FundMyHome: Gamble or Gravy?

The FundMyHome campaign recently made it’s huge debut as a legitimate initiative, it’s easy to see why many not only took notice of the upcoming housing scheme but also celebrated it as the world’s first residential property crowdfunding resource to date.

Though it’s smart to keep in mind that not all that glitters is gold. (No, Smash Mouth, no.)

Before we take a more in depth look into this scheme, let’s take a look at what is FundMyHome.

The Malaysian crowdfunding initiative provides 80% of the property’s value, given if you can cover the remaining 20%. That 20% will then be put into a trust account which will be used as payment for the fund’s investment returns. The investment returns, which is 25%, that is then split into 5% for 5 years.

After the 5 years have passed, the buyer then has 2 options.

Option 1: Sell the property (aligned with the current property market price), while sharing the profits with the fund.

Option 2: Continue to stay in the property either by renewing another 5 years (restarting the entire crowdfunding process) or taking up a mortgage loan to purchase the property.

Here’s our concerns.

1) If the First Time Home Buyer can afford the 20% payment of the property, why not just go down the conventional route by getting a mortgage loan?

The biggest hurdle a First Time Home Buyer can face when it comes to the property acquisition process is not the monthly payments, but the initial lump sum at the beginning to get the deal signed. At least by getting a mortgage loan and buying the property, the First Time Home Buyer wouldn’t have to worry about the unpredictable consequences of the home’s value after 5 years. The property would belong solely to them until they choose to sell off the property at their own pace, hence would not have to worry about the possibility of having to refinance the property or please an investor.

2) Why does the First Time Home Buyer have to be responsible for the yearly 5% investment return when the investors are receiving a cut from the profit of the property sales after 5 years?

The responsibility of pleasing the investors with a yearly return shouldn’t be from the hands of the buyer, who are also risking a considerably large amount of their hard earned money to own a roof over their heads. This responsibility should rest on the shoulders of those who’ve come up with and implemented the idea, who’ve convinced buyers and investors to risk hundreds and thousands of Ringgits in their scheme. After all, the buyers didn’t sign up to please investors, though the organizing party did.

3) What if the property’s market price does not increase as hoped, but in fact; decreases. Would the buyer have to handle (all of) the costings?

Even if the property price drops by 10%, the buyers stands to lose at least half of their initial investment, while if the property price increases, the buyer then has to refinance the property at a higher amount. Either way, it seems the buyer has to fork out a ridiculous amount of money (which if they can afford, then back to question one.)

The crowdfunding initiative is scheduled to begin transactions in 2019, which is also the year in which the Real Property Gain Tax (RPGT) begins charging Malaysian homeowners 5% on their property sales profits if the property is sold after 5 years. Guess who’s going to have to foot that payment?

Though all concerns aside, this scheme is definitely unique in it’s own right. Would you give it a try?

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Renu Marudawanan

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6
 comments

Add yours

pam

on 7 November, 2019 at 06:11

Reply

Is this fundmyhome.org or .com?

Angel Shining

on 7 April, 2020 at 02:57

Reply

this was fund my home different from fund my home .org a legitimate housing provider of Florida. The author should of noted that . I can see slander being a lawsuit here.

Sandra Fuentes

on 3 June, 2020 at 03:31

Reply

Why isn’t they any info on fund my home. org ?

Gadiy Lim

on 10 November, 2019 at 00:28

Reply

I think its fundmyhome.com

Vic P

on 4 December, 2019 at 09:21

Reply

Yes indeed this is referring to .com…..Because there is also a .org

Rolf

on 25 January, 2020 at 01:38

Reply

.com is from a foreign entity in Asia I believe.

.org is Non Profit in Florida from my research.  Articles should state the difference!

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Budget 2019 for Property Investors

We’ve recently broken down the changes to impact the property industry brought forth by the upcoming Budget 2019. The new Pakatan Harapan Government

seems to be very focused on assisting the B40 group in the country. This is a good thing. There are still many opportunities to be had for those outside this group and by improving the lives of the nation as a whole will only be more beneficial to everyone in the long run.

Though what does all this mean for property investors?

Let’s take a look at the changes and the possible implications.

RPGT Increase

Firstly, let’s tackle the elephant in the room – The increase in RPGT.

Prior to Malaysia’s Budget 2019, it was possible to avoid your property sale profits getting smashed by RPGT by simply holding on to the property for at least 5 years before selling it off. This meant that only ‘property flippers’ were affected by this policy. The new ruling however changes this.

Property sale profits will now be slashed by 5% regardless of whether you keep it for 5, 10 or even 20 years.

This means that if you experience gains from your property sale of RM100,000, you will have to pay the government a relatively small sum of just RM5000. It’s not all that bad until you make considerably larger gains on your property sale – a profit of RM500,000 would see you having to cough up RM25,000.

Hence, property investors who make huge gains on their property transaction processes will be the biggest loser from this added taxation.

Another thing to remember is that the Malaysian Budget is a yearly change and that means that even though the new RPGT is fixed at 5% indefinitely, it will also be subject to review each and every year depending on how the property market is going.

Stamp Duty Increase

Of the 2 increments in property taxes (RPGT and Stamp Duty) described in the Malaysian Budget 2019, increasing the Stamp Duty price for properties over a million ringgit is probably the more painful of the two.

A 1% increase in Stamp Duty for a RM1,000,000 property will work out to another RM5,000 if they still keep the tiered tax system that they have in place.

Based on a RM1,500,000 Property:

Stamp duty Fee 1% : For First RM100,000 = RM1000

Stamp duty Fee 2% : RM100,001 To RM500,000 = RM8000

Stamp duty Fee 3% : RM500,001 to RM1 million = RM15,000

Stamp duty Fee 4%: RM1 million to RM1.5 million = RM20,000

Total: RM44,000

Compared to this being pre-budget:

Stamp duty Fee 1% : For First RM100,000 = RM1000

Stamp duty Fee 2% : RM100,001 To RM500,000 = RM8000

Stamp duty Fee 3% : RM500,001 to RM1.5 million = RM30,000

Total: RM39,000

I am not sure if this will be the structure moving forward but as you can see, it is also not a very extreme measure. Property buyers will definitely feel a slight burn here, but I am certain that average purchasers buying property over a million ringgit will be able to bear these costs without too much concern.

Those who will feel the brunt of the burn are those buying luxury properties above RM3 million ringgit.

10% Reduction in Housing Prices & SST Exemption by REHDA

REHDA has said that they will reduce new housing development prices by 10%. It has been mentioned in various news sources that they will be able to achieve this by working with developers to bring down the prices due to the SST exemption given to many building materials.

This will be only for new developments that have not begun construction yet. The reduction in price has only been made possible through the reduction in the cost of building materials.

Whether or not developers will be on board or if they will simply mark up their prices before reducing them is not known.

As these will be prices on future developments which are normally already priced at future prices, there will really be no way to say for sure if the prices (once they are made known to the public) for these projects have been actually reduced.

FundMyHome Crowdfunding Scheme

The new FundMyHome scheme has been touted as the solution for those who are having a difficult time keeping up with property loan repayments, thereby giving them the option of simply coming up with 20% of the value of the home and have the remaining 80% paid off by investors.

Something about this scheme right off the bat doesn’t seem to make much sense.

Property investors find it difficult to come up with even 10% for a sub-sale down payment and am always looking for delicious rebates from developers to help build their property portfolio instead of coughing up such a large chunk of cash.

If they had that much capital to spare, they wouldn’t have any problem paying off their monthly installments.

A Thriving Property Market in 2019

Pakatan Harapan has come up with some clever ways to breathe new life into the property market next year by keeping first time home buyers interested in the market with some very attractive deals, while ensuring investors contribute to the financing of these initiatives.

They have structured their policies in a way to discourage flipping of sub-sale properties and encourage property buyers to look to absorb the balance properties from the current oversupply instead.

It’s very interesting to see how things will play out and if the market will truly be receptive of their new policies and attempts to solve the property oversupply issue. As to what exactly the impact will be in the market, my guess is as good as yours, but I have a inkling feeling that it will make for a very exciting and vibrant property market in the coming years.

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Where to Live in 2019 (Subang-Shah Alam Edition)

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Where to Live in 2019 (Subang-Shah Alam Edition)

2019 is straight up right around the corner and with another year passing by, comes new properties and developments. But the same old question comes to mind. Have you bought your property yet?

There are a lot of factors as to why you might not have chosen your dream home yet, which could very much be the second biggest factor of them all (the biggest of course being financials), location location location. But oh, do we have a treat for you. We’ve managed to identify the best locations to live around Selangor based on accessibility, public transport, amenities and of course, the food!

Let’s start off shall we?

1. USJ 19

With the Wawasan LRT station situated smack in the middle of USJ 19, avoiding the jammed roads of Subang will be a breeze beyond compare. The amenities in the area are endless, ranging from grocery stores to car workshops, your every need is met within a stones throw.

Must visit Makan Place: The Macs Usj (for mouth watering Mac & Cheese)

Looking for a place around USJ 19? Check out
Rhythm Avenue
.

2. SS16

With 2 options of nearby train stations (Subang Jaya KTM station and SS15 LRT station), SS16 is surrounded by greenery while not compromising the luxuries of civilization, with Empire Subang and Subang Parade just around the corner.

Must visit Makan Place: Mozers, Subang Parade (for some exotic Middle Eastern food)

Looking for a place around SS16? Check out
 Subang Olives
.

3.  USJ Heights

With Batu Tiga KTM station just around the corner and major highways such as ELITE and KESAS passing through, it’s no surprise that this location is slowly becoming the center of Subang’s attention. Located in the heart of Subang and Shah Alam, you’ll see both halal and non-halal grocery stores working in perfect harmony while surrounded by laundromats and clinics.

Must visit Makan Places: Philtre Coffee (for your pancakes and non-halal alcoholic ice-cream fix)

Looking for a place around USJ Heights? Check out
Cyprus
.

Do you think we’ve missed out on any areas worth highlighting or want us to highlight another location of your choice? Talk to us in the comment section below.

Looking for a property in 2019? Check out Malaysia’s easiest and most convenient property platform, check out
Bumbung.co
.

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Factors of the Major Property Overhang in Malaysia

As a Malaysian who has just started working a full time job, we all know that property prices in Malaysia are surging at a rapid pace as each year goes by. With the median home price of RM486,474 and RM836,420 for Selangor and Kuala Lumpur respectively, being financially capable enough to be able to actually own a house is definitely one of the many goals for Malaysians.

The increase in property prices is also due to the increased number of developers rushing to build properties on every piece of land that is within their grasp. With property prices increasing drastically in the recent years, it is not a surprise that Malaysia’s property market is experiencing a property overhang. The total national property overhang is valued at approximately RM 28 billion as of 2018. The unsold units are anywhere from RM 50,000 or less to more than RM 1 mil. The number of unsold units are highest with more than 12,000 units for property valued at RM 500,000 and above.

It is not properties that are oversupplied, it is expensive properties that are oversupplied and that the affordable range of properties is not even close to meeting the demand of the home buyers. The poor purchasing power of Malaysians is also another reason that contributed to the property overhang situation today. As all Malaysians will know, the economic situation of Malaysians are in right now have immensely reduced the activities going on in the market and also the people’s disposable income.

Many
of the big developers have now started to shrink the size of each unit
so that they can decrease the price as well
to make it seem more affordable for home buyers
 but these units are still developed in urban centers and on commercial land which has a way higher value compared to residential land.

A property with a
 lower price tag definitely attracts first time home buyers since they are usually younger in age and have minimal experience and knowledge about real estate, they tend to fall for this hoax. Thus, many first-time home buyers will fall for it and think that it’s worth it to sacrifice a little space for a lower price.

Home owners
 are usually shocked after they receive the high serviced charges, utility bills and other taxes because of the commercial status of their home, which is why it is important and highly encouraged for everyone to stay far away from serviced apartments if you are not willing to fork out your hard earned cash to pay those marked up bills.

On the other hand, there is also a crowdfunding platform for properties which is said to help first-time home buyers make their purchase since many of them will be facing difficulties when they try to apply for bank loans. The buyer will be able to purchase a property from a given property list by paying 20% of the
property price. Potential investors will then cover the remaining 80% of the price of the selected property in return for probable inflation of the property’s value over a specific amount of time. Of course, this is up to the home buyers whether they want to rely on this scheme to make their first home purchase but it is highly encouraged that they do thorough research about this scheme and how it works before signing any papers.

Would you consider purchasing a property that has been overhung for years, if it were to be spruced up?

Written by Hann Zern

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Knight Frank Predicts Property Market Improvement for 2019

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Knight Frank Predicts Property Market Improvement for 2019

Property consultancy Knight Frank Malaysia said the local property market has held up rather well in the second half of 2018 (2H 2018) and more improvement is expected in 2019.

In a press release on its Real Estate Highlights 2H 2018 report, the firm pointed out that pockets of opportunities can be discovered in different areas across regions including Klang Valley, Penang, Johor Bahru and Kota Kinabalu.

“The overall property market held up rather well during 2H 2018 with no major decline in market activities across various sub-sectors.”

“Despite uncertainties surrounding the nation’s first ever change in government, most international rating agencies continued to maintain Malaysia’s fiscal outlook, which will aid in bolstering confidence among foreign investors,” said the firm.

On the Penang market, executive director of Knight Frank Penang, Tay Tam said the first phase of the Penang Transport Master Plan (PTMP) which comprises the Pan Island Link highway, the Bayan Lepas light rail transit (LRT) system as well as several major roads will proceed.

“The completion of the PTMP will boost connectivity which will in turn be favorable towards the property market.”

“Meanwhile, the residential market will likely show some signs of improvement moving forward, without performance being anticipated in the landed housing market,” he said.

Knight Frank Johor branch head Debbie Choy said amidst a challenging market, the industrial property sub-sector in Johor is still expected to fare well as investments in the logistics and manufacturing sector remains at a healthy level.

“Also, landed houses with prices ranging from RM400,000 to RM500,000 are expected to fare well among home buyers,” she added.

In Kota Kinabalu, there were fewer launches of residential properties as developers seek to review and reposition their products amidst a highly competitive market.

According to Knight Frank Kota Kinabalu executive director Alexel Chan, although the residential sector is being plagued by rising supply, the continued growth of Sabah’s tourism and hospitality sector, coupled with the government’s commitment in delivering the Pan Borneo Highway are bright spots for Kota Kinabalu’s property market moving into 2019.

Moving into 2019, Knight Frank Malaysia expects sentiments to improve barring unforeseen circumstances, especially in the residential property market as policies announced under Budget 2019 are expected to strengthen demand, particularly among first-time home buyers.

Meanwhile, the industrial sector will continue its resilience due to favorable growth trajectory in key manufacturing industries. However, the office and retail markets are set to remain challenging due to elevated supply levels.

Looking for a property this 2019? You know
where to go
!

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The Potential of Overhung Units in Malaysia

As the property overhang issue in Malaysia is still very well existing in 2019, with an estimated amount of RM30bil of property overhang value with unsold units anywhere from RM50,000 or less to more than RM1mil. Even though it seems like the situation will never get better or at least for the time being, there are a couple of ways to solve or even take advantage of the current situation.

For people that have already been looking for a property to purchase for a while would probably know that on 29
th
 of December 2018, the Ministry of Finance has announced that the government has come to a decision that for six months, from 1
st
 of Jan 2019 until 30
th
 of June 2019, the stamp duty rate will be maintained and the government had also agreed to grant a stamp duty exemption of a 100 per cent to first time home buyers for properties priced anywhere between RM300,000 to RM1 million. The Minister of Finance, Lim Guan Eng said that the goal for implementing this stamp duty exemption is to encourage first time home buyers to purchase their first property, whilst slowly solving the property overhang issue in Malaysia as well as heightening the property market. To further decrease the property overhang number, the government should also extend the current maximum loan tenure from 35 years to 40 years whilst also providing various types of loans such as flexi interest rates, flexi loans as well as step-up schemes. By having this extension of the loan tenure available, home buyers will be able to afford to pay lower monthly installments. This will definitely make it more flexible for homeowners to own properties, at the same time allow young home buyers to own a house once they join the workforce.

Even though the number of homeless people in Malaysia is low compared to countries like the United States of America or even Australia, the government could help them by purchasing overhang properties and turning them into shelters for the homeless. This will definitely help them get back on their feet, giving them a simple roof over their head will encourage them to get an honest job and work hard for the life they think they deserve. Since Malaysia does not have any official refugee camps, unsold properties can actually be converted into refugee camps for refugees who seek asylum in Malaysia. Also, the overhung units can still be converted to be an orphanage for orphans, an old folks home, or even a government funded kindergarten for children whom parents are not financially capable of sending them to a privately owned kindergarten.

Unsold residential units can also be turned into commercial units for small businesses to buy or rent. This will definitely help with the property overhang issue whilst helping small businesses with a head start will boost the economy and also the property market. At the same time, giving some rental rebates for such properties could attract foreign companies to set up businesses and expand their footprint into Malaysia. In the end, this will naturally help develop a stronger rental market for residential homes whilst overcoming the issue of property overhang. For overhang residential units that are in ungated areas, the government can buy a few houses side by side on two rows facing each other. Each of the units can be partitions into smaller “booths” to make a small permanent bazaar for small businesses to rent. Small businesses can rent these “booths” to sell local products such as batik, arts & craft, Chinese calligraphy, henna, or even home-cooked local food. By turning a few overhung residential units into a permanent cultural bazaar, it can help attract more tourists to pay a visit to Malaysia for their vacation.

There are many ways the government can help with the property overhang issue and this article just highlighted a few. If the government really wants to help decrease the number of unsold properties and also help young people get their first house without having to work many years to save up a large amount of money to pay their deposit for their first ever home.

Written by Hann Zern

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Malaysians Not Ready For Lifestyle Change

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Malaysians Not Ready For Lifestyle Change

A recent study by Says.com shows that Malaysians are ready to buy their first home, though don’t because they are not willing to downgrade their lifestyle choices. Downgrading their lifestyle includes all types of expenditures, may it be car, house, technology, shopping, or even food and drinks. If their monthly income is high enough to buy a house without having to downgrade in any aspect of their lifestyle, then they have nothing to worry about. For people who cannot comfortably afford a mortgage payment with their current lifestyle, it’s either they keep working hard and wait for a promotion along with a pay raise to buy a house or they can downgrade certain aspects of their lifestyle to buy a house.

It is hard for youngsters nowadays to cut down on their expenses as the trending lifestyle now is to own nice shoes, nice clothes, go on vacations overseas and even local roadtrips like Port Dickson, Penang, and etc. A pair of nice shoes from Nike or Adidas or nice clothes from named brands such as Zara or Tommy Hilfiger would at least cost RM200, roadtrips would be RM100 to RM200 depending on the distance and location. Even though it may not seem like a huge amount, but the frequency of expenditure is high which accumulates to a larger amount. This amount could be saved up for a future house.

There are many ways for youngsters to stay up to the trend but still manage to save some money which firstly would be to stay away from big named brands as they are usually overpriced, mediocre quality, and the only difference is that the product is labelled with the name of the brand. Not only that, only go shopping when its needed, for example you need a formal suit and slacks for an upcoming company held event, and not because you want to look flashy and slick for the upcoming rave party. You definitely don’t need a Balenciaga or Gucci printed tee to look nice.

Besides that, an easy way to save up money is to minimize the frequency of eating out with friends. Of course, a mamak “yumcha” session or rewarding yourself with a nice chicken chop with fries on the side is definitely fine once a while. Cooking and preparing your own meals for let’s say 16 out of 21 meals for a week if you’re having 3 meals a day would save you a lot of money compared to eating out at a “hipster” cafe. Even though many of us think that we can’t cook at all without setting the kitchen on fire, there are many simple recipes even for people who have only used a gas stove less than 5 times in their entire life.

In conclusion, the younger generation have only two options at this point in order to eventually afford a property, which are either downgrading their lifestyle in order to accommodate another financial responsibility or step up their hustle game and work harder for that promotion.

Written by Hann Zern

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Do’s and Don’ts of Living with Pets and Air Conditioning

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Do’s and Don’ts of Living with Pets and Air Conditioning

Pet ownership is on the rise as more and more of us welcome animal
companions into our homes and embrace them as part of the family.

The most common pets are cats and dogs and if you own one, you probably
can’t imagine life without them. The joy they bring with their antics and
affection. Not to mention the fur on the furniture, on our clothes and in our
morning coffee!

But, as we open our doors to these lovable fur kids, there can be some less
than desirable side effects to our indoor air quality and air conditioning
systems. This is especially so in urban settings where they are mostly kept
inside

Here are some simple tips to keep in mind to ensure optimum well-being
for you, your family, your pets and the air you breathe at home.

Do’s and Don’ts

1.Pay extra attention to pet dander and not just the pet hair.

Because it’s visible, people tend to blame fur as the main source of health-related issues caused by pets, like allergies and other respiratory problems. In reality, the culprit is something that can’t be perceived with the naked eye. And that’s pet dander.

Pet dander is actually
what most people with allergies are allergic to. Even if you are not prone to
allergic reactions, dander build-up can still potentially cause irritations
that lead to sneezing, itchy or watery eyes or a stuffy or runny nose. Overtime,
long-term exposure to dander can even lead to people developing allergic
reactions they didn’t have before, which can trigger other health complications
like asthma.

            So,
what is pet dander and how does it spread?

Pet dander is tiny particles of skin flakes shed from animals with fur and feathers, much like dandruff from the scalp of humans. Some dander can be visible but for the most part, it’s microscopic and can be transported through the air like house dust. And like house dust, dander tends to repeatedly float in the air, stick to a surface and become airborne again at the slightest disturbance. Once inhaled, dander settles in the respiratory system and if not reduced in the environment, can lead to potential health risks.

Dander build-up can still potentially cause irritations that lead to sneezing, itchy or watery eyes or a stuffy or runny nose.

2. Choosing the right air conditioner can help minimise pet dander and improve indoor air quality significantly.

Because pet dander is microscopic, investing in the latest air conditioning solution can help mitigate health risks.

Some
modern air conditioners are equipped with technological advancements capable of
monitoring levels of tiny and fine particulate matters. Special focus is given
to the harmful PM
10
 and PM
2.5

particles, which most pet dander fall within.

PM
10
 are small particles that measure 2.5
to 10 micrometres in diameter (a strand of human hair is 60-120 micrometres in
comparison), while PM
2.5
refer to fine particles are 2.5 micrometres
in diameter or smaller. Mitsubishi Electric’s latest line of air-conditioners,
for example, are fitted with air quality sensors that monitor and provide data
that can be used to warn those at risk when fine particulate levels rise.

Incidentally, did you know that indoor air pollutants that trigger a runny nose and sneezing in people can also cause the same symptoms in pets? Particulate matters such as dust, mould, VOCs and other household chemicals, cigarette smoke, perfume and cologne, allergens…you get the idea, can trigger a reaction in sensitive pets.

Pet dander is microscopic, investing in the latest air conditioning solution can help mitigate health risks.

3. Clean and change air filters frequently.

Your air conditioning system operates by sucking in unconditioned air from inside your home, cools it, then delivers it back to your home. Along with the stale air that is taken into your system are the contaminants and particles such as dust, dirt and of course, pet hair and dander.

An effective and clean air
filter traps these pollutants, preventing them from entering the system and
being circulated over and over again in your home.

However, as pet hair and
other particles gather, the filter gets dirty and clogged. When this happens,
not only does the air filter become less effective in trapping the particles, proper
air flow is also hindered. Your air conditioning’s efficiency declines, which also
shortens the longevity of
your system, costing you more in the long run.

While the general rule of
thumb is to clean your air filter once a month and replace it once every two to
three months, if you have pets at home, you may want to increase the cleaning
and changing frequency. At the very least, check the filter in your air
conditioning system once every fortnight to ensure it remains in tip-top
condition.

The same applies to the filters in any air cleaning or air purifying units you have at home. And always use a high-quality true HEPA filter, which is the current industry standard in trapping fine particles and particulate matter.

Frequently clean your air filter once a month and replace it once every two to three months especially if you have pets.

4. Maintain a clean home.

As with the air conditioning system and filters, pet owners should diligently clean their homes (and their pets) regularly.

Vacuum
your home once a week to remove as much dander, hair and dust build-up as
possible. Pay particular attention to nooks and crannies, fabric that tends to
trap contaminants and even windowsills, lampshades and edges that can become
havens for small particles. Use a vacuum with a true HEPA filter that can also
help trap allergens.

Remember
that brushing and dusting alone is insufficient as that only dislodges the
particles. If you don’t have a vacuum, you can use a damp cloth to wipe down
after you’ve brushed or dusted a surface. A microfibre cloth can be very
useful, but remember to only wipe one way. Wiping back and forth only serves to
spread the particles around. And rinse frequently, making sure to change out
the water once it gets cloudy.

Groom your pet at least every alternate day to remove as much shedding hair as possible and prevent dander from accumulating on their skin. Bath your dog on a weekly basis; cats tend to keep themselves clean and don’t appreciate or even need baths unless they are soiled from being outside. Washing your pet’s bedding and favourite resting places as well as your own bedsheets (if your pet sleeps with you) on a weekly basis also goes a long way in reducing build-up of mites, dander and allergens.

Brushing and dusting alone is insufficient as that only dislodges the particles. If you don’t have a vacuum, you can use a damp cloth to wipe down after you’ve brushed or dusted a surface

5. Protect your air conditioner and your pets from exposed wires.

Some pets have a penchant for chewing on wires and cables. Make sure you conduct frequent inspections to ensure any accessible wires of your system, or any other wires and cables for that matter, remain intact. Better yet, buy wrap all wires in cord protectors to help deter those beloved fur kids from gnawing at them and destroying the cables or worse, electrocuting themselves in the process.

Keep cables hidden and away from your pets, especially if your pets to are prone to chewing.

For more interesting facts and
informative tips about air conditioning and regulating your indoor climate,
please visit
https://my.mitsubishielectric.com/en/products-solutions/air-conditioning/racbrand/index.html
.

Categories

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Home and Design
Lifestyle

Tagged

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Author

Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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Kingston Tang

on 10 July, 2019 at 17:05

Reply

Thanks for the useful tip!

Marcus

on 10 July, 2019 at 17:29

Reply

Wow. That’s interesting. WIsh I knew that before.

Michelle

on 8 August, 2019 at 20:46

Reply

Looks like we can safely adopt that dog for our home now. haha.

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Malaysia Budget 2020: (property edition)

Should I buy and/or sell my property now or wait for budget 2020 to come to effect?

Budget 2020 Verdict:
First time home buyers – Buy now.
Sellers – Wait for next year to sell (Lesser RPGT for properties bought before 2013).

If you’ve missed out on the Budget 2020 updates, fear not, we’ve put together a quick summary of what these updates mean for your property / real estate asset.
1. Youth Housing Scheme extended to December 2021.
– Offers a 10% loan guarantee through Cagamas to enable borrowers of full financing and RM200 monthly instalment assistance for the first two years limited to 10,000 home units.
3. Rent To Own (RTO) housing scheme will be introduced to help homebuyers who can’t afford the initial 10% downpayment if your property is RM500k and below.
4. RM600k threshold for foreigners to purchase high-rise properties located in cities.
5. HOC still valid until End December 2019. RM13.44bil under the Home Ownership Campaign have been successfully sold, exceeding the RM3bil initial sales target.
6. Government’s proposal to enhance
Real Property Gain Tax (RPGT)
 treatment by revising the base year for asset acquisition at January 1, 2013 for assets acquired before January 1, 2013 as compared to the previous base year of January 1, 2000.

Diving deeper into each topic, here’s our take on the Budget 2020:

1. Youth Housing Scheme

The youth housing scheme (introduced by Najib’s administration back in 2015) under BSN supported by both Cagamas Berhad (National Mortgage Corporation of Malaysia) and EPF (KWSP) is extended till end December 2021.
We are in the opinion that since the scheme that was launched back in 2015 had promising uptake from the rakyat (people) and thus the new government is continuing the offer for homeownership through this channel.
Cagamas offers a 10% loan guarantee through Cagamas to enable borrowers of full financing and RM200 monthly instalment assistance for the first two years limited to 10,000 home units.
Who is eligible for this scheme? According to BSN’s website:

Married youths between age 25 to 40 years with household income not exceeding RM 10,000 per month. Through this scheme, BSN will provide financing / loan up to RM500,000 with a financing tenure up to 35 years or at the age of 65, whichever is earlier to the eligible borrower. This scheme is limited to 20,000 buyers only on the ‘first come first served’ basis.
BSN will also provide financing / loan amount of 100% of the purchase price and an additional 5% of purchase price to finance takaful / insurance (MRTT / MRTA). The cost of financing documents / loans including legal costs is borne by the buyer.
The Government will also give 50% of stamp duty exemption on the instrument of transfer agreements and loan agreements. The Government is also to aid monthly instalments of RM200 per month for a period of 2 years from the date of first disbursement to the developer / vendor.

Information abstracted from Mybsn.my in Oct 2019. More info on how to get started with your application or detailed questions can be reffered to BSN’s Youth Scheme FAQ page
here

2. Rent to Own (RTO)

This RTO scheme is open to the purchasers who find it difficult to afford the 10% downpayment of their first home (up to RM500,000 value). To cough out the RM50k deposit, the government is introducing a RM10 billion fund be provided by financial institutions with the government’s support through a guarantee provision of 30% or RM3 billion.

Under this scheme, the purchaser will rent a house for a period of up to FIVE (5) years and after the first year, he or she will be given the option to purchase the residential property at the price upon the signature of the rental agreement (so this means that you’ll be locking in to pay yesterday’s price, next year).

To add on, the government will provide a full exemption on the stamp duty on the MOT (transfer instruments) between developers and financial institutions, as well as between financial institutions and the prospective buyers.

3. RM600,000 – reduced minimum purchasing limit for foreign buyers…

In the 2nd quarter of 2019, the estimated value of the property over-supply is at RM83 billion (Malaysia). Our Finance minister, Lim Guan Eng suggested that the property value purchasing limit for foreigners be further reduced from RM1 mil to RM600,000 for apartments and condo in the city areas only.
This could mean a further reduction not just for Kuala Lumpur properties but we could possibly see Petaling Jaya that currently has a minimum value of RM2 million for foreign property ownership being affected by the reduction too.

Netizens are in the belief that though it may help solve the overhang problems for the developers, it could set a chain of events for Malaysian purchasers to be on the losing end. A property overhang status is usually a sign that developers are not building the rightly priced + sized properties for the local market to absorb, but the lower-priced foreign ownership cap may encourage developers to continue building “higher end” products that the locals do not need for the sake to keep their higher margins.

4. HOC Campaign 2019-2020?

We’ve not heard anything much about the continuation on this into Budget 2020 since Housing and Local Government Minister Zuraida Kamaruddin said in June that would be
extended to 31 December 2019.
So far, a total of 21,000 homes worth RM13.44 billion were successfully sold under this campaign which exceeded the initial sales target of RM3 billion.

Did HOC 2019 benefited the public?
First time home purchasers who could afford the higher range of properties between RM500k – RM1mil took the best advantage to save on these 3 items;
i) 10% off the property cost
ii) Property Title – Full Stamp Duty Exemptions
iii) Loan Stamp Duty Exemptions.

You could still benefit from HOC 2019 till mid December 2019. It would roughly takes 2 weeks to close your real estate deal and submit the documents.

5. REVISION to Real Property Gain Tax (RPGT) Tax base year for asset acquisition before January 1, 2013.

Sellers who have held their properties long before 2013 can rejoice as your property base year will be calculated its capital gains from 2013 market price instead of the previous year 2000 as announced in the Budget 2020.
Let’s take an example:

You bought a Semi-D in 2002 for
RM600,000
.
In
2013
, the value appreciated to
RM1,200,000
 but you decided to hold on to it.
In
2020
, you decide to sell the house for
RM1,700,000
.

Because the base year has been adjusted to 2013, your chargeable gain would only be on the RM500,000 (instead of the supposed RM1.1 mil as profit).
That is the difference between your Disposal Price and the property value in 2013.

We hope this has been a comprehensive put together of the latest Budget 2020 announcement. If you have some thoughts, if we missed out on anything important that should be included, or even on what to write next, drop us a comment below.

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Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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The Perfect Credit Score before your Late 20’s

How to get approved for your housing loan? Read on…

With the housing loan approvals slowly declining over the years, one cannot help but to really start thinking about how they’re going to be a part of the 74.6% of credit approved borrowers.
That means there’s a substantial 25.4% chance that your loan application will be rejected. And we’re here to help you hack your way through for the perfect credit ratings.

Housing loan approvals declining throughout Malaysia as stricter guidelines are enforced by Bank Negara.

The S&P Global Literacy Financial in 2014 reports that financial literacy rate in Malaysia is only at 36%, compared with 59% in developed countries. 5 years later, we hoped that things would change or be better, but results from Bank Negara shows otherwise.
Don’t worry. In this article, we’re here to help you towards getting a favourable answer from the banks.

1. Get a steady job (Stay at least for 2 years)

If you’ve recently graduated and begun work, it’s not advisable to get started on house hunting yet. Your job is probably the most important point to show consistency and confidence to the banks before they can even start lending you money. Say even if you got a pay increment, saved moderately and could afford the loan,  the banks still do not have any financial footprint that is uniquely ‘you’ if you haven’t started from somewhere.

Monthly savings is not a good enough reason because the money could be easily moved elsewhere.

It’s advisable for most of the people within the range of 21-25 years old to start acquiring good credit scores.

2. Get your OWN credit card (You should if you don’t have one).

The bank values monthly commitments quite seriously. One of the easiest way to get your credit rating up is to obtain a credit card from the bank and
PAY IT BACK ON TIME, CONSISTENTLY
. Even if you don’t need a credit card, the banks will want to know if you’re a good paymaster. So it doesn’t matter what limit, or even if you bought an ice cream cone from McDonald’s once a month with your credit card, the banks see your monthly repayments via their CCRIS system that they have directly with Bank Negara.

3. You are discipline in paying any debts/ services you utilise.

Whether it is an education debt, your PTPTN, personal loans through institutions, or your utility bills, the consistency of paying on time for at least 12 months straight without missing on payments / late payments will give Banks the right confidence. Not only for the bank to see, but you also will build an attitude towards yourself, by being a responsible borrower.

4. Build the Perfect Credit Score. Avoid these red flags;

Miss or do late repayments (Red Flag #1)

Had your dues slipped out your mind? Unfortunately, it’s a poor excuse for the bank, and the borrower will be penalised on late payment, on every extra day the interest can reach up to 18% (per annum) on credit cards for every ringgit you owe.

Ensure that you are aware of each of your monthly commitment and have reminders on when to pay them. Otherwise, consider an auto-debit system by each respective bank.

Max out your credit card utilization (Red Flag #2)

Having your own credit card or multiple credit cards does not mean you should spend more and build up credit. If you keep credit without repaying it fully, that would add up to your credit utilisation limit. Banks typically use a method called DSR (Debt Service Ratio) to calculate an individual’s credit-ability. It’s scoring to see if you could still afford to pay off your monthly debts/usage first on top of approving you to get a new home/car loan from the banks.

So if your usage is always maxed out, it shows that you don’t have good financial planning and that you tend to spend more than you can afford. It is common that bank rejects loan submissions from profiles with a high DSR because it’s risky on their position to issue the loan as a high DSR reflects larger spending behaviour. Try to avoid taking those 0% interest-free monthly repayments for products/services, as this too directly contributes to a higher DSR. It will affect your financial planning especially if you’re thinking of getting a home.

A report from TheStar (2018) says that 47% of Malaysian youths have high credit card debts while 38% have been identified as having personal loans.

https://www.thestar.com.my/business/business-news/2018/09/04/47pct-of-youths-have-high-credit-card-debts

Multiple credit applications or active loan (Red Flag #3)

If you’ve been applying for credit cards or loans very recently, it’s better to give it a rest before applying for another one. Especially if the last one was rejected.
It may matter when you decide to apply, as creditors will see this as an added risk for them that will lead to default loans and will opt to stay away.

High Debt Servicing Ratio (DSR) (Red Flag #4)

This is conducted when you compare your income documents against your total outstanding credit.

Be careful when applying for more credit cards or taking up personal loans. It will add to your loan repayment every month, and banks usually will allow you to take up to 67% of credit financing from your nett paycheck (You’ll need 1/3 to yourself for monthly expenses).
If your repayments and monthly usage are already at 55-60% of your paycheck, the 10-15% balance is not going to be enough for the bank to loan you a full loan to cover a car or a house.

Here’s a case example:

Your Monthly Income:
 RM8,000

Monthly Rental:
 RM1,000

Currently has 3 credit lines:
 Personal Loan (RM1,000), Credit Cards (RM2,500 monthly spend), and Car Loan (RM500)

Total monthly commitment: RM4,000

Your debt service ratio would be calculated as:

RM4,000 / RM8,000 X 100% = 50%

With an income of RM8,000 monthly and a monthly commitment of RM4,000, your debt ratio is at 50%. Though your monthly rent doesn’t affect the banks, new bank regulations will look and consider external factors and expenses, thus it may be slightly challenging to apply for a loan, even with a guarantor.

In a nutshell,

 Planning your finances is the key to healthy credit history. Know how much you can bite before committing, and be aware of each loan you are about to take up as it affects your first mortgage. As a young person, knowledge of finance is vital. Always be financially savvy as this will improve your living standard in the long run. The key towards a better real estate portfolio lies within better management of cash flow.

Share this article with all the young people you know.

Read also
Sales and Purchase Agreement (Sub Sale) in Malaysia Guide.

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The Ultimate Real Property Gain Tax (RPGT) Guide – (Update:2020)

Let’s all admit it, taxes in general can sometimes be ridiculously confusing. The
Real Property Gain Tax
 is no exception but fret not for we’re here to help break it down!

Real Property Gains Tax (RPGT) is a tax levied by the Lembaga Hasil Dalam Negeri on chargeable gains derived from the disposal of real property. The rate of the RPGT varies based on citizenship of the property owner as well as whether you are an individual or an establishment.

As of now is the latest update we have on the RPGT 2020.

How do you calculate RPGT?

Although it sounds rather complicated, all you have to do is utilize one simple formula.

But how do you get get your chargeable gain? All you have to do is take the price the property is sold for and deduct it with the amount it was originally bought for. Here’s the formula:

Let’s try out a simple example

Let’s say you’re a Malaysian citizen who bought your 1999 house for RM230,000. Come January 2020, you sell it for RM660,000.
Assuming the market price on 1 January 2000 was RM250,000, and 13 years later on 1 January 2013 it’s increased to RM450,000.

The basic calculation of RPGT would be
Before Budget 2020 (base year 2000):
RM660,000 – RM250,000 = RM410,000
RPGT
 = RM410,000 x 5% = RM20,500
After Budget 2020 (base year 2013):
RM660,000 – RM450,000 = RM210,000
RPGT
 = RM210,000 x 5% = RM10,500

You would save 51% on your RPGT if you sold your property in 2020.

Real Property Gain Tax Exemptions

You’re in luck as there are certain exemptions allowed for Real Property Gain Tax, being:

Anyone can benefit from a once-in-a-lifetime 100% exemption from RPGT when you sell your private residential property. (Please utilize this once in lifetime opportunity wisely).
Transference of real property between family members (e.g. husband and wife; parents and children; grandparents and grandchildren) will also be exempted from property gains.
10%
 of profits OR
RM10,000
 transactions (whichever is higher) will not be taxable.
Housing priced below RM200,000 (Low cost, low-medium cost and affordable homes will be exempted from RPGT.

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Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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How to buy RM600K property with nett income at RM4000?

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 comment

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Thavaneson Kuppa Rajoo

on 28 May, 2020 at 19:58

Reply

Dear Sir,

How to get the market value of the property on 01//01/2013. I mean from where you could refer to obtain the exact market value of the property at 01/01/2013. In your example where to get the figure RM450,000???

Thank you.

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How to buy RM600K property with nett income at RM4000?

“Buying a home right now will be the best opportunity in your lifetime”

~Warren Buffet

Indeed, majority of the people will buy a house once a lifetime. A house is an asset, a place for shelter and a money-making platform. Whether it’s to buy for your own stay or used as an investment, it will be one of a milestone in anyone’s life.

The mentality behind “I want to wait until the price drop, it will be the perfect time to buy” may not be the wisest decision. You should have a target location and find something within the budget that you have. It’s all about negotiating the right prices.

The economy has a peak and trough. The same goes for the property market. And even on a soft market, property prices are going up especially properties listed on the secondary market.

We’ll show you how you can afford an RM600,000 property if you’re earning nett RM4,000 (after EPF/Socso) income a month.

Did you know?
According to Lim Guan Eng, there is an overhang supply of condominiums and apartments that amounted to RM8.3bil. That’s also why government had to take procure action reducing threshold for foreigners, which is from RM1Mil to RM600K.
Read about what Budget 2020 has in stall for property buyers here:

http://therooftalks.com/2019/10/21/malaysia-budget-2020-property-edition-therooftalks-com/

The calculation below will show, by having a minimum Nett Salary of RM4000 a month, you would be able to afford a RM600,000 property.

1. First of all, you will need to know your total nett income.

Nett income can be calculated by using the formula below:

Nett income = Gross Income – Deductions (KWSP, SOCSO, Income Tax)

For example:

Mr. Lee is a marketing executive. His salary is RM4700 per month.

Nett salary = RM4700 – RM687.95 (KWSP, SOCSO, EIS, Income Tax)

Nett salary = RM4012.5

2. Calculate your DSR

The debt service ratio is a calculation of your total monthly installment. If you have a car loan or personal loan, this will be calculated in DSR.

Average for the bank, the maximum DSR that you can have is 70%.

As for Mr. Lee, as he does not have debts or a car, his DSR will be approximately there.

70% X RM4012.5 = RM2808.75

So, the RM2808.75 should be your monthly commitment towards the housing loan.

So, with the RM2808.75 monthly commitment, what is the price of a property that you can afford to buy?

3. According to Loan Street, with the monthly installment at RM2808.75, property that you can afford to buy is RM613,406.17

Monthly Installment Plan Based On Nett Income at RM4012.5. By LoanStreet Calculator.

Before you choose which to property to buy, you should find out how much you can afford the loan. This step is especially important, so that morning you will not waste your time looking for a property that will not match your affordability.

Check with your preferred bank or you can check at
Loan Calculator
 for the exact amount that you can afford.

For first time home buyers, the Government introduced a few schemes that will help people buying their first property.

Normally, 10% of the price of the property was required to pay the stamp duty and legal fee. In addition, you also need additional thousands of ringgit to pay the unexpected such as renovation and overdue bills.

With the government schemes, don’t worry about upfront. The government gives up to 110% to help people own the property.

Below are the schemes that will be big advantages for first time home buyers.

1. BSN MyHome (Program Perumahan Rakyat)

BSN MyHome (Program Perumahan Rakyat) is designed to help those who are self-employed or with irregular income to own a home. They provided financing up to RM300K.

Get the full detail by visiting the nearest branch or visit
BSN MyHome (Program Perumahan Rakyat)

2. Skim Pembiayaan Deposit Rumah Pertama (MyDeposit)

The scheme is opened since 6 April 2016. It’s meant to help M40 group own first property by providing the deposit payment. The financing provided up to RM500,000.

Get the full details by visiting
Skim Pembiayaan Rumah Pertama (MyDeposit)

3.  Skim Rumah Pertamaku (SRP) – My First Home Scheme

Skim Rumah Pertamaku (SRP) – My First Home Scheme is a homeownership initiative that was first announced in the 2011 Budget by the Government of Malaysia.

It meant to assist first-time house buyers earning a gross monthly household income of up to RM10,000 (subject to RM5,000 per applicant) to purchase their first home.

Get the full detail here
Skim Rumah Pertamaku (SRP) – My First Home Scheme

To summarize, know yourself first by understanding your affordability. Always consult a good banker to help you calculate your loan affordability. It might turn out that you can afford more than you thought.

In addition, seek out the various schemes introduced by the government to help first time home buyers.

Let us know in the comments if you’d like us to cover more about the said schemes above, we’ll put it out in the pipeline coming next on TheRoofTalks.

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NO EOT: Developers to pay, if there’s a delay

– Federal Court sides Buyers claim on delay (late delivery).
– Housing controller has no power to grant an extension of time (EOT) to developers.
– By granting EOT, controller has denied the purchasers’ right to claim for liquidated damages.

PUTRAJAYA: Property buyers in Malaysia can rejoice! As decided by the Federal court, property delivery delay/extension excuses from the developers will be met with a penalty as they have no choice but to honour the Sales and Purchase Agreement (SPA) and repay buyers claim on liquidated damages.

The granting of extensions or modifications to the prescribed terms and conditions in the Sales and Purchase Agreement would deny the buyers from their right to claim for liquidated damages, as shared by Chief Justice Tengku Maimun Binti Tuan Mat.

Her decision has allowed the appeal of 104 buyers that are claiming for liquidated damages against a local developer.

“These modifications and the granting of extensions of time to the developer do not appear to protect the purchasers, which militates the intention of Parliament,” she added.

The judge ruled that Section 24 of the Housing Development (Control and Licensing) Act 1966 did not give any authority for the minister to delegate his powers to the controller to modify the SPA.
The extension of time for late delivery will only determine the payment amount of damages.
The Federal Court upheld the High Court’s decision.

To get the full ground judgement on Federal court’s decision (pdf):
http://bit.ly/37GyRtX

Article first appeared on
FMT (Free Malaysia Today), 26 November

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Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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Bumbung relaunches with Proptech Agency that focus’ on customer relationships, data points and automation.

A new Hybrid Marketplace Agency is disrupting traditional Real Estate Agencies.

By eliminating the friction between the Agent, the Platform and the Client, we created an ecosystem for our Agents to continuously build and maintain Client Relationships while delegating and automating their marketing efforts

Proptech company Pepite Technology Sdn Bhd, started a property marketplace (
Bumbung.co
) in 2016. As a lead generator for many different Agent/Agencies, they could generate quality leads but later realised that many of their clients were not getting the proper/prompt service as they were expecting from their matched Agents.

To date, Bumbung.co has provided over 7,000 client matches of whom are looking to buy and rent properties both houses and condominiums within central Klang Valley. “We asked almost all our Agents why they were not converting the leads that we’ve provided them, and to our surprise, we learnt that many of them don’t have the system or time in place for a proper CRM tool to manage their leads, marketing and listings,” said Lim, Co-founder and CEO at Bumbung.co. “What’s a bigger shocker is that some of these Agents and Negotiators hail from large real estate companies; Savills, Knight Frank, IQI, Reapfield, Remax and Metrohomes, where you have Agents who are dominating some markets,” he added.

Lim later stressed that Bumbung was able to continue pivoting despite the harsh conditions in the market and startup ecosystem was to quickly address the supply problem (listings). “We had to quickly reassess our value proposition to serve our Agent users, by eliminating the friction between the Agent, the Platform and the Client, we created an ecosystem for our Agents to continuously build and maintain Client Relationships while delegating and automating their marketing efforts. We acquired a licensed real estate Agency, and by doing so, we could legally transact all our deals through the platform.”

Bumbung’s Technology

Bumbung has successfully built an Operating System (OS) that many local Agencies today can only dream of starting. It took them slightly longer than 3 years to where they need to get to, but as an entrepreneur, Lim and his other co-founders found it rewarding that we could take what we learned from the past Agencies they worked with and implement a better way around it as a solution towards innovating the process.

“The first place we looked at innovating was to figure out why Agents didn’t have the consistency in working on the leads that was provided for them, and many even found it difficult to start farming or create a system that builds around their focus area.” Said Lim
Seeing that it was not rocket-science, Bumbung’s team developed backend procedures to automate the online and on-ground marketing work and posting work to different portals. The result of which returned back Agents 30-40% of their valuable time that otherwise has been spent on doing similar of the repetitive low-value marketing work.
“Because of the slight innovation of the process, our Agents today are available to tackle the more important task at hand, to focus towards creating better, wider high-value relationships with existing and new potential clients,” according to Lim.

Bumbung.co | Fine Real Estate

Users who are looking to Buy or Sell their property can begin their journey on
Bumbung.co
with a simple search or list your property to sell / rent. Bumbung’s team of Agents will perform a pre-valuation check on your property for the right price to market. Their team of Agents currently covers affluent markets in the Klang Valley for residential and commercial properties valued in the ranges of RM 1 mil and above.

You can find listings and houses for Sale in TTDI, Bangsar, Damansara Uptown, Tropicana, Ara Damansara, Saujana, Petaling Jaya and other areas on their website.

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A tech enthusiast seeking beautiful homes. Sometimes I write.

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Bank Negara MPC: OPR drops to 2.75% = Great news for borrowers. Not so great for depositors.

The Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) to 2.75 percent.

We don’t see banks rushing to update their narrative to home buyers to get onboard with the new Base Rates. But we expect it to be rolled up for all banks in the next few weeks. Scroll down to find the latest rates we collected from different news sources and read on to find out how this change affects you.

Latest Base Rate (BR), Base Lending Rate (BLR) and Effective Lending Rate (ELR) for all Banks in Malaysia (Updated 30 January 2020). Source: Bank Negara, Affin Bank, Bank of China, CIMB, Citibank, Hong Leong Bank, HSBC Bank, ICBC, Maybank, OCBC, Public Bank, RHB, Standard Chartered, UOB Malaysia in their websites and/or Press Releases.
Those banks who have not yet released a Press Announcement or updated their sites are intentionally left empty and will be updated at a later time.

The Good

The OPR changes has a direct influence on a bank’s Base Rate (BR) & Base Lending Rate (BLR), where the BR & BLR usually reduces/increases in tandem to an OPR cut/hike. To understand more about what BR and BLR is, Bank Negara has it in an infographic
here.

Smaller OPR rates equals to cheaper options for property purchasers to take up a home mortgage as it would leverage on the lower initial interest rate.
When the previous OPR reduction from 3.25% to 3% in May of 2019, it had a co-relation effect to approval rates – According to MoF, loan approvals for that month was 13% higher.

The lower OPR also affects existing borrowers, bringing a reduction in the effective lending rate (ELR) of existing home loans that are following the variable floating rate, which means two things:

Reduced installment payments
. You should receive a notification letter on the revised instalment amount from your bank soon, if not, you can clarify it with your bank about these rates.

Shortened tenure for repayment
 (only when the previous instalment sum is maintained). Banks will usually provide consumers with the option to shorten their loan tenure instead if a reduced repayment amount is not available.

The Ugly

This is the 2nd change in the Overnight Policy Rate (OPR) for the second time in less than six months. Where the 25 basis point reduction to 2.75% brings the country’s lending reference rate to its lowest in nine years.

The natural obvious trade-off, of course, is that a lower OPR means lower savings and fixed deposit rates. Leaving you to re-assess bank savings or investment strategy to ensure that you’re able to still get the most optimal returns from the bank.

Summarising it with Bank Negara’s statement:
For 2020, growth is expected to gradually improve, with continued support from household spending and better export performance. Overall investment activity is expected to record a modest recovery, underpinned by ongoing and new projects, both in the public and private sectors.

If you haven’t already read our guidelines, you can check out our 3 parts series in financing your home loans.
Check out
Part 1,

Part

2
,
 and
Part 3.

Will you buy a property this year?

We don’t have a crystal ball to tell the future, but we’d like to know what you think you would do after knowing the newly reduced Base Rates, do let us know in the comments!

If you’re in the market to buy, or if you’re looking to market your property, don’t forget to drop by
Bumbung.co
 and get a free pre-evaluation on your property’s sale value.

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Tagged

bank negara
banks
Base Rate
BLR
finance
home loans
mortgage financial solutions
opr
real estate
real estate investments

Author

Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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Inside Tropicana Grande’s Penthouse

Bumbung TV’s exclusive tour inside the 1 of 4 Penthouse in Tropicana Grande.

Tropicana Grande is one of the best luxury condominiums located in the Petaling Jaya city, alongside Five Stones, PJ 8 and Uptown Residences.

The condominium is targeted at a higher-income sector, where executives and their families who enjoys the accessibility to the golf club, Tropicana Golf & Country Resort (One of the top tier Golf Club Resorts in Malaysia).

Image Source: http://www.expatgo.com

This exclusive neighbourhood has a full range of comfort type properties that residents love for its land space and privacy, from Bungalows, Semi-Detached and high-end condominiums, Tropicana Grande is the pinnacle of its high-rise developments by the Dijaya Group (now known as Tropicana Corporation Berhad).

The development contains 4 blocks in total and has a height of up to 39 floors.

Tropicana Grande comprises 4 blocks in total

The unit featured in the video is the largest and most exclusive penthouse (with only 4 units available). The unit’s layout comes with 4 Beds, 5 Baths and is divided into a duplex with breathtaking views of the Tropicana golf & country club.

The penthouse main balconies and upper deck access faces the Tropicana Grande’s facilities common olympic size swimming pool and offers unblocked views to one of 27 holes at the Golf Course.

Tropicana Golf Course & Resort view from the 38th floor of the penthouse.

The bedrooms are nothing short of stunning, with high ceilings and durable strong glass panels, you’ll have the best privacy and soundproofing the home has to offer.

The best part is their grand master bedroom that has the largest floor space in the unit and also comes with double balcony views for that unblocked 360º angle of Tropicana’s Golf and Country Resort. Imagine spending all your evenings with the golden sunset that many would only envy.

Sunset View From Tropicana Grande Penthouse.

On the upper floor, this penthouse provides the resident with its very own private lift lobby entrance, walk-in closets and open dresser-room bathroom concept with jacuzzi, a private bar, and lastly a private infinity pool. The inhouse facilities and features has a lot to offer and you’ll never need to leave the house.

Check out the video above for the full video tour at the penthouse. Bumbung.co will be hosting an Open House this 29th February 2020 (Saturday) and 1st March 2020 (Sunday) at the penthouse itself. Check out the full details by visiting the website:
bumbung.co/listings/4922
.

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Luxurious Penthouse at Tropicana Grande
Open House at Tropicana Grande
Things You Should Know About Tropicana Golf & Country Resort
Video Walk-Through Of Tropicana Grande

Author

Bumbung Team

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MIEA's MAREC SUMMIT: "Change or Die".

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MIEA’s MAREC SUMMIT: “Change or Die”.

MIEA MAREC Launches with #Myrealagents PSA and 4 New App Services under Lim Boon Ping’s 2020 leadership.

MIEA’s MAREC (Malaysia Real Estate Conference) Summit 2020 kicks off their 34th annual conference on 28 February 2020 with multiple announcements of technology focused initiatives to improve the industry practices and with a stream of 32 speakers and break out sessions spread over the 2 days at the Berjaya Times Square Hotel in Kuala Lumpur.

We sat through the long speeches and summarized the important bits that you may find important to know.

Here’s what you need to know that was announced in the MIEA’s MAREC Summit 2020 event;

#MyRealAgents – MIEA’s new PSA to take on the 2014’s Itsillegalanditsyourfault campaign that was launched by LPPEH.

MIEA Agent Data app – MIEA’s new tech initiative to offer recent transaction info (chargeable).

MIEA Insure Tech – Proffesional Indemnity (PI) for individuals (additional protection layer on top of brokerage PI’s).

MIEA Fintech partnership with Finology – Instant loan check to help qualify serious buyers.

MIEA MLS program – B2B platform for Exclusive listings only.

2020 MIEA’s President, Mr Lim Boon Ping officiating the launch of MAREC Summit.

Let’s dive deeper into each topic below, with MIEA’s great ambitions, we’ll observe and update this post later to see if any of the ideas are fully realised. Either way, we believe it could improve industry standards, one step at a time or all at once.

#Myrealagents

Screenshot taken from
myrealagents.com
 site, with only a linkback to LPPEH’s search site, it’s mostly just basic information.

MIEA’s Launch of their PSA (Public Service Announcement) #Myrealagents is just a take on creating awareness for buyers to deal only with legitimate Agents with a valid Tag.

Their long campaign definition: “to raise awareness especially among first-time homebuyers and renters on the need to choose Registered Estate Agents or Negotiators for their property needs due to the continuous number of cases of Malaysians being cheated out of their hard-earned savings or their interest being compromised by unscrupulous illegal brokers.”

It’s a mouthful, but their hearts are in the right place to protect buyers. We just hope that the RM200k budget will be spent wisely to get the message across to the unsuspecting buyers as this event was only targeted to Agents.

To make an observation, it looks a lot more of a re-launch PSA campaign that was started by LPPEH in 2014 with the support of MIEA, PEPS and RIS. Though, we have to acknowledge that the relaunch is a lot better than the former.

The previous campaign had an odd name, “It’s Illegal and it’s your fault” with the idea of name-shaming those who may have fell prey to unscrupulous agents. The campaign website is expired and the only thing that survived on was the facebook page:
https://www.facebook.com/Itsillegalanditsyourfault/

LPPEH’s 2014 PSA campaign (close sources shared that close to RM1 mil was spent on it). Today, apparently there are still many buyers who fall prey to scammers under the pretentious guise of Agents.

MIEA Agent Data app

“A game-changer” application to capture property transactions when the Earnest Deposit is collected in a matter of weeks instead of the 3-4 month data released after the transactions are done. Not sure how much data points would need to be captured first before the app would add value, as MIEA will not be using data from official transactions. It was mentioned that this service is would be a charged at a low rate but MIEA has not released any official numbers on it. We learned that it would be similar to what
brickz.my
 or
Edgeprop.my/transactions
has to offer.

To our understanding, the usual methods for Agents to do a comparison check is to take the official transaction data between a range of 1-3 years worth of transactions when comparing properties that are for sale. This is to see if the trend of prices are on a steadier growth/slow expectancy, but knowing a transaction as recent as the past 3 weeks will not make much of a difference, as more past data is required to properly estimate the right price of sale, so the 3 months waiting period for the official data is not a dealbreaker.

We tried downloading the app and had issues signing up as it kept freezing at the signup page. Does it work for you guys? You could download MIEA Agent Data App from your local appstore/google play.

Let us know your thoughts in the comments below. We’d like to test the app out and give it a fairer review.

MIEA “Insure Tech”

Trying to jump on the bandwagon of moving fast to keep up against disruption, MIEA is partnering up a local Insurance player to offer Professional Indemnity (PI) insurance for the client’s account to individuals holding REN, PEA, REA licenses. As the deal was inked at the same time as the event, more details about the said Insurance plan will be available within the next 2 months according to Lim Boon Ping.

It’s not a mandatory requirement for Agents to get this plan as there’s already an existing PI insurance covering all real estate staff at the Real Estate Agency level, covering at least RM50-100K protection against losses against the staff/company.

A quick breakdown of what most typical Professional Indemnity Insurance for Agency coverage looks like:

COMPENSATION FOR COURT ATTENDANCE

(A) ANY PRINCIPAL, PARTNER OR DIRECTOR

OF THE NAMED INSURED

(B) ANY OTHER EMPLOYEE OF THE NAMED

INSURED

DISHONEST, CRIMINAL OR MALICIOUS ACT OR OMISSION OF EMPLOYEE IN THE AGGREGATE FOR THE POLICY PERIOD

INQUIRY COSTS IN THE AGGREGATE FOR THE POLICY PERIOD

MITIGATION COSTS IN THE AGGREGATE FOR THE POLICY PERIOD

PUBLIC RELATIONS EXPENSES IN THE AGGREGATE FOR THE POLICY PERIOD

Finology

From the guys behind
loanstreet.my
 and loanplus, comes a dedicated service to Agents who are looking to add value to their client by offering them loan checks within minutes. No mention of pricing for a check, but the service would give the Agent and Client confidence if their wanted property is within their budget range for the loan to be approved or not.

MLS platform

MLS, also known as Multi Listing Services is ) is a database established by cooperating real estate agents to provide data about properties for sale. An MLS allows Agents to see one another’s listings of properties for sale with the goal of connecting homebuyers to sellers. Under this arrangement, both the listing and selling Agent benefit by consolidating and sharing information and sharing of commissions.

We find this would be the most interesting announcement yet made to the public, as it’s something that everyone has always wondered if it worked in Malaysia and expectations are running high to see this feature become a reality to help give Agents an edge by enabling quicker deals over a co-agency / co-brokering.

MIEA expect to launch their MLS platform partnership with Cloudron in May 2020, within 2 months after their MAREC Summit in Kuala Lumpur.

The MLS platform would only take in exclusive listings. At the point of data entry, all the details of the property are recorded and will be made available to all Agents on the platform for co-brokering. This may be a hurdle itself for Agents as Malaysia’s real estate market does not practice
Exclusive Listings
 widely.

Most MLS’ tend to offer similar propositions, but yet there are many databases that are subscribed to. to so many database’s itself in the US for example, the most useful ones are usually the ones with the biggest database. For MIEA, this would be quite a feature to pull off, but we will be rooting for them as it does bring up the professional standards of Estate Agents in Malaysia.

Let us know in the comments below if you have your thoughts about any of the services that MIEA plans to launch.

—

TheRooftalks.com
 is a media platform reporting on news and lifestyle on the Real Estate marketing in Malaysia.

If you are in the search for the finest real estate in Kuala Lumpur and Petaling Jaya,
Bumbung.co
 has the best picks for homes with the focus on Tropicana, Ara Damansara, TTDI, Bangsar, Damansara Uptown, Bandar Utama.

Categories

Agent's Guideline
Industry Updates
Market News

Tagged

Edgeprop
Finology
Illegal Agents
Insuretech
Loanstreet
LPPEH
MAREC
MIEA
MIEA Agent Data App
MLS Platform
PEPS
property
Real Estate Agency
Real Estate Agents
RIS

Author

Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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Navigating Coronavirus / Covid-19 Pandemic as a Client and Real Estate Agent/Agency

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 comments

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Soma Sundram

on 5 March, 2020 at 13:22

Reply

A great article capturing the full essence of our thoughts in developing these apps. We are looking fiwr feednack and ideas to help us to move this for the benefit of members.

Soma Sundram

CEO -MIEA

Gadiy Lim

on 19 March, 2020 at 20:38

Reply

Keep the good work up at MIEA!

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Navigating Coronavirus / Covid-19 Pandemic as a Client and Real Estate Agent/Agency

The recent Covid-19 pandemic has affected the livelihoods of many, and it continues to spread if no measures are taken to control the situation. Across the globe. Yesterday, 16 March at 10pm (Kuala Lumpur time), Malaysia’s Prime Minister Muhyiddin Yassin announced a 14-day Restricted Movement Order (18-31 March 2020), where the following is enforced:

Blanket ban on public gatherings.

Shut down of all businesses and places of worship, except for supermarkets, wet markets, grocery and convenience stores.

Overseas travel ban for all Malaysians (returning citizens must undergo 14-day self-quarantine).

Shut down of all schools.

Shut down of all colleges and universities.

All private and public services will be suspended except for essential services

This is in order to contain the virus and help prevent the situation from getting bad to worse.

You can read PM Muhyiddin’s transcript
here
, and what falls under the essential services
here
.

Now that you understand what’s going on, here’s
what Clients (buyers/sellers) and Real Estate Agents / Negotiators can do to make the best out of the Coronavirus, Covid-19 quarantine
 on movement restriction.

Keep calm. Understand what’s going on and how this affects everyone. Most Importantly, communicate with your Agents/Clients.

The truth is, many industries are affected by the pandemic, not just real estate.

We identified and broke down the effects of where the Coronavirus impact would affect the public;

People influx =
 Affects Travel, Tourism, and Education.

Supply chains =  Industry & Factory lines in outbreak hotspots and with specialized production.

Goods trade =
 Pause Global imports of discretionary consumer goods, potentially capital goods.

Commodity/stock prices = Travel impacts oil, weaker investment affects iron ore and coal.

Financial Institutions = Depends on Risk-asset volatility. Stocks and Equity prices have dropped, and credit spreads are wider, banks are reducing interest rates.

This global phenomenon allows real estate investment to be an attractive option for investors as a safe haven for their assets as property prices are steady and controlled by the people’s holding power.

Bank Negara has already revised OPR rates by 0.25% yet again in March 2020 while signs are showing that they may further reduce it again. (Read about our recent
OPR coverage here
)

For Owners & Buyers

This direct impact has enabled two Options;

A
Surge of buyer’s demand
. As other investment options become weaker, existing and new Investors need another vehicle to ride out until the market recovers which can take anywhere between 2-5 years. Within that period of time, your property would have greatly appreciated between 10-40% in its value.

Owners who may have got burnt by the stock market drop or if the Coronavirus has affected their jobs, they may need to reconsolidate funds. This means to
cash in on the disposing of their property assets
 and allowing opportunistic buyers to snap it up.

Agents

If you have any clients involved with any of the above areas, perhaps its time to let them know that you are going to be around to help them out with any of their property concerns.

It would serve as a good reminder to tell them regarding what you do. Because of the economic impact, they may need to sell, stay put, or move assets around, thus, making you the ideal person to work with and secure their current/future assets. This should be a good start to identify their needs during this situation.

It’s time to pick up the phone and call. Don’t just text. Apart from just sending forwarded updates on the Coronavirus status/announcements, you should be able to add value and be sensitive to their Real Estate needs.

If a viewing must go on, do it via a Video Call instead of meeting up.

Many businesses have shifted operations to WFH (Work From Home) or take a compulsory leave during this lockdown (movement restriction) period. It’s a good start for all, but Agents have already got in a game of working from anywhere. However, this will affect all home showings for both Client and Agents.

We understand that both clients and Agents are excited to grab a good deal before it slips away, but do be very cautious about it, and if they still would like to see homes during the weekend, propose to do a video call instead and make the digital appointment. Better yet is to postpone the showing until the quarantine lockdown period is lifted. We all need to be cautious during these worrying times to prevent the spread of the Coronavirus.

Despite the warning, we’ve heard that some individuals; both clients and agents are still going ahead with appointments. It’s actually NOT ADVISED as you may be fined by the local authorities for not following the order. In the near future once the showing bans are lifted, it is still advisable to be safe and follow these steps below:

Do not show the property to multiple people at once;

Be present at the home 15 minutes earlier, and open all windows/doors to air the house (remove the stale air and odour to prevent sneezing).

Keep a safe distance between you and your client (at least 1 meter away). Make sure to not get too close;

Advise people in the home to not touch anything or come into contact with the objects in the home;

Ask those coming into the home to immediately wash their hands with soap or provide them with a hand sanitzer when they arrive.

Additional: Bring a Clorox wipe for your clients, if they’d like to open/close cupboards, doorknobs, or handles, encourage them to use the wipe first before engaging.

We hope by following the steps above, you would keep everyone safe. Knowing that what we do could put an end to the pandemic, it will be better for everyone when the market begins to recover.

For more information on how the virus spreads and how to take precautions, watch WHO’s infographic video here:

For Agencies: If you’re managing a brokerage, it’s not too late to get into the game to move everything to the cloud. Better late than never.

Disruption is upon many industries, though it remains uniquely impossible to completely replace Agents with tech, it’s still a good start to move processes and management of people, lead generation, marketing, CRM and sales tools to an online platform to manage the load of having a physical Real Estate Office.

Since things are changing, the Coronavirus is actually speeding the timeline up for Proptech to be widely adopted by Real Estate Agencies.

Managing a Real Estate Agency is never easy, especially if your Agents rely on coming into the office to use resources to report, get training, manage their leads, meetings and deal flow, it’s important to know what are the components that could be digitalised for the convenience of your team without the confusing steps or interface.

In many matured cities, leveraging on technology from an Agency level is a very powerful tool to retain Agents and keep them moving forward. The timing couldn’t be more impeccable especially with the restricted movements that encourage Agents to work individually by their own but yet remain connected and work doesn’t stop.

What are some of the smart tools are you seeing in your local Agencies today?

If you’re in the market looking to buy or rent Real Estate in the hot areas of TTDI, Bangsar, Petaling Jaya, Tropicana, Damansara Uptown, Bandar Utama, Ara Damansara and Saujana; you can start your search or list your home with
Bumbung.co
, a listing platform for the finest properties in the Klang Valley.

Categories

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Buying and Renting Guides
Inside Bumbung
Market News

Tagged

buyers
coronavirus
covid19
proptech
Real Estate Agency
sellers
work from home

Author

Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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Rights & Responsibilities as a Tenant + Must Do's

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Rights & Responsibilities as a Tenant + Must Do’s

As a tenant, finding the right home marks the end of weeks of tiring work and tedious search. The moment you sign that Tenancy Agreement, you have yourself the dream home. The rules outlined in that Tenancy Agreement bestow some
rights
 on you and impose other responsibilities.

The Process of a Tenancy Agreement starts from securing the premise with an earnest deposit that commonly represents the first-month rent to executing the Tenancy Agreement with a 2-month security deposit & half a-month utility deposit leading towards a smooth hand-over of vacant possession.

Both landlord & tenant agrees to a mutual covenant of individual responsibility and embarks onto a relationship that exchanges
rest
for
rental revenue.

So why don’t you leverage for the best tenancy option?

Due to the lack in implementation of a Residential Tenancy Act, covenants in tenancy agreement are currently the only governing tenancy practices.

Here are 8 MUST DO’s when negotiating for a Tenancy Agreement;

Upon paying Monthly Rental, you are entitled to peaceably occupy and enjoy the Demised Premise without any interruption from the Landlord or any persons rightfully claiming through under or in the trust for him.

The renewal of lease shall be negotiated two-month prior to the expiry of the agreement and if a termination upon expiry is intended, it should be properly communicated and documented via email or post.

Although the Landlord has the right to renew a tenancy at a revised rate, the tenant has the right to pre-determine the revisable rate in the agreement.

Insist to have your Real Estate Negotiator (REN)
 list all inventories that are part of the property’s content and its current conditions, the items should be itemised and thoroughly documented in an appendix to remove any doubts/misunderstanding that may come between the Landlord and you upon the tenancy’s termination/return of vacant possession.

If the place requires any fixes or repairs, it should be mentioned in the appendix to allow the Landlord and or REN to work have someone to fix it under a fair time.

To disapprove of any sale showing during the duration of the tenancy.
However
, some case permits you to negotiate with the Landlord to receive
favourable terms.

Minor repairs & typical home maintenance are usually costs borne by the tenant, eg. Air-conditioning, these changes are usually
capped within RM300.00 on a single item.
Any cost above could be discussed with the Landlord to share the cost burden too.

Negotiate for Curtain & Shears to be steamed clean. However, this also works as a double-edged sword as the Landlord will then command the same upon the end of the tenancy.

Obviously , anyone would want to get the
best in each & every deal
. However, we need to understand that not every Landlord is the same.

Must-Know Terms of the Tenancy Agreement in Malaysia.

How to negotiate a favourable Tenancy Agreement?

You also have some responsibilities to show towards the property in a Tenancy Agreement. Because you’re only leasing the property, you’re supposed to abide by some rules, a tenancy agreement outlines many of these rules; but to get the
best value and flexibility,
try building on relations with the Landlord by giving them a reason to believe you and thus creating leverage.

Taking care of the premises to ensure that you hand it over in good order to the Landlord upon vacating the property as it was when it was first occupied by you.

Maintain the premises in a neat & tidy manner throughout the Tenancy period.

Ensure that the utilities are taken care of on-time throughout the Tenancy period.

Ensure that the property is being used accordingly to the stated purpose in the tenancy agreement.

Be Responsible for any damaged caused to the property throughout the Tenancy period.

Be more independent about solving minor problems throughout the Tenancy period.

Ensure that air-conditioner is serviced twice yearly, for air conditioner units which are under-utilised, once yearly throughout the tenancy period.

Obliging to the management house rule (if any) throughout the tenancy period.

To attract a good deal, one need to practice living in a good deal.

Responsibilities towards being a tenant are unique to each property. Breach of any obligation is grounds for legal action.

If you perform your duties properly and exercise your rights, you should have a happy stay on the property. Above all, maintain a healthy relationship with your Landlord.

To broaden your understanding, you could read more about house rental agreements
here.

The article was a collaboration with guest author, Roxana

A writer by calling and an academic, has created scintillating and remarkable content for dozens of websites in the purview of the Business Sector. She has a fair understanding of the inner workings of several business establishments, the agreements required to meet these establishments, that makes her the foremost expert in this field.

If you’re considering a place to Rent, why not check out Uptown Residences?

Live in the heart of Damansara Utama, minutes away from the MRT and located at The Starling Mall. Click the image to learn more:

Bumbung.co has the most complete list of Apartment/Condominium units at Uptown Residence, Damansara Utama.

Categories

Buying and Renting Guides
Renting

Tagged

For Rent
landlord
Lease Agreement
Long term rental
property
property price
real esate
rental
Rental Document
renting
Residential
Short Term Rental
Tenancy
Tenancy Agreement

Author

Gadiy Lim

Co-founder of Bumbung.co.
A tech enthusiast seeking beautiful homes. Sometimes I write.

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How can Home Owners benefit from BNM’s 6-month loan deferment?

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 comment

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Zack Ng

on 26 March, 2020 at 20:01

Reply

Thanks for the insight of being a real estate negotiator, but does it apply across all tenancy that you guys have experience or is it assumption that it would be negotiable with landlord for the above terms.

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