Category: Property Investment (38)

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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A look at why the Kajang-Semenyih area has become one of the hottest spots for property buyers in the Klang Valley.





所有房产都拥有一张能够代表房产业主的地契;当房产在建设和发展的阶段时,那一大片的土地(用来建设房产的土地)很有可能只有一张总地契(master标题) 。这种情形非常普遍:多间房屋或公寓单位建在同一片土地上,但个别出售。在理想的情况下,该土地的总地契将会划分为多张较小的地契,然后再销售给买家;这小地契被称为个人地契(individual标题) 。


在高层物业,例如高楼或公寓,这小地契被称为分层地契(契业权) 。一旦地契被划分后,如果想要转让房产的拥有权,必须向州土地局提交转让备忘录(MoT)备案。由此,买家的名字将会出现在房产地契上,这将使他成为该所房产的合法业主。然而,在现实生活中,普遍的情形将会是:发展商先会将还未划分为小地契,也就是只拥有张总地契的房产销售给买家,然后才在几年后划分为较小的个人地契/分层地契。


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MRT construction

The Klang Valley Mass Rapid Transit (MRT) project involves the construction of a rail-based public transport network. Together with the existing Light Rail Transit (LRT), monorail, KTM Komuter, KLIA Ekspres and KLIA Transit systems, it will form the backbone of the Greater Kuala Lumpur/Klang Valley region. This integration will likely enhance property prices as it is expected to improve inner city connectivity. The first MRT line to be implemented will be the 51km Sungai Buloh-Kajang line. The line will have 35 stations and is expected to have a ridership of over 400,000 passengers per day when completed in 2017.


MRT Klang Valley Map


When the MRT-SBK(Sungai Buloh-Kajang) Line is completed, commercial property in the vicinity of MRT stations will be in great demand. This has proven true in Singapore, Hong Kong and Taiwan, where commercial and retail premises located near MRT stations enjoy good occupancy rates and high rental yields. The same scenario will likely take place in Malaysia as well.


Advantages of being near a MRT station Disadvantages of being near a MRT station
1. Capital appreciation is expected to be the highest for properties within a 500-metre radius of stations. A report by HwangDBS Vickers Research says that it expects land prices in key hotspots to surge 100% to 500% over the next five years, especially where potential interchange stations will be located. Noise factor if stations are too close to properties.
2. Higher rental yields, as long as they are located within close proximity of properties. Traffic congestion, especially during peak hours.
3. Convenience, for both owners and renters who rely on public transportation to get around. Aesthetically unappealing for units facing the stations.





Like everything in life, there is a process. Whether we realize it or not, our whole life is based on a process. Before we embark on anything, let it be in deciding on where to go for a holiday, which new school/college/university to enroll in to even deciding which car to purchase, there is a process we follow.

It begins with a dream, followed by planning and research before the execution can take place.

Such is the case when it comes to making a decision on which property to purchase. It is after all the biggest investment one will ever make.

To understand this process and how property buyers and investors go about this decision process, Malaysia, conducted a short survey on the site. Gathering close to 800 respondents, the survey revealed that:
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house renovation must know



  1. 后悔有开放式厨房,有油烟问题
  2. 后悔电源插座装少了,家里到处都是拖线板。能装多少应该装多少.
  3. 后悔马桶边上没有预留电源插座,卫洗丽没法装
  4. 浴缸PK淋浴,二选一的话,还是建议淋浴,浴缸装好,从来也没泡过澡的不是少数。淋浴不是指淋浴房,淋浴房的玻璃擦起来还是很累的,也可以选择挂根浴帘
  5. 如果有2个卫生间,装一个浴缸还是有必要的,泡泡大件衣物,帮小宝宝洗澡都是不错的选择,按摩浴缸就不必了,泡不了几回,还特别贵.
  6. 后悔厨房没有装空调
  7. 如果喜欢上网,每个房间的每面墙上,都预留至少2个网口和2个以上的插座。无线路由的确可以解决问题,但是据说有时候还是不稳定
  8. 后悔厨房烟道没有打出去,现在只要楼里有人烧菜,自家的脱排油烟机就必须同时打开,不然满屋子的油烟味
  9. 房内各种插座的位置,与后来买的家具尺寸有偏差,浪费了很多插座
  10. 如果在商场里能买到的,就千万不要叫木工做!!!!!除非这个木工手艺相当的好 Continue reading ..

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.

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











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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