10 DIY Ways to Boost Your Property Market Value

One of the biggest financial decisions a person will ever have comes with selling their home, mainly because a large chunk of an average homeowner’s wealth comes from the value of their property. Precautionary methods can and should be taken in order to ensure the market value of selling one’s home is maximized. With a little effort put in through some pointers that’ll guarantee to help put forth the desirability of your home. Here are some tips and tricks to help boost property value!

Fixtures

A house can be killer depending on the effort put into maintaining the property’s structural skeleton. Loose railings, tiles sticking out from the floor and other troubles in the home may induce injuries and disrupt the tranquility of a home.  Fixing these structural problems will safeguard the increment of value of your property throughout the selling period.

Pop of Color

Weather and wear would have eventually taken a toll on the physical outlook of you house. Stained paint from heavy rains would be worn down and cracked from the sheer heat of the afternoon sun, causing your house to look aged. With some paint, brushes and coverage for your clothes, slapping on a fresh coat of paint onto your home can easily sky rocketing the appeal of your property. Fun weekend activity idea, anyone?

Go Green

Meant literally, planting trees around your home adds an attractive valued touch to your home. Though trees take a longer time to grow, the shade provided on the long term can offer protection for your paint from the wrath of the sun while dropping the overall temperature. Trees that bear fruits and or nuts are an added plus point!

Go Local

Surrounding your property with home grown plants and foliage can also give your house an extra layer of coverage for a dash of privacy. The best part of using home grown local plants is the ease of maintaining their health and growth, appealing to the crowd that would rather spend minimum effort in the garden.

Spotless Home, Spotless Mind

A clean house will always be a sight for sore eyes and attract more foot traffic. Being the cheapest method to ensure an attractive house, a simple sweep and mop alone can make a difference. Arranging furniture, polishing metal fixtures and reducing clutter may open up space and opportunities for your home never before imagined.

Save Energy

A little energy has to be put in to save energy on the long term. Replacing old bulbs with LED bulbs or even installing solar panels boosts energy efficiency and lowers the cost of living on the property. This would appeal to the environmentalist crowd and to anyone who values a little reduction in long term costs.

Magic Carpet Ride

Contrary to popular belief, carpets do not increase in value after the wear and tear. In addition to that, the constant conditioning would have worn out the carpet to a point of non-recognition. Hence,  a brand new carpet can give your interior a pop of color, personality and a breath of fresh air.

Refreshed, Rejoiced

Unappealing smells which indicates poor air quality can be as influential as a bad appearance. Poor air quality may cause respiratory problems and significantly damage the property’s value. Riding on the wave of going green, growing a few indoor plants can help filter the impurities in the air. Also, to further boost your property’s air quality and value, get additional help from an air purifier.

Water Filtration System

Installing a water filter on to any modern faucet would also appeal to environmentalists as it reduces reliance on plastic bottled water, making it a green attribute. Moreover, this added feature shapes a cost efficient and convenient home, slashing off the need to leave the house in order to purchase water.

Request for an Official Assessment

With minimum real estate knowledge, a lot of minor details may be missed out that may end up reducing your property value. Having a thorough inspection done by a professional inspector can help pin point aspects of the property that could make or break that deal.

Writer by Renu the Lame Joke Enthusiast

For more on your prime real estate current reports and written rallying, stay tuned to
TheRoofTalks
. Let us know what you’d like to hear us write on our local property market! Shoot out your questions below in the comment section!

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Introducing PropRebate, the first property cashback platform in Malaysia

An eye opening new platform that kills (connects) convenience and property cashback benefits with one stone (your request).

Kuala Lumpur, 8 June 2018 –
Riding on the waves of innovating Malaysia’s real estate industry,
Pepite Technology Sdn Bhd
 is announcing their newly launched property cashback platform,
PropRebate.com
, a service that assists home buyers towards purchasing their dream property in efforts on simplifying and shortening the
long and tedious processes
 that goes along with it.

The local real estate industry being somewhat unshaken by the ever evolving technological revolution over the past years. The overall structure of the industry has been proven outdated and inconvenient. This caused
Gadiy Lim
, the co-founder of
Bumbung.co
 alongside Chief Technology Officer
Ped Rahmati
, who previously served as the Director of Software Engineering at Monster Technologies Malaysia, to bring about the positive change with the disruption of the property purchasing processes by combining a few steps and creating value through cashback benefits.

CTO (Ped) with Co-Founder (Gadiy)

PropRebate
 aims to bring about time and cost efficiency for property buyers. By directly keying in their requirements, the home buyers will be connected with our network of sellers and agents with the 5 relevant listings. With the buyer’s knowledge, a quick check with the bank will verify the buyer for their ability to attain a mortgage loan. For the first time, buyers will no longer be left in the dark knowing that their loan may be rejected (which actually affects the buyer’s ability of attaining a loan next time). The verification of buyers in the buyers report generated by
PropRebate
 will be a bargaining point for Seller’s to act swiftly to secure a serious buyer.

A buyer could also request a property that they’ve already been eyeing on. By getting in touch with
PropRebate
, the property’s Agent / Seller will be invited to the platform by the team.

Once a property is bought / sold,

The buyer uploads their copy of the signed Sales and Purchase Agreement (SPA) to
PropRebate.com
 and can benefit on cash back
.
Cash back benefits begin from
RM1,500
 for the smallest property price of RM300k.

“We understand what property buyers are going through and with today’s listing platforms. The buyers are faced with too much noise among the hundreds of thousands of listings. Which does not help to make home finding easier but instead adds on to time consumption. Fortunately, we took this as an opportunity to create something valuable for our buyers. By innovating the purchasing process that buyers and sellers have to deal with, we ultimately shorten the property acquisition process down to as little steps as possible.” said Gadiy, co-founder of
Proprebate
.

The platform also secondarily acts as a support system to local real estate agents. The platform could be utilized as a lead generation engine, guaranteeing hassle free deals with serious buyers.

When asked about if it’s removing Agents out from the property deals

Lim responded, “
PropRebate

does not remove them, but we engage them for their professional

services
 of handling the opening of premises, deposits and the conveyance of the property.”

“The real estate industry has not been impacted by disruption and has grown to become a market with an infinite supply. We see this as an advantage; our aim is to quickly be the market leader for demand (buyer’s). We’ve seen a positive take as we’ve successfully seen 4 of 5 buyers go on their first property viewing within the same week.” added Lim.

For home seekers looking to experience the latest in Malaysian property technology services in purchasing a home can do so by heading over to
PropRebate.com
 from the
1
st
 of June
 onwards.

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World Refugee Day: How it Feels to Not Have a Home

“These keys remind me of my life, the life I want to go back to.” said Shaima.

The sun peeked through the clouds just like any other day, the smell of toast wafting through the air like a summon to come out of slumber. Getting out of bed was hard, as usual, as eyes slowly focused around the small room. Though its size was laughable to some, for the inhabitants it was sufficient enough to hold an entire family’s memories while still having space for activities – space for children to grow, laugh, and play.

And then there was a big bang.

Unlike the one that gave existence to our universe, this one brought death and destruction, loss and desolation. Before the mind could comprehend what was happening, their bodies felt the impact of the blow.

Fast forward to a few months later and gone was the tiny room that held so much life, so much individuality. That loss meant the absence of safety and security for the family. Without a place to call home, the family was uprooted from their land, left to seek shelter in foreign countries. As a last resort, relying on the benevolence of strangers from an unfamiliar culture and different lifestyle.

But what does it really mean to have a home?

“I don’t have any belongings to remind me of home. I don’t even have memories of my mother’s face,” said Abdul Rahman. “The most important thing I brought with me was my life.”

In conjunction with World Refugee Day, the team behind TheRoofTalks decided to dig a little deeper into what the multicultural refugees in Malaysia have to call home.

Refugees who seek asylum in foreign countries are normally housed in refugee camps where they are fed and facilitated with no decision making rights. This means that they are unable to plan out their lives as they live day-by-day legally within the confines of the camp.

“I brought the report cards to remind my children how well they did in Sri Lanka, to give them hope, and confidence that they have the capability to achieve success again,” Rubba said.

Malaysia, on the other hand, does not have refugee camps; thus, the UNHCR prepares the necessary papers for these refugees to allow them to live freely within the Malaysian community. They are given freewill and agency over determining their own lives. With this freedom comes hardship. Refugees are left to fend for themselves when looking for housing and security.

Armed with only the clothes on their backs and what little money they have in their accounts, they choose to share high-rise low cost apartments with a large number of people to spread out the cost of rent. Often, landlords take advantage of the fact that these refugees are hiding away from the authorities to hike up the cost of their rent.

When their grandmother died, she left for them some things that belonged to her – gold jewelry for the girls, prayer beads, and her beloved red shawl.

Most refugees are completely content with living shoulder to shoulder with their fellow refugees in need, sharing facilities that are sometimes in unsanitary conditions, all in order to ensure everyone has a portion of food in their bellies and a place to sleep at night.

These refugees, who were originally strangers, become a family in these times of crisis and end up building a strong community based on helping each other to rebuild their lives in a foreign land. Many of the members of the community share everything they have despite having their own struggles.

The most important thing he carried with him is a picture of his father. His most fervent wish is to be able to see his father again.

For them, survival beats comfort and helping their fellow survivors is key to rebuilding everything that they had been forced to leave behind – their families, friends, careers, educations, homes, their lives.

These refugees are fully capable of rebuilding their lives but they still require all the help they can get. By helping them to become self-sufficient, you are aiding another human to have the dignity of life that we all are entitled to.

The most precious items they carried with them were their traditional attire.

To contribute to these refugees, please do head on over to
http://www.unhcr.org/en-my/world-refugee-day.html
.

Written by: Renu & Sheldon, in support of the aid of refugees #WithRefugees

Images are courtesy of the UNHCR.

This article was brought to you by
PropRebate.com

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Hidden Gem Bookstores In Malaysia

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Hidden Gem Bookstores In Malaysia

List of Bookstores in Malaysia For Every Book Enthusiasts and Bibliophiles Out There

Are you an ardent bibliophile who always has your nose continuously in a book?

Most of us would go to conventional bookstores, but did you know that there a lot of hidden gems of bookstores out there?

Hence, we present to you the bibliophile guide of notable underrated bookstores.

LIT BOOKS

Located at Tropicana Avenue in Petaling Jaya, Lit Books had the origin of its name inspired by the quote “Good books light up our world”.

Min Hun and Elaine, the owners of Lit Book, are a husband and wife duo who were former journalists. They chose the word “Lit” as it can offer different connotations such as illumined or even literacy and literature.

The brains behind Lits Books are avid readers themselves

To represent Lit Book and encapsulate their branding as a whole, a firefly was chosen to be its logo as it signifies the literal meaning of their bookstore.

The owners chose a firefly as their mascot.

They also have a book review section on their website called the Lit Review column where Elaine is the main reviewer with occasional reviews by guests.

Aside from selling books, they also sell literary-themed merchandise and trinkets from the US and UK.

What’s more fun is that the bookstore comes with a boutique cafe called the Lit Bar equipped with Nespresso Coffee and specialty teas!

Next to the Lit Bar situated a spacey working area for people to enjoy their time there.

Location
: Unit P-1-11, Level 1, Tropicana Avenue, 12 Jalan Persiaran Tropicana, 47810, Petaling Jaya, Selangor

Tel
: +603 7886 6988

Opening Hours

Monday:
Closed

Tuesday: 1pm to 9pm

Wednesday to Sunday: 11am to 9pm

BOOKALICIOUS!

Avid reader Leon Ngai decided to open up a family business with his wife, Wendy Chow. Leon describes Bookalicious, started in April 2010, as a boutique bookstore selling great books at a competitive price.

Bookalicious front store view shows multiple promotions.

The Bookalicious mascot is a cow named Theodore, along with a dog called Mimi who was inspired by Ngai’s pet poodle.

Leon himself drew the mascot for Bookalicious.

Located at The Summit USJ, Bookalicious caters to book lover from different walks of life ranging from children’s books, young adults, as well as some good old classics.

Finally, Bookalicous fans know that they can rely on Leon’s suggestions of books if they are ever stuck on what kind of reading material they should get.

According to Leon, it is the greatest honour to be given this propriety by his customers.

Location
: Lot G22, Ground Floor, The Summit Subang USJ, 47650, Subang Jaya

Tel
: 03-8023 7548

Opening hours
: Daily 12:30pm – 9:30pm

BookXcess

BookXcess is considered to be the underdog if it was to be compared to its competitors in the likes of MPH or Popular, but this underdog proved to be one the best bookstore you visit in Malaysia.

In addition to becoming one of the main sponsors of the massive book convention “Big Bad Wolf,” BookXcess offers one of the biggest discounts you can get in comparisons to other bookstores, offering up to 50% till 80% discount of the full price.

How did they manage to sell these books at such a low price? Through purchasing the remaining unsold books directly from publishers.

The most noteworthy information is that these books sold by BookXcess are not secondhand, damaged, or old but are brand new titles.

Furthermore, BookXcess recently launched a new store that is open for 24 hours located in Tamarind Square, Cyberjaya that encompasses the theme of a library with a massive amount of 250,000 books.

The wide space of BookXcess store in Tamarind Square, Cyberjaya

The range of books aside, this BookXcess location also offers WiFi connection and plug points for those who wish to work or even do a little bit of studying.

Aside from the one in Cyberjaya, you may also visit the other branches such as the one at Amcorp Mall and Starling Mall situated in Petaling Jaya.

Also, you could opt to go to the one in Farenheit88 in Kuala Lumpur or at Centro Mall in Klang.

The original car park signs were kept to emphasise on the uniqueness of BookXcess Tamarind Square.

Most of all, if you are a fan of secondhand books and just love the smell of a good old book, we would recommend you to drop by these places.

KEDAI BUKU

Yes, you read that right. It’s the witty name of the bookstore.

Apparently, this bookshop has been in existent since 1986. Mr Muru who runs Kedai Buku offers a varied range of pre-loved fictional books with a few selections of travel guides and magazines. And, if you are lucky enough, you might find a hidden stash of new books.

Amongst the bustling area of Central Market, located a recession-proof bookstore called Kedai Buku.

Kedai Buku also offers a book rental program. If you return the book to the shop within a month, you’ll get a refund that equals to the amount you bought it with a small rental charge of RM2-RM3.

It can be seen that the books in the shop lined up from the floor up to the ceiling.

Location
: Lot G54, Ground Floor, Central Market, Jalan Hang Kasturi, 50050, Kuala Lumpur.

Tel
: 03-8023 7548

Opening hours
: Daily 10:00 am – 9:30 pm

JUNK BOOKSTORE

The most noteworthy point is that this ordinary bookstore located at Jalan Tun H. S. Lee was awarded the title of “Largest Secondhand Bookstore” by Malaysia Book of Records in 1998.

Amongst the hustle and bustle of a city is this rare gem of a secondhand bookstore.

Junk Bookstore is a go-to place for book collectors alike due to the fact that this is the place to find rare first editions, out-of-print books. Moreover, they also sell comics and autobiographies.

Furthermore, the price of the books sold here depends on the customer’s values on it and how much money would they be willing to spend to get their hands on a rare gem of a book. Hence, collector’s edition could be pricier than the normal version.

It is not surprising that Junk Bookstore once managed to sell an RM8,000 book on Malayan History and British Colonial era.

Location
: Junk Book Store, 78 Jalan Tun H. S. Lee, 50050 Kuala Lumpur.

So whether you are a fan of new releases or a fan of musty-smelling secondhand books, there will always be places for bookworms to get their hand on their favourite. Most of all, if you look hard enough, you might find hidden gems that will be worth a keep.

For more on the ups and downs of the Malaysian Property Industry or just interesting topics, head on over to our new site,
TheRoofTalks
.

Written by: Diyana.

Lit Book

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Why You Should Buy a Property Now

The locals rejoiced when told that the dreaded Goods and Services Tax or most antagonistically known as GST was being lowered to a mind blowing 0%. Though, be warned that technically GST is not gone. It’s value had been reduced to 0%. Parliament would have to convene in order to completely abolish the tax but it will most probably be replaced with the preciously implemented Sales and Services Tax (SST) come 1st of September. This is why you should buy a property now.

So why would it be best to lock down and sign that Sales and Purchase Agreement on your new property now?

In order to answer that question we’d have to first understand how the Goods and Services Tax effected the real estate market since it’s implementation.

Commercial Properties

Commercial properties such as shop houses and office spaces were subjected to the standard rate of 6% GST on top of pricing hikes due to construction materials being subjected to the same tax. Hence, buyers were paying double the taxes due to the space itself as well as the foundation of the building.

Residential Properties

Residential Properties also saw a price hike during the implementation of the tax despite being GST-exempted. The application of GST towards construction materials caused residential properties to also feel the wrath of the Goods and Services Tax.

The tables below show a comparison between the cost of a
new
 property before and after GST.

The example above shows a price increase of
3.41%
 for
new
 residential properties post-GST implementation. But there is a plus point to this.

With that being said, why should you buy a property now?

Due to GST being zeroed out, developers; consultants and analysts have predicted a 2% to 6% price drop. This comes with the reduction of the Goods and Services Tax from commercial properties as well as construction materials.

Many contractors often purchase a bulk of materials at one go. The market may take a while before fully reacting to the drop in construction material prices. Contractors would have to first utilize the materials they have in their inventory.

Whereas, there are developers who are leveraging on the announcement and festivities. They are promoting significantly lowered prices to early bird buyers as a marketing strategy. Others are foreseen to follow suit in order to not be left behind during this time of economical change.

Interested home buyers should take advantage of this stable period before the market takes that unpredictable turn with possible implementation of SST, which of course, we will be looking out for, right here at The Roof Talks.

Written by: Renu

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Freehold vs Leasehold. What's the Difference?

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Freehold vs Leasehold. What’s the Difference?

Freehold and Leasehold. Which one should you go for when buying a property?

Ever heard the term leasehold and freehold while you are browsing for properties? Did you wonder on what’s the difference between them?

Did you know that for the property transaction, Malaysia uses the Torren system to certify the ownership of the property? It is a system for registration of ownership through title and it records all the transaction involving dealings and interest.

In this certificate of title that contains the details of the land along with the information on whether the property is a leasehold or a freehold property.

Freehold Properties. The benefits and the drawbacks.

A freehold property is a property that is disposed to the owner in perpetuity by the state. In other words, a plot of land is set aside by the government and is given indefinitely to an individual.

Type of property that can be associated with freehold are condominiums, private housing, and bungalows.

The most notable perk of purchasing a freehold property is that there will be fewer regulations and conditions should the owner like to transfer the ownership of the property.

The owner also has the right to subdivide and allocate the land but it is subjected to the town planning controls.

One of the drawbacks of having a freehold property is that for public purposes (transportation, economic development etc) the state has the authority to take back the freehold land but it will be compensated.

This is stated in the Land Acquisition Act 1960.  But if there is no upcoming development on the land, the state cannot claim the land from the owner.

In some cases, a number of freehold properties need consent from the state if a transfer of ownership is to be done as it were originally leasehold that was converted to freehold.

 Leasehold Properties. The pros and cons

Leasehold, on the other hand, is the state’s government property or land that is being leased with a fixed amount of years to the public. The years could be varied within the range 30, 60, 99 or it can be up to 999 years.

The ownership of the property will then be given back to that government upon the expiration of the lease.

If the owner decided to renew or extend the lease, consent must be obtained from the state government with a premium that is based on the percentage of a similar freehold property market value.

The restrictions and regulation are usually stated in the lease itself. Inability to follow through this compliance might cause the tenant to be declared as unfit and the security for the tenure might be compromised.

In order for one to sell a leasehold property, you need to get the consent from the state before starting the sale that could take up to 6 months or maybe even a year.

For cases like purchasing a secondhand leasehold property in Selangor and Kuala Lumpur, the paperwork for the ownership transfer might take up to a year or more dependent on the number of consent requests.

Even though the value of a leasehold property has more value than a freehold property during its earlier years, once it reaches 30 years, the value will remain static or even declining until it reaches its expiry.

From a financial perspective, it is harder to get a loan if you are looking to purchase a leasehold property with less than 50 years remaining on the lease. Banks usually only cater to lenders who are applying for a property with at least 75 years remaining on the lease.

You might have to allocate a little bit more cash on the down payment if your application does get through with less than 50 years as the loan amount will be lesser than 90%.

So, what’s the verdict?

The final decision on whether one should go for a freehold or a leasehold property is dependent on the person’s perspective. This is where housing affordability and how one balances the pros and cons between the two comes into play. If you prefer to own a property with a bigger sense of ownership then you should go for a freehold property, but if one is opting for a cheaper option, then a leasehold property is the route to go to as it is usually 20% cheaper than a freehold property with more amenities and convenience provided by the developer.

Written by Diyana.

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Bumbung.co is Shifting Gears

Malaysia’s leading proptech platform is looking at new horizons to further innovate the property acquisition process.

Kuala Lumpur, July 2018 –
After two years of disrupting the real estate scene in Malaysia,
Bumbung.co
 has decided to change tracks by pivoting their attention towards improving, upgrading and creating awareness for their subsidiary platforms,
PropRebate
 and
PropDIY
. The aim of the move is to ensure improved value added services refined for home buyers, home owners and real estate agents alike.

PropRebate.com
, which was launched to the public as of the 1
st
 of June, has not only received rave reviews from those who have utilised the platform to purchase their new property but also still holds the title of Malaysia’s First and Only Property Cashback Platform.

Propdiy.com
 on the other hand will launch soon towards August and its focus is to help home owners to bring their property to market and sell their own property without an Agent. The team behind the platform ensures that the home owner’s property is listed at the right places without being “promised” by the Agents for a sale. From advertising to all platforms across to signages, open houses and identity protection, the team has put together collaterals across different channels that targets the right audience for your property listing. The crux to getting a fast deal is to be sure that your property is seen marketed.

Bumbung.co
 created these platforms to differentiate the needs and requirements of both home buyers and home owners while also addressing the lack of a support system for real estate agents to acquire solid leads in the property business. The main goal is to ensure refined solutions for the problems faced by both sides of the property acquisition transaction process.

Bumbung.co
 will change its direction from a marketplace module to a service platform that houses both
PropRebate
 and
PropDIY
 for the buyer and home-owner needs. Continue to expect great features that will improve and simplify the property acquisition experience in the Malaysia real estate scene.

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How Real Estate Agents Can Stay Relevant in The PropTech Era

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How Real Estate Agents Can Stay Relevant in The PropTech Era

The real estate industry in Malaysia has been going through a metamorphosis with technological innovations, though there is one aspect of the real estate scene that has yet to be directly effected by such advancements, which are the real estate agents.

Despite the fact that real estate agents have yet to be effected by digitization, they also face multiple challenges that come with the disruption including:

Spending insane amounts of money buying packages from various online classified portals

Not having time to upload their listings on the many online classified portals

Listings on online classified portals have a tendency of getting lost between the clutter of the millions of other listings

Identifying and filtering out buyers from agents with hidden agendas

Filtering out serious buyers from window shoppers

So, how can real estate agents stay relevant throughout the innovation of Property Technology in Malaysia?

It is important for real estate agents to take advantage of property transaction data available online, to provide accurate and timely information that could help with customer retention, from sources such as:

EdgeProp.my

the National Property Information Centre (Napic)

There are also innovative sources helping agents to connect with potential buyers who will least likely waste their time and resources and more likely to close a deal, such as:

PropRebate.com
 (Real estate agents will be provided with serious buyers with pre-approved loans, filtering out window shopping buyers. This guarantees 0% chances of crafted deals collapsing at the last minute due to the buyer’s financials.)

By utilizing such platforms, agents can give themselves an advantage over the competition.

It is understandable that many real estate agents turn away from the rise of property technology in fear. Though the property industry might become a scarier place if these advancements go underutilized.

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Home Owners From Hell

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Home Owners From Hell

So, you want to sell your property. The first thing you would do is contact and hire a real estate agent with two goals in mind, selling off your property as soon as possible and helping you get a sweet price out of it. But who would know the awesomeness of your property than yourself, right?

Well, before you get a little too involved in the process, here’s a little guide as to how to not get on the wrong side of your real estate agent as he or she is going about their job.

Here are 5 things home owners do that real estate agents hate

1) Sticking Around for Showings

Interested buyers often feel like they’re intruding in your daily routines if you are seen around your property. The potential buyer will most likely cut the tour short even if they have yet to see everything that needs to be seen.

2) Overhyping Upgrades

Not everyone will consider an upgrade to be an upgrade. Plush new carpeting won’t go well with potential buyers with allergies while your new heated bathroom floors may be considered a costly feature to maintain on the long term.

3) Promising Repairs, but not following up

Especially if the repairs have been included in the offer. Real estate agents then would have to pressure you as the client into making the repairs which may lead to you getting upset. This puts the agent in a really awkward position between an angry potential buyer and an upset seller.

4) Leaving a Mess

Just because the photos have been taken does not mean you can leave your dishes everywhere. Clean and tidy houses make viewings and tours a much more pleasant experience. A messy property can look like it’s worth a lot less than what it’s on the market for.

5) Getting greedy

When you agree on a price and list your home, you’ll typically receive offers that come in around a range of pricing close to asking. If you agree on a price and list your home, but another home pops up for a higher asking, resist the urge to relist your home at a higher value.

Have you made any of these mistakes?

As a owner selling off your property, you should know a thing or two about RPGT huh? Oh, you don’t? Let us
guide
 you.

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The Do’s and Don’t of Property Feng Shui

Planning to buy a new home in the near future? You’ve surely thought of the positioning of furniture and interior design, but have you also considered the Feng Shui of the house?

Feng means “wind” and Shui means “water”.

The combination of both wind and water is associated with good health. Thus, good Feng Shui promises good fortune, happiness, and a combination of other harmonious vibrations.

Feng Shui is the subtle art of balance and harmonization of energies in any given space. It has it’s own impact on some of the interior design or the architectural layout of a property or space.

Those who practice Feng Shui put a lot of thought into it before buying a property. The determining factor to their purchase decision will in the end be the quality of energy that surrounds the property.

Speaking of surroundings, good Feng Shui calls for the outer environment of the house to be a little less balanced, with a bigger sized backyard compared to a bigger front yard.

The main focus of a house with good Feng Shui?

A sturdy front door that receives the energy or otherwise known as Chi. The things to look at for a good front door is its size and proportion as well as the pathway that leads to it. But also hold in mind to ensure that all the doors in the house do not have a direct door alignment because this will cause a loss of energy as there is a strong rush of Chi.

To maintain the good energy flow of Chi in the house, several factors should be considered in the house selection. Is it good to note whether the staircase is facing the front door, bathroom or closet door? Is there a wall as soon as you come in? And whether the upstairs bathroom is above the front door? Best to avoid all of these to keep the good energy embodiment.

Though there’s always a negative side of things to balance out positive energy.

For Feng Shui, it is called the Sa Chi, which is also known as the attacking or killing energy.

Attacking energy can be found either outside or inside of a house. A cluttered house, with lack of order, will result in an indoor Sa Chi environment. A method to reduce this is to do space clearing every once in a while.

Sa Chi also comes from a sharp angle wall that is pointing towards your bed. This ‘poison arrow’ gives out attacking energy directed towards your body, so keep in mind where you place your bed in your home.

To prevent Sa Chi energy from entering your house from the outside, it is best to ensure that there are no sharp objects or structures pointed towards your doors or windows. An example of this would be if a big bare tree branch was pointing towards your door.

These elements are crucial if you are looking for a house with good Feng Shui and minimal Sa Chi.

But what are some extra signs that say its a good one?

Some things that you should look out for is the surrounding environment. Is your future home close to a T-junction or railroad? Does the backyard have a slope? A good method to enhance your outdoor Feng Shui is to create a beautiful garden outside your house.

Second, is a clear flow or Chi rush of from front door. Good energy should be able to enter the property without anything blocking its path. Your main entrance also plays an important role, where the moment you first step in the house, what is the first thing you see? Is the view from your entrance blocked with a bathroom or stairs? A good flow of energy is where the energy is channeled throughout all the room.

Always keep an eye on the Feng Shui vibe in your kitchen, bathroom, and bedroom. These three common areas play an important role in the overall Feng Shui of your house and is fundamental for a house with good feng shui.

And lastly, once you build a strong foundation, this energy should be maintained regularly, to keep it flowing rather than having it blocked or becoming stagnant by clutter. So it is important to do some space clearing from time to time.

Good Feng Shui means good energy, and good energy makes up the idealistic lifestyle people are always searching for. This will help you to sell the house in the future, so it is worthwhile to spend some time and effort to take care of the property’s Feng Shui energy.

If you are looking for a new home with a good Feng Shui vibe, head on to
Bumbung.co
  to find your next ideal home.

Written by: Diyana

The Spruce, Feng Shui

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SURVEY: Help Us Build The Future Malaysia’s Online Property Platforms

The Malaysian property industry saw a digital evolution back in 2008, with the rise of online property platforms like iProperty and PropertyGuru. Ten years later, we’re still only exposed to such platforms with little to no innovative changes based on the growing needs of the masses.

Bumbung.co
 has taken it upon themselves to construct a new online marketplace platform with improved user experiences for both property buyers and sellers alike. But, they need your help.

In order to build a marketplace for the people, further information is needed.

Be part of the future of online property platforms by letting your opinions be known!

Share your thoughts with a simple 5 minute survey:

For Buyers and Tenants:
https://goo.gl/forms/f79iQPrjiWIEl8WF3

For Sellers and Real Estate Agents:
https://goo.gl/forms/Vk60sij3YQYGZj9y2

Your feedback is fundamental for the framework of future property marketplace platforms. The future of proptech is in your hands. Bumbung thanks you!

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The Ultimate Property Guide: First Time Home Buyers

The biggest goal I think I can achieve in adulthood could possibly be becoming a first time home buyer, marking the point in my life where I can finally say, I am financially stable enough.

But what I didn’t know was how to actually go through the process, expecting it to be like online shopping on Lazada. Boy, was I wrong and I know I’m not the only one. Hence, this one goes out to all my millennials out there scratching their heads over the process of buying their first home.

Let’s dive straight in, shall we?

Step One: Figuring out if you’re completely ready

To purchase your own home is to be tied down to one particular location for a long time hence, if you’re a person that has to move around a lot, being tied down to one property in one location may not be a good idea for you.

To be ready is also to be prepared to expend a third of your salary a month on monthly installments. This is also where you should also be prepared for a credit check with a bank to ensure your eligibility for a mortgage loan, assuming you don’t already have a lot of other financial commitments to juggle.

And let’s not forget the finances that will go into paying the down payment for the property as well as legal fees for the documentation required.

With all of that taken into consideration, this is where you ask yourself, are you really ready?

If yes, please read on.

Step Two: Finding a suitable property

Here’s where we can cut to the chase. At this stage, you know what you want (or can afford) and where you want it (or where you can afford it to be). The location of the property may very well be the most important aspect of it as the location can make or break it’s market value (property values can change according to the condition of the property as well as its surroundings.)

Hence, it’s always smarter to find a property that is closer to your workplace, while surrounded by the amenities that you’ll need on a routinely basis such as grocery stores, accessibility to highways, schools (if you’re into children),petrol stations and so forth.

Other aspects to look at would be the sizing of the property as well as number of bedrooms and bathrooms. Once you’ve picked out and viewed a property of your liking, you’re going to have to proceed with step 3.

Step Three: Eligibility for Mortgage Loan

Having your credit checked earlier on is ridiculously important as you’ll then know where you stand when it comes to eligibility for mortgage loans. It’s also important to ensure you pick the mortgage loan from a bank with the lowest interest rates.

Picking the lowest interest rate is important as during the first few years through your mortgage loan, the majority of your monthly repayments will be utilized to repay the interest rate and as time passes, a larger portion of the repayments will then go into paying off the principal.

For those who are like me and have no clue what I’m talking about, the principal is the amount that you originally agreed to pay bank whereas the interest is the cost of borrowing the principal.

Step Four: Negotiation and Making an Offer

This is where you should research a little on the valuation of properties in the same vicinity in which you’re looking to purchase as if your valuation turns out lower than the negotiated price, this is when you can offer the property owner a lower pricing that is within the amount agreed upon by the bank.

The importance here is when the property price is higher than the amount that you’re loaning, you’re going to have to fork out the remaining amount to top up the purchase price, which might put a huge dent on your bank account as you’ll also need to allocate a huge sum for stamp duty and legal fees.

If the property owner is desperate to sell, he or she may just accept it but if the owner chooses to counter offer an amount slightly higher, you will then have to come up with your maximum offer, based on the budget that you are working around and the owner will either have to take it or leave it.

Step Five: Legal Processes, Documentation and Payments

Once all the verbal agreements are made, having a lawyer overlook the drafting of the offer letter and Sales and Purchase Agreement.

When hiring a lawyer, it is essential to look for someone who would have your best interests in mind such as a family member or a friend. Some developers do offer complimentary legal services to those who purchase their properties, though you should always keep an eye out as these lawyers will be working with the developers best interest at heart.

Once you’ve gotten your offer letter ready, have it signed and make the first 2% of the down payment, which goes to the agent involved for being the neutral party. The total amount of the down payment is usually 10% of the property price. The remaining 8% should be paid off once you’ve finalized your bank loan and signed the Sales and Purchase Agreement.

But that’s not the last of your payments. Here is a list of other miscellaneous fees you’ll have to deal with:

 Stamp duty for transfer of ownership title (also known as memorandum of transfer or MOT) = 1% for the first RM100,000; 2% on the next RM400,000, and 3% on the subsequent amount.

 Sale & Purchase Agreement (“SPA”) legal fees = 1% for first RM150,000 and 0.7% of remaining value of property within RM1 million

 Stamping for SPA = Less than a hundred Ringgit

 SPA legal disbursement fee = A few hundred Ringgit

 Loan facility agreement legal fees = 1% for first RM150,000 and 0.7% of remaining value of loan within RM1 million

 Stamp duty for loan = 0.5% of loan amount

 Loan Facility Agreement legal disbursement fee = A few hundred Ringgit

 Fee for transfer of ownership title = A few hundred Ringgit

 Mortgage Reducing Term Insurance (ie. think of it as a life insurance for your home loan) = RM1,000 or more (some banks waive this amount)

 Government Tax on Agreements = 6% of total lawyer fees

 Bank processing fee for loan = RM200

*Note: The percentages are based on recommended numbers and industry averages. Actual figures may differ.

Step Six: Handover

Once both lawyers have agreed upon a completion or closing date to be stated on the Sales and Purchase Agreement, where all payments need to completed, the property owner will then have to handover the keys to you (within the number of days specified on the Sales and Purchase Agreement).

Before receiving the keys from the previous owner, ensure to collect the statements and receipts for all the utilities (electricity bills, water bills, sewage bills, etc) showing all the outstanding amounts paid up until the handover date. Do not accept the keys until the seller completes his personal payments in which you can then apply late delivery charges called Liquidated Ascertained Damages.

It’s understandable that this entire process can come off rather complicating, but fear not for along with our First Time Home Buyer series, will be guides to each and every individual step mentioned above to further assist you throughout your journey to buying your first home!

This article was powered by
Bumbung.co
. Having difficulty finding your perfect first home?

Let
Bumbung.co
 lead the way.

Coming up next on the Ultimate Property Guide: First Time Home Buyers Series, we’ll be delving a little deeper into Mortgage Loan Application. Stay tuned!

Written by, Renushara Marudawanan

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Searching for the Right Mortgage Loan

The experience of buying a new house can be a bit intimidating especially when it comes to the process of applying for a mortgage home loan. (Will you get the loan? Will you not get the loan? What will happen if you don’t get the loan?)

Things can get slightly more complicated if the jargon that the banks or the mortgage advisor use seem foreign or even alien to you. Terms like base lending rate or lock-in period can easily get lost in translation.

Fret not for you’re not facing this alone. We’ve decided to create a guide on how you can be well informed on mortgage loans by the time you’re saying yes to your future home.

Caution: This would be a lengthy post, but hey, more information you’ll get from it right? Let’s get started, shall we?

Know The Different Type of Home Loans Available

Am I looking at a
 Term Loan, Semi-Flexi Loan
or a

Full Flexi Loan
? This is particularly important as you need to understand the concept before making the BIG decision that could affect you financially in the next few years. So what’s the difference between these home loans?

Before we got into the contrast of these terms, firstly you need to understand the meaning of
principal
 and
interest
. As mentioned in the previous First Time Home Buyer
article
, the
principal
 is the amount that you originally agreed to pay the bank whereas the
interest
 is the cost of borrowing the principal. And in most cases, the monthly payment that you made is to pay off the interest first instead of the principal amount. So it is best to choose the type of loan that offers you the flexibility to pay for the interest as well as the principal amount owed.

A
 Term Loan
is a

fixed repayment schedule loan. A person who opted for this type of loan would have to stick to the payment amount. In some situation that they decided to pay more than the allocated figure in hope to reduce the principal amount owed, one has to write to the bank to make the arrangement.

And in most cases, if they wish to take out the money in case of an emergency, it won’t be an easy feat. Hence in the first few years, you’ll basically be paying off only the interest and not the principal amount owed.

Sounds rough huh? This was the case quite some time ago. Nowadays the conventional term loan offered by the major banks are mostly Semi-Flexi Loan.

Semi-Flexi Loan
 is a modification of the conventional Term Loan offered by the banks that provided better flexibility. Its a loan option for those who would like to make an additional payment to reduce the amount of principal owed. Although it does not offer full liquidity (access to withdraw the money as one pleases) to its lender, it is flexible enough for one to withdraw the money by simply requesting it via the Internet Banking portal.

However, some banks still require you to write to the bank to make the withdrawal arrangement. Bear in mind as well that this request would incur some processing time and a fee ranging between RM50 to RM100 for each withdrawal.

Full Flexi Loan
, on the other hand, offers full frontal flexibility where the customers are allowed to withdraw or put in money as they please, without any charges or arrangement incurred. A current account is usually attached to the loan. The amount in the current account will be used to deduct the installment (in this case mostly the interest) as scheduled so any additional amount in the account will be used to reduce the principal amount owed. A fee of RM5-10 monthly will also be charged for the maintenance of the account.

Sounds convincing, right? But not all banks offer this type of loan and usually Term Loan offers a better interest rate than a Flexi Loan.

You’re probably wondering which type of home loan you should go for. It actually depends on your financial situation. If you have some extra cash to spend then you should go for a Flexi Loan as it will aid you in saving some interest payable. However, if you don’t have the extra advantage of having cash lying around then go for the Term Loan as it will offer you a better interest rate.

Skim for the Best Interest Rate You Can Get

Always do some research before you go for a particular bank for a home loan to get the best interest rate. Even a minuscule different on the interest rate percentage would implicate thousands of ringgit to your finances. So be wary to the different rate offers by the bank.

One way to discover the interest rate of different banks is to ask mortgage advisers of the banks. If you don’t have the privilege of time to do this, there are few online sites that do comparisons of the different interest rate offers by the different banks. Google for these sites.

Want to know an insider tip? Apply for multiple loans (don’t sign any offer letters yet), and when you receive the offer letters from the banks that you are eligible for, use this as a vantage point, a bargaining tool for you to get a better rate with the bank that you are more keen to get a loan.

Variable Interest Rate or Fixed Interest Rate

Bank Negara regulates the
Base Lending Rate (BLR)
, as is used as the basis to calculate the
Variable Interest Rate (VIR)
, a rate that fluctuates with the market condition.  The BLR will be minus with the variable home rate. As an example, if the BLR is 6.6% and the variable rate for your home loan is -2.3%, then your actual home interest rate (6.6% – 2.3%) is 4.3%.

The
Fixed Interest Rate (FIR)
, on the other hand, remain stagnant during the overall loan period. Say the fixed interest rate is 8% p.a, your outstanding loan amount will be charged at an interest of 8% p.a until the entire loan has been paid off.

It has been known that usually, the FIR has a higher rate compared to VIR. So which one should you opt for? Most people would go for VIR as the rate is usually lower than FIR, however, one should bear in mind that the BLR fluctuates. So if the VIR rise at a very high rate you’ll probably pay for a higher interest rate than the one who opted for FIR. There is no final says in regards to this matter. It is all based on how you counterbalance the benefits and risk of the two type of interest rate.

Be Wary of The Lock-In Period

Aside from paying attention to the interest rate that your paying, you should also be cautious of the
lock-in period
 of your home loan. Lock-in period essentially refers to the period of time that you’ll be charged with a penalty should you decided to pay a full loan.

The rate of the penalty usually varies between 2-3% of the overall loan amount and is usually 3 to 5 years long. What you should consider before determining the lock-in period is the probability of an emergency happening where you’ll have to fork out money, having to sell off your house in order to do so or if you were offered a better interest rate and decided to refinance your home.

The best option would probably be to go for a shorter lock-in period for the purpose of flexibility, but don’t opt for a shorter term if you have to pay a higher interest for it. Nowadays, there are a few banks that offer a loan without a lock-in period, so do your research beforehand.

Loan Legal Charges, How Much You’ll be Paying for it?

Getting a home loan usually comes with
legal loan charges
 that include a loan agreement fee (1% for first RM150,000; 0.7% of the remaining value of loan under RM1 million), stamp duty (0.5% of loan amount), legal disbursement charges and government tax on legal fees.

If you are unsure on how much the total amount is for these loans’ legal charges, there are a few online sites that aid with the calculation by just putting in the basic details of your home loan purchases. And if paying for these charges seems like a heavy burden on your shoulder, look for a home loan that offers ‘zero moving costs’ where the bank usually absorbs some or in certain cases, all of the previously mentioned cost and charges.

However, there’s usually a catch to this. The home loan that offers zero moving cost usually comes with a slightly higher interest rate, so make sure that you have done a thorough calculation on which option would be cost-effective.

Well, that basically covers the overall fundamental information that you need to know regarding a mortgage home loan. Let’s move on how to prepare yourself for the process and documentation.

If you’re financially ready to purchase a new property, head on to bumbung.co to find your dream house.

Documentation & Processes of a Mortgage Loan

You’ve probably chosen the best pick of home loan for your finances by now though preparing the right documents for your home loan application will not be a walk in the park, especially if you don’t know what to compile from scratch.

You don’t have to stress yourself out any longer, as we walk you through the process and the documents required for you to be fully prepared for a mortgage home loan application.

Step 1: Preparing the Necessary Documents

The difference starts from whether you are a hired employee or a self-employed working in Malaysia.

For
hired employees
, you’ll be required to provide the following documents to showcase your creditworthiness and also for the bank to determine whether you’re a commission based earner or receiving a fixed income.

Copy of your Identification Card (NRIC)

Latest 3 months pay slip
 (for Basic Earners)

Latest 3 months personal bank statement
 (Basic Earners) or
6 months
(for Basic + Commission Earners) to prove that your salary is credited in accordance with the pay slip.

Latest KWSP statement

Latest EA form

Income Tax – Latest Form B/BE
 with payment receipt acknowledgment

Copy of Vendor Sales & Purchase Agreement/Title/New Sales & Purchase Agreement

Deposit statement
 (Fixed Deposit, ASB or Bonds) to prove the credibility of your emergencies fund.

Property Booking Receipt

Meanwhile, for those who are
self-employed
 these are the documents that you have to prepare:

Copy of your Identification Card (NRIC)

Latest 6 months Personal Bank statement

Latest 6 months Company Bank statement

Copy of Vendor Sales & Purchase Agreement/Title/New Sales & Purchase Agreement

Deposit statement
 (Fixed Deposit, ASB or Bonds) to prove the credibility of your emergencies fund.

Property Booking Receipt

Business Registration

Step 2: Letter of Offer

After submitting your application, all you have to do now is to wait for the
letter of offer
 to arrive at your doorstep. This will usually take about a week. Some details that you have to pay close attention to are:

Type of Loan

Amount of Loan
: This determines the amount you’re getting from the bank

Purpose of Loan

Description of Property

Duration
: This is in regards to the period (years) given by the bank to pay back the loan

Processing/Set Up Fee:
The amount chargeable by the bank for setting up the loan

Monthly Service Charge

Prevailing Interest and Repayment
: Includes the interest rate and the repayment schedule

Installment:
 Fixed monthly payment to the bank

Security Documents
: The bank will require further documents depending on whether the property has a title or not. (Security documents include Charge Annexure, Facility Agreement, Charge instrument in Form 16A Power of Attorney, Deed of Assignment and Facility Agreement)

Prepayment
: It is when the lender makes an excess of payment. The entitlement of the excess payment will be based on the type of loan.

MRTA/MLTA:
 Most well-known type of housing insurance. This can be part of the mortgage loan with the details of the amount and entitlement

So there you go, folks! These are the necessary information that you ought to know before choosing the right mortgage loan and the requirements to apply for them. Do look out for our next article, where we tackle what are the legal processes, documentation, and payments that you’ll have to counter before you finally seal the deal for that dream home. Looking for a property?
Proprebate.com
 help buyers through the buying process and give them cash back on their purchase. All through verified agents.  Enjoy cashback for every purchase property, visit
Proprebate
 today!

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The Ultimate Property Guide: Legal Documentation and Payments for Beginners

What are the legal documents and payments that you have to go through before sealing the deal for that property purchase? We’ll guide you step by step so you can be fully prepared and aware of what’s coming when you’re planning to purchase a property.

Legal Documents

Sales and Purchase Agreement

It is important for you to evaluate the time frame involving the creating and signing process of
Sales and Purchase Agreement a.k.a. SPA
. This is to prevent you from being charged a late payment interest.

For a freehold property, the standard time frame to complete an SPA is 3 months given depending on whether there are no encumbrances on the property. This is also the case for a property where the individual title has been issued.

The period for a leasehold property, on the other hand, varies depending on several factors such as the preceding condition that has yet to be fulfilled and so forth. A worst-case scenario is where you have to obtain consent from the involved State Authority. This may hinder the SPA period into 6 to 9 months.

(P/s: To know about the difference between a Freehold and Leasehold property, you can refer
here
.)

Once the drafting of the SPA is completed, the next step would be the signing of the SPA, which is usually done in the presence of an attorney as they are required to explain some of the core terms to you.

There are several clauses in the agreement that you should pay close attention to:

Title
: Probably one the most important details that you should focus on. The title will let you know if the seller is the actual owner and if the house is currently charged (meaning the house is put up as security for a loan). It is important to also mentioned in the agreement that the owner will hand over the title to you once the agreement is complete. Basically, this will be the transfer of ownership and is done through a document called
Memorandum of Transfer (MOT).

Free from encumbrance
: This is to protect you from any other claims. For example, if the house is charged by the previous owner, that owner will have to ensure that the charged is cleared before handing the property over to you.

Defect liability period:
This clause is usually for properties that you bought off of a developer in which they would be responsible for any defects in the house for a certain period of time. However, for a sub-sale house, you’ll just have to accept it as it is.

Late payment charges/ Liquidated damages
: Late payment charges is when you fail to pay the developer/seller within the scheduled time, you’ll be liable for an interest charged to you. Liquidated damages are the payment made by the developer/seller to you should they fail to deliver the vacant possession to you within the stipulated time.

Area of the house
: It may sound menial, but should the developer deliver a reduction from the final measurement stated in the agreement, you might be entitled to an adjustment sum.

House plan:
 Describing the layout of the house and design, located in the First Schedule.

Payment schedule
: This is usually the case if you purchase the property from a developer. The payment schedule will state how much you have to pay and by when. However if you’re getting a 90% loan, the bank and a lawyer will be responsible to arrange for the payment but is it good to keep your eyes on that as well.

Another document that usually comes with the SPA is the
Deed of Mutual Covenants (DMC),
 which basically lays out the rules and guidelines that the previous and new homeowner of the property agreed upon among each other. For example, what kind of renovation you can do and how many pets you can have. The DMC only applies when you are purchasing a strata property (a building or collection of buildings that has been divided into ‘lots’).

Loan Agreement

The loan agreement comes with a few documents attached to it. Let’s dive into each of them, shall we?

The
Facilities Agreement (FA)
 is the main loan agreement and the facilities refer to the money that the bank will loan to you. It is pretty much the same for every borrower but what differs is the terms of your loan which is usually drafted in the
Letter Of Offer
 that is attached to the FA. To find out what are the terms that you should be wary in the letter of offer, click here (link mortgage loan).

Another document refers to the assignment of your rights and interest in the property over to your financier (the bank) for the duration of the loan. This document is called the
Deed of Assignment (DOA)
 and is the security aspect of the loan agreement. It states that the house is the security in return of the money. All of the owners of the house (in case of more than one purchaser) must sign the DOA with the consent that the house is being used as security.

Since you’ve signed the DOA giving the bank the rights to your property, the
Power of Attorney (PA)
 will allow the bank to deal with your property on your behalf, hence all of the purchasers are required to sign the Power of Attorney.

Memorandum of Charge (MOC)
 is kind of like a vice versa of DOA and PA, to provide security but you charge the bank your property in return for a monetary amount. The MOC will only be signed once the title of the property has been issued, in lieu of the DOA and PA.

Payments

Down Payment

The amount of down payment is usually 10% of the property value since in most cases the bank usually loans up to 90%, making it the difference between the purchase price and the loan amount.

Stamp Duty

Stamp Duty is a tax levied on a variety of documents including legal, commercial and financial documents. All transactions including sales, transfer, mortgage, and loan are subjected to legal stamps through stamp duty.

The purpose of the stamp duty is to ensure that in the case that you have to go to the court, your documents are to be used as evidence.

There’s two variants of stamp duty which are:

Fixed Duties: Fixed charges are RM10 per unit, including stamps, policies, and stamps for every copy.

Ad Valorem Duties: Stamp duty based on the value of the transaction on the legal documents, including the MOT and DOA, the equity of the listed company, lease, loan contract, and legal documents

This means that for every legal property documentation, you will be required to pay for stamp duty.

Now that we’ve covered the legal documentations required, we’ll break down the payment for these documents.

Sales & Purchase Agreement Fee

Sale & Purchase Agreement (“SPA”) legal fees = 1% for first RM150,000 and 0.7% of remaining value of property within RM1 million

SPA legal disbursement fee = A few hundred Ringgit

Stamping for SPA = Less than a hundred Ringgit

Loan Agreement and Affiliated documents (FA, DOA, PA, MOC, MOT) Fee

Facility Agreement legal fees = 1% for first RM150,000 and 0.7% of the remaining value of loan within RM1 million

Facility Agreement legal disbursement fee = A few hundred Ringgit

Stamp duty for loan agreement = 0.5% of loan amount

Stamp duty for MOT = 1% for the first RM100,000; 2% on the next RM400,000, and 3% on the subsequent amount.

Fee for transfer of ownership title = A few hundred Ringgit

Valuation Fee

If you are getting a loan from the bank, the bank will usually send a valuer to conduct a valuation report of the property.

The minimum valuation fee is subjected to RM400 per property. The valuation fee is calculated by the following formula:

For First RM100,000.00 =0.25%

Next residue up to RM2 mil = 0.2%

Next residue up to RM7 mil = 0.167%

Next residue up to RM15 mil = 0.125%

Next residue up to RM50 mil = 0.10%

Next residue up to RM200 mil = 0.067%

Next residue up to RM500 mil = 0.05%

Next residue more than RM500 mil = 0.04%

Other payments

Mortgage Reducing Term Insurance (life insurance for your home loan) = RM1,000 or more (some banks waive this amount)

Government Tax on Agreements = 6% of total lawyer fees

Bank processing fee for loan = RM200

*Please note that all the numbers and values mentioned in this article may subject to changes.

Overall, in the process of purchasing a house, it is important to take notes on what are the functions of all these different legal documents. You’ll also have to ensure that you are financially ready to make all the payments involved during the whole property acquisition process.

We hope that this article helped clear any confusion you had regarding property acquisition documentation. If you believe you’re ready to be the owner of a new house, do check out Malaysia’s latest and most convenient property marketplace,
bumbung.co
!

For more property guides and giggles, stay tuned to The Roof Talks!

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Superstitions To Look Out For When Buying A Property

Malaysia has always been a superstitious country. From not cutting nails at night to touching wood when mentioning the possibility of something realistically terrifying, we’ve looked to superstitions to guide our lives in the right direction.

In conjunction with Halloween, we’ve found some of the superstitions local Malaysians live by when moving into a new house.

The Location

Most major communities in Malaysia avoid properties that are built on a slope with the access road slopping downward toward the frontage road. Malaysians believe that can cause the owner’s wealth and ‘luck’ to flow away and into properties located lower.

Another huge no-no is if the property entrance is built below the road level. It is believed that all the bad juju from other residences in the area will flow onto the road and eventually into that particular property. But more practically, these property see a lot more dust than properties that are on the same level or higher than the road.

Home seekers also avoid properties that are either facing a T-Junction, or located at one. The Chinese believe that T-Junctions are the gateway for evil spirits to enter our world. Hence having your property at one or facing one could make your home the breeding ground for anything and everything demonic and paranormal.

Most Malaysians avoid residing within the vicinity of high-tension wires. These wires could emit electrical or magnetic pulses, which many fear may cause cancer.

The Numbers

As Malaysians, we do have our aversions toward certain numbers. The most commonly and widely adhered to superstition regarding numbers in Malaysia may very well be the number 4. As in Cantonese, the number 4 is pronounced as “Sei”, in which with a slight change of intonation could also mean ‘death’. Hence, you will never see a property or floor labelled with the number 4.

14 is pronounced as “Sap Sei” which closely sounds like “Sat Sei”, translating to “Sure to Die”. 24 is pronounced “Yi Sap Sei” could very much sound like “Easy to Die”.

Though, the Malay community in Malaysia tell a different story as the number 4, in Malay is “Empat” which sounds like “Dapat”, meaning gain or receive. Some even tell tales of how the number 4 looks like a person sitting cross-legged, looking as care free as a human can be.

And then there’s the most internationally notorious number of them all, the unlucky number 13. You don’t even need us to tell you why this one is a widely avoided number.

The History

All properties have history hence it’s good to find out what kind. If a property has been left vacant for a while and it looks unsafe and creepy, it is believed that there could have been an unnatural death in the property such as murder or suicide. Most Malaysians believe that the spirit of the deceased may still be in the property.

Certain residential units are built from the ruins of old hospitals and religious places. This is a huge no-no to most communities where these places are considered too concentrated with spirits for people to live in.

The Chinese believe that in order to rid the location of spirits, the building must be demolished. The bare site is to be exposed to the sunlight for at least 49 days before reconstructing the building.

The View

Having cemeteries as a view can be an unpleasant sight.  Most local communities dislike staying near cemeteries, hospitals and religious sites for the fear of “Ying Qi” or negative energy. The older Chinese folk also warn against staying in high-rise buildings that face curved elevated highways as the curve of the highway resembles a sickle. This is considered a very inauspicious omen towards the owners health and wealth.

The Indian community on the other hand look for properties with views of water bodies, though it has to be in the right direction. According to the traditional Hindu system of architecture called ‘Vastu Shastra’, water is a huge energy generator. It can bring in very strong positive and negative energies depending on which direction it is located at.

The Direction

The Indian community dislike having their main doors facing Southwest. They believe that is the direction in which the devil can enter from. The Chinese community though, avoids houses that face the direction in which the sun sets or sun rises. Avoiding direct sunlight can help provide a cooler indoor temperature.

Muslims in Malaysia look for properties with the consideration of the Qibla in mind. Qibla is the direction faced when they pray in the direction of the Kaaba in Mecca. Toilets and showers should be perpendicular to the direction of the Qibla when doing the Wudhu (ablution).

Bedrooms are to be placed perpendicular to the Qibla. Beds should be positioned in such a way that when someone sleeps on their right side, they would be facing Qibla. Desks should also be facing the Qibla when studying, reading and working.

The Features

The main door of the property is very important as it’s the main entry point into the property. Hence according to superstition, there should never be any obstructions in front of the main door. Pillars, pots or lamps that can block good energy from entering the property should be removed.

Most Malaysian communities also believe, the bigger the main door, the more wealth and good luck they’ll have. But beware of having a drain parallel to your main door, or you might lose all that good fortune down the drain.

If you’re a superstitious person who needs to cleanse your home with some feng shui goodness, check out our property feng shui article
here
!

Do you think we’ve missed out on any? Feel free to let us know in the comment section below!

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Malaysia’s Most Haunted Houses

With Halloween literally creeping around the corner, we thought we’d give you thrill seekers a little head start with some heart palpitation-inducing haunted houses.

Malaysia has never shunned the spotlight when it comes to the supernatural, even when the supernatural themselves prefer the cool, damp shadows of abandoned mansions and villas reclaimed by our tropical rain forests. So let’s kick ourselves into high gear and get this blood-stained train going, shall we?

Kellie’s Castle

The story behind this now popular tourist spot situated in the heart of Ipoh, is said to be the Malaysian Taj Mahal, a symbol of love by Scottish planter, William Kellie Smith for his beloved wife (on the expense of her inheritance lol) which began construction after the birth of the Smith’s second child, a son. With over 70 South Indians laborers building Kellie’s Castle from the ground up, the Smith family traveled to Lisbon where William was diagnosed with Pneumonia and passed on, leaving his widowed wife and kids who then moved back to Scotland after selling Kellie’s Castle to a British company.

While the family was in Portugal, the 70 South Indian laborers fell victim to the Spanish fever that was going around at that time, hence never managing to finish Kellie’s Castle.

It is said that the spirits of the Smith family returned to their unfinished fortress, with the man of the house seen pacing the second floor corridors and their daughter wondering about her old room at night. Smells of incense can sometimes be smelt coming from the horse stables.

But that’s not all, folks. Three secret tunnels were discovered and later believed to be used by the Japanese to transport, torture and execute their prisoners. So at this point, who knows how many spirits call Kellie’s Castle home.

It is reported that you can feel their presence around you if you stand in any of the rooms and just soak in the atmosphere. A deadly atmosphere to soak in if you ask me. Heck, no thanks.

Mona Fandey’s Multiple Cribs

At the peak of Mona Fandey’s witchcraft/dark magic career, she purchased not one, but two luxurious mansions, one called the
Aeroplane Bungalow
 situated in Shah Alam and the other,
a villa in Raub
, Pahang. She practiced the dark arts, Lord Voldemort style, not only to assist greedy politicians in their power-hungry quest to national leadership positions but also to seek fame and fortune for herself.

In 1993, she and her husband approached Mazlan Idris, a Pahang assemblyman with a bewitching proposal to shoot him straight to Chief Minister-hood. But instead of shooting him, she decided to slice him up into 18 pieces in her Raub home during a cleansing ritual and not only hide his body parts in a store room on the compound but allegedly also fed some to her unsuspecting neighbors.

Her last words before she was hung for her crimes? “I will never truly die.”

Both of her old residences now lay unoccupied as many fear the fact that the dead cannot carry their possessions with them to the other world. Her pets that were conjured by her witchcraft are said to still roam her residences, carrying on her dark legacy.

Villa Nabila

There are many versions as to what happened at this villa. From robbers to jealous relatives who sent hit men, the truth to all the versions is that the wealthy family that lived there met gruesome deaths, starting with the daughter named Nabila.

The version varies among the guilty party, some saying the maid did it, while others claimed that relatives that were jealous of the family’s good fortune sent hit men. There are even versions where apparently the father was going through business and financial difficulties, spiraled into an insanity fueled rage, killed his family and himself.

No matter what the origin story is though, the spirits of the family still occupy their beloved home, appearing as unearthly faces in photos, protecting their family home.

Genting Highlands in General

I don’t even know where to start with this one. But lets focus on two main location points that still house residences, shall we.

The Ria Apartment and Amber Court are home to not only the people who work in Genting but also those who never left after their demise. From suicide attempts to jealous lovers out for blood, many lost their lives but found a new home at these condos.

It is said that the 17th floor of the
Ria Apartment
 is completely closed off to tenants, though they still have access to this controversial floor via the main elevators. Based on the experiences of others, allegedly those who dare venture into the 17th floor is said to wander around the floor, unable to find a way out until it’s daylight, but don’t worry, they’re not alone in there.

Amber Court
 on the other hand, is infamous for their invisible room mates, who enjoy having a ball in the closets of the rooms. Knocking can be heard coming from inside the closet in the middle of the night and when that get’s dull, they decide to move to the bathroom instead.

Expect to also see a reflection-less woman in a red cheongsam hanging about the rooms of amber court.

Highland Towers

Taken down by 20 days of non-stop rain and underdevelopment causing a land slide, at least 48 tenants were killed in the collapse of one of the Highland Towers. Ever since the incident, it is said that the spirits of the deceased wander the area, not entirely sure what exactly happened to them, not knowing that they’ve shed their mortal coil.

Taxi drivers are said to avoid the vicinity of the Highland Towers at night, as reports suggest that certain spirits tend to wander too far from the premises and require assistance getting back to towers to continue their search for their missing body parts.

Drivers have encountered both a lady in this situation. When asked why they need to be dropped off at the towers, the typical answer received is normally “I left several important belongings here, my body and my life”. To those who dare venture into the towers at night, may also encounter a young boy running around, with a torn face and a missing arm. Do help him find his missing arm, he really wants it back.

Jalan Turi Bungalow, Bangsar

Two young American-born Indian children were killed along with their maid, by their bodyguard. (I guess he wasn’t so serious about his career.) No one knows exactly why he did it though I’m guessing he had some inspiration from Ms Mona Fandey considering he chopped them up into tiny pieces.

To add insult to injury, he threw their chopped up body parts into the septic tank at the back of the house.

It’s surprising that the spirits of these poor kids haven’t turned malevolent considering their untimely demise as they can sometimes be seen waving out windows at passing cars. Not that that should encourage you to go visit them. Leave them be la kay?

99-Door Mansion, Nibong Tebal

Now this one’s a hardcore one, though the back story is somewhat similar to the one of Villa Nabila.  The grandson of the house, John St Maur Ramsden was shot in the head by hit men sent by relatives that were jealous of the family’s good fortunes.

Later, the rest of the family were believed to be killed by the Japanese invasion. Soon after that, the huge mansion was taken over by a witch doctor as the jungle claimed back the land in which the mansion was built on. The witch doctor practiced a ton of dark magic in the abandoned mansion, using it as a gateway to bring over his demon friends.

He has since then passed on, though rumors have it, he still roams the compound through the mansion’s 100th door that only opens at 12am every night, serving as a gateway for evil to enter our realm. Those who have visited the location refuse to stay beyond sun down, and for those who have, have spoken about hearing growls, tortured screams and the sounds of drums emitting from the mansion and the surrounding darkness.

Bukit Tunku

You might be wondering what I mean by just Bukit Tunku, right? Yes, I mean the entire neighborhood.

According to more professional opinions, apparently there is only one haunted mansion among all the fancy houses of Bukit Tunku (and I don’t know which it is so ya’ll gonna have to play ghost roulette.) Though it is believed that these spirits are clearly not confined to the property as apparitions, pontianaks and their friends have been seen in almost every corner of the neighborhood.

Most notably would be the phantom rempit guy that rides like a nut job around the neighborhood only to completely disappear around bends. And then there’s that whole incident where someone who was driving down one of the roads in Bukit Tunku, stopped when he saw an apparition sitting in the middle of the road while the indicators on his dashboard started flashing in an out of the ordinary manner. He immediately U-turned and got the heck out of there (smart man), though after catching the entire episode on dashcam.

Not to mention, if you do stumble upon the haunted mansion, beware of the lady who hung herself. She throws stones.

Penang Island in General

Don’t get me wrong, I love Penang; but from the stories I’ve heard, there are haunted houses littered everywhere there. Especially on the hill tops, haunted mansions have overtaken the views from Penang Hill and many other surrounding locations. The haunted residences mentioned in this section are from the island of Penang, as we’ve already mentioned a really hardcore one from the mainland above (see 99-Door Mansion, Nibong Tebal).

The Hundred Years Mansion
, located just meters away from a public recreational park is home to Malaysia’s first indoor swimming pool, in which a lady had committed suicide in due to her father’s disapproval towards her choice of lover. It is reported that the son of the mansion’s owner had also drowned in the pool.

A nun who visited the location mentioned that she saw too many souls there and had her last request before she passed away be to have a prayer there for them. There’s even a miniature temple built right outside the mansion premises in order to keep the spirits within the confinement of the mansion walls.

Another haunted property would be
the Brother’s Bungalow
, seated nicely atop Penang Hill. Built by the colonizers way back when, the bungalow was used to house the Christian Missionary Brothers as a retirement home for their emeritus brothers.

Soon after, the Japanese had invaded, tortured and killed the brothers on the premises. Even since then, the property has been opened up to the public who’ve reported seeing things from headless floating brothers to visions of Japanese soldiers beheading brothers. Caretakers of the location even mentioned a playful spirit who likes to overturn the room number ’16’ to ’91’ multiple times.

But that’s where the playfulness stops, as apparently there is a storeroom that is fiercely guarded and only a select few actually have the guts to enter.

Would you dare check out these properties? Or better yet, would you live in a property knowing if it was haunted?

If you think we’ve left out any bloodcurdling bungalows or terrifying terrace houses, do let us know in the comment section below!

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PropTeq Asia 2018 x Bumbung.co: The Future of Property Technology

Hong Kong, 5 Nov 2018 – The property world took a step forward towards innovation as the PropTeq Asia 2018 Summit brought together the industry’s best and brightest to connect and network with potential partners via group debates, product demos and funding pitches.

Held at the Cyberport in Hong Kong on the 30th of October, the event was organized by Real Foundations Hong Kong alongside AsiaProp.Tech, in partnership with WeWork and Juwai.com, which saw the likes of property experts and entrepreneurs from all across the ASEAN region.

Bumbung.co was also present to co-host one of the sessions categorized under investment. Bumbung.co Co-Founder and Managing Director, Gadiy Lim spoke on Transactions and Agency: How to Benefit from New Business Models with fellow proptech entrepreneurs, Michael Hogg, CEO of Flat Monthly Thailand, Eugene Ng, Co-Founder of Flatbread Hong Kong and Benny Hui, Business Development Director of Okay.com Hong Kong.

During the session, the group brought up the difficulty of real estate marketplaces to reach it’s margin of profits and revenue, fearing that property marketplaces have reached it’s ceiling. Hence, majority agreed that the only way for these portals to survive is to move forward with premium fees and charging higher prices.

Another option mentioned was to evolve property marketplaces by including transaction services and process management. Portals such as Open Listings, Opendoor and Compass have raised millions, consequently proving this concept to be effective.

Lim described the overall event to be a holistic view on all things property technology, with 4 different categories of sessions (The Big Picture, Commercial, Residential and Investment) with the views and feedback from many ASEAN startups who not only were actively present but also from other industries, including venture capitalists and family funds.

Bumbung.co is honored and proud to be part of the initiative, to share their vision for the industry and raise their Pre-Series A funding.

For those interested in delving deeper into Bumbung’s vision for the future of Property Technology or invest in their Pre-Series A funding, please do feel free to contact 03 – 5885 0764 or contact@bumbung.co.

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The Ultimate Budget 2019 Property Guide

It looks like 2019 will be a pretty good year for the Property sector, especially for First Time Home Buyers and the B40/M40 households, with the implementation of Budget 2019.

A reliable property portal cited that in order for a household to afford the average all-house price in Malaysia which is RM387,258, the household will have to earn an average of RM10,757. With that statement, it’s safe to say that many of us who are either new to adulthood or have been struggling with it for a while may not be able to afford a property for a while.

This is where the Budget 2019 comes in. The budget not only aims to empower the B40/M40 community by creating affordable housing while ensuring a more stabilized property market, but also to assist in financing residential property purchases. First Time Home Buyers are also on the receiving end of this budget, with mortgage guarantees and certain tax exemptions.

Let’s break it down further:

First Time Home Buyers:

Mortgage guarantees for those earning an average income of RM5,000 and below.

Stamp Duty exemption of up to RM300,000 on residential property purchases up to RM500,000.

Crowdfunding initiative by Private Sector to assist First Time Home Buyers in purchasing their property.

B40 & M40 Community:

A RM1.5 billion allocated to affordable housing for these 2 sectors.

Rehda has promised a more stable fluctuation in property prices

SST exemptions on construction services and building materials to help reduce property prices.

Exemption of
Real Property Gain Tax (RPGT)
 on properties below RM200,000.

A fund of RM1 billion established by Bank Negara Malaysia to help households with the average income of RM2,300 and below to own a home.

Additional Aspects (in order to reduce the crazy amount of overhung units in Malaysia):

Stamp Duty charges waived for unsold units priced between RM300,001 to RM1 million with a minimum discount of 10% by developers.

Rehda has also pledged a 10% reduction on overall housing prices.

Real Property Gain Tax increments for both residents (increased to 5%) and non-residents (increased to 10% in the sixth year & above.).

Stamp Duty for property transfers costing more than RM1 million raised to 4%.

That’s a lot of wins for a lot of people, though there are some who unfortunately do not just not benefit from this budget but also lose a little from it.

Winners:

B40 Community: Financial aid along with the raise of minimum wages aimed to assist in coping with the raising prices of residential properties as well as the standards of living.

First Time Home Buyers: Financial aid along with mortgage guarantees to assist on financing residential properties. Along with the development of more affordable residential properties, the National Home Ownership Campaign boasts a 10% discount on existing unsold properties.

Developers: SST exemptions on construction materials to assist on the reduction of property prices.

Losers:

Property Investors: With RPGTs being raised especially for higher priced properties, real estate investors clearly have the least to shout about and are taking the biggest tax bite compared to everyone else.

Oh well, it’s like what they say. You win some, you lose some.

:

Written by: Renu

iMoney

Budget 2019: The Real Winners (And The Losers)

RinggitPlus

Budget 2019: Budget 2019 And You

NST.com.my

Key highlights of 2019 Budget

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