No Bonding Loan

Due to the abolition of Real Property Gain Tax, the liquidity of the property is greatly increase. what is the impact of such annoucement to the banking and financial institution?

Usually, common loan packages have two types. There are with minimum bonding period of 5 years and without bonding constraints. No doubt, the former offer a better rate which can get a leverage interest through the loan tenure. Without bonding contract, the interest rate will be higher. This is understandable as financial institution wanted to get profit through the loan offer.

Since property trading is getting more liquid and property buyer will prefer to take loan which without bonding period constraint, as this provides more freedom on settlement of loan.

In view of the situation, i think Banker is going to adjust or come out with a new package which will focus in NO BONDING loan package.

Keen to know how good the offer will be.

Iskandar Development Region - Challenge of Time

Recently, the hottest region in public conversation, first choice of course will be, Iskandar Development Region (IDR), in the state of Johor, Malaysia. This is the nearest state adjacent to the neighbor reputable country –Singapore.

Pictures are extracted from http://www.irda.com.my/index.php?option=com_content&task=view&id=12&Itemid=46

This development covers 2,217 sq km, is the single biggest development project in the country. The project area is equivalent to 2.5 times the size of Singapore. This is a development that to be running until 2025, meaning to say it is 18 years development.

Due to its topographic location, making a comparison to developed country –Singapore can be a benchmark to measure its progress. A question raised here, how long Singapore has been developed since it declared independence in 1965, it is 42 years.

Can IDR achieve similar success as what the neighbour has accomplished? It covers a bigger land area and much shorter time frame to make it more challenging! What is the basic requirement to develop a region? Is Malaysia ready and fully equip with the resource and technology to boost it? Perhaps more extensive study into the path of success from developed countries is a MUST.

Let’s see how the government to materialize the vision.

Speculation of Property

On property investment income streams are usually come from property value appreciation or rental income. Notice, that most of the investors are preferably on the latter. it is obviously due to the immediate cash income rather than stagnant a big sum of money and wait for its appreciation. The rental income result can give an immediate result and permit investor to take necessary action cut down losses if the result goes adversely.

For rental streams, most investors are aiming on ready unit of residential properties such as apartments, condominiums and serviced apartments are always a preferable favorite. However, prices swing significantly depending on the location, tenure, size and design.

The number of projects mushrooming in the Klang Valley, however, has not affected the value of properties on the market as it provides wider choices. Despite the abundance of new offerings, investors are still interested in completed units because they can be let out easily. Another option would be offers that come with tenancy,

But forecast that three years down the line, there will be an oversupply situation. When the current projects under construction are handed over, there will be ample supply on the market. Developers are now building larger sizes of above 2,000 sq ft and targeting the higher-end market. But will there be enough expatriates or high-income earners to lease them out to? This is the question to be asked. For local average working class folk would seek out projects in the suburban areas — either for their own use or investment.

Now with the abolition of the real property gains tax will see more speculative sales in the marketplace as it gives higher liquidity. The transaction of property is foreseen to be more active as once buyers get a good offer, they will let the property go to make a fast buck. Those who cannot secure a tenant or pay the bank loan will also let it go.

In long term wise, the impact of this change to current property market is still in doubt. Let's see how the changes take place.

Giant Grabber -Diaphragm Wall

What is this?
This is a the machinery for doing diaphragm wall. The grabber is vertically going down to grab the earth out from a strip. The operation continues in piece by piece in a strip row until the entire boundary is fully closed up with Diaphragm wall.,

The final product form a R.C. retaining wall to retain the earth from collapse. The basement excavation will only be carried out upon the completion of diaphragm wall.

Usually this method will only be carried out in the constraint project site as the project neighborhood allow no working space for open excavation.


* Scale of the size of Grab

Technology has come in place to facilities the construction and turn the Impossible becomes Possible.

Abolition of RPGT

The abolition of Real Property Gain Tax has announced and effective on 1st April 2007.

Most of the people are cheerful to this announcement. As property seller will no longer need to hold too long of a property before get the exemption of property tax charge. With reduction of holding cost, it increases the profit margin and also be more competitive in property sector. Buyer is also benefited from a competitive environment as may get a better deal.

How serious of the impact to consumer will only be reflected in few months time. The process of purchase a property always takes time, but obviously the first wave of the news has boosted the property share in the market. Most of the active property players have soared in share price, especially those involved in High end property.

Wherever there is a white, black is always at its side. Did we ever think of the disadvantages of this abolishment.? and what make government to implement it now but not 5 or 10 years ago?