Category Archives: News & Articles

RumaWIP owners allowed to rent out their units on conditions

Posted in iProperty on 8 January 2018.

6 January, KUALA LUMPUR – The Federal Territories Ministry will allow owners under the Federal Territories Affordable Housing (Rumawip) project to rent out their units, subject to certain conditions.

Its Minister Datuk Seri Tengku Adnan Tengku Mansor said among the ‘conditions’ under consideration concerned owners who are transferred to another state after purchasing the housing unit.

“We understand the predicament faced and do not want to burden Rumawip buyers. For instance, if they were transferred to Sarawak, the unit can be rented out as it cannot be left vacant.

“However, they can only rent out their unit to locals and this matter will be monitored by the Joint Management Body (JMB). Legal action will be taken if they fail to comply,” he said after launching the “Rumawip Residensi Sentulmas” project and presenting its house keys here today.

Previously, Rumawip buyers were not permitted to rent out the units bought.

The completed Rumawip Residensi Sentulmas project would house 351 owners in a 30-storey block, with each unit measuring 900 square feet, and consisting of three bedrooms, two bathrooms and a covered parking facility. The project that was completed 23 months earlier than the expected date was the second Rumawip project completed after Residensi Pandanmas.

– BERNAMA

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Property market in 2018 – bad or super bad?

When you ask how is the property market doing, the answer depends on who you ask. We did some online search and here are the snippets of info.

[SENTIMENT: NEUTRAL] PropertyGuru 2018 Property Outlook Report

  • Market is still correcting itself, with a steady downward trend.
  • Marginal drops in real estate prices in Kuala Lumpur, Selangor and Penang.
  • Emerging hotspots, such as Rawang, Shah Alam North, Setia Alam, Ijok, Semenyih and Kota Kemuning, are expected to continue gaining momentum.

[SENTIMENT: NEGATIVE] Real estate veteran, Ernest Cheong

  • Property market will take a terrible hit next year, with developers and house owners facing one of the toughest times to find buyers.
  • It could lead to a market crash as consumers do not have the financial capacity to own homes with some failing to even pay their monthly instalments.
  • “There should not be any urgency to buy a property at the moment. Try renting first.”

[SENTIMENT: POSITIVE] Henry Butcher Malaysia chief operating officer, Tang Chee Meng 

  • Market was sluggish and stock of unsold houses could possibly increase in 2018.
  • Some projects priced under RM500,000, as well as those above that price range in popular locations, were still enjoying good take-up rates.
  • “So for anyone to say that the market will crash next year is a bit too pessimistic.”

[SENTIMENT: POSITIVE] Penang Real Estate and Housing Developers’ Association’s immediate chairman, Jerry Chan

  • Unlikely for developers to drop their prices unless they are in financial trouble.
  • The demand for housing would continue to persist and that consumers would always find ways to buy a home, whether through finding additional income sources or lowering their expectations of a home.
  • Dismissed the likelihood of a crash in 2018, citing strong exports, returning investor confidence, and the lack of mass retrenchments.

[SENTIMENT: POSITIVE] Real Estate and Housing Developers’ Association (Rehda)

  • Optimistic of Malaysia’s property sector outlook in the first half of 2018 (H1 2018) in tandem with the improvements in the country’s economic conditions.
  • Its president, Datuk Seri FD Iskandar, said the optimism was also based on forecasts of a stronger gross domestic product growth by Bank Negara Malaysia and economists.
  • Majority of the respondents of the property industry survey (for H1 2017 and market outlook for second half of 2017 and H1 2018) were neutral towards the industry outlook.

[SENTIMENT: POSITIVE] iProperty.com CEO for Malaysia and Singapore, Haresh Khoobchandani

  • Malaysian property market is seeing growth and improved sentiment compared with the previously “quiet market” plagued by issues related to loans and access to funds.
  • In terms of market trends, affordable housing is driving the market with more units, as more developers shift focus towards the segment in order to meet market demand.
  • “If you look at the recent results that came through for a lot of the developers, their results were strong, very positive.”

[SENTIMENT: POSITIVE] Independent economist Azrul Azwar Ahmad Tajuddin

  • It would take something on the scale of the 1998 Southeast Asian financial crisis to trigger a property crash.
  • The government’s House Price Index (HPI) from 1989 to the first half of 2017 indicated that the country had been spared the devastating impact of property crashes, except for 1998 and 1999.

[SENTIMENT: POSITIVE] Socio-Economic Research Centre (SERC), Lee Heng Guie

  • “A possible sharp slide in property prices is a good opportunity for first-time home buyers to consider buying a house.”
  •  Even if prices dropped, houses in good locations, with high investment value would not depreciate as much as expected.
  • House prices are not expected to fall sharply in 2018 as there are no stress signs indicating a sharp correction in the property market, which has been consolidating in recent years.

[SENTIMENT: NEGATIVE] Economist Carmelo Ferlito

  • Bank Negara’s lending rates and the property market’s business cycles had created a housing bubble of unsold homes.

[SENTIMENT: NEUTRAL] RAM head of agribusiness, real estate and construction ratings, Thong Mun Wai

  • Residential property sector received a revision by RAM Ratings  in its outlook for 2017/2018 – from negative to stable, premised on the expectation of a slow but gradual pick-up in market activity after the lull of the last several years.
  • Expects overall loan growth for the banking sector to remain flat at about 5 per cent to 6 per cent in 2018.
  • Malaysia’s real GDP growth is projected to maintain a steady clip of 5.2 per cent in 2018, following the expected 5.4 per cent expansion this year.

[SENTIMENT: NEUTRAL] Knight Frank Malaysia managing director Sarkunan Subramaniam

  • Sees rise in KL prime office rental for next 3 years, attractive for MNCs.
  • More skyscrapers are completed over the next three years, raising the benchmark of premium grade office space in the city.
  • By 2020, the iconic PNB Warisan 118 Tower and Exchange 106 in Tun Razak Exchange will be completed, and the Permodalan Nasional Bhd group of companies will occupy 60 floors of the RM5 billion 118-storey tower, which will be the fifth tallest building in the world.
  • Leasing out prime office space takes time, up to two years for 200,000 sq ft to 300,000 sq ft office space.
  • Prime office rental in Kuala Lumpur is expected to increase 2.5% over the next three years, ahead of Beijing and Shanghai, according to the “Global Cities: The 2018 Report”.

 

Applications for MyDeposit 2018 is open

First House Deposit Financing Scheme or MyDeposit is introduced by the Government to help the middle class (M40) group to own their first home. The Government has announced an allocation of RM200 million as a contribution to the deposit payment for the purchase of a first home by one household. The MyDeposit Scheme was launched by the Government through the Ministry of Urban Wellbeing, Housing and Local Government (KPKT). The MyDeposit Scheme application was officially opened on 6 April 2016. This scheme is one of the Government’s initiatives to encourage home ownership by Malaysians.

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Application Terms and Conditions

  1. Malaysian citizen.
  2. Aged 21 and above.
  3. Purchase of first home for one household. Households refer to husband or wife only. The spouse or spouse who owns a home for that household is NOT ALLOWED.
  4. Household income must range from RM3,000 to RM15,000.

 

Housing project criteria

  1. Licensed new housing projects from licensed housing developers only.
  2. Purchase price of RM500,000 and below.
  3. Approval of purchases for private housing projects that do not receive subsidies / incentives / Government funds.
  4. Housing projects by Federal and State Governments such as PPA1M, PR1MA, RUMAWIP, PPR, MyHome and Affordable Houses are NOT ALLOWED.

 

Required documents for application

 The mandatory documents that must be uploaded in the MyDeposit System (format: .pdf):

  1. Copy of applicant’s and applicant’s spouse’s identity card and partner’s
  2. Copy of identity card / birth-certificate
  3. Copy of OKU card / OKU confirmation letter (if applicable)
  4. Copy of marriage certificate / death certificate / divorce certificate
  5. Statutory Declaration of single status
  6. Statutory Declaration of self-employed / unemployed
  7. Validation of applicant’s employer and spouse. Required information: service / employment status, marital status, monthly salary and service period
  8. Applicant and spouse’s latest payslips
  9. Copy of EPF statement or income tax return of applicant and spouse
  10. Copy of Center Credit Reference Information System (CCRIS) report of applicant and spouse
  11. Letter of offer / confirmation of purchase of house from licensed housing developer
  12. Letter of support and confirmation of local leader
  13. Latest copy of current home’s electricity / water bills

 

To learn more about the MyDeposit scheme, please download the FAQs or booklet on the mechanics of MyDeposit below.

 

CONTACT

Enquiries on MyDeposit Scheme

Enquiries on MyDeposit Application

 

Information is taken from https://sprn.kpkt.gov.my/info/mydeposit



Posted in iProperty on 15 December 2017.

14 December, KUALA LUMPUR – The applications for the First House Deposit Financing Scheme or MyDeposit for next year will open today (15 December) until Feb 15, 2018.

Deputy Urban Wellbeing, Housing and Local Government Minister Datuk Halimah Mohamed Sadique said the public could register online at sprn.kpkt.gov.my

“At the tabling of the 2018 Budget, Prime Minister Datuk Seri Najib Tun Razak agreed to continue the MyDeposit scheme with an allocation of RM25 million,” she said when replying to a question from Senator Datuk Abidullah Salleh on the amount of aid channeled through the MyDeposit scheme and the number of recipients to date, at the Dewan Negara sitting today.

Since it was opened from April 7, 2016 until last October, 1,469 applications were approved with a payment amounting to more than RM39 million.

The MyDeposit scheme is aimed at helping the middle income group to buy their first home under private housing projects which did not get any subsidy.

– BERNAMA

New PR1MA units will be more affordable

Posted in iProperty on 23 Nov 2017.

November 22, KUALA LUMPUR – The government’s Budget 2018 announcement on building 210,000 units of PR1MA homes priced at RM250,000 and below was in acknowledgement of the unaffordability of houses under the current scheme.

Finance Minister II Datuk Seri Johari Abdul Ghani said in tabling the budget last month, PM Najib Razak had announced that RM1.5 billion had been set aside for the construction of PR1MA homes. On Monday, the Sun reported that Perbadanan PR1MA Malaysia, which is in various stages of building 141,661 units of PR1MA homes, have only managed to sell 11,944 units as many in the country are unable to afford them.

Speaking on the sidelines of the Malaysian Institute of Economic Research’s National Economic Outlook 2018-19 Conference yesterday, Johari said PR1MA’s current scheme is an initiative where prices of affordable houses was set at RM300,000 and below.

While prices for PR1MA homes range between RM100,000 and RM400,000 currently, Bank Negara Malaysia (BNM) noted that houses priced above RM250,000 are beyond the means of the majority of buyers who qualify for affordable homes.

“BNM told us (there were) a lot of rejections for people applying for loans because (the houses) are above RM250,000.

In a statement yesterday, PR1MA clarified that 12,640 units, or more than 50% of the 25,132 units open for sale as at Nov 15, have been sold. It said that before it could sell its units, it must first obtain approval from the authorities and as such, not all the units under construction can be sold.

About 141,161 units are under various stages of construction. PR1MA reiterated that its projects are well-received in key locations, citing the example of PR1MA @ Jalan Jubilee in Bukit Bintang, which was oversubscribed 27 times.

A total of 224 units, or 42% of 542 units up for sale, were sold within three days.

“This affordable pricing has allowed Malaysians to own a home in a prime location, right in the heart of Kuala Lumpur City Centre.”

– THE SUN

Mah Sing #myhomemystyle – 25 & 26 Nov

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Posted in iProperty.com News on 23 Nov 2017

November 23, RAWANG – Mah Sing Group Berhad (Mah Sing) will be launching #myhomemystyle Campaign which features a fully-furnished designer home packages for its Caspia at M Residence 2 Township in Rawang on 25 – 26 November 2017. The packages for the weekend launch which is worth RM150,000 will be specially priced at only RM38,000 until 26 November 2017.

Interested buyers can visit the #myhomemystyle Interior Design (ID) show unit at Caspia, M Residence 2 in Rawang this weekend from 11.00am – 5.00pm. Caspia cluster homes will bring to its residents a complete interior designed furnished home with three design concepts of renovation packages. The designs are curated from Recommend.my’s (home improvement services website) panel of Malaysian interior designers. The package will also include Philips Hue, the latest range of smart lighting system by Phillips Lighting.

The #myhomemystyle campaign aims to help its customers design a space that reflects their individual tastes and styles. Buyers are encouraged to drop by Caspia, M Residence 2 in Rawang this weekend.

The fully furnished ID Caspia Type C2A with an indicative built up of 2,205 sq ft (4 bedrooms) is ready for viewing from 10am – 6pm daily. Contact 03 9212 0188 or visit www.mresidence2.com.my for more information.

Caspia, Tranquil Living within Nature
Caspia, located within the M Residence 2 township offers smart-lit homes that are fully furnished and equipped with Philips Hue smart lighting system that can make everyday activities and chores more fun. With easy connectivity to major highways in Klang Valley, Caspia units are available with 3 ID layout options. M Residence 2 is a gated and guarded township situated amidst healthy lifestyle features such as jogging tracks, recreational activities around the Lotus Lake and clubhouse facilities.

The township has natural occurring Lotus Lake and wetlands that are on the path of migratory birds. This allows residents the freedom to engage in lakeside activities and the jogging path around it allows for a healthy lifestyle. The clubhouse within M Residence 2 houses recreational amenities like swimming pools, BBQ corner, multipurpose hall and a gym among others.

  • 32′ X 65′
  • 2,193SF
  • 3+1 bedrooms
  • 3 bathrooms

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Interested in Caspia? Please leave your details below.

New PR1MA units will be more affordable

Posted in iProperty.com News on 23 Nov 2017

Screen Shot 2017-11-24 at 10.15.01 PM

Photo taken from www.pr1ma.my

November 22, KUALA LUMPUR – The government’s Budget 2018 announcement on building 210,000 units of PR1MA homes priced at RM250,000 and below was in acknowledgement of the unaffordability of houses under the current scheme.

Finance Minister II Datuk Seri Johari Abdul Ghani said in tabling the budget last month, PM Najib Razak had announced that RM1.5 billion had been set aside for the construction of PR1MA homes.

On Monday, theSun reported that Perbadanan PR1MA Malaysia, which is in various stages of building 141,661 units of PR1MA homes, have only managed to sell 11,944 units as many in the country are unable to afford them.

Speaking on the sidelines of the Malaysian Institute of Economic Research’s National Economic Outlook 2018-19 Conference yesterday, Johari said PR1MA’s current scheme is an initiative where prices of affordable houses was set at RM300,000 and below.

While prices for PR1MA homes range between RM100,000 and RM400,000 currently, Bank Negara Malaysia (BNM) noted that houses priced above RM250,000 are beyond the means of the majority of buyers who qualify for affordable homes.

“BNM told us (there were) a lot of rejections for people applying for loans because (the houses) are above RM250,000.

In a statement yesterday, PR1MA clarified that 12,640 units, or more than 50% of the 25,132 units open for sale as at Nov 15, have been sold.

It said that before it could sell its units, it must first obtain approval from the authorities and as such, not all the units under construction can be sold.

About 141,161 units are under various stages of construction.

PR1MA reiterated that its projects are well-received in key locations, citing the example of PR1MA @ Jalan Jubilee in Bukit Bintang, which was oversubscribed 27 times.

A total of 224 units, or 42% of 542 units up for sale, were sold within three days.

“This affordable pricing has allowed Malaysians to own a home in a prime location, right in the heart of Kuala Lumpur City Centre.”

– THE SUN

Maybank Islamic – Rent-to-Own Housing Scheme

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Photo taken from Maybank’s FB page: MaybankIslamic CEO Dato Mohamed Rafique Merican, Maybank GPCEO Datuk Abdul Farid Alias, Second Finance Minister Datuk Seri Johari Abdul Ghani, Maybank Islamic Chairman En Zainal Abidin & Group Head Global Banking Dato Muzaffar Hisham officially launched #HouzKey, first bank-initiated Rent-To-Own Scheme.

Posted in The Sun Daily on 23 November 2017

Maybank Islamic launches Rent-to-Own housing scheme, first by a Malaysian bank

KUALA LUMPUR: Maybank Islamic, which plans to roll out its rent-to-own scheme named HouzKEY to the public in the first quarter of next year, is eyeing a portfolio size of RM1 billion within the first year.

The bank has partnered with five developers namely SP Setia, EcoWorld, Mah Sing, Gamuda and Sime Darby for its pilot launch, and will feature housing projects from these developers with a pricing cap of RM1 million.

Maybank Islamic CEO Datuk Mohamed Rafique Merican said purchasers will have the option to buy a property by the selected developers featured on the website catered to the product.

He added that the bank is also exposed to risk as it will be the initial owner of the property.
While the offerings at this point of time is only limited to products by the aforementioned developers and those located within the Klang Valley, the group is looking to expand this in the future.

“We intend to progressively expand our offering to include properties in other locations throughout Malaysia as well as include more developers over the coming months to give Malaysians an even wider choice of homes to invest in,” said Rafique.

The RTO which is developed based on the syariah principle of ijarah, involves leasing that include the option to purchase after servicing rent for 12 months.

Applicants eligible for the scheme are those with a household income of at least RM5,000 and commit to a minimum rental tenure of five years. Customers will be subject to a flat rental payment for the first five years.

They will also be able to purchase the property at a locked in rate, continue rental tenure with 2% annual rental step up or terminate agreement with no further obligations.
The scheme is seen as a move to address the insufficient down payment issue faced by many home buyers.

Conducted fully on digital platform, applicants will have to choose the property on the website Maybank2own.com, and a decision will be given by the bank within a day.

Following this, customers will have to make the three months rental deposit within a week.
Lauding the product, Finance Minister II Datuk Seri Johari Abdul Ghani said the government on its part is determined to strengthen the legal and institutional framework of the rental market.

“For instance, establishing a neutral third party that protects tenants right to deposit recovery while allowing landlord to use the deposit if the tenant breaches the agreement,” he added.

Johari said he has “spoken” to the ministries of the Domestic Trade and Consumer Affairs and the Urban Wellbeing, Housing and Local Government to work together to build a database akin to the UK’s Tenant Registry Tenant Database.

On another note, he said the government will lift the temporary freeze on luxury developments once the number of unsold units of high-end properties hits “reasonable levels”.

The Cabinet is also yet to receive feedbacks from stakeholders such as developers and housing associations on the changes that has to be made in relation to the freeze.



Posted in The Edge on 23 November 2017

Maybank Islamic’s rent-to-own scheme features five developers

Forking out the 10% to 15% down payment for a home and securing a home loan often pose quite a challenge to homebuyers.

To ease homeownership against the backdrop of a challenging financing landscape, a leading financial institution in Malaysia, Maybank Group, has taken the initiative to introduce its very own rent-to-own (RTO) scheme. The scheme offered by Maybank Islamic Bhd will be available to the public in early 2018, following the pilot launch which is limited to the bank’s employees.

Called HouzKEY, the pilot launch of this first bank-initiated RTO scheme was held today (Nov 23), officiated by Finance Minister II Datuk Seri Johari Abdul Ghani.

For the pilot launch, Maybank has partnered five prominent property developers in the country — S P Setia Bhd, Eco World Development Group Bhd, Mah Sing Group Bhd, Sime Darby Property Bhd and Gamuda Land — to offer homes in Kuala Lumpur and Selangor.

“The scheme will be open to the public in early 2018. We intend to progressively expand the listed properties to other states across Malaysia so that as many people as possible can benefit from this new product,” said Maybank president and CEO Datuk Abdul Farid Alias in his speech at the launch. Also present were Maybank Islamic CEO Datuk Mohamed Rafique Merican and Maybank head of global banking Datuk Muzaffar Hisham.

HouzKEY is an alternative method of home financing by way of lease arrangement based on the Islamic concept of Ijarah (lease) that provides customers with the option to purchase the property.

Abdul Farid believes HouzKEY will make a difference for those looking to own a home but find affordability a challenge.

“It will be able to assist customers who have difficulties in securing homeownership due to the high initial costs. It offers the transparency they need and the certainty of their monthly rental commitments throughout the chosen tenure.

“It will also give them the opportunity to earn capital appreciation on their property via the cash out option and, best of all, the option to purchase the property at a later stage but at a pre-determined price,” he said.

HouzKEY is available on Maybank’s fully integrated digital platform via its online portal — maybank2own.com.

“All properties available under this scheme will be listed on the portal. A customer can simply select a suitable property and make an application as well as submit the necessary documents online.

“A response will be given by the bank within one working day and the applicant then has seven days to sign a lease agreement for the property. This process not only provides customers a seamless experience but also peace of mind as we have included a ‘live chat’ feature on the portal for any enquiry or advice,” Abdul Farid added.

Meanwhile, Johari announced a 100% stamp duty exemption on sale and purchase agreement for homebuyers who attain ownership through this scheme.

In his speech, he said the government welcomes such partnerships between industry players to craft initiatives such as HouzKEY.

“This will help to reduce homeownership issues as well as enhance the opportunity for Malaysians to own a house of their dreams.

“To encourage more financial institutions to offer RTO as an alternative home-financing solution, the government will grant a 100% stamp duty exemption [for sale and purchase agreement] to homebuyers who attain ownership through this scheme.

“The government will also review the Real Property Gains Tax to enable those who successfully attain homeownership through this solution to be accorded the ‘benefits of ownership’ on the day they sign up for the scheme,” he said.

Pushing boundaries with HouzKEY
Targeted at first-time homebuyers and upgraders, HouzKEY aims to address the challenges faced by many purchasers in coming up with sufficient down payments for their new homes.

“HouzKEY is a milestone achieved by Maybank Islamic, and we believe it will help address a growing concern in Malaysia for affordable homeownership.

“We are constantly looking at introducing products that offer better value proposition to our customers. HouzKEY promotes financial inclusion by offering an alternative path to homeownership. We take pride that it is the first such product in the market,” said Maybank Islamic’s Mohamed Rafique at a press conference during the launch.

Maybank Islamic expects HouzKEY to have a portfolio size of at least RM1 billion in the first year of its launch.

“We are grateful to the government and Bank Negara Malaysia, especially Jabatan Perbankan Islam dan Takaful, for providing a conducive environment for Islamic financial institutions since the enactment of the Islamic Financial Services Act 2013, which has accelerated growth and innovation in the Islamic finance industry.

“The bank will continue to focus on creating more innovative syariah-compliant solutions and develop products and services leveraging Maybank’s strength and expertise in Islamic finance.

“This product is our solution to the current problem of homeownership and also our way of supporting Malaysia’s national agenda on homeownership,” said Mohamed Rafique.

He noted that in a survey conducted by Maybank via Maybank2u.com involving 11,493 respondents, 58% do not own any property with 68% within this segment currently renting homes.

Mohamed Rafique said both landed and non-landed properties will be offered in HouzKEY.

“We have specific criteria in selecting the homes. Besides being in the Klang Valley and Selangor, we will have both landed and non-landed homes for this scheme.

“We have a list of approved developers who have properties that meet the requirements of our potential tenants.

“Depending on the value of the properties, it is hard to determine how many people would sign up for the scheme because we have a portfolio size of RM1 billion,” he said.

Mohamed Rafique added that Maybank Islamic has seen “strong interest” among developers which would like to partner with the financial institution for HouzKEY.

“We are also keen to meet the potential demand that comes from the rental side. So, if the properties meet our criteria in terms of location, delivery and quality of the units, then we will purchase the units to lease them out,” he added.

Meanwhile, Muzaffar told EdgeProp.my on the sidelines of the launch that hopefully by 1Q18, the scheme will be able to gain more traction before it is launched to the public.

“This scheme complements mortgages. We have all gone through the pain of forking out the down payment for a home, so when we saw the Islamic Financial Act 2013, we came up with HouzKEY to help more people own their homes,” he said.

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