The Ultimate Guide to Researching an area before Buying a House

Researching a property area before even considering a home purchase can save you time and prevent a regretful purchase. Doing the legwork ahead of time will not only familiarize with the area but also prepare for the unexpected. The tendency to rush through a house viewing and proceed with the deal will only spell trouble. With this guide you will know what to look for when browsing for homes in an area.

Search online

A quick search online will give show the average property price and recent sold price. Look for similar properties in the area with the similar features. This comparable will give an average figure on what you will be paying for and to check whether the prices are reasonable to purchase.

Do a drive by

The beautiful picture you see online on listing sites should only be for your eyes only. Cleverly edited and strategically angled photos may be deceiving. You should go and see the property in its true form even before viewing the house. This will give you initial thoughts and more time for consideration. Aside from that you might find a different property nearby that is more suitable for your taste. If possible do a drive by at different times of the day and night to see the changes in the atmosphere and feel of the place. Driving at night can give you an estimate of the occupation rate of a high rise or a housing area.

Direction

Some people may feel that the direction of the house is a concerned only adopted by ‘Feng Shui’ enthusiast, but the direction a house is facing can decide whether you might live in peace or discomfort. Its facing direction will be the difference between a bright and warm house to one that is gloomy and dark. If you are an avid gardener, the direction of the house will determine if your plants will bloom or wither away.

Local government bylaws

The different housing authorities designated have different bylaws and policies, whether it entails renovation restrictions and special rules that must be followed. It’s better to visit or call up to ensure you are not unknowingly breaking any laws and or risk getting fined. This can range from parking rules, recycling methods to botanical regulations.

Traffic jams

Traffic jams can be a real hassle, especially during peak hours and holidays. It can be a source of stress and a determining factor in your daily life, such as where to eat, shopping and commuting. If you have to leave your house early in the wee hours of the morning. Often high traffic areas have wider amenities and services to offer, but the congestion may not even be worth it.

Crime rates

If you live in a city, the crime level is essential for consideration. Sleeping with a piece of mind while commuting safely around the neighbourhood is important for a healthy well being and often high in priority on one’s purchasing checklist. The local newspaper can tell how often a crime happens in an area. One thing to add is that the crime level will affect the demand and the value of houses in the area. The site
numbeo
 provides crowd sourced data which you can use to get a feel.

The residents

Just by glancing at pedestrians and your potential neighbours can give you a general feel of an area, talk to the people living in the area to get some local information on living there. Who knows? You might get an honest disclosure in the future house you might be living in.

Accessibility

Is it easy to get to public transport. Check the road conditions. Are there plenty of potholes? It may be a sign of neglect in road maintenance in the area or it is a sign that plenty of lorries and trucks pass by the area. This may be a safety concern to some people when they go for daily walks or leave their house for work. Additionally, it’s a bonus if your house is located next to a main road, but there might be traffic and privacy implications that come with it.

Amenities

Is there a supermarket nearby and a row of shops? Convenience is important and some people might overlook it until they start living in the area. Do you have to drive for half an hour just to get some groceries? List down all the must haves and check it along as you do your research. Check if there is a nearby gym, sport centre or swimming pool if you require one. Look out for public parks and public art displays such as fountains and statues, apart from the perceived rise in standard of living, it can boost the attractiveness of the area.

Ambience

Is the property located next to the highway? Is there a train track or upcoming rail development? Are you near an airport or underneath a frequent flight path? Is there a rowdy bar nearby or maybe a mamak store? The noise levels directly influences the quality of good sleep you will have when you live there.

Schools

Highly prestige schools are known to increase the property value of houses in the area. Homeowners owning homes in an area normally have a consistent stream of tenancy from students studying in nearby universities or families looking to move near the schools. If you are planning to send your child to a local government school, Check with them on their catchment area. Houses on the opposite site of an area may be registered under a different area.

Sufficient Drainage

In the recent case of the Penang floods, it is important to choose an area that is not flood prone or at least an area with better elevation and proper drainage. Check out the drainages around the area, in Malaysia, most drainage are openly exposed without cover to ensure maximum inflow of rainwater. Are they large enough to accommodate for a heavy rain? Are they filled and clogged with trash? Does the water look like its thoroughly flowing through? This is important as clogged drains are a health hazard, water born diseases and mosquito larvae thrive in these conditions, spawning a higher chance of contracting diseases and other illness.

It can be thrilling when you are planning to move into a new home but remember that a home is a long term commitment. Many factors come into play when moving to a new area that you are not familiar with but this guide will give you a upper hand when you know what to look for. The more informed you are, the better the results of your decision. We wish you the best on your next house hunt!

Find your dream home today!

Categories

Buying and Renting Guides

Tagged

buying
Moving

Author

Wei Yang Chan

                                    Previous Article

What will the Property Freeze mean for Malaysia’s Property market.

                                    Next Article

Should you Choose a High Rise or Landed Property?

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Should you Choose a High Rise or Landed Property?

Traditionally, landed property has been the most by property type for the baby boomers. Given that the more land you had, the higher your status and stability you become in the face of society. The amount of land you had was a sign of wealth. The basis of this traditional thinking was that if you needed cash at hand, you could always sell your land or house. However, in recent times, the development of luxurious high rise has proved to be an advantage especially when new demands and requirements.

With the rise in price and scarcity of land, buying a landed property has become less fitting for young millennial and many groups looking for a place to stay.

The property Value

Landed properties have the advantage of a higher capital appreciation of the long term compared to high rise properties, If you have bought land many years ago, you will find that the land value appreciates over the years despite economic conditions. This is because the quantity of land slowly reduces over time as more development starts. This raises the price of land and any available land are quickly acquired and sought after by developers looking to increase their land bank.

Lower range, high rise typically has a lower deposit. This reduces any barriers for anyone looking to own a property. Many who own condos, find that their property value appreciation slows down over time as the condition of the property deteriorates. When the property becomes old, the vacancy rate might increase as people choose to move to emerging areas with higher property values. This leaves you owning a property with lower demand.

Parking Space

If you live in the heart of the city, you will be forgiven if you don’t own a car. Given the convenience and availability of public transportation. Parking in a high rise can be expensive, in some properties, a limited amount of parking pays forces residents to pay a monthly fee to reserve a parking space.

Owning a landed property is different, most landed properties are built with a parking bay in mind given that most Malaysians are car owners. If you have an additional car, road parking is always an option.

Regulations

High rise properties are basically a cluster of strata units all fitted together, with many inhabitants living inside. To ensure less problems and more control, there have been often many strict regulations and rules that must be complied upon signing the agreement.

A different set of regulations is associated with landed properties, these ranges from renovation guidelines to different bylaws governed in the local area.

Viewing perspectives

The view outward is an important factor when one decides the type of property.

One of the reasons why some prefer the high rise lifestyle is the breathtaking view of the city especially at night. Imagine coming home after work and as you settle down with a cup of chamomile tea. You start to gaze at the brightly lit skyline topping it off with the starry night. When purchasing a high rise property, the view of a particular unit can determine if there is demand or not.

On the other hand, Landed properties might be restricted in scope of available views, given the low height of the house, the view may just be limited to your neighbour’s house. However, landed properties situated on the hillside with ample view can fetch a high price tag.

Maintenance

The responsibility in maintenance with Landed properties rests in the hands of the landlord or owner, to maintain the condition and aesthetics of the property, however the tenant must also keep the property in working order. Depending on the size of the property, the maintenance of a landed property may appear higher compared to a high rise.

With high rise properties, a monthly fixed cost is charged to all homeowners to upkeep the maintenance and repairs of common areas and facilities. This ranges from facilities such as the lobby, gym, common walkways, swimming pools and more, it is imperative to hire an experienced management team. The state of common areas and the facilities directly impacts the value of all units in the property.

In a nutshell, it all comes down to your preferences and choice of lifestyle, but it first comes down to your intentions. If you aim to live there, make use that it fits your requirements and let your heart out on the design process. However, if it comes down as an investment choice, ensure that the your budget fits the type of property you choose to manage. High rise units are common investment choices given the low down payment and potential yield. On the other hand with owning land, capital appreciation will rise as the years go by.

Categories

City Living

Tagged

buying
living the city
New home

Author

Wei Yang Chan

                                    Previous Article

The Ultimate Guide to Researching an area before Buying a House

                                    Next Article

Sales and Purchase Agreement (Sub Sale) in Malaysia Guide

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Sales and Purchase Agreement (Sub Sale) in Malaysia Guide

What is a Sales and Purchase Agreement?

A Sales and Purchase Agreement (SPA) is a contract between a buyer(s)/purchaser(s) and a seller(s)/vendor(s) that contains all the agreed terms and conditions that binds both parties during a property transaction. The completion of a SPA typically occurs when the vacant possession of the property is successfully and wholly passed from the seller(s)/vendor(s) to the buyer(s)/purchaser(s).

Generally with sub sale agreements (i.e. where the property is question is transacted from the secondary market and/or where the seller(s)/vendor(s) is not the developer of the property),no law or statute provides for a prescribed form of the SPA. As such, the terms and conditions of a sub sale agreements are purely commercial and are drafted to reflect the agreed negotiated terms of the transacting parties.

This contrasts sharply for new properties purchased from the primary market (i.e. directly from the developer as the law (the National Land Code) provides for a statutory from of SPA that parties need to adopt. Notwithstanding a form for SPA is not prescribed for transactions of the secondary market, today’s marketplace nonetheless adopts a large extent of the prescribed statutory SPA in the National Land Code albeit with the necessary amendments to cater the SPA for their specific transaction.

Terms and Conditions stated in the SPA

The terms and conditions of  a SPA must include the details of the property, details of all parties involved in the transaction (such as, where relevant, details of the seller(s)/vendor(s), the buyer(s)/purchaser(s), solicitors and financiers), type of loan/financing (if any), mode and timing for of delivery of vacant possession of the property and other negotiated and mutually agreed arrangements, terms and conditions throughout the tenure of the transaction.

For transactions of property in the secondary market, additional emphasis should be paid on specifically negotiated and agreed terms and conditions that are not found in the prescribed statutory SPA in the National Land Code. These specifically negotiated and agreed terms and conditions may include details pertaining to any imposition of time frames and milestones for the transaction, special and/or additional conditions precedents required on or before vacant possession of the property is delivered, any obligations of the parties, calculation, timing and payment of taxes and other, outgoings, as well as any negotiated termination clauses.

 The buyer(s)/purchaser(s) must be aware of and be proactive in preparing all the necessary documents needed at each milestone for a timely progression of the transaction as well as the due date for payment of any outgoings. Conversely, the seller(s)/vendor(s) must ensure the timely delivery of the vacant possession of the property unit within an agreed stipulated time once all condition precedents are satisfied by the buyer(s)/purchaser(s).

Process of the SPA

1) Booking Form

This is a letter stating you that the buyer(s)/purchaser(s) intents to purchase the property and can be prepared by the buyer(s)/purchaser(s)’s agent or lawyer. Typically, a deposit payment of between 2% to 3% is paid when this letter is signed and dated. This letter (typically referred to as a booking form) is not a legal requirement but can nonetheless be used if the transacting parties decide to do so.

After the booking form is signed and dated, the buyer(s)/purchaser(s) will have to secure any relevant financing it requires. The buyer(s)/purchaser(s) typically has 2 weeks from the date of the booking form to secure this financing – this timeline of 2 weeks can be negotiated by the parties before signing the booking form.

If the buyer(s)/purchaser(s) is unsuccessful in securing the required financing for the purchase of the property, the deposit paid can be refunded to the buyer(s)/purchaser(s) provided that such an option to refund has been negotiated, agreed and recorded into the booking form prior to signing of the same.

In addition to securing the necessary financing (if needed), both the buyer(s)/purchaser(s) and the seller(s)/vendor(s) would also need to appoint their solicitors who would be representing and advising them this point on with regards the negotiating and drafting of the SPA. There may be up to four (4) solicitors for a transaction, they are (i) the buyer(s)/purchaser(s)’s solicitor; (ii) the buyer(s)/purchaser(s)’s financier’s solicitor; (iii) the seller(s)/vendor(s)’s solicitor; and (iv) the seller(s)/vendor(s)’s financier’s solicitor.

Parties are typically advised to refrain from signing any form of SPA until (i) the necessary financing has been secured; and (ii) solicitors have been retained and mandated for each of the transacting parties.

2) Signing the SPA

Once all terms and conditions of the transaction have been negotiated, agreed by all parties, built into the SPA and the SPA is signed, all parties must adhere to and fulfill the terms and conditions contained in the SPA. A further payment of between 7% to 8% of the property price is typically paid at the point the SPA is signed and dated. Failure to fulfil terms and conditions of the SPA may result in the forfeiture of the deposit as well as any legal fees paid and/or due.

3) Completion of SPA

Upon signing of the SPA and paying for the 10% deposit, The remaining 90% of the agreed price must be paid within 3 months from the date of signing.

If the buyer(s)/purchaser(s) fails to pay the remaining funds within the ‘completion date’ or the ‘balance sum’ stipulated in the agreement, there will usually be a 1 month extension to settle it. As a penalty an interest will be charged until the full receipt of payment.

If the buyer fails to settle the balance within the completion date or the extension date, the 10% deposit will be available for forfeiture to the seller as liquidation damages. Any additional money paid in excess of the deposit is normally refunded back to the buyer(s)/purchaser(s).

Cancellation or Termination of an agreement.

An agreement can be cancelled at any time, but normally 10% of the purchase price will be charged under the termination and indemnity clause. However, if there is a specific performance clause that binds the vendor(s) or buyer(s) to be fulfilled, there may be a legal case involved to enforce the terms resulting from the breach of agreement.

Additional Information

When buying a sub sale property, you will need to submit the 14A form alongside the sales and purchase agreement. The form 14A is a memorandum of transfer, which transfers the interest of the owner to an assignee specifically on strata and individual title properties. Furthermore, you will need to submit the stamp duty form with both of the above documents.

If you have assigned an agent, it is normally advisable to pay only after the entire process has been completed.

Conclusion

The S&P agreement can be a secured and enforceable document to smoothen the property transaction, provided that the terms are clear and the deal doesn’t work against you. As mentioned earlier, with Sub sale properties there are no compulsory terms needed to be adopted. You can mutually agree on any terms negotiated with the other party.

Ensure that all your intentions and requirements are communicated to lawyers of both parties and stated within the agreement itself before signing it.

We hope that this guide will provide a general overview of the sales and purchase used when dealing with sub sale properties in Malaysia. If you have any questions or looking to share your opinion, feel free to send us an email at
contact@bumbung.co
 or leave a comment below.

Categories

Buying and Renting Guides

Tagged

property
tips

Author

Wei Yang Chan

                                    Previous Article

Should you Choose a High Rise or Landed Property?

                                    Next Article

What happens when you have a bad credit score?

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


What happens when you have a bad credit score?

Credit scores are a buzz all over the media in other countries. However, some Malaysians have not grasped the importance and understanding of the various credit ranges and how they affect their finances.

Your credit score is an aggregate representation of your overall credit score comprising of 3 numbers that falls into different ranges. This score is derived from your credit report, a document that summaries your overall debts and payment history and is readily available to you through CCRIS and
CTOS
. Bankers and Creditors use this score to estimate the risk of you defaulting on the loan that you are applying for.

Your credit card application gets rejected

Using a credit card comes along with great discipline and control of your personal finances. Banks are hesitant to sign you up if they feel that you might have a bad payment record. With high monthly interest rates, your probability of paying back the loan is weighed into consideration against the odds. Hence, having a good credit record will most likely get your application approved…. in a nick of time.

Slow approval of credit

When applying for a loan or credit, speed is of the essence. Are you awaiting the approval for your loan while in the SPA process? Do you currently need some funds on your upcoming business startup? A low credit score would mean a longer time frame. The bank officer has to make additional considerations, deeper scrutiny on your application or meeting with relevant parties before finally deciding to approve your application.

Unfavourable credit packages

A higher risk would mean a high risk individual to the bank. To protect themselves, they would need a higher return on interest when offering you one. Accepting a credit package with a higher interest rate is no joke, your overall financial health will drown under the compounding effect working against you.

Some banks offer an interest rate tiers based on your credit score. This helps the bank to standardise the loan process, but it leaves little room for negotiation if the loan amount is not up to your requirements. Bankers are more likely to offer you better rates and benefits if there is a lower risk on them.

Additionally, one factor that many applicants look for in a credit card is the monthly credit limit. When signing up for one,a low credit score screams aversion towards the credit card issuer. Less trust on your credit health may mean a lower limit for you to spend monthly.

Low negotiating power

When negotiating for a new loan, a low credit score leaves you limited choices and rates. Banks are sceptical with your ability to repay the loan and they may feel that they have little to gain from offering you a loan. Thus, a higher credit score may give you more bargaining power when dealing with your banker.

Low credit card deals

A low credit score may mean a high risk client to the bank. In any case, they may be reluctant to offer you a better rate on your credit card application. Unlike premium credit card packed with rewards and attractive rates, you may be offered a basic deal with high interest rates and annual fees. A better credit score will provide perks that are only reserved for those with an excellent credit history.

Stress and unrest in your family

Research has shown that many
divorces
 stems from money issues. Without proper financial management, families can be separated, loved ones becoming enemies and crumbling long time partnerships. Be sure to contemplate over your partner’s spending habits and borrowing behaviour before even considering marriage.

Moreover, having many obstacles on obtaining credit can be disheartening. Many people are forced to get money through illegal means such as loan sharks and unlicensed creditors.

Another thing you should know is that Banks and financial institutions take into consideration your partner’s salary, his/her credit score and even assets. Despite being separate individual profiles, they become a consideration when applying for a home loan or a car loan. If the joint account between you and your spouse accumulated some bad credit. The banks will view the overall finances and may impose a higher interest rate.

Conclusion

As pointed above, the credit score stands on a fine line between an opportunity or a setback. It can make or break a financial decision, leaving you in a rut or providing leverage on a new mortgage. If your credit score is not as up to your expectations, start taking baby steps towards getting a good credit score. Soon enough, you will reach your financial goals with persistence.

Do you know how to check your credit score? We have a
tutorial
 to help you with that.

Categories

Uncategorized

Tagged

banks
credit score
finance

Author

Wei Yang Chan

                                    Previous Article

Sales and Purchase Agreement (Sub Sale) in Malaysia Guide

                                    Next Article

Best Traffic Live Maps that help you plan your Journey

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Agent 2021. The Conference of the year for Agents and Entrepreneurs

Agent2021, the conference of the year for Real Estate, auto dealership, insurance and travel led by worldwide renowed Youtuber, Digital Marketer and Influencer Gary Vaynerchuk and VaynerMedia. The event is geared towards both agents and business owners and will be held at Miami’s Hard Rock Stadium on January 24, 2018.

The event will be featuring speakers such as Andy Frisella, one of the world’s leading authorities on customer loyalty and company culture and Chris Smith, Bestselling author of the conversion code and co-founder of Inc. Its also a must to say that Chris is the leading authority in the real estate industry on Facebook Advertising and modern sales tactics.

Another notable figure to note is Ryan Serhant, who will be sharing personal branding insights in a 45 minute fireside chat with Vaynerchuk in the real estate track of the conference as well as a guest on Vaynerchuk’s Q&A show #AskGaryVee. Be sure to check it out on Youtube.

According to Ryan, Digital marketing and innovation has been a huge differentiator for him in the New York City real estate industry and for his television shows including his newest project Sell it Like Serhant. Make sure to check out his work for disruptive marketing tactics for standing out in the real estate industry.

What is happening at the event?

This event was created with the needs and wants of small and medium sized enterprises. Are you planning on going for the event? Get ready to receive massive value from the experience. VaynerMedia never ceases to deliver on practical industry oriented information and strategies.

The day will start with a keynote address from the one and only Vaynerchuk with panel discussions such as real estate coach Tom Ferry and real estate developer Beth Clifford. Speakers and attendees will group up based on expertise and areas of interest leaving only highly valued information relavent for you to take away from the event.

Notable topics will include how agents can develop their personal brands, how to generate sales leads using social targeting and how to leverage influencer for your business. Learn highly impacting and useful skills that will make a difference to your business and disrupt your industry.

To purchase tickets or find out more on the event, visit
//agent2021.com

Categories

Market News

Tagged

Business
event
Market news
News

Author

Wei Yang Chan

                                    Previous Article

Best Traffic Live Maps that help you plan your Journey

                                    Next Article

Understanding Sub sale property in Malaysia

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Best Traffic Live Maps that help you plan your Journey

Live map apps are commonly found on our smartphones but did you know that there are various live maps available on the web which are easily accessible by your laptop?

Have you ever had a need to plan a trip in advance but worried that uncertain traffic conditions might steer your travel plans of course? Are you planning the best time to leave your house to avoid the usual crawl to get to the airport on time. Want to know if the congestion caused by a car accident has cleared up?

The following live map web apps will give you all the insights you need to gain a upper hand over any monstrous traffic conditions.

Waze Live

Probably the best option from this list. Waze uses live traffic data crowd sourced from Waze users all over world in real time. Given that users are consistently reporting events and traffic to the app, the live data displayed from the app is possibly the most accurate traffic information you can get.

Aside from the various routes fitted with their journey time and distance, Waze has the perk of live reports generated from its mobile app. This ranges to the general traffic reports to specific markers such as police traps and road blocks.

The web app is simple and very functional for its purpose of checking the latest traffic information or planning one sometime later. Under the search bar, there is an option of checking the condition of a route for a choosing a specific hour. Compared to other services on the list, there is currently no option to see the typical traffic of a future date.

For its purpose of simply checking for traffic and directions without all the bells and whistles, Waze live maps does it well.

Google Maps Traffic

Did you know that you could check for traffic information using google maps? Yes, you can and it’s quite reliably equipped with multiple features. In the top left menu bar, you can select traffic. Alternatively, you could just search for an area traffic in the search bar such as “Kuala Lumpur traffic” and it will show the traffic results in the area.

One handy feature that google maps have over others is the option of switching from live traffic to typical traffic at the bottom bar. It allows you to tweak the slider to check the typical traffic flow during a time or a specific day.

Need to plan out your journey in advance? Google maps is one of the best place to do your research in advance and avoid the dreadful crawl.

Bing Maps Traffic

Some people use Microsoft’s bing maps as their go to option although it may not be as popular with many. Navigation in bing maps feels fast and convenient. Their material design of their user interface breathes simplicity and ease of use.

Personally, I particularly like their multiple tabs feature that allows you to search multiple journeys and places at a time. This gives me more room to switch between journeys and compare them with my travel plans. This feature gives an upper hand over google maps which restricts you to search for one journey at a time.

To use Bing map’s traffic feature, select the ‘more’ option next to the search bar and select traffic. A cool feature that Bing maps have is the ability to view road camera images of live traffic. This gives you an idea on what to expect when you start your journey.

4)HERE.wego

HERE Wego is more commonly known for their highly rated offline navigation apps in the google play store and apple app store. If you are travelling around in a foreign country with limited to no mobile data, HERE Wego is very convenient for offline navigation.

In their web app, there is a handy traffic list column below the search bar that list down all the traffic congestions  based on the view you see in your screen. With their main navigation feature, you will be able to get directions around selected areas with various forms of transportations from public transportation to bike journeys. Some cities, even include taxi and car sharing navigations.

Although the traffic information can be said to be fairly accurate, it suffers from its limitations. HERE wego is the limited traffic data, narrowing its functionality to mainly
major cities
 in the world. Other than that, navigation with here wego’s mobile app is seamless and intuitive for any users.

TOMTOM City

Screenshot-2017-12-19 TomTom City(1)
Screenshot-2017-12-19 TomTom City

Tomtom is notably known for their reliable GPS navigation products used in cars worldwide. Although their navigation services and mobile apps required a fee or a subscription for the latest updated maps you might be interested in paying for the value it brings.

They have a free webapp that provides insightful and data rich reports for those who love their numbers. Their data is sourced from millions of GPS devices worldwide and real time traffic is displayed in their website. Detail data such as traffic congestion index to delay hotspots are marked in the map, giving you the relevant data you need to plan your journey.

Conclusion

From traditional maps to satnavs, directions and navigation have always been a key feature in these products. These days we have navigation apps that have revolutionized the way we drive incorporating traffic information and road events. Who knows what holds for the future of navigation? Driverless cars will probably be next. However, until that time comes, we should be grateful that we are able to access real time traffic information in the comfort of our home and knowing that we have a little more control over our journeys.

Categories

Uncategorized

Tagged

City living
navigation
tips
traffic
travel

Author

Wei Yang Chan

                                    Previous Article

What happens when you have a bad credit score?

                                    Next Article

Agent 2021. The Conference of the year for Agents and Entrepreneurs

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Understanding Sub sale property in Malaysia

What are sub sale properties?

Sub sale, also known as the secondary market are previously owned property purchased on the market where homeowners and investors interact through buying, selling and renting.

The sub sale market mainly consists of landlords who rent and lease their property out before deciding to sell it. With sub-sale transactions, both parties are free to negotiate any mutually agreed terms of an agreement. Unlike new properties which are governed by specific terms overseen by the housing authority, each sub-sale transaction can be different in nature.

Breaking it down

Sub sale properties are known to appreciate slower compared to new properties in the primary market. This is because depreciation, wear and tear, and other factors are incorporated into the valuation procedures.

The sub sale market is attractive to investors looking to strike a deal on a potentially profitable property. When new properties are leased out or sold, they are listed and transacted through the secondary market.

An experience investor or homeowner will know when to exit the market based on economic, political and time varying conditions.

Why Sub sale?

Sub sale properties in the secondary market have the option for a house viewing before buying the property. Rather than imagining what it may look like from the models and brochures, you get to see the property as it is.

Being located in established neighbourhood is an added advantage as there are historical figures one can use to evaluate an area. Does the area have all the amenities you need and are they convenient to access?

Sub sale properties are ready for staying, allowing the buyer to move in shortly after the transaction has been completed less any damages or renovation required. Remember to check out if the property matches your requirements and if any existing damages is recoverable and worth the cost.

When viewing the house, you get the opportunity to feel and imagine yourself living there. Take a deep breath and ask yourself if living there is really what you want for you and your family. Sub sale properties ,relieves some of the risk of staying in a new area and regretting the decision. Allowing more options to choose from is a liberating feeling during your property search.

Existing fixtures and fittings are an added value to some. Sub sale properties are normally fitted with old or used goods such as shoe racks, gardening tools, cleaning equipment and more. This leaves you a smaller shoestring budget before renting it out. Additionally, it may already be fully or partially furnished, leaving you the hassle of furnishing the property.

One of the reasons for buying a sub-sale property is the lower price tag. New properties can be sold at a premium price as the property gains traction and demand. You may be able to negotiate for a good deal. House flipping old properties in the secondary market can bring in a good payout.

Sub sale properties are considered less of a risk compared to new development units launched in the primary market. Off plan units sold by developers are considered risky due to the uncertainty it brings. Sub sale property has a lesser risk overall and no development risk.

Additional notes

There are many incidents of sellers claiming to sell the particular unit, but they turn out to be a fraud and the buyer is left feeling cheated of their deposit. Make sure to verify that the property title belongs to the seller and there is no third party having an interest in the same property. You can personally check this by visiting the land office based on its attached district.

When considering investing in sub sale properties, you will have to take into account the taxes, depreciation and interest. These factors heavily affect the profitability of the properties.

With the sub sale market comprising the bulk of property transactions, there is plenty of information needed to make a buying decision. Are you passionate about turning old homes into breathtaking airbnbs? Do you love to renovate houses and putting a little bit of personal touch? Do you love the challenge of turning old houses into beautiful masterpieces? Then sub-sale properties might be suitable for you.

Categories

Buying and Renting Guides

Tagged

buying
market
sub sale

Author

Wei Yang Chan

                                    Previous Article

Agent 2021. The Conference of the year for Agents and Entrepreneurs

                                    Next Article

Sales and Purchase Agreement in Malaysia (New Property)

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Sales and Purchase Agreement in Malaysia (New Property)

Sales and Purchase Agreement for new residential properties

The sales & purchase agreement (also known as SPA and S&P agreement in Malaysia) of new uncompleted residential properties is a contract for the purchase of new uncompleted properties.

Terms and Conditions

The completion date of the purchasing procedure must be stated clearly in the SPA. Some common conditions include the purchase price deposit, the balance deposit, the delivery date, vacant possession and the deed of assignment. Should there be any demands from either seller or buyer, these are to be agreed on beforehand and inserted as special clauses in the SPA.

Because of the laws governing the agreement, the terms are standardized and do not allow any leeway negotiations. Any changes or amendments of terms in the agreements are rendered void and unenforceable unless the developer is looking to offer better terms such as a shorter vacant possession period or a longer defect liability period. These templates are mandatory for off the plan residential properties sold by all housing developers. The stated laws are enforced by the Malaysian Ministry of Housing and Local Authority. The aim of this is to reduce the flood of litigation in the event an agreement is found to be ambiguous. The stated templates are Schedule G and Schedule H.

Schedule G of the Housing Development (Control & Licensing) Regulations 1989 enforces the standard agreement for land, residential properties such as Bungalows and Terrace Houses.

Schedule H of the Housing Development (Control & Licensing) Regulations 1989 enforces the standard agreement for strata title houses such as condominiums, flats and townhouses.

However, if the properties are completed and then sold by the developers, the sale and purchase agreement can be written up from scratch or certain special circumstances may allow the developer to draft their own SPA if approved by the government.

In this case, there should be a Defect Liability Period clause in your SPA. During this warranty period, the developer is bound by the clause to repair any defects and damages that may have occurred due to construction flaws. Always consult a lawyer if you may require assistance in the SPA process.

Process

The time and medium of payment are important like any other contract. Unlike the relatively simple process of sub sale transactions which takes a much shorter period with readily available goods. New properties in contrast take a longer time and contains different billing stages.

To purchase a new property from a developer, a variable down payment sum is paid by the buyer in accordance with the loan agreement negotiated with the bank. The rest of the remaining payment will be settled in different completion stages of the construction period. For example, Lets say that you are required to put down a down payment of 10%, you will be required to make the next payment when the foundations are completed, and the next when the structural frame is built and so on. The completion stages start from the ground level consisting of piling and building foundation. The next stage will be the Structural Framework followed by the walls,roofing, wiring, cabling, and finally the sewerage , road work and plastering the walls.

Before receiving your property, there is still one last stage that needs to be fulfilled. This duration is formally known as the vacant possession, in which your property is in a suitable state of being occupied. However, before moving in the property must be certified safe for use when it receives its certificate of completion and compliance(CCC). After this, the developer may hand over the keys to you. The vacant possession period for land properties commonly span about 2 years while in high rise buildings range from 2-3 years depending on the state rules.

When buying an off plan/ under construction, property, all you may have as reference is the building model or a show house. This is just an illustrative idea of what you might be getting from the developer, hence actual results may differ. Make sure to emphasize the specifics such as fixtures and fittings, building materials and parking in the SPA if you feel they are important to you.

If you are purchasing a strata scheme property such as a condominium or flat, a deed of mutual covenant is required to be signed together with the sales and purchase agreement. This document binds all owners on the liabilities of co-owners, establishing common management rules and regulations for all co-owners to follow. This allows the management to take legal action on any owner who has violated any regulations or caused damage. The deed of mutual covenant will normally last a year from which a join management body will take over to manage the well being of the property.

Additional information

When buying a new property from a developer holding a master title, a home buyer must sign the deed of assignment (DOA). This legal document transfers the interest of the owner to the assignee when the property does not contain any title yet. The deed of assignment will show the new legal owner of the property once the transfer is completed. It is useful to add that the SPA agreement acts as a proof of ownership on strata titles pending the official issuance of the property title.

Conclusion

The process of buying new properties can defer from the typical sub sale agreements that are used in the secondary market. As stated above, the SPA used for uncompleted properties must contain certain specific clauses that must be followed by the developer when drafting it. This reduces the possibility for any legal conflicts and ensures the buyers needs are prioritized. Looking to buy a sub sale property instead?
Here is the SPA guide for sub sale properties.

Categories

Buying and Renting Guides
Uncategorized

Author

Wei Yang Chan

                                    Previous Article

Understanding Sub sale property in Malaysia

                                    Next Article

Corner lot, End lot or Intermediate lot – Which Sub types should you choose?

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Corner lot, End lot or Intermediate lot – Which Sub types should you choose?

These sub type terms are interchangeably used within Malaysia’s property talks whether you are inquiring from a developer or dealing with an agent or speaking with friends on a specific property type. It’s important to know the difference between them and critically evaluate the use of each one of them.

Corner Lot

(image source)

As the name suggests, corner lots are properties located at the corner of the row with additional land or large gardens next to them.

If you love spending time outdoors in the garden or hosting barbeque parties, the corner lot is for you. It is important to really consider what you plan to use the additional land for. If you love gardening, it is certainly a yes, but if you don’t it could mean higher maintenance and more work. Have you seen those corner lots with uncut grass with weeds growing everywhere?

You don’t want your house to end up like that.

Due to the benefit of additional land, corner lots have a higher price point compared to the other sub types.

If you are a concerned with the exposure to sunlight, a corner unit might be ideal choice, after considering the direction of the sun and the placement of the house.

One trait of owning a corner terrace house, it’s the availability of land for expansion. If your corner unit is next to a road, you are allowed to extend your building up to the boundary of your external wall. This gives more flexibility to home owners looking to upgrade and renovate their house.

End Lot

(image source)

End lots are properties that are similarly designed and located at the end of the housing row.

Depending on the development and design, end lots have additional windows on the side of the house, allowing more light to shine through and keeping the house ventilated and bright. Pricing wise, end lots can command a premium over the usual intermediate lots.

One of the factors that deter people from purchasing an end lot is the perception that and lots are the first and the easiest units for thieves to break into.

This is mainly because some end units are located next to a walkway or wall that allows ease of access and a quick getaway.

Some walls located next to end units are densely covered with trees and shrubs giving robbers an edge to climb on and ease to avoid detection in the dark.

Given that end lots are located next to a motorway or pedestrian walkway, there is no surprise that these units have a higher probability for peeping and glancing. End lots are commonly known to be less privacy friendly in comparison to other units.

Intermediate Lot

(
image source
)

Intermediate Lots more commonly known as semi-d’s are houses that are built in between other houses.Intermediate units are more commonly traded in the property market given its supply volume.

The advantage of this is the number of ready buyers looking for an intermediate unit therefore you will have less of a hassle finding a buyer in contrast to selling a corner unit.

It’s good to know that the capital appreciation for intermediate lots tend to appreciate faster than other sub types.

The tendency to match your valuation figures given by your valuer is more likely with the sheer number of similar transacted comparable in the area. This means that your valuated price will be less likely to be perceived inaccurately in the eyes of a buyer.

It can be argued by some parties perceive semi-d’s to be of a higher property class and corner lots to be reserved for kindergarten playhouses.

Frankly, it all comes down to your motive and plan for the particular property. Some people love the extra land that comes with corner lots while others perceive semi-d’s to be better despite the smaller land size. Some people tend to favour end lots with less traffic noise. It’s important to consider the sub type of the property you’re interested in but it’s even more important to take into
consideration the location
.

Categories

Buying and Renting Guides

Tagged

guides
property
real estate

Author

Wei Yang Chan

                                    Previous Article

Sales and Purchase Agreement in Malaysia (New Property)

                                    Next Article

5 Unique Homes with Green Architectural Designs in Malaysia

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


5 Unique Homes with Green Architectural Designs in Malaysia

Knikno House

Architect:
Fabian Tan

Photographer:
Ceavs Chua

This two level house consist of a lower level car porch fitted with a ramp and staircase. The upper level rests the main house. The 2 storey section is inspired by the client’s request for a barn look with its façade made up of a modular grey concrete blocks.

 The design is simple and straight forward, keeping you from getting lost in dead ends or walking into unintended areas.

 A rear open area containing the black koi pond and lounge decking.
 The option to open itself up on both sides creates voluminous spaces, prefect for relaxing in the evenings and having dinner parties.

The front garden area that shields the open area from being viewed from the main road.

Courtyard Terrace House, Sungai Buloh

Architect:
O2 Design Atelier

Photographer:
Ian Wong

Albeit a simple terrace house in a new housing development, The Courtyard House was shortlisted for the World Festival of Interiors Awards under the residential category. This double volume faux courtyard complemented with the indoor tree garden has a natural and minimalistic feel to it. This is truly one of the most creative designs of creating open spaces while utilizing the limited space available.

A humble Zen look from the outside that doesn’t try to outdo the rest of the neighborhood. A variety of lush greenery fills the driveway, creating a natural look while  the plants on the second floor prevent the second floor from appearing too plain.
 A balanced usage of wood helps to complement the grey concrete walls, painting an outdoor atmosphere throughout  the open courtyard area.
 Removing a portion of the upper floor creates a balcony effect allowing ample space that reaches to the very top. Clear polycarbonate roof tiles are fitted to replace some of the clay roof tiles, allowing the right amount of sunlight through without over insulating the house.
 The second floor has 2 bedrooms with an ensuite with the master bedroom’s ensuite separated by a glass door fitted with a curtain.

How many terrace houses out there that can rock an inner court yard?

Gasing Indah House

Architect:
Seshan Design

Photographer:
Rupajiwa Studio

Despite a limited budget given by their client, the house was renovated into a small and compact but spatially efficient one. Originally a common 2 and a half story intermediate link house, it was built up to 4 stories inclusive of the half basement and master bedroom attic. The compact centre courtyard is covered by a green wall, expressing a contemporary and future proof design that will always stay trendy.

 Sustainable use of natural resources. The design features includes piping infrastructures that harvest rainwater which can be stored and used for washing cars, plants and flushing the toilets. Limited budget constraints have resulted in a water catchment area which has been predestinated for future storage tanks upgrades.

Spacious Dining Area

The indoor courtyard that functions as a light well, giving ample natural light that reaches to most parts of the house and the needed photosynthesis to sustain the growth of the green wall. This gives an ample space feel with the perception of a larger space than it really is. The light well enables ease of communication and easy link to different areas of the house.

S11 House

Architect:
ArchiCentre

Photographer:
H.Lin Ho

From what used to be a dilapidated and run-down house for many years, to achieving the highest level Platinum rating of Malaysia’s green building Index, it is certainly an architectural design for a coffee talk.

 Behind the stunning look of the designs, much efforts were used in the conservation process to reuse as much building materials as possible and leaving much of the existing greenery untouched. All five trees that have matured over the years have been retained with the new designed built to incorporate them.
 Old concrete roof tiles were crushed as gravel fill, old clay bricks were reused as feature walls and roofing tinbers were used for formwork. Old steel were sold off and concrete and cement aprons were re-used for backfilling aggregate.
 Despite its large size, it only takes up a carbon footprint of a small home through features such as the 5 KW photovoltaic array mounted on the roof which sends back excess energy to the national electric grid.

Rainwater is collected from the roof to rainwater harvesting tanks through a series that filters out sediments and eventually the water used for toilet flushing, gardening and car washing. To further add eco friendliness to the design, all tap and sanitary fittings have water saving and reduction valves.
 To add more ecological effects, a series of wind turbines combined with glazed pyramids create a stack effect ventilation due to temperature differentials. This helps to insulate and cool the building well without much resources.

This project was awarded the Residential award winner for Futurc Green Leadership in 2012, and won multiple awards by PAM Awards in 2011.

Clay Roof House

Architect:
Drtan Lim

Photographer:
H Lin Ho

A stark example of reusing old building materials to create a contemporary look while incorporating it into the new building. In addition to the creative design, it has an added function of optimizing the right amount of sunlight and controlling the airflow naturally.

 Once an old house with dilapidated house, now a modern state of the art architecture with a touch of classic into it.
  Using the simplest building materials from raw concrete, bricks and wooden flooring, simplicity in design at its finest.
 These terracotta Indian roof tiles from the old house are placed on vertical rods, creating a striking screen of swiveling clay, allowing free rotation in response to the wind direction and speed. This leaves the house sufficiently ventilated while the clay tiles act to keep the heat out.

With a clever solution to green buildings and lower build up costs, its no surprise that the Clay Roof House was commended in the
PAM Awards of 2017
.

With Malaysians becoming more aware on the importance of conservation and sustainability, more and more of our actions and perceptions start reflecting on our design choices. In the future, we will more likely see more and more green designs that will turn heads as they pass though the alleys of greenery.

Categories

Home and Design

Tagged

architecture
Design
Green interior
Interior design
Malaysian architects

Author

Wei Yang Chan

                                    Previous Article

Corner lot, End lot or Intermediate lot – Which Sub types should you choose?

                                    Next Article

These 5 Buildings will Influence your Property Value.

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


These 5 Buildings will Influence your Property Value.

The relationship between where people buy properties in regards to where a certain building is located has always been a prevalent concept in the home buying process.  Agents upsell properties by promoting the proximity of the property to different buildings.

Home buyers dream of the inherent lifestyle they perceive when they live near such a structure. From simplest basic convenience to ego bragging rights, these surrounding buildings have an area of effect on the property that happen to be around them. Lets discuss on how these buildings may effect the value of your property.

Public transport Stations

image source

Malaysia is a country that is one of the top countries with car ownership. This is mainly due to the lack of a proper public transportation network that is convenient for its inhabitants.

Owning a car in Malaysia is one of the basic essentials of getting from one place to another and for many people, the only feasible way.

However, despite the sheer number of roadworks and highways built by the government, congestion has always remained the usual part of our daily commute.

Owning a property near to a public transportation station will appreciate property values and you can be sure that demand for property there is higher than areas with no public transportation coverage.

Properties near MRT stations will be in big demand this year, according to
 Savills Malaysia.

Proximity to shopping areas

image source

Proximity to shopping malls are another prices rising factor. The mall culture in Malaysia plays a significant role and revenue for the retail economy in Malaysia.

Malaysians love shopping malls as malls act as a multi functional purpose in our daily lives. Aside from selling goods and services, malls act as a lifestyle centre providing different food varieties, movie theatres, sports facilities and even boutique gardens.

Locations around shopping malls are hot locations that are in demand, especially by young people. Shopping malls are an important player in commerce that drives the economy and tourism sector.

Expat residences

image source

Mont Kiara, Bangsar, KLCC. These areas are well known for their high property prices and more notably their expat population.

Expats normally are paid in their own currency, which is above the average Malaysian pay rate for the same job title. With a higher salary, foreigners are able to afford rent on more expensive areas.

Furthermore, lifestyle outlets such as bars, international grocery stores, foreign delicacies set up stores in that area, catering to expats.

Distance to prestigious schools and renowned universities

Houses around educational institutions and facilities have high price levels due to the increased demand for those properties.

Students within a tight budget often look for cheap accomodation. When sharing rent for a house, the cost can often come up cheaper compared to renting the in house student accommodation.

This attracts students to private renting with others specifically when they can get a good price on a house that is close to the university.

Medical facilities and hospitals

image source

Hospitals often require a large amount of staff, being a large provider of jobs to the local population will increase the demand for housing. With additional economic activity in the area, more and more people are attracted into those areas.

Health infrastructure is one of the major key drivers for where people are choosing to live. Many people prefer to the option of better access to hospitals with 24 hour medical care.

On the downside, there will be an increase in the number of road traffic near the hospital and possibly more sound disturbances emitted from ambulance sirens.

Some argument stated that hospitals in certain inner-city locations report multiple cases of drunkenness and violence.

 Notable Landmarks

Buildings surrounding KLCC can command premium prices due to the worldwide publicity of the landmark. Monuments, statues, heritage sites are all good places to purchase a property, if there are no long term tenants interested in renting, you can always put it up on Airbnb.

On average properties can command a premium if they have a good view of the KL twin towers.

The disadvantage is the number of tourists will frequent around the area, meaning less parking, lots of congestion and plenty of tour buses waiting to collect their passengers.

Buying a property can give you tunnel vision when you are emotionally invested, leaving you vulnerable when you forget to do your homework.Make sure you do a
thorough research
 on the area before you buy a property. Do you have an experience on how these properties have affected your property price? Share with us in the comments below

Categories

Buying and Renting Guides

Tagged

Buildings
lifestyle
property prices

Author

Wei Yang Chan

                                    Previous Article

5 Unique Homes with Green Architectural Designs in Malaysia

                                    Next Article

How to make money from Real Estate Investments?

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


How to make money from Real Estate Investments?

To some people, real estate is just a matter of finding basic shelter to live in. Others have seen the potential of real estate being an investment class that protects cash from inflations and builds wealth overtime. Stories of earning big profits through real estate investments are everywhere. Here are the common ways that investors use to generate wealth using real estate.

Collecting Rental Yields

Collecting rents are probably the most commonly well known method of gaining your return on property investments. Renting is a short term temporary loan of your property to another party in return for regular monthly payments.

Location of property makes or breaks your renting strategy. Highly active commercial areas and hot property areas are one to look forward to ensure a steady demand of tenants. Furthermore, being located in a prime area will allow you more room to demand for a higher price.

When renting out properties, you must know which tenant are you specifically targeting. Renting out properties near universities may be unsuitable for families looking for a home due to the noise while renting out to students would be easier.

Collecting rents are a form of income and therefore it will be charged under the income tax. Other charges on property include the assessment tax and quit rent aside from the usual maintenance and renovation charges of holding a property.

Investing in Reits

Reits (Real Estate Investment Trusts) are companies that own a portfolio of real estate that generate income and allow individual traders to acquire a certain share of the portfolio.

REITs operate similarly to mutual funds and invests in properties ranging from hospitals, hotels, office buildings, apartments and many more.

Depending on the REIT, the portfolio can contain various types of properties that diversify risks or it can even be focused to one asset class or location, with varying risk and rewards.

Like mutual funds, you can invest in reits through the open market that are open to be purchased from the open stock exchange or investing in a mutual fund focused on real estate.

Alternatively there are many private real estate funds that aren’t listed on the stock exchange.

Investors earn money through reits the same way as investing in stocks, dividends are payed to investors sourced through rental incomes and selling of assets.

Selling off your REITS will gain you profits if you sell off your shares at a higher price than when you first bought it.

Flipping Properties

Flipping properties are defined as making a quick resale of a property after you purchase it to make a quick profit from the capital appreciation.

The main perk of doing this is to take advantage of a hot property development, such as an in demand lifestyle condominium in central KL or to sell of a newly renovated property before depreciation kicks in.

Investors interested in flipping tend to look for under-priced homes or properties that have the potential for growth, renovate them and eventually sell them at a high price.

Another way is to purchase a unit in an uncompleted project and as the construction slowly develops so does the price. An investor can then gauge on when is the best time to sell after the project has been completed.

When he finds a right buyer looking to pay for that particular property, he will profit from the difference.

Flipping a property can be quite tricky given that you have to choose a property with high potential for profits.

One thing to note is that to prevent speculation, the government imposes a high Real Property Gains Tax for properties sold less than 5 years.

Buying and Holding Land

Traditionally, buying land has been a top priority in previous generations where land supply is more abundant and demand due to the perceived uses and potential of owning land.

Older generations have believed that the amount of land you own signifies the amount of wealth you have, therefore the trend of land accumulation was rife during those times.

At this time, land prices have gone through the roof due to scarcity and the demand for new development projects.

If you are interested in owning land, there are some advantages to investing in land over other types of real estate investments. Owning land has much less risk and maintenance compared to owning an existing house.

Much land is the same as any other land, therefore, is reassuring knowing that there is a demand for it compared to selling a home consisting of many other factors that require matching to the buyer’s taste.

The most common reason for buying land is the potential that the land brings. Land uses can be converted by applying and paying a premium to convert its usage.

Depending on economic situations and current market demands, the development of land can be revised to suit the current need. Is it high time you move out of your old house? You can develop your dream home over it. Looking for some side cash flow? Get it develop into a housing project. Actually, why not cultivate a durian farm for unlimited tasty treats.

Have you thought about venturing into the real estate investment space to generate income for you and your family? Maybe you are looking to diversify your investment risks or even to protect your cash from inflation and depreciation. Whichever the case, real estate brings large potential for profits as a stable asset class.

Find your dream home today!

Categories

Buying and Renting Guides

Tagged

Business
investment
land
real estate investments
renting
tips

Author

Wei Yang Chan

                                    Previous Article

These 5 Buildings will Influence your Property Value.

                                    Next Article

How to check your CCRIS online report with eCCRIS?

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


How to check your CCRIS online report with eCCRIS?

With the recent launch of Bank Negara’s online eCCRIS system, its been a long awaited convenience for many aspiring homeowners who are looking to see if they qualify for a loan to their dream house. The public will now have access to their finances and payment history for the past year through the Central Credit Reference Information System (CCRIS).

It is free of charge to get your credit report and more convenient with instant access. This credit report is based on actual credit facts and not an assessment report, hence it can be used for official purposes.

How to register for eCCRIS?

image courtesy of Bernama

1. For the first time registration, you will need to perform a one time registration at any local BNM or Agensi Kaunseling dan Pengurusan Kredit (AKPK)
branch
. Make sure you are present at the BNM branch in person for the first time as your identity is required for verification.

2. After you have verified your identity at the CCRIS Kiosk and registered your mobile number, you will receive a six digit PIN which will help you login to the site for the
first time
.

 3.Now that you have verified your identity and obtained your PIN code, you can start to login to your account. For first time users, click on the first time login link in the login panel.

4.Once the first time login window has been displayed, Pick your nationality from the dropdown box. Input your ID Number and the PIN code you obtained from the kiosk machine. On the next page, you will need to create your user ID, email and password.

5.Next you will need to select your preferred security image, enter a security phrase and choose a question and answer for the security question which is used as an additional security measure when you log in. Similar to your bank details, your account credentials should be memorable to you and protected with care.

6.Once you have completed the sign up process, you will be able to log in to your eCCRIS account at
https://eccris.bnm.gov.my/

To receive your CCRIS report, select enquiry on the menu tabs and click on self enquiry. This will take you to a disclaimer page and upon agreeing to it. You will finally be able to view your CCRIS report online.

Download your eCCRIS report

1.If you need a copy of the report, click on the Download Button on the Pop up dialog to start the download. You should be able to see the document in your download folder or wherever you specify the download path to.

2.For security reasons, the report may be encrypted with a pre-assigned password which is set as the following format.

Date of Report enquiry (eg. 15Sept2018) followed by the first 3- characters of your user ID(
Joh
n,
Sam
antha). The password should look something like this.
15Sept2018Joh

(image curtosy of
creditbureau
)

There goes your CCRIS report. Thanks to BNM’s initiative to digitalis their financial services and efforts to speed up financial processes between parties, the public is now able to get their credit history instantly. No need to drive all the way to the kiosk to print out your report.No need to send in all your documents through email and wait 2 weeks to receive it. Do note that eCCRIS is only available from 6am to 12 midnight from Monday to Friday excluding public holidays.

Did you notice an error in your report?

If there are any inaccuracies in your CCRIS report, you may apply for a verification request from participating financial institutions through the platform. On your CCRIS report page, click on the verify button at the bottom of the page next to the download button to start a data verification request.

Do you require additional information?

Call BNM TELELINK at 1300 88 5465 or 603-2174 1717 (overseas) during their operating hours (9am to 5pm, Monday to Friday excluding public holidays). Alternatively you many send them an email at bnmtelelink@bnm.gov.my

Conclusion

Checking your CCRIS report has never been easier with the new platform in place. With faster access to your financial information, you are now able to gauge your financial standing. Now evaluate if you can really afford that loan to your dream house. Alternatively, you may want to check your credit report online through
CTOS
 to get an overall view on where you stand on the credit spectrum.

Find your dream home today!

Categories

Buying and Renting Guides
Uncategorized

Tagged

ccris
credit check
credit health
credit score

Author

Wei Yang Chan

                                    Previous Article

How to make money from Real Estate Investments?

                                    Next Article

How to buy a property in Malaysia

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


How to buy a property in Malaysia

Interested in the property buying process in Malaysia? This guide explains the overall procedures in purchasing a property through the secondary market.

Plan your budget

Depending on the loan package or housing scheme. You will normally be able to get a 90% loan grant of the cost of the property price. The bank officer factors in various considerations when deciding whether to lend you the capital or not. Firstly, they will look at your credit score and credit history to decide if you have a good credit record and if you are able to pay back the instalments plus interest rates. Speaking of interest rates, some loan schemes have fixed and floating interest rates, meaning it can a fine line between whether you are making a profit or loss, hence its best to take that into consideration. Remember to spare some additional capital for the legal fees, and stamp duty. A good benchmark is to ensure that the monthly instalments should not take any more than 1/3 of your income and ensure that you do not have any expensive payment plans or unaffordable purchases that risk breaking your credit rating.

Research in the Area and average transacted price

Every home buyer wants to get the best possible deal for their money’s worth. Meaning he/she would aim to avoid paying for a property that priced above the market price or even paying for a depreciating property that is not worth its value. The only way to avoid this is to do your
homework
. A well researched home buyer will be able to make a case for a lower price and negotiate for an acceptable price according to the budget. Before even visiting the area, you will get an idea of your ideal requirement in mind before committing to a vague deal.

Search for a Property

There are endless ways to looking for a property but how should you start? If you have the time, call up a property agent in the area you are interested and ask for the available properties are currently listed with them. On the other hand if you are property savvy and would love to get an idea of what the market offers, search online for classifieds and listing sites and you will see what each area has to offer.  However, if you are short on spare time and are not property focused, you can use a free matching service like Bumbung.co to get your request matched with available listings.

House Viewing

This is an important phase in a the buyer process. This is a time to really
evaluate the property
 if it meets your requirements.

This is also a good time to get insights through your agent, you should ask the reason for selling the property and how long has it been for sale.

During the house viewing you should check if the property is a
 leasehold, freehold or a bumi-reserved land
. Many people perceive leasehold to be unattractive due to assumptions that you will have to return the land to the government. Additionally, you must ensure the
property title
 is what you are looking for.  Strata titles may have a monthly maintenance cost that you must fulfill.

Negotiate for a mutually agreeable price

Its vital that you priorities the best interest of your set budget and not go above and beyond it. Sellers will normally keep their prices high and will be hesitant to lower it. Its best to negotiate well for a win win situation. When appraisal figures come into play, the value you pay should be along that benchmark and it is best to avoid overpaying for your property.

Apply for a loan

Now that you have a deal pending in line. Its time to apply for a loan if you aren’t paying for it in cash. Make visits to different banks and make a choice on which bank offers the best deal for you. Some factors to consider is the floating vs fixed interest rate, the interest rate amount, the highest amount that they bank can provide and any additional fees that it charges or perks that are useful to you.

Now that you have made your choice, the bank will appoint a value to visit the property to provide the bank with an appraisal. With the appraisal amount, the bank officer will issue a loan offer letter for you to sign, detailing the payment procedures, duration and frequency.  He/she will produce a valuation report which will be charged to your loan sum or paid separately.

Sign the Booking form and pay 2% of the purchase price

By signing the booking form and paying 2% of the purchase price, you have a stake in the property and the property is under reserved for the period of your offer. The booking form will include the essential items such as the names of the transacting parties, the property address, agreed price and more.

Sign the SPA agreement

This is your contract that binds you and the seller to a contract that requires the both of you to fulfill your individual part of the obligation. Make sure all the details pertaining to the agreement to be accurate that there is no leeway for any discrepancies. Ensure that you agree to the clauses of the agreement as you will need to deliver then within the stipulated time frame. Pay the balance of the 8% to put in as a down payment. Read our
comprehensive guide
 on the SPA procedures to learn more.

Sign the loan agreement and pay the remaining balance

The lawyer will draft a loan agreement that binds you with your bank that will be providing your loan. The loan agreement is mainly drafted to protect the bank and ensure that you fulfill your monthly payments. Make sure that you capable of paying the monthly loan installments plus interest to prevent the bank from acquiring your property in an event of a payment default. Your bank may require you to get a loan insurance if they aren’t satisfied with your financial health. Check the payment dateline to ensure that you do not incur any late payment charges. Refer to the duration stated in your agreement, the usual deadline is 3 months.

Delivery of Vacant Possession and Collect your keys

Vacant possession is a period that ensures that the property is fit to be occupied. Within the SPA agreement, there is a completion date set that is agreed by both parties. This date marks the pre set time for the contract duration, failing it will incur penalties to the breaching party.

Once the remaining amount has been settled, vacant possession must be delivered along with the keys within the time frame specified in the SPA.

Ensure all pending and late utility bills pertaining to the property have been paid by the owner before the handover.

When all these steps have been completed, you have successfully purchased a property from the secondary market. Are you looking for a New property instead? Here is the guide to the process of buying
new property developments
.

Categories

Buying and Renting Guides

Tagged

buying
New home
property

Author

Wei Yang Chan

                                    Previous Article

How to check your CCRIS online report with eCCRIS?

                                    Next Article

Every Property Tax in Malaysia that you should know

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Every Property Tax in Malaysia that you should know

Property Taxes in Malaysia can be quite a challenge to a first time buyer or investor. You might be shocked to find out the different taxes imposed on you when you purchase or even own a property. The following are the property taxes that you should know before a major property decision.

Taxes incurred with owning and managing real estate

Quit Rent (Cukai Tanah)

Commonly known as cukai tanah, this tax that is relevant to anyone owning a property. Essentially, it is the price you pay for owning a land in Malaysia and yearly income to the state government. The price you pay for quick rent varies in accordance to the land size and property asset category. You will have to pay quit rent on an annual basis regardless of whether the property is freehold and leasehold or whether it is a strata titled property. The quit rent rate depends on the each state government’s decision to set and amend.

Assessment Tax (Cukai Taksiran / Pintu)

If your property is located within a local authority (Majlis Pembandaran), you will be required to pay an assessment tax based on the annual rental value. The final sum is calculated based on the property type, location and multiplied by a set of routes. For residential properties, it is levied at a flat rate of 6% and can be paid in 2 instalments.

Taxes incurred when acquiring and transacting real estate

Stamp duty

During the completion of a property transaction, the legal documents such as the SPA and Loan agreement needs to be recognized and notified to the government.  Stamp duties must be paid for any property transfer related documents to be legally recognised. The amount of stamp duty required is levied in proportion of the property’s value.

Real Property Gains Tax (RPGT)

Since the abolishment of capital gains tax in 2007, capital gains through property transfers are no longer subjected to income tax laws. There is, however, the real property gains tax, which is levied on any disposal of real property or shares of property companies. RPGT is a type of capital gains tax that charges you based on your profit gained through property transactions. One reason why RPGT was introduced is to discourage flipping properties where people renovate old properties and mark up prices. This is to prevent property prices from greatly increasing above market value as a result of speculation. As the names suggest, you are only taxed through any profits gained from the disposal of the property, hence no taxes need to be paid if there is a break even or a loss.

RPGT Rates

Disposal of property

Malaysia citizen & PR

Non-Citizens & Non-PR

Companies

Within 3 years from the

date of acquisition

30%

30%

30%

In the 4th year

20%

30%

20%

In the 5th year

15%

30%

15%

In the 6th year and

subsequent year

0%

5%

5%

Goods and Service Tax (GST)

If you are renting out or selling a residential property, your income generated will be exempted from GST. However, the income gained through commercial properties are taxable by means of letting out or even disposing of commercial properties in some circumstances. To have commercial property to be taxable under the 6% GST, the homeowner must own 2 or more commercial properties or a commercial property valued at more than RM 2 million. Alternatively, the homeowner may own a land larger than 1 acre or earn more than RM 500,000 through yields from the properties.

Conclusion

Property taxes can be troublesome and unwelcoming to an average homeowner. With the different property taxes around limiting and shifting your decisions, it is important to take each of them into consideration as it can add up additional costs to your property portfolio. On the bright side here are some
tax saving tips
 that can help you reduce your costs.

Categories

Buying and Renting Guides
Uncategorized

Tagged

buying
real estate
tax

Author

Wei Yang Chan

                                    Previous Article

How to buy a property in Malaysia

                                    Next Article

5 Exquisite Bathroom Design Trends of 2018 by Victoria + Albert

                There is
1
 comment

Add yours

Ronald Reigns

on 21 February, 2018 at 21:04

Reply

Awesome writeup! Super helpful for new property buyers. I did not know about all of these when I bought my first property.

Post a new comment
Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


5 Exquisite Bathroom Design Trends of 2018 by Victoria + Albert

Looking for fresh new ideas for your newly renovated home? Or are you curious to find out how luxurious can a bathroom get? The Posh British bathroom brand has just come out with 5 unique predictions as to what your potential bathroom may look like for 2018.

Image Credits: Otta Design

Design trends has always favored the classics, remember the old bathrooms with light creamy coloured square tiles fitted with protruding pipes and taps everywhere? Designs are moving along with the minimalist trends of today’s homes. Think large mirrors with ambient lighting complemented with ample spaces. Victoria + Albert’s Napoli freestanding bath stands out as the main subject of the bathroom, beckoning to whom looking to relax. Personally, we love the bold and broad hexagonal tiles that contrast the pieces from each other.

Image Credits: Rabaut Design

The amount on mindfulness and relaxation apps popping up on the app stores these days are no accidental, they reflect a growing lifestyle trend balancing the mind, body and soul. High income executives know the impact of work on their body. At this age, the demand for massages, therapies and spa bathrooms grow exponentially as a new lifestyle choice. The above Barcelona freestanding bath matches the background elegantly, incorporating nature’s contour patterns found only in marble slabs and wooden pieces.

Image Credits: Susan Glick

Reminiscent of an elegant white swan, it is truly a bathroom designed with class in mind. You can now instill this exclusive image to you personal space without the need to visit high class spa’s and resorts. The fluffy seating adds a tad of nobility, with the comfort of spending time attending to your personal needs. The charming Toulouse bathtub with a wide edges certainly fits the chic setting with ease.

Image Credits: Victoria + Albert

One trend that stands through time is the incorporation of old pieces in a contemporary setting. The Trivento freestanding bath perfectly reflects the statement. Whether its an antique piece or a historical ornament, homeowners and designers see the benefit of implementing transitional designs in modern homes. Think of the Buddha statue you may see in modern homes or the placement of an old vase in your living room. The above freestanding bath merges a french classic into a modern setting.

Image Credits: Victoria + Albert

An article on bathroom trends can’t be completed without colours, and that is what the Beyond palette is about. Victoria + Albert worked with Colour Hive, a global colour consultancy to bring you a the ideal colour palette for your bathroom.  With the backdrop painted with a gradient of dreamy  colours, taking a bath in such setting will relief all your worries and disappointments from the earthly conflicts and drama. After all, its widely known that the ambiance of a room influence the state of mind, hence, why not make your bathroom a therapeutic sanctuary. The background reminds us of a calm oasis with soft neon colours.

Let your inspirations and ideas run free, these are the bathroom trends that are set to take of this year. Courtesy goes to
Victoria + Albert Baths
, a bath and basin brand with a worldwide reputation for their contemporary and traditional designs. Did this article inspire you in any way? Let us know in the comments. We love to hear our reader’s opinions.

Categories

Uncategorized

Author

Wei Yang Chan

                                    Previous Article

Every Property Tax in Malaysia that you should know

                                    Next Article

The rise of Micro Housing in Malaysia, Is it feasible?

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


The rise of Micro Housing in Malaysia, Is it feasible?

In many countries overseas particular those with limited land while facing a housing crisis has been looking for various ways of solving it. One solution is micro-housing. Despite the overwhelming property glut in Selangor and other states in Malaysia, Kuala Lumpur remains to be a place without sufficient accommodation for city dwellers to live in. A Think City baseline study found that there are about 54,000 workers based in the downtown of Kuala Lumpur area with only 4,800 of them were residents.  In the recent UN-Habitat’s 9th World Urban Forum at the KL Convention Centre, unique ideas on communal living are being showcased at the micro homes village.

The idea of implementation is to utilize existing DBKL parking lots, which measures approximately 2.5m x 5m by converting them into micro homes with shared gardens, and communal facilities. Another idea of micro housing is to repurpose aging and outdated commercial buildings to be residential units fit with communal living. Think City’s Program Director, Partnerships Lee Jia Ping has said that Think City aims to  increase the economic vibrancy of the area by offering a diversity in residence, demographic and various services.

Who is it for?

Architect Jay Janette based in Seattle Area said that initially students were the main focus for micro housing but surprisingly, young professionals and older adults started to move in. He further elaborated that tenants don’t spend a lot of time at home as they go to work, go out and spend time with their friends and repeat. He added that because of the location in the city, they are able to pursue this lifestyle.

The Possible Benefits

Affordability

The core idea for micro housing is its price tag. Living at the heart of the city affordably is only a dream to most people. Sky high prices and limited accommodation narrows down accommodation choices for many. They may choose to either commute from distant towns with cheaper rents or opt to share living spaces with a roommate or a relative. Micro housing gives the opportunity for those seeking the city lifestyle at a cost of limited spaces. Micro housing can be an attractive investment  for investors with limited budgets. You can be sure that there will be a vast number of people looking for cheap accommodation.

Convenience

Having located deep in the city itself, amenities are everywhere to be found and any sort of goods or services are easily obtained. As KL was voted the
4th best city for expats
 in 2017, you can be confident in its diversity and offerings.

Community oriented

Communal living offers the choice of balance between private and common space that are designed to encourage community interaction, something that is not commonly found in fast paced big city lifestyles.

Environmentally friendly

Due to its size and capacity, the environmental footprint created per square foot is smaller than those high energy consuming buildings with few inhabitants within them. This is ideal for environmentally conscious young workers who embraces minimalism while living green in the heart of the city. Utilizing the shared facilities with other residents, not many facilities will be required for maintenance and cost of management upkeep can be relatively low. Using
green practices
 such as installing solar panels, rain water collection and reusing build materials procured elsewhere are some of the possible ways that highlights micro housing can be attractive.

Concerns

The weather

Light and height are two critical factors to micro-housing. In Malaysia, light is not much of a major concern due to its all year bright summer weather. This allows the installation of solar panels on top for self sustainable energy while high ceilings won’t be a requirement given the ample sunlight during the day. However, one major concern is the heat emitted by the scorching sun at certain times of the year. In traditional homes, proper insulation is installed in the roofs and the flow of ventilation is carefully considered. With micro housing, more test need to be conducted to foresee its feasibility from a design perspective. Its very easy for a micro home to turn into a big oven ready to bake its poor inhabitants alive.

Maintenance

Just like any other properties with communal areas such as the usual strata condominiums, continuous maintenance is necessary. This is especially important for micro housing which can quickly become a fire hazard if not kept in check. It is one issue to ensure inhabitants pay their maintenance fees in time and another to keep the whole area in shape and welcoming. Micro housing will require proper planning and evaluation to keep the place in order before implementation.

Cleanliness

For micro housing to thrive and sustain for the foreseeable future in fulfilling its core purpose, there needs to be enforcement and cooperation from all parties. This includes a high standard for cleanliness and garbage disposal, including proper recycling procedures and systems. The affordable prices and limited spaces tend to open up opportunities for antisocial attitudes and  low responsibilities turning what could have been a healthy communal living into a derelict area filled with negative social behaviors from drug abuse to crime hotspots. As if KL needs anymore crime areas to mushroom up. If you look closely at low cost flats in the surrounding areas, many of them are poorly maintained, garbage and waste are littered on common areas such as staircases and walkways. This leads to irresponsible and the ‘tidak apa’ attitude that shows in the recent case of the
boy who was killed by a falling chair
 at a PPR flat. It is really up to the residents of communal housing to uphold the standards of living in such areas.

What does the future hold for micro housing?

According to an article by
freemalaysiatoday
, in 20 years time there will no longer be open car parks due to these spaces being re purposed into green areas consisting of micro housing and pocket parks. With the green innovation plan, about 30% of the city will be green areas. Additionally high parking charges will be imposed to encourage the use of public transportation much like what we see in highly populated cities today such as London, Tokyo and Shanghai. In an ideal scenario, we would eventually be able to see an efficient public transportation system that connects with the rest of KL. People will be travelling from one place to another using
bicycles
 and visiting each other in micro homes while recreating the nostalgic closeness of ‘
kampung
‘ interactions at the heart of a big city.

Overall, micro housing in shared living spaces is definitely not for everyone. Micro housing will probably be suitable for young professionals with chic lifestyles or students living in on a budget. Other social groups such as families or old married couples may find it unsuitable to their palate and may opt for a normal home instead. Do you think micro housing will be the next big thing in the property industry? Would you be interested in living in one?

Sources:

https://www.thestar.com.my/lifestyle/features/2015/03/19/living-small-a-microhome-is-where-the-heart-is/

https://www.nst.com.my/news/nation/2018/02/334321/go-micro-are-micro-homes-future-kl-ites

rage.com.my/big-city-small-living

Categories

City Living
Uncategorized

Tagged

City living
green
living the city
micro housing

Author

Wei Yang Chan

                                    Previous Article

5 Exquisite Bathroom Design Trends of 2018 by Victoria + Albert

                                    Next Article

Two Homegrown Malaysian Wins Gold at Asia Young Designer Summit 2017/18.

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.


Two Homegrown Malaysian Wins Gold at Asia Young Designer Summit 2017/18.

Shahmeena (third from left) and Wai How (fourth from left) at the Asia Young Designer Summit 2017/18.

Meet Ng Wai How and Shahmeena Labeeb, the two Malaysian who managed to sweep the two top awards at Asia Young Designer Summit 2017/18 beating entries from 13 different Asian countries taking the grand prize of USD5000 each.

Ng Wai How describes himself as a passionate and creative individual interested in art, design, and literature and is aspired for excellence. Graduated from University of Malaya in Master of Architecture, Wai How won the Asia Young Designer Award Malaysia as a Gold Winner in the Architecture Category.

How did Wai How manage to nab this auspicious award? In his
take
 on the War Museum – Extension of Tugu Negara that managed to capture the attention of the judges. Through his impressive
design portfolio
, Wai How demonstrated that he got what it takes to earn the award.

One of the sketches for Wai How’s War Museum – An Extension of Tugu Negara.

Shahmeena Labeeb bagged the Gold Award for the Interior Design Category. A final year student of Taylor’s University, Shahmeena Labeeb impressed the judges with her take on a project that incorporated bee-friendly fruit and vegetable trees, with design elements inspired by honeycombs that emphasize on the declining population of the honeybee.

Her design named Plan Bee – A City Beekeeping Project is supposed to set in an abandoned space in Kuala Lumpur. See more of Shahmeena’s impressive design
here
.

Shahmeena’s creative designs that are inspired by honeycombs.

Congratulation to both Ng Wai How and Shahmeena Labeeb for winning the prestigious award and making Malaysia proud!

Categories

Uncategorized

Author

Nurul Diyana

                                    Previous Article

The rise of Micro Housing in Malaysia, Is it feasible?

                                    Next Article

10 DIY Ways to Boost Your Property Market Value

                There are no comments

Add yours

Cancel reply
Comment
Name
Email
Url

Save my name, email, and website in this browser for the next time I comment.