP certainly has a higher level of contractual effect which is binding on the parties. Therefore, once OTP is signed, you have committed yourself in the sale and purchase of the property and to every item that you have agreed in the OTP. Remember, there will be legal consequences against you which are clearly stipulated in the OTP if you choose not to sign the SPA. Hence, a wise Property Hunter shall not overlook the importance of an OTP.

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1. Be calculative
Always look for the potential upside, and always calculate the amount of risk involved in the investment.


2. Face the facts
Always refer to facts and figures and not the hype surrounding the property or, especially, your own hopes and emotions. Before you dive in, do your research and work out if you have sufficient funds to hold onto a property for at least a few years.


3. Go in at the right price
When it comes to choosing the right property, the architect’s brand name or even the location is not as critical as the right entry price. This means cross-checking a property’s price against surrounding properties; if it is lower than its neighbors, that means you’re taking less of a risk and have the potential to make more of a profit.


4. Property’s popularity
Besides the affordability angle, a property’s popularity needs consideration. It has to be sizable enough, 40- to 50-unit developments are considered small. Best that it is located in a reasonably well-known area with a strong publicity push. When the market goes up, these are the properties which prices will double or triple up faster.


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(吉隆坡19日讯)国家银行进一步展开打房行动,宣布必须以“净售价/实销价”(net selling price)取代“大价”(Gross Selling Price)来决定贷款对屋价比率,分析员对此深感意外,预期产业市场将再受冲击,明年产业价格虽不致于大跌,但交易量料将下滑。



Net Selling Price to Loan
●对住宅和非住宅房地产的购买,加强限制“利息资本化”计划(Interest Capitalisation Scheme)的批准,包括“发展商承担利息计划”(DIBS)。

Diverse citizens in the world maybe randomly thinking of acquiring real estates in other countries for variety of reasons; new business ventures, new environment or could be just change of everything. Citizens in other countries usually require asking permission from their central banks before they finally can apply for a housing loan in Malaysia. Currently, there are no prohibitions and regulations for Foreigners in owning a Malaysian real estate.

The following are the categories for Foreigners who are legible to acquire a Malaysian real estate and apply for a housing loan:

1.)Expatriates or foreigners with valid working permit and existing business in Malaysia.

Some people believe that it is way cheaper to buy than to rent any property in Malaysia, that’s why inquiries about acquisitions really do arise. Lenders and borrowers relationship is equal in this scenario. A certain bank balance in a local bank and being able to show monthly wages that are credited properly into a local bank account produces right outputs. The borrower must be always ready to show overseas bank statements in case a part of an income is being paid there. Just remain cautious not to be caught in-between jobs. Lenders are more into stability of an individual in a certain setting rather than short new opportunities or jobs even if those jobs pay very well.

2.)Expatriates or foreigners under the MM2H program.

Malaysia My Second Home (MM2H) is Malaysia’s Government program allowing foreigners to apply for a 10-year renewable multiple entry visa. The foreigners and expatriates who apply for MM2H are given incentives to experience the life they want to experience in Malaysia. Some Malaysian banks are actually offering flexible financing terms for the expatriate community so they can have loaning options and make things easier for them. Ministry of Tourism or any authorised MM2H agent handles this application. In Sarawak though, MM2H is only available to applicants over 50 years old. Continue reading ..

checklist-300x300– Does it have strata titles or individual titles, The former will be bound under the Strata Title Act. Although new regulations state that guarded and gated development have to have strata titles, there are projects still offering individual titles.


– Confirm if the guarded and gated has obtained the necessary approvals from the authorities.


– Check the developer’s track record. The developer’s involvement in guarded and gated projects is inevitable, especially during the initial completion period, e.g. engaging the residents, setting up a resident’s committee, appointing security guards and landscaping companies, etc.


– How much are the maintenance fees. All residents need to contribute toward the management and maintenance of the common areas within the guarded and gated area. Per house contributions can be exorbitant if there are only a small number of residential units within the guarded and gated area.


– How is the road circulation within the guarded and gated area as well as ease of access to the main road and highways.


– Features such as open areas, car-parks, CCTV etc.

Price negotiation










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