iProp Realty

How To Sell In Tough Times

2009-02-21T06:50:00.000-08:00

The Star Online

Saturday February 21, 2009
How to sell in tough times
THE REAL ESTATE WITH ANGIE NG

IT is becoming more difficult for developers to close sales these days and the growing number of easy financing schemes and freebies being offered by developers drives home the point that the property market is becoming increasingly tough for industry players.

Buyers are taking longer to decide as the scale and severity of the global financial crisis begin to dawn on the people.

The performance statistics being rolled out by manufacturers, exporters, corporations and service providers have been pretty weak, which further create anxiety about the state of the economy.

News of major retrenchments by companies, especially multinational corporations, are unnerving to many Malaysians and they worry whether they will be the next in line.
Many are bracing for more bad news as they believe the worst has yet to unravel going by the scale of damages reported across the continents.

People are postponing purchase decisions for big ticket items, including property and cars, as they fear more bad news ahead.

The biggest challenge for developers this year is to regain buyers’ confidence and developers have to be proactive by showing their commitment to their projects, which include putting up the necessary infrastructure ahead of a project’s launch.

To encourage buyers to sign on the dotted line, developers have came up with an ingenuous plan by working with their panel of bankers to provide easy financing schemes to purchasers.
Even the top gun developers of SP Setia Bhd and Mah Sing Group Bhd have joined in the bandwagon with their 5:95 home loan packages.

Depending on whether it is a 10:90 or 5:95 scheme, buyers only have to fork out either a 10% or 5% of the purchase price as downpayment after choosing a property while the bank will release the progressive payment to the developers during the construction period.

The developers will bear all legal fees, stamp duty on the sale and purchase agreement, loan agreement and memorandum of transfer and also service the interest during the construction period.

This way, the buyers will not have to fork out money to service the loan until the property is completed and handed over, which typically takes two years for landed properties and three years for high-rise projects.

Some, like Gamuda Land, have gone the extra mile. It has accorded buyers another “honeymoon year” once they’ve taken over vacant possession, afterwhich they will have to start servicing the loans.

As property development is ultimately a business that calls for efficient cash flow management, these financing schemes will ensure developers have enough cash flow to finance their projects during the construction period.

Having buyers sign up loans for their property purchase will also lower the risk for the developers as the buyers will have to answer to the banks should they decide not to proceed with their purchase.

As for the financial institutions, the arrangement will ensure they are able to meet their loans growth target.

In fact, total loans approved for residential property purchase nationwide dropped by 23.3% to RM3.69bil last December compared with the same period in 2007.

It is imperative for buyers to put some serious thought before taking the leap to sign up for a financing facility as once a loan agreement is sealed, they are committed to the loan repayment. Important factors to bear in mind - one’s affordability, developer’s reputation and suitability of purchase.

On the other hand, it will also help if developers undertake feasibility studies to ensure there is demand for the type of products they are offering.

Deputy news editor Angie Ng hopes to see more Malaysians having the opportunity to buy homes as a robust housing industry has huge spin offs on the country’s economy.

January Inflation Increases By 3.9%

2009-02-21T06:48:00.000-08:00

The Star Online

Saturday February 21, 2009
January inflation increases by 3.9%

INFLATION rate in January increased by 3.9% against 2.3% in the same month last year.
However, inflation was down by 0.1% when compared with December 2008, the Statistics Department says in a statement.

It attributed the higher inflation in January to increases in the indices of all the main groups except transport, textile, footwear and communication. Notable increases were in food and non-alcoholic beverages which rose 9.8% and housing, water, electricity, gas and other fuels added 1.7%, it said

Other increases were in alcoholic beverages and tobacco, which went up 8.3%, furnishings, household equipment and routine household maintenance which went up 4.9%, restaurants and hotels gained 4.6% while education added 3%. — Bernama
BANK NEGARA’s international reserves rose to RM317.7bil as at Feb 13 from RM316.8bil on Jan 30.

In a statement, the central bank says the reserves position is sufficient to finance 7.6 months of retained imports and is four times the short-term external debt.

The reserves comprise foreign currency reserves (US$86bil), International Monetary Fund reserves position (US$300mil), Special Drawing Rights (US$200mil), gold (US$400mil) and other reserves (US$4.7bil). — Bernama

KLCC Prices Holding Strong

2009-02-21T06:43:00.000-08:00

The Star Online

Saturday February 21, 2009
KLCC prices holding strong
By ANGIE NG

AMID the global financial crisis and waning demand for luxury high-rise condominiums, the coming onstream of 2,000 more condominiums from 10 projects around the Kuala Lumpur City Centre (KLCC) area this year is expected to result in further price correction in properties in the vicinity.

After a euphoric two-year period which saw prices of some recently-released residences skyrocket to over RM3,000 per sq ft, the feverish pitch of high-end condominiums in the KLCC area appears to be cooling down.

The devastating impact of the US-led global financial crisis is taking a heavy toll on the rest of the world and with it, asset and equity values have taken a severe beating. The wealth destruction has significantly weakened consumers’ confidence and their appetite for big ticket purchases such as properties.

Since the middle of last year, prices of secondary residential properties in the KLCC vicinity have dropped 15%-20% while the rental market has eased 20%-25%. The slowdown was more visible in the last quarter of 2008 as reflected by shrinking property transactions. Industry observers are not ruling out further weakening in values and rental yields.

Knight Frank Ooi & Zaharin Sdn Bhd managing director Eric Ooi expects the current lull to continue until buyers’ confidence is regained, at the earliest in the later part of the year.

Even so, the general view among industry practitioners is that there is no price bubble in the KLCC residential market.

According to Zerin Properties head of private wealth (real estate) Terence Yap, property prices in the KLCC vicinity are significantly lower than those in regional hot spots such as Singapore, Hong Kong and Shanghai and therefore, there is less potential for a severe correction: “The supply market is holding pretty well and the supply of condominiums is at a healthy level with no worry of an oversupply.”

In fact, he points out that there was still demand for KLCC properties in the last quarter of 2008, albeit at a slower pace compared with the third quarter. In addition, as there will be no new project launches in the next quarter, he expects demand to outstrip supply, hence stabilising prices somewhat.

Fortunately for Malaysia, while much of the world (US and Europe especially) is reeling from the crisis with asset values yet to see a bottom from a free fall, there has yet to be a visible deluge of distressed assets for sale, owing much to the country’s resilience.

“Some foreigners may be selling at distressed prices but local vendors are holding strong. And despite the correction, prices of residential property in the KLCC area have not plummeted like those in more expensive markets. Coupled with demand from opportunistic investors looking for good bargains, there will still be a flow of transactions to sustain property values,” Yap opines. The appetite for good value buys is pretty much the same,” he adds.

There are also other plus points that the property sector can bank on, says ReGroup Associates Sdn Bhd executive chairman Christopher Boyd, citing declining interest rates which increases buyers’ affordability – a definite boon for the sector. “Values are way below those of comparable properties in most other cities in the region. There is still an influx of expatriates and as far as I know, there is a long waiting list at the expatriate schools,” he quips. On the other hand, he says foreigners who want to cash out may be willing to cut their asking price to make a quick exit.

Noteworthy is that while Malaysia is on the radar screen of international real estate investors, 70% of property purchases in the country are by Malaysians, which YY Property Solutions chief executive Y.Y. Lau deems as positive. “This is a blessing. Local buyers are more resilient and will not liquidate their positions in a hurry like their foreign counterparts.”

She says the market’s performance depends on a few factors, including the reputation and financial strength of developers and the investment objectives of potential buyers.

“If a developer is positive and has deep pockets, has projects in choice locations and offer quality and well sought after property products, he can sit tight and weather the current unfavourable situation and come out a winner when the market stabilises and scale new highs,” Lau says.

She admits that certain groups from South Korea and Britain have deferred their purchases while others who own existing properties are trying to unload given the severity of the crisis. In addition, due to the worsening property overhang in the Middle East, there is a marked fall in demand from Middle Eastern buyers for local properties since the last quarter of 2008.

To woo foreign buyers, several developers have been holding road shows abroad in countries such as South Korea, Japan, Britain, China and India to take advantage of the competitive pricing. Zerin’s Yap says the establishment of Malaysia Property Inc to promote Malaysia as a property investment destination will definitely heighten interest among foreigners.

“We expect property around the KLCC area to be the biggest beneficiary from this initiative,” Yap says.

Condos Still Command Top Prices

2009-02-21T06:34:00.000-08:00

The Star Online

Saturday February 21, 2009
By ANGIE NG

PRICE correction or not, condominiums in the Kuala Lumpur City Centre (KLCC) area still command the highest price compared with those in other parts of the country largely owing to its significant appreciation in the past five years.

Prices of newly launched condos in the vicinity have appreciated from RM500 per sq ft in 2004 to around RM1,000 in 2006 and RM2,000 in July 2008. And in August last year, prices peaked at just over RM3,000 per sq ft following the soft launch of The Binjai on the Park by KLCC Property Holdings Bhd.

Other recent launches include the Regent Residences comprising 105 upmarket residences on top of the 5-star Regent Hotel in Avenue K with an average price tag of RM2,500 per sq ft. Since its soft launch in April last year, it has sold 60% of its units.

The unveiling of the much-awaited luxury residential project – Four Seasons Residences – by Venus Assets Sdn Bhd scheduled for late last year was postponed due to weak market sentiments. The 173 super luxurious residences are touted to have built-up of 3,000 sq ft each with a whopping price tag of RM3,500-RM4,000 per sq ft.

The latest KLCC project to be unveiled is The Binjai on the Park, which has chalked up a take-up rate of 20% since its soft launch last August. Offered under the build and sell concept, the residences are only offered to selected buyers.

The 171 residences with built-up from 2,500 sq ft are priced from RM2,500 to RM3,200 per sq ft or RM5.5mil to RM10mil a unit.

The super high-end residences offer direct view of the Petronas Twin Towers, direct access to the KLCC park, excellent quality finishes and management. Other future projects lined up include Millennium Residences, 6 Stonor and IMC Parkville.

YY Lau Property Solutions chief executive officer Y.Y. Lau says the luxury residential market in the KLCC has gone up a notch with The Binjai project, and developers will have to pay more attention to finer luxury concepts in the future.

She also says the practice of extending special invitation to pre-selected potential buyers seems to have been effective as in the case of selling The Binjai. “By extending special invitation, the potential buyers are made to feel important and the chances of securing a sale is higher.”
Despite the apprehension over the property market’s outlook, Lau believes it’s a good time for serious buyers to scour the market for attractive buys.

“They stand a better chance of negotiating a better deal for some prime properties in selected locations,” she says.

EPF sets terms for borrowers

2007-12-14T17:52:00.000-08:00

The Star Online

Saturday December 15, 2007

EPF sets terms for borrowers

KUALA LUMPUR: The Employees Provident Fund (EPF) announced yesterday that members with a minimum balance of RM600 in their Account 2 will be able to withdraw their savings for payment of their monthly housing loan instalments beginning Jan 1.

EPF senior general manager (organisation development) Hizwani Hassan said the minimum monthly withdrawal that can be made was RM100 for a period of not less than six months, while the maximum amount should not exceed the total monthly housing instalment.
“The savings in Account 2 allocated for this withdrawal cannot be used for other withdrawals,” he said in a statement, adding that members must also be below the age of 55 and not have any housing loan arrears.

The monthly withdrawal facility, announced in the 2008 Budget, allows members to withdraw their savings from Account 2, with the payment being made directly to members’ personal bank accounts on a monthly basis.

Currently, members are allowed to withdraw from their Account 2 for the purpose of building or purchasing a house and settling their housing loan.

Under the conditions for such withdrawals, members must either be the purchaser or builder, and the borrower as well as owner of the house or shophouse with a dwelling unit.

Members should also have an existing housing loan from an approved financial institution, and the house must be mortgaged and fully disbursed by the financial institution.

He said the EPF would revoke the monthly instalment withdrawal if the member had a non-performing loan with a financial institution, the loans have been revoked or redeemed, the house has been sold, auctioned or transferred to another party, or if the member has been convicted of cheating by submitting fraudulent documents or information for the withdrawal. – Bernama

'Landlord Insurance' - interesting !!

2007-11-11T02:20:00.000-08:00

Source:

Channel NewsAsia

SINGAPORE: With the growing property rental market in Singapore, it may be time to look at more ways to protect the interests of both landlords and tenants.

This was the opinion of some viewers who wrote in after a landlord was interviewed on Get Rea!, a Channel NewsAsia's current affairs programme.

In the Get Rea! episode, "Just Follow The Law", it was a case of a Singaporean landlord living in Australia who had problems with a difficult tenant in Singapore.

Among other things, the tenant refused to let the landlord's property agent arrange for a joint inspection of the premises towards the end of the lease.

So the inspection was carried out at midnight on the last day itself.

The property was left in such a mess that the two months security deposit was forfeited.

The landlord, Sharon de Souza, suggested the introduction of 'landlord insurance' in Singapore, which is something that is being offered in Australia.

She said: "Landlord insurance essentially gives you coverage. They will cover up to A$5,000 of your legal fees if you have to engage a lawyer to get rental back or claim for damages. Also, if you've lost rental income because of a delinquent tenant, the policy - based on what policy type you take - will cover part of your rental."

While insurance companies that were contacted declined to comment, saying they were not familiar with the proposal, the Institute of Estate Agents (IEA) thinks the suggestion is worth considering.

Jeff Foo, President of Institute Of Estate Agents, said: "Landlords buy the insurance to cover themselves against loss of income, damage, malicious damage to their property, theft and perhaps legal fees. But a lot of this will depend on supply and demand because a month's rental will go into paying for the premium of such policies. But it may not be a bad idea."

Ms de Souza had also suggested that property agents be paid their commissions on a staggered, monthly basis, instead of a total sum upfront once the Tenancy Agreement is signed.

However, property agents told Channel NewsAsia that adopting such a system is harder in Singapore.

Vincent Chong of Colliers International explained: "It's because generally, our rental rates are relatively low for the lower end of the market. For instance, if it's a S$2,000 rent and it's spread over 24 months, it's going to be less than S$100 per month for the property agent. But of course, if the rental prices are in the region of S$20,000, it would be possible for agents to accept a kind of staggered commission."

There was also a suggestion on how landlords could deal with difficult tenants, especially when it is a long-distance relationship.

"We suggest to the landlord that they engage a Property Managing Agent to do the day-to-day running of the lease, which includes collection of the rent, maintenance of the air-conditioning," said Mr Chong.

Engaging such a Lease Management Agent could cost you 10 percent of your monthly rental fee, although some property agencies offer it free-of-charge to landlords as a value-added service.

As for the tenants, Low Swee Kim, Vice-President of Institute of Estate Agents, said: "We have a Small Claims Tribunal where tenants or landlords can go to resolve their disputes. They don't need to pay any high legal fees because they don't need to be represented by lawyers. They can go anytime when they have a dispute during the tenancy; they don't have to wait till the end of the tenancy period."

But as in any relationship, sometimes all it takes to close the door on a nasty chapter, is simply by talking it out.

- CNA/so

Is the robust property market sustainable?

2007-10-12T21:15:00.001-07:00

The Star Online

Is the robust property market sustainable?

Comment: By FINTAN NG

CALL me a cynic but I have often wondered about the potential of the local property market.

This, of course, flies against the sentiments of experts in the sector, most of whom have been upbeat.

Since the start of the year, there has been mainly good news from them although grouses do get aired from time to time.

Developers, consultants and realtors have painted a mostly rosy picture of a pretty robust property market, basing their outlook on the usual suspects – the economy, the “feel good sentiments” of the public, the performance of the stock market and the roll-out of projects under the Ninth Malaysia Plan, part of which is already coming to fruition via the Iskandar Development Region, the Northern Corridor Economic Region and the soon-to-be-launched Eastern Corridor Economic Region. Even inflation, at around 2%, is manageable.

There are also the various incentives that the Government has announced in stages since last December.

These include the easing of Foreign Investment Committee regulations on the purchase of residential properties by foreigners, the suspension of the real property gains tax and the abolishment of stamp duty for residential properties priced at RM250,000 and below.

The experts will also point out that relative to our neighbours, property prices are comparatively cheaper although I have been cautioned more than once about price comparison. There are many other factors that affect the property markets of our neighbours.

The year is slowly winding down. Despite high crude prices hovering in the US$80 per barrel region in the past few weeks and the troubles in the US credit and equity markets over the last two months, the economy is humming along.

It is not at the blistering gross domestic product growth of near 10% before the Asian financial crisis but still at a steady pace of nearly 6%.

Quarterly reports by various property consultancies this year have noted the general upward movement of prices of high-end residential properties in select locations in the Klang Valley and Penang.

In Johor, while property prices have also risen, they are not moving as strongly as in the two other regions.

They have also noted that foreigners have taken up a substantial number of these properties, sometimes on an en bloc basis.

Several consultants noted that foreign interest has been driving the prices of high-end residential properties in “hot locations” upwards. This is especially true of the area surrounding the Kuala Lumpur City Centre (KLCC).

According to a consultant, the fear is that while Malaysia has largely been unaffected by the subprime mortgage crisis in the US, foreign interest may dry up if the crisis spills over into the US economy or credit is further tightened.

“The crisis may spread through the credit fault lines or other factors may crop up that will have a negative effect on the market,” he says.

Another adds that the KLCC rental market is as yet untested, unlike Mont’Kiara/Sri Hartamas where there is a thriving expatriate community.

“For the rental market in KLCC to do fairly well, the investment climate must be welcoming to attract foreigners,” he adds.

Going forward, a “welcome” mat and less red tape would be good for the high-end residential and office segments.

As for the mass-market segment, as long as inflation is manageable and financing is cheap (or Bank Negara does not raise the overnight policy rate that affects commercial banks’ base lending rates), many more people would be interested in purchasing property.

This in turn would reduce the overhang that developers are constantly moaning about and lend more strength to the property bull.

2007-09-29T02:06:00.000-07:00

The Star Online

Wives can now apply for Malaysia My Second Home

By PAUL CHOO

KUALA LUMPUR: Applications for the Malaysia My Second Home (MM2H) programme is now open to the fairer spouse, says Deputy Tourism Minister Datuk Donald Lim.

Previously, only husbands were eligible to apply for the programme.

Lim said the move was in line with the Government's objective of streamlining the application process, in addition to providing more options for those interested in making Malaysia their second home.

"There are instances where the wife would earn a higher income than her husband, and this move would make it easier for the couple to meet the basic requirements," he said.

He explained that applicants were required to have a fixed deposit placement of RM150,000 (for those aged 50 and above) or RM300,000 (for those aged below 50), and that this move would help a couple meet the figure.

This was among several issues that were discussed during a policy meeting between the ministry, the Immigration Department and the Home Affairs Ministry here recently.

"We have also proposed a one-stop centre for MM2H applications, particularly because those who apply to stay in Sabah and Sarawak have to go through the Immigration Department there.

"Talks are being held with them (Sabah and Sarawak state governments) and we hope to very soon have all decisions and approvals made at the federal level," said Lim after opening the inaugural Expat Expo at the Kuala Lumpur Convention Centre here on Saturday.

The two-day exhibition, from 10am to 8pm, which ends Sunday showcases the various facilities and services available to existing, incoming and potential members of the expatriate community.

On property investments for expatriates, Lim said the Government was considering implementing a standard minimum price of RM250,000 for all states.

The minimum property investment price tag in East Malaysia is RM300,000, while in Penang it is RM150,000.

Lim said that in principle most states had already agreed with the proposal, but that several final details still needed discussion.

"In addition to this, we will also look at the possibility of allowing expatriates above the age of 60 to immediately apply for the MM2H programme after they have terminated their employment here," he said.

2007-07-21T18:36:00.001-07:00

The Star Online

Sunday July 22, 2007

Estate agents seeking action against illegal ones

By ROYCE CHEAH

KUALA LUMPUR: The Malaysian Institute of Estate Agents (MIEA) is puzzled why no unlicensed real estate agent has been brought to court despite 20 police reports lodged so far.

MIEA president K. Soma Sundram claimed that there were more than 10,000 unlicensed agents and they were hurting the industry image.

Soma Sundram said there were about 1,500 active legitimate estate agents at present and 10,000 genuine real estate negotiators in the country.

“Unlicensed agents hurt the image and professionalism of the industry while posing a threat to the public because there will be no legal recourse if something goes wrong.”

Soma Sundram told a press conference yesterday that unlike registered estate agents, unlicensed agents would not maintain clients' accounts or have professional indemnity.

“They may charge a lower service fee, but they will sell a property for more than the price agreed to by the seller and pocket the difference.

“Most of these agents are housewives. Even expatriate housewives are getting into the business,” he claimed.

Soma Sundram also alleged that retired or inactive registered estate agents were leasing out certificates to unlicensed agents.

“This is so the illegal agents will appear to be operating legitimately. We will take action as we know who these people are.”

MIEA has sent two letters to Prime Minister Datuk Seri Abdullah Ahmad Badawi detailing the problems of unlicensed agents and seeking the Government's help.

On how the public could identify whether an estate agent was legitimate or not, Soma Sundram said there were a number of ways that include ensuring the agent has a physical office and advertisements carry office telephone numbers and the firm's “E-number” to show that the firm was registered with the Board of Valuers, Appraisers and Estate Agents.

Source : The Star Online

How To Monitor TNB Bills ?

2007-07-18T04:49:00.000-07:00

Ever wonder how to check your TNB bills or usage online?
or wish to monitor your tenants on whether they pay their bills promptly?

Below are the steps to register an account with TNB website to monitor all your accounts and also other people's account.

1) Go to "www.tnb.com.my".

2) Then choose the "E-services" under bill payment.

3) A new page will appeared, under the member login form, click "Register Now".

4) Fill in all the information needed in the form, if you are not sure where to find your account or contract number in your bill, click the "sample" link.

5) After you click submit you will get the Login ID and Initial password.

6) Use the initial password to login, after that you need to change the password to a new one.

7) Use your new password to login again.

8) To add in other property electric bill account, go to left hand side menu bar

and choose account "information-->connected account".

9) Then click on "Add New" button.

10)Insert other bill account number, contract number, and the account description.

11)Submit and you're done!

ArchiDex07

2007-07-17T21:38:00.000-07:00

Architecture, Interior Design and Building Exhibition.

I must say the building technology has changed a lot, check out the video below to see some of the interest stuffs.

Fears of landowners who risk losing their properties to forgers and fraudsters will soon be over with the amended National Land Code !

2007-07-15T02:22:00.002-07:00

The Star Online

Sunday July 15, 2007

Landowners need protection

PETALING JAYA: The Bar Council wants the Government to amend the National Land Code to protect landowners and bona fide purchasers from losing or buying property through others' fraudulent actions.

It wants Section 340 of the National Land Code and other relevant provisions to be amended, said the council's Conveyancing Practice Committee chairman Roger Tan.

He said they had prepared a memorandum “Prevention and Protection Against Fraudulent Land Transactions” and would present it to the Natural Resources and Environment minister as soon as possible.

Tan said this following a Court of Appeal decision on Friday which ruled that brothers Au Meng Nam and Ming Kong were the proprietors of a piece of land and not Ung Yak Chew who had purchased it from two fraudsters.

The hearing, presided by Justice Gopal Sri Ram, also comprised Justices Md Raus Sharif and Hasan Lah.

In the decision, the Court of Appeal declared that a controversial Federal Court judgment in a similar case in 2000 (Adorna Properties Sdn Bhd vs Boonsom Boonyanit) was wrongly decided.

“Notwithstanding the Court of Appeal decision on Friday, the law must be amended, and the Government must do it as quickly as possible to reverse the decision of Adorna Properties.

“This is in order to assuage the fears of landowners who now risk losing their properties to forgers and fraudsters,” Tan said.

Among the council's reasons for amending the National Land Code was the fact that ownership of land was at risk because a landowner is legally not entitled to lodge a private caveat against any dealings on his land and that it was against the principles of fairness and justice that a landowner is without remedy or compensation for loss of land following the Adorna Properties decision.

Tan added that even when Boonsom's personal representatives had asked the Federal Court to review its decision, the apex court , comprising of Justices P. S. Gill, Rahmah Hussein and Richard Malanjun, had reaffirmed the earlier decision, saying they were not convinced that the interpretation given in 2000 was patently wrong.

“The only (other) way for courts to get around the Adorna Properties case, for example, is if they find that the purchaser who bought the property from forgers to be someone who is not a bona fide purchaser, as in Friday’s decision,” said Tan.

Source : The Star Online

The Real Hustle - Fake Estate Agent

2007-07-09T00:47:00.000-07:00

In this The Real Hustle segment, "the hustlers show how easy it is to rent out someone else's property."

Pay attention to the guy at the end of this video clip and listen to what he has to say about "how to prevent scam like this from happenning."