Property | Malaysia's Financial Blogger

Buying And Selling Property Procedures

After considering several places and you have decided to buy a house and the price is agreed by both parties, you will need to pay some earnest deposit (min 2%) for booking purpose. My advice, don’t pay the 10% straight, just in case you changed your mind later.

selling and buying property

After paying the earnest deposit, you will need to appoint your lawyer for the Sales & Purchase Agreement. It may take up to 2 weeks to prepare. Once the SPA is ready, you will need to make the balance 8% of the purchase price upon signing of SPA. (Assume your applied loan is 90%)

Besides, you must prepare some funds to pay the legal fees for S&P(Travelling, Stamping, Photocopying, Miscelllanous fees), which are relied on the purchase price of your property. Basically you should be able to estimate your lawyer fees based on the following:

snp legal fees

Note: This is payable to your lawyers to get the land title transferred to your name.

What To Do After Signing The Sales And Purchase Agreement?

November 19th, 2008 | Leave a Comment

Why Buying Property Is Better Than Stock ?

Property is like the stock market; you have dozens of different classes. With property you have residential homes, hotels, commercial building, industry and etc.

Property investment

A bank will lend you money to buy a MYR 200,000 house, but the same bank will not lend you MYR 200,000 to buy shares. This is because property is an asset, which can be sold to pay off the loan. So, you no need to worry so much with the financial assistance if you really make decision to buy a property for investment.

As you can see, property market boom over coupled of years. With making money property, the rental income that gained should ideally be sufficient to cover the cost of financing and maintaining. With the steady increase in property price, property investment provides a safer way to grow your wealth.

November 7th, 2008 | 5 Comments

Penang Island House More Expensive?

What I notice something seriously is the Penang landed housing property is going up tremendously. Realizing the Penang land price expensive, it is normal scenario to maximize the profit by building either luxury condo, three stories houses or bungalows.

Penang Property

I have lived in Penang for more than 20 years and I do feel on the rising prices of landed properties in the Penang Island. It’s almost impossible for an average working class to own a landed property. Some going to above MYR600k and some could reach millions of ringgit. As a result, only the upper income group or foreigners can purchase these types of properties.

The building materials price keeps on rising due to fuel price hike and shortage of supply. This has brought huge impact on the construction cost. The developers face the challenges because if it is oversupply, then the prices may drop, or the units left unsold. So market forces will ensure that they cannot keep building higher end units.

September 11th, 2008 | 4 Comments

Property Price Going To Drop?

I’m planning to buy a house this year, but people said that I must wait as there might be recession and property price might drop. Is that true? Cause I wonder since everything’s price are going up. How is property going to drop?

Property Price

All developers have increased their prices by 20 - 30% since their material cost (steel and cement) has increased. If they don’t increase their prices, they are building houses for free.

So if you’re buying 300k condo, most probably 200k goes to the location and the building material only cost 100k.
Even got increase also 100k X 30% instead of 300k X 30%. Somehow I may suspect that the developers are taking advantage of current situation to increase their profit as well.

August 29th, 2008 | 2 Comments

Different Home Loan Package

BLR(Base Lending Rate) is set by the central bank, and current BLR is 6.75% while fixed rate is set by the financial institution, normally they have a certain limit when you do the prepayment, you will be charged once you exceed the limit.

Different bank may give you different BLR rate, but 1 thing that I can tell you here is ABN AMRO Bank always give the lowest rate. (app 6.0%-6.5% )

Thus you need to know what is your needs in order to choose the right loan package.

Fixed Vs Floating

Should we switch to a fixed-rate loan, as every increase of BLR will affect our cash flow?

It is beyond our expectation indeed. If the rates don’t jump a lot, floating rates loans may still be lower than fixed rate loans.

1) Short term property investor, they will look for the floating loan package, which is lowest rate or even zero interest rate at the 1st year. Once the capital appreciates in 2 years, they will sell off the property to gain the profits.

2) Own staying purpose, mostly people will go for fixed interest rate. This is because they are not planning to sell the house within 10years or 20years. Fixed rate loan provides peace of mind for those who like stability. The only downside of fixed rate is lack of flexibility, which does not allow you to pay off more loans to save interest and withdraw the extra that you paid.

*But certain bank have such feature like OCBC Islamic Banking.

Stumble it!

April 25th, 2008 | 15 Comments

Property Investment…Coming Soon!

I have pledged that I will do some heavy & future related investment. There are so many thing that I have done previously but those are more on abstract side. Outsiders may not see what’s my past & current achievement since I don’t have anything that can be shown off.

Sri Saujana Project

My Future House

Estimated completion will be at the mid of 2009!!

My Future House

If you are capable then try to buy 1 residential house for renting purposes. Better focus on the decent house with low medium cost around RM75,000 (23,809 USD) as this will reduce risk of unable to rent out since tenant usually wants to find lower rental fees. Car parking lot is optional.

Cost RM9000 per car parking lot

Multistorey Car Park