28 September, 2006

Without Strata Title

Notice some of the high-rise building have not obtain their strata title under the stipulated time. Actually, the developer/landowner must submit the strata title application within six months after the CF was issued, or six months after the SPA if the agreement was signed after the CF was issued.

Failing which, developer/landowner is subject to fine btw RM10,000 - RM100,000 under Section 8 (5) of the Strata Title Act 1985. Besides that, daily fine of Rm100 or RM 1,000 could be imposed for the each day of the offences.

However, slow processing of the National Land Council causes most of the delay of issuance of strata title.

Bear in mind, Without strata title there would be problems related to the selling and buying of the property, transfer of titles, mortgage and estate distribution.

I would say don’t buy property without title as to avoid unnecessary headache.

27 September, 2006

Complaint Channel to Developer


Usually, once you obtain your key during vacant possession to inspect the house defect, then, you will pass the list of defect to developer to carry the repair within 18 months time. The problem raise from here, What if developer reclutant or refuse to carry out the repair, you can go ahead and make the repairs and recover the cost from the developer. This is provided you have informed the developer of the cost of repairs and given him an opportunity to carry out the works himself. (Served an advance notice to developer as proof)


If the developer refuse to pay you back later, ok, fine.. the below is the contact for you to seek for legal advice from local authority to file a case to them.


The Secretary
Tribunal for Homebuyer Claims
Ministry of Housing & Local Government
Level 2, Block B South
Pusat Bandar Damansara
50782 Kuala Lumpur
(03) 2092 4488 or
(03) 2099 8389/8402 (Hotline)
Fax: (03) 2093 4776
E-mel: tribunal@kpkt.gov.my


Besides that, some term and condition are applied. You can also seek their advice before hand as to push the developer to carry out their duty accordingly.


To avoid this kind of messy steps, prevention is always better than cure, so nowadays, buyers always seek for Good Reputation Developer as to prevent the above incident happen on their loving house, even though sometimes it is slightly more expensive than market price, it is still worthy and its produce is definitely value for your money.

26 September, 2006

Home Loan Pitfall

Usually, most of the home loan packages in the market are having a minimum bonding period of 5 years. This is to protect bankers to earn back the expected revenue at the end of any early loan settlement from the borrower.

Of course, there are still some of the home loan packages which is NO Bonding Period constraint at all. No doubt such packages the interest rate will be higher.

The bonding period mostly is start from the date of full release of loan, but recently i notice some of the banks also offer to start calculate the bonding period from the date of first disbursement of loan.

Both packages are offering a good deal to borrower, however, the MAJOR difference here is the date of the commencement of bonding period. I am ok with the latter, but i have doubt on the former ( begin on the full release of loan ). For instance, under construction property usually it takes about 24/36 months, then plus 18 months for the last 2.5% of loan to be release at the expiry of defect liability period (after vacant possession issued). So it total up with 36 months + 18 months + 5 years (min bonding) = 9 years 6 months. Friend it is a decade of loan tenure before you can fully settle your loan without penalty, or looking for refinance.

This can make a huge difference and big gap in loan tenure, as refinance and help you to save up a big sum in interest and shorten your loan repayment.

Think twice and select carefully. Don't fall in this pitfall.!!

25 September, 2006

Source for Home Fund - HoMe Loan

A lot of people doesn't really understand their capability/affordability of purchasing a house. For instance, a house/ apartment which sells at Rm 100,000.oo, a layman will shout, " I don't have Rm 100,000.00, How to buy that property?!" why i call him as layman, cause only layman will give this kind of answer. Friend, there is always a legal clue that you can resolve this monetary issue, provided you know how, but of course definitely moaning at sky is not going to work!

Why i want to stress on "Legal" clue? Simply because illegal wise, you can rob a bank and like what newspaper shown recently grab the entire ATM, or with lesser risk - borrow money from "Ah Long" (Illegal Private bank or Financial Support Instituition with no gurantee, P & C for individual particular, no deposit, fast approval, etc - sound professional , right? but don't ever think of them, there will be a continuous nightmare for you, if you have selected them.) The best Option here i would like to recommend to you is BANK.

In fact, Bank is a legal option for you to loan your money. Then, a someone may ask which bank? Here, i tell you, any Bank will do, let 's me name a few for you, local bank will be Maybank, Public Bank, Hong Leong Bank, BumiPutra Commerce, Ambank, etc and Oversea bank will be Citibank, United Oversea Bank, HSBC, etc.

All the Banks above provide Home Loan Product to the consumer. Of course some of the term and condition need to be complied. Every bank has it own loan packages which are readily designed to suit for various range of consumer from poor to rich or from short term to long term.It depends on individual needs and accommodate to your financial status. Who know well on your financial position, ONLY yourself. So understand your own financial position and cash flow or even forecast your cash flow will help you to make a better choice in loan package selection.

Always remember, all banks are passionately welcoming to assist you in loan application as the loan department crew will explain all single detail to you while you approach them. What is the risk of making an enquiry at the bank? Police will not arrest you, you are not robber! Why want to risk your life and future, while there is a better channel awaiting for you. So Think out of the way, You can also own a House with a small little sum of money! May be only as little as 10% of the house price or even lesser, so stop moaning at the sky and visit my blog will let you know more. Find out more over here.

23 September, 2006

Guidance in Buying & Selling a Property


Purchasers are required to identify the following,
1. Whether a land search on the property has been done?
2. Is the property subject to developer's consent?
3. Is the property subject to state authority's consent?
4. Is the property subject to a charge /assignment in favour of a bank/financial Institution?
5. Will i be subject to pay Interest for late payment of the balance purchase price (BPP)?

What should be take note as a Vendors,
1. Does the vendor's bank have the right to Consolidate?
2. Is the vendor subject to Penalty Interests for early repayment?
3. Is the sale of the property subject to any real property gain tax RPGT?
4. What will happen if the purchaser and the vendor default in their obligation?

Spare some time do find out the answer for the above status, it could help to minimise the possibility that your hard earned money will not be drain off into the river as it may cause a big sum to lose if fail to scrunitise it seriously. Always remember the more detail you know about the property, the lower the risk of losing money. It is always worthy to spend some effort on it.

22 September, 2006

Comparison of Freehold and Leashold





Attached herewith a comparison table on Freehold and Leasehold for

better understanding.

21 September, 2006

Freehold / Leasehold

Under the land laws of Malaysia are governed by the National Land Code, 1965 (Act 56 of 1965). Section 40 of the National Land Code, 1965 states that all state land belongs to the state authority.

When state land is disposed off by the state authority to an individual in perpetuity for an indefinite period, this land is now granted as freehold title.

When the state land is disposed of by the state authority to an individual for a term of years, by virtual of law, not exceeding 99 years, this land is now granted as leasehold title. Upon expiry of the period of the lease, the land should be reverted to the state authority.

The owner will then have to either apply for a renewal of the lease before its expiry or apply for a fresh alienation if the lease has expired. These will involve the payment of a hefty premium which would be close to buying the land all over again with perhaps some discount.

Refering to the above, it is more advisible to choose freehold property as it can avoid those hefty premium and messy process, but of course, it will be only after the expiry date of 99 years.

When there is an option, of course everyone will rush for freehold. In fact, Who care much on Leasehold or freehold, as you have 99 years absolute right in that piece of property. Nobody will bother what will happen in 99 years later.. perhaps in 50 years time it already is the end of world.. Who know, right? The truth is 99 years has sufficient for three generation use.

For my point of view, there is only one reason to deter from buying leasehold property, there is when your final aim of buying house is to invest on the appreciation. Because the value appreciation is slower compare to freehold property.

So understand your intention first before decide on leasehold / freehold..

20 September, 2006

Shopping Complex

In Shopping Mall design, it is preferably to spread horizontally, for instance, Mid Valley, 1 Utama, etc. Those like high rise vertical type of shopping mall will usually be the second choice for the consumer.

Let see those hypermarket in the town, Carrefour, Giant, Tesco, even IKEA, etc.. all malls design are in the horizontal form to get a maximum floor area.

Obviously, consumers are tend to be less interested in shopping in the vertical form rather than horizontal shopping mall. Travelling up and down is tiring and messy especially you are carrying a jumbo of shopping goodies.

In common, ground floor or lower ground will be the most crowded zoning. The higher the floor, the lower the rental. It is because of the visitor head count is lesser compare to the lower floor. As it definitely affect the volume of business.

As observed, most of the hitz zonings are those retail shops which focus in display their product and those at the hidden corner or back lane will more concentrate in servicing line, such as saloon, massage, book store, etc.

Those promotion zone will be surrounded at the mall well as it can obtain a maximum exposure to the consumer.

The accessibility of the shopping mall building is also important and it must be very strategic and convenient enough to attract the consumer. Some basic facilities, such as sufficient parking lots, strategic traffic flow, security, etc are also forming a key success for a booming shopping complex.

Location of shopping building, outlet position and floor, nature of business, etc. Think carefully and scrutinise in all single detail before you decided in investment in shopping lot as don't forget the maintenance in Shopping mall is comparatively high as well.

19 September, 2006

Time Square Penang

Penang Shopping Complex - Time Square is going to be another New hybrid in the city center of Penang Island.

It consists of Shopping Mall, Hotel, Office, Residential Apartment, etc. Similar Hybrid initially has developed in Kuala Lumpur, as now, the coming soon one will be in Penang Island.
Besides that, Monorail Track will plan to have an attached station to connect this shopping mall same as what the town planning in Kuala Lumpur Time Square. This public amentity definitely can grab a crowd as it can reduce the parking or traffic problem.

In par with the implementation of 9th Malaysia Plan, Time Square will be benefited as a junk of crowd will be attracted and the upgrading of infrastrucutre will lure foreign investors to come in our country.

No doubt this development will be a thrust for the growth of Penang economy. Of course, it will be another good pastime spot for penang citizen as well.

18 September, 2006

Real Property Gain Tax (RPGT)

This is a basis of Taxation need to be known for those who wanted to invest in the property field. The definition of Real Property Gain Tax (RPGT) is


"The chargeable gains arising from the disposal of any land situated in Malaysia or any interest, option or other right in or over such land or the disposal of shares in a 'real property company' is subject to Real Property Gains Tax. "

In the trading of property, Capital gains are generally not subject to tax in Malaysia. Unless, when disposal of dischargeable asset take place, then, the RPGT is only charged on GAINS arising from this disposal of real property.
The rates of tax are as follows:


Usually, there are a lot of deduction and exemption in this taxation. One of them is - Tax Free for 1 disposal of property gain in once lifetime of individual.

"A once in a lifetime exemption on a gain accruing to an individual who is a citizen or a permanent resident or to a husband and wife in respect of the disposal of one private residence."
quoted, http://www.hasilnet.org.my/english/eng_NO2_1_3.asp



Rule of thumb here, you only sell off your property on the 6th year. Then, there will be no tax on you. Unless, you are a frequent property "trader" who closing many deals in short term. Don't confuse RPGT VS Income Tax, there are completely different taxation.



15 September, 2006

Base Lending Rate (BLR)

When you have decided to buy a property, most of you are rushing to look for a best deal of property loan packages to see which one suit you and save the most. In the market, there are plenty of home loan packages offer by all banks, some of them are Fixed rate or Term loan or Flexible mortgage..etc. Offers are keep changing from time to time.

Usually, you will notice that most of the packages in the market are offering BLR +/-of certain percentage (%). i believe most of the property buyer will have doubt on what is this BLR.

Base Lending Rate (BLR) is a minimum interest rate calculated by financial institutions based on a formula which takes into account the institutions' cost of funds and other administrative costs.

http://www.bankinginfo.com.my/index.php?ch=12&pg=26&ac=600#

The Interest Rate is computated from a complicated formula udner the control of bank malaysia. BLR is fixed and standardised in all banks. We can easily obtain the current BLR rate through any bank. For e.g. today 15th september 2006, BLR is 6.75%.

The BLR is a fluctuation rate. In other word, whatsoever loan packages under BLR +/-,is kind of rate that subject to market fluctuation. Therefore, some people would rather to choose fixed rate (normally is higher compare to others) because borrower can forecast their cash flow more accurately.

In fact, the selection of loan packages is preferably to include the possibility of fluctuation gap. It is to form a buffer to anticipate the increase of BLR. For short term loan, the risk of the fluctuation will be lesser compare to long term loan.

Honestly evaluate your own capability and the risk that you can absord, so it can help to select a better loan package to avoid ad hoc situation in future.

12 September, 2006

Bee's Home - Honeycomb

My goodness..Terrible Honeycomb...!! This is not BEE's Home - Honeycomb.. it is concrete structure defect. THIS IS DEFECTIVE WORK!!


Can you imagine when you nail something on the wall or this particular defective portion, then the whole junk of wall collapse? What will you feel? First click come to your mind will be when the house is going to collapse.

Let's see slab honeycombing. I have doubt on the workmanship and the supervision of the work.

Wah.. terrible workmanship. The defect honeycomb is exactly underneath the column position. How can the column transfer the loading if the base is hollow?!!

What need to do on this defects? Defect? Hack and Repair lo..!! It is what commonly practising in Malaysia. Most of the"incompetent" contractor are having this kind of philisophy. "No big deal, Honeycomb only ma..i am still the best in JB and Singapore!".. it may be influence too much by comedy TV programme.. i guess.

There is always a wrong perception of the contractor that Repair cost is cheap, cause most of the time they only use cement mortar to plaster the honeycomb surface. Friend.. This is NOT the correct method. You are sacrifice the quality of the house. Seek Specialist advice for correct rectification method and ensure the grade of strength is not deteriorated.

Prevention is better than cure. The above defect can be easily eliminated when putting more effort in supervision and taking correct methodology in concreting, such as sufficient vibration and proper mix of concrete, etc.

We are moving globalisation. Do something to promote our quality and don't ashame us...

11 September, 2006

Penang Bridge

I notice that most of Malaysian have no idea about the detail of our Penang Bridge. Please imagine if one day a foreigner comes approach you and ask, "My comrade Malaysian, How long is the Penang Bridge? " it could be a shame if you have no idea about it. i hope here, i could furnish you a little more information about Penang Bridge .. MALAYSIA Boleh!


Get House Defect Off Your Mind

Don't be happy if you obtain a key or letter from developer telling you that your house is ready for handing over. It can be a begin of nightmare to you, if you have wrongly selected an unscrupulous developer at the initial stage.

Of course, most of you are very happy and feel lucky enough when the purchased unit are able to deliver and under the blessing of god that the project was not abandoned. But what if the case that you find defects all around your house upon your first step in the house? Friend, newly purchase woh..!!! How can it be? Will you willingfully want to take out another stack of money to repair the house but not renovation?? For me, 100%, my Answer is NO! NO! NO!

As a house buyer, what can you do? How to get the defects rectified?
Under the Housing Developers Control and Licensing Act (HDA), defects that appear within the Defect Liability Period have to be rectified by the developers at the latter's cost and expense. It shall be stated under your S & P agreement, if i am not mistaken.

Some of the layman doesn't know what is Defect Liability Period (DLP)? Under the HDA, DLP is 18 months start from the day you get vacant possession (VP).

Everthing is interrelated. VP is the handing over of unit for you while developer has fulfilled certain condition as stipulated under S & P, normally electricity and water supply are ready to be in use. Some buyer will start renovation work during this period, (it is advised to check thoroughly on all the defects prior to renovation to avert from future dispute). VP doesn't allow you to move in unless the Certificate of Fitness for Occupation (CFO) has been issued.

From the flow of the process, i realise that upon the Vacant possession, house buyer MUST go in, at least 1 time or preferable as frequent as possible, to check all the defects before you move in. Hope the defect can be rectified before CFO issued. Don't forget to prepare a checklist (Item to-be-checked checklist) to ensure all single corner is inspected.

Laziness costs money. If you intended to rent out and laze around without inspect the house. Don't blame others at the end of day!! Of course, developer will also thank you for willingfully repair the house by your own cost...!! take note.

09 September, 2006

Upgrading of Penang Infrastructure

It can be foreseen in near future, Penang is going to be promoted as one of the well developed island in Malaysia. Through the recent announcement in 9th Malaysia Plan, it promotes plenty of upgrading Penang Infrastructure works.

Sure, i gonna like it like crazy because there is NO Toll in all the expressway in the island except the toll at Penang Bridge.
Furthermore, other than road upgrading, Monorail system is going to impose in the island to boost and improve traffic condition in penang. Currently, the extension of penang bridge is ongoing, you can find it while travelling through the penang bridge. Just wind down the window and you will be able to see those workers and Engineers are working on a floating boat.
Who can resist this kind of to-be-well-developed island under a proper plan of infrastructure upgrading, as it will definitely less traffic headache, less toll, and ease the burden to the citizen in daily life. No doubt, it has increase the potential of the property to grow in the high pace. Don't miss the coming event - Property Fair in Penang 2006 at PISA.

06 September, 2006

Giant Pavilion

Kek Loh Si, There is a construction of giant pavilion ongoing. I am so impress with construction of this pavilion.

The giant statute is about 120 feet height. As noted here, it is the tallest in the world. The pillar of pavilion is erected piece by piece with a different texture on each single piece in order sequence.

It is a precast concrete and believe to be cast the core of the column with in situ concrete with reinforcement bar. i am more interested to know the joint detail and how to prevent the seepage of cement lurry from joint and dirty the expose surface.

Oh.. the internal rib textures is for better bonding. i believe it is designed to prevent any rotation of the puzzle and the perimeter edge is in a stagger form to avoid the cement slurry to run off.

Aiya.. wondering is there any photo to show on its foundation. Is it using bored piling system or other alternative? Because it is at the hill side and i am so curious to know about the detail. Hope one day it can be displayed in the National Geography to show how great is this human creature.

Melati Utama, Platinum Victory

Another luxury condominium with affordable price at Setapak Kuala Lumpur. It is allocated at Tmn Melati and connected to MRR 2 express way. In fact, i like those properties which attach to MRR 2. Come on...Friend.., MRR 2 is a Toll FREE express way from Kepong/ Sg Buloh till Sri Petaling. You can never find such a convenient toll free express in Kuala Lumpur city, unless you willing to pay ToLL


Seldom that we found such a long list of facilities provided by the developer. But this project, it has the following,

  • Swimming Pool
  • Children's Wadding Pool
  • Children's Playground
  • Extensive Landscaping
  • Gymnasium
  • Cafeteria
  • Nursery
  • Laundrette
  • Mini Market
  • Tuition/ Reading Room
  • Saloon
  • Multi-Purpose Hall
  • Business Center
  • Car Wash Area
  • Surau
  • House Keeping Services
  • Satellite MATV Ready
  • 24-Hour Security Service


Nowadays, Condominium facilities has upgrading to be like hotel. This condominium looks so grand at the external landscaping. At the first glance, i thought it was a Hotel. If you can enjoy a hotel like facilities, what is the problem to pay monthly maintenance fee. Grand facilities and well maintenance will eliminate the problem of maintenance fee collection.
Go and See.. Value for money? judge yourself. It is selling at RM 200k++ with above 1100 sq ft. Again..This is neither a developer representative nor agent., it is purely for sharing information only.

05 September, 2006

Modern Parcel Home

In future, house is no longer built by concrete, or those messy structures. It is going to be replace as follow parcel home.Ready made parcel with whatever colour scheme you like. It can be erected in the shortest time. Next time, "move house" will mean to load up the entire container into treler and shift to new place..
With a proper arrangement it can form a community to replace the low rise apartment scheme.



One day, you can even purchase your home through e-commerce or at any shopping outlet like Court Mammoth or IKEA. The parcel will be delivered to the designated location, as it is too convenient and all factory made product.
When New Technology invented, those messy concrete made homes are obsolete.

Do you ever imagine how "Portable" can be a HOME for u?

04 September, 2006

The Only Leverage

Commonly, when we move in to the new house, we always found some defects all around. This is mainly due to the poor workmanship and bad quality control. Therefore, it need to spend another stack of dollar to repair. Besides costing you additional fund, it also delay and mess up your plan to move in on time.

What is the responsibility of the developer? How can they deliver this kind of shoddy product to us? What is the action we can take on it? Complaint? Usually, verbal complaints will only be fallen into deaf ear. To believe most of the developer (small timer) will not entertain this kind of complaints.

Here, The only leverage and good channel for us to arouse the recalcitrant developer from their sweet dream is to withhold the last 2.5% stakeholder's sum, bear in mind, we are not trying to be nasty. We just want to get what we deserve after payout a junk of dollar into the property. It burst out most of the buyer opinion here.

The following is the useful template (i guess), however, Point that need to be emphasized here is, This piece of template is not from any legal expert. So, "sureboh" doesn't hold responsible for any errors., in case.!

http://www.hba.org.my/help/Stakeholder.doc

Regardless how, we are still at the losing side, think deeply, we paid 97.5% of the price in advance before we get the KEY (vacant Possession) to walk in and see/ check the house quality... Apparently, What we can do is to HOPE all developers to deliver a good quality product and halt the rampant shoddy work in their development.

S&P and Loan Agreement

A friend of mine have the following question, perhaps, it can be share out to everyone here..

"(1)Once u sign the (1)S&P and (2)loan agreement, u will have 2obligations?."

S&P - Sale and Purchase Agreement - it is signing in between buyer and seller.. to complete a deal of transfer a property possession from one party to another.

All stamp duty and miscellanous legal charge will be imposed. Usually, stamp duty is fixed by the government under percentage control, e.g. property RM 180k, 1st Rm 100k to be charge 1%, then subsequent (balance) will be charge 2%.. some sort like this calculation... then legal fee charge is vary from every legal firms, as you can always get quotation from them for comparison purpose.

Loan Agreement - this is in between borrower and banker. It is a bond by mortgage your property to bank for loan. There are many packages available in the market. It designs to suit respective individual preference. E.g. Zero cost and Non Zero cost, Fixed Rate, fluctuation rate, etc. Go approach to banker for detailing, as they are very welcoming to assist you as long as there is business deal concern.

What you need to know here is the entire picture flow of the process. My advice here is to obtain the latest infortmation from the professional banker / lawyer to seek for their advice in the charges on S&P and loan agreement as there may have new plan to come out from time to time.

02 September, 2006

Wangsa Talk

The Sun, August 2006

Good news to all residents at Wangsa Maju. There is another hybrid (shopoffice and shopping mall) for our pastime.
Wondering where is the exact location. guess will be around Carrefour at Section 4 & 5. It definitely is a good news for surrounding residents as it could help in boost the economic and stimulate the growth of development.

Start to put your eye on this area in term of location, population, accessibility, amenities, business opportunity, etc. It has a very good prospect.

Of course, Security of this area have to be enhance as to prevent the snatch terrors and get it totally eliminates and return us a peaceful enclave.

Complaint of Angkasa Condo

Previously, we have talked about the selling point of Angkasa Condo. Today, let's us look into more detail about the quality of the unit.

Wah.. one of the condo owner posted up the following pictures. These showed that the condition/ quality of the unit is poor.

Door frame edges are full of paint without proper cleaning. it is worse than low cost flat quality. I think it is a obvious and unacceptable defect. It should not be allow.
How can the contractor forget to paint the door frame expose surface, as indicated in the pictures below.

Paint stain on the window.. .. aiyoo.. how come there is no protection of the window while doing painting work.. Where is the inspection and how the inspection being carried out here? The edging of window frame is not consistent also.. It is a bad workmanship... Friend.. don't do this kind of work please..
Suggestion to the developer here, Quality of product is crucial to achieve customer satisfaction as it is a best channel to advertise the future developement and boost the reputation of company in the market. Hope the defects can be rectified in time and regain the confidence of customer.

01 September, 2006

Angkasa Condominium, Tmn Connaught




Before hand, let me clarify that i am not a sales rep from this development. What has come to my interest is its Location.




In fact, this condominium is allocated in the ideal location. As the golden rule of thumb for property investor, always remember three top most important factors to be put into the consideration. Location, Location, Location.... let me emphasize again..there is "location" of the property... let shout it loud and clear again.. "Location!!". don't blame me, if you slip out this factor.. i have done my part to highlight it to you.



UCSI College University is just a stone throw distance from the door step. Convenient commercial lot like Mcdonold, Giant hypermarket, banks, etc are another attractive points to me. There is also a 10- 15 minutes travel distance to KLCC or Midvalley. No doubt, it is sitting in a very strategic position.
Of course, every developement has its weakness or shortcoming, this condo cannot be escaped too.
Once u open window, u can see the chinsese cemetery, there is a big zone on the hill area.
When we see the big picutre of the area, it seems to be too dense. Too Congested traffic is another discourage factor.
But the two main concerns for me is the Quality and Maintenance Fee... It cannot be ignored as well, as it can cost u easily a ton of dollar and drag for decade to resolve.
"Location, Quality and Maintenance Fee.". this is what u have to judge carefully before you make up your mind in buying property.