Wednesday, July 20, 2016

1MDB Attorney General US Press Release: 21 July 2016



The 1MDB tsunami wave is coming....Good job from US Attorney General.
May the truth be prevail...and justice install for people of Malaysia..

Wednesday, June 22, 2016

The Edge Report:Prices in Penang move sideways in the first quarter

Penang
THE Penang housing market moved sideways on both the primary and secondary markets in the first quarter of the year, says Michael Geh (pictured), director at Raine & Horne International Zaki + Partners.
“I noted active transactions on the secondary market with prices staying flat,” he says in presenting the 1Q2016 Penang Housing Property Monitor.
Banks, he adds, only provide loans of up to 70% to 80% of a property’s value and serious first-time homebuyers have to make up the difference in order to sign the sales and purchase agreement.
Michael Geh“A few primary market projects have obtained the Advertising Permit and Developer Licence (APDL) and moved into the stage of processing loans from commercial banks and signing the S&P.” These projects include I-Santorini, SummerSkye and ForestVille, all under Ideal Group.
Will the prices of Penang houses, considered expensive, drop because of the soft market conditions? Geh says prices have come down to more realistic levels, especially with the government pushing the developers to build properties priced from RM300,000 to RM400,000 in the last two years, specifically for owner-occupiers.
Some of these properties, in areas such as Sungai Ara, Patani Road and Relau, have been taken up and are currently under construction, he adds.
Elsewhere in the country, some developers are pushing sales by providing financial assistance to the purchasers. Will those in Penang follow suit?
Geh says such a practice is not widespread for now. “Besides Sunway Bhd and S P Setia Bhd, I don’t see any other developer providing financial packages at the moment. I believe there are plans for such assistance but so far, nothing has been announced.”
He believes a catalyst for the state’s housing market would be the much-talked-about
RM27 billion Penang Transport Master Plan (TMP). The ambitious plan will not only benefit the people but also bring about a more equitable housing situation and help retain local talent.
The TMP, he feels, will lead to equitable home property prices as areas that are not in prime locations will become more accessible, boosting demand for homes and resulting in higher prices. Properties in prime areas, which normally fetch higher prices, should see some price correction as demand is more evenly distributed across the state.
Apart from that, Geh opines that the TMP will help retain talent, which will subsequently impact the property market as the pool of workers seek to rent or own residential properties.
“Penang needs the TMP to grow in the next 10 years. We need to stem the migration of youths to the Klang Valley, Iskandar Malaysia and Singapore in search of better job opportunities. We need to create jobs and make conditions more liveable for our youth to prosper,” he says.
At present, two light rail transit lines have been approved under the TMP — one from Prangin Canal to Penang International Airport inBayan Lepas and the other from Prangin Canal to Straits Quay.
As for creating jobs, the state government is making a concerted effort to develop new business sectors so that Penang can stay relevant to the global economy.
“An industry that has been highlighted by the state is the knowledge economy, such as apps and animation,” Geh says. This has been identified as a key economic sector for the next decade.
There is a proposal for three reclaimed islands in the southern part of Penang island to locate businesses for this sector, he says, and for the islands to be connected by an LRT line that extends from Penang International Airport.
However, it has not been plain sailing for  the TMP because one of its components — the Sky Cab or cable car system — has been rejected by the federal government. The 4.8km cable car system, according to the Penang government’s TMP website, was to have connected Butterworth on the mainland to Jelutong on the island. While this is a blow to the state government’s plans, Geh does not believe it will affect property prices.
“Cable car systems are generally more for tourists and not meant to move high volumes of people. I don’t think there will be a large negative impact on the property market. High-volume, high-frequency vessels that travel on water may be a better solution,” he says.
Another component of the TMP is an undersea tunnel linking the island with the mainland. However, further details are not forthcoming at present.
A development that will have an indirect impact on the Penang housing market is the much-debated Gurney Wharf. This 3km-long reclamation project lies just off the shores of popular tourist spot, Gurney Drive.
Geh believes this project has great potential to benefit the island. “I believe Gurney Wharf is an exciting development because it creates recreational activities for Gurney Drive. I think it is a boost to the area.”
Terraced houses
The prices of landed properties did not rise much compared with those of high rises, the data compiled for the monitor reveals. This is due to “stagnation” as there were very few transactions during the quarter under review, compared with the high-rise sector where there was much more activity, Geh explains.
Nevertheless, property values have increased compared with a year ago.
For 1-storey terraced houses, some areas surveyed showed activity year on year but little movement quarter on quarter.
On the island, properties in Jelutong showed the highest price growth, rising 5.88% to RM900,000 from a year ago, followed by houses in Tanjung Bungah (up 5.26% to RM800,000). Houses in Sungai Dua, Sungai Ara and Bandar Bayan Baru saw slight price increases of 2.56%, 2.04% and 1.96% respectively while those in Green Lane and on the mainland saw no changes.
For 2-storey terraced houses, there was no activity q-o-q but prices rose y-o-y in some of the areas surveyed.
The prices of houses in Pulau Tikus rose 6.67% to RM1.6 million, followed by those in Sungai Ara (5.26% to RM1 million) and Sungai Nibong (4.55% to RM1.15 million). Prices remained unchanged in Green Lane and the mainland.
Semi-detached and detached houses
The 2-storey semidees in some areas saw more activity in 1Q2016 than in the previous quarter and last year. Prices in Sungai Dua and Minden Heights rose 6.67% to
RM1.6 million q-o-q, followed by those in Sungai Nibong (up 5.71% to RM1.85 million) and Island Park (up 2.27% to RM2.25 million). Prices in Sungai Ara remained unchanged.
There was no q-o-q increase for 2-storey detached houses but 50% of the units surveyed in the monitor saw y-o-y activity.
Island Glades bungalows saw a 3.57% increase to RM2.9 million y-o-y , the prices of Green Lane houses rose 2.86% to RM3.6 million and Pulai Tikus houses were up 2% to RM5.1 million. House prices in Tanjung Tokong, Tanjung Bungah and Minden Heights remained unchanged.
Flats and condominiums
Three-bedroom flats in Green Lane and Bandar Baru Air Itam showed price increases q-o-q as well as y-o-y .
In Green Lane, prices rose 5.26% to RM400,000 q-o-q and 17.65% y-o-y. Units in Bandar Baru Air Itam rose 4.35% to RM240,000 q-o-q and 20% y-o-y.
Compared with a year ago, the prices of flats in Paya Terubong were up 12.5% to RM180,000, followed by Sungai Dua and Lip Sin Garden (6.06% to RM350,000) and Relau (3.45% to RM300,000).
Among the 3-bedroom condos, the biggest gainers were properties in Pulau Tikus, which rose 4.62% q-o-q and 9.68% y-o-y to RM680,000.
In Island Park and Island Glades, prices rose 4.17% q-o-q and 6.38% y-o-y to RM500,000 while condos in Batu Ferringhi rose 2.22% to RM460,000 q-o-q and y-o-y.
Batu Uban condos rose 5% to RM420,000 from the previous year but there was no activity q-o-q. The prices of Tanjung Bungah units remained unchanged.

Monday, May 9, 2016

How to calculate Stamp Fee and RPGT for between family member

If you are looking for way to transfer property ownership to your family member. There is some good method to transfer the ownership which can save us the Stamp duty and RPGT cost...using the method describe below..this is a better way to save our hard earn money and use the saving to reinvest to other property assets investment.

Image result for stamp duty for property malaysia parent to childImage result for stamp duty for property malaysia parent to child
Generally, an acquisition of property attracts stamp duty exposure and a disposal of property may attract real property gains tax (“RPGT”). Stamp duty is calculated on the market value of the property at the time of the acquisition whereas RPGT is calculated on the profit gained from the disposal of the property.
In the case of a transfer of property between family members by way of love and affection, the law provides for a full or partial exemption of stamp duty and/or RPGT in certain instances.

Stamp Duty

The stamp duty payable for arm’s length acquisitions is calculated in the following manner:
Consideration/ Adjudicated Value Stamp Duty rate
First RM100,000 1%
Subsequent RM400,000 2%
Amount exceeding RM500,000 3%

Please visit JPPH website for the stamp duty calculator :http://www.jpph.gov.my/V2/kira_dutisetem.php?versi=1

In contrast, pursuant to the Stamp Duty (Exemption) (No. 10) Order 2007, the law provides for stamp duty exemption for a transfer of property between family members by way of love and affection as follows:
Transferor Transferee Exemption Rate
Husband Wife 100%
Wife Husband 100%
Mother and/or father Child 50%
Child Mother and/or father 50%

Note that ‘Child’ means a legitimate child, a step child or child adopted in accordance with any law. Also, stamp duty is typically paid by the transferee, unless agreed otherwise by parties.

Real Property Gains Tax

With effect from 1 January 2014, the revised RPGT rates for the disposal of real property and shares in real property companies are as follows:
2014 RPGT Rate
Date of Disposal Companies Individual (Citizen & Permanent Resident) Individual (Non-Citizen)
Within 3 years from the date of acquisition 30% 30% 30%
In the 4th year 20% 20% 30%
In the 5th year 15% 15% 30%
In the 6th year and subsequent years 5% 0% 5%

That said, the law provides for 100% exemption from having to pay RPGT in the case of a transfer of property between family members by way of love and affection in the following instances:
(a)   transfers between husband and wife;
(b)   transfers between parent and child; and
(c)   transfers between grandparent and grandchild.

In these instances, the transferor is deemed to have received no gain and suffered no loss and the transferee is deemed to have acquired the property at an acquisition price equal to the acquisition price paid by the transferor together with any permitted expenses incurred by the transferor. This is provided for under Paragraph 12 of Section 7 to Schedule 2 of the Real Property Gains Tax Act.
In practice, this exemption is beneficial to the transferor but may not necessarily be the case for the transferee (in his capacity as a transferor when he subsequently disposes the property) if the transferee disposes of the property within 5 years from the date he acquires the property. For example, Father (“F”) bought a piece of property from A in 2010 at the price of RM500,000. F subsequently transferred the property to his son, C, by way of love and affection in 2011 (which at that time, the market value was RM1,000,000). C subsequently disposed the property in 2014 at the price of RM800,000. C is required liable for RPGT payments of RM300,000.
Note also that there is RPGT exemptions on gains from the disposal of one residential property once in a lifetime to individuals.

I must add another thing - if the property is unencumbered - you do not need to execute an SPA since the consideration is love and affection (gift).

With regard to legal fees, you will be charged according to the market value of the property.


Saturday, May 7, 2016

Recession in Malaysia in 2018, predicts expert

Malaysia is likely to be hit by a recession in 2018, with most of the sectors expected to slow down, political and economic affairs analyst Prof Hoo Ke Ping predicts.
However, he said, the palm oil industry would do well due to the La Nina effect which will see more rain than expected, pushing production and prices for the edible oil upwards.
“Malaysians will feel the pinch of recession from next year onwards due to various factors, including a decline in consumer confidence and the retrenchment of workers from such sectors as oil and gas, banking, retail, and electronics,” he told FMT.

“Prices of medium and high-end homes will drop, with property speculators starting to tighten their belts as bank loans become harder to get.”
Hoo pointed out that Malaysians have experienced a recession in almost every decade since the 1960s.
He said in the early 60’s the recession was caused by global rubber prices, and another recession in 1967 was due to the ringgit crash. In 1970, it was caused by global rubber prices while in the 80s, the recession was due to outflow of funds and a property crash.
In the1990s, Malaysians experienced recession again but this time it was due to a currency crash which saw economic growth of -7 per cent, he said.
“In 2008, we experienced another recession but we managed to pull through very quickly. The 2018 recession is expected to hit almost all sectors,” he added.
Hoo also said for those looking to buy a home, the next two-and-half years might be the best time to own a medium to high end property,
This is because the property market had started to show signs of slowing down six months ago after market speculators failed to get bank loans or buyers or tenants for their properties.
He said some of the houses were going for almost RM100,000 cheaper. For instance, he said, a condominium unit that was going for RM500,000 in 2012 was now being sold for RM420,000.
He said property prices had shot up after Bank Negara’s delay in curbing greedy market speculators from buying and selling properties under the Developer Interest Bearing Scheme which exercises the “willing buyer willing seller” concept.
Bank Negara finally imposed stricter regulations on market speculators in 2012. However, he said the delay had caused a property bubble with property prices artificially increased.
Hoo said the “fake demand” had caused more houses to be built. He predicted that about 6,000 houses in the Klang Valley, 3,000 in Johor Bahru and 1,000 in Penang would lie vacant.
To overcome the “fake demand”, he said, Bank Negara should tighten bank loans for developers, forcing them to sell completed properties at a cheaper price. “Most of them built the properties in 2013, when the prices were still inflated. Even if they sell the remainder of their unsold units at a cheaper price, they will still make money.”

article shared from: http://www.freemalaysiatoday.com/category/nation/2016/05/06/recession-in-malaysia-in-2018-predicts-expert/

Tuesday, November 10, 2015

Image result for 10 golden rules

The Golden Rules of Investing are essentially a common sensical approach which largely comes down to the emotional aspects such as Discipline, Patience, Greed & Fear.
Remember these 10 golden rules of Investing.

1. Risk is inevitable – What is Risk? Understanding Risk is the first part and then learning to Manage it.
2. Start early – Benefit from compounding. Einstein has acknowledged Compounding as the 8th wonder of the world.
3. Have realistic expectations – Greed is bad. How much is too much? You never know what is enough, until you know what is more than enough.
4. Invest regularly – Not even God can time the markets. Timing/Forecasting the markets is an illusion.
5. Stay Invested – Be a marathon runner. Markets tests patience and rewards conviction.
6. Don’t churn your investments – It only increases costs. If you like gambling, go to a casino. For serious investing, stay put.
7. Spread your corpus – Each investment class is important. Don’t put all your eggs in one basket.
8. Sell your losers – Hope doesn’t make money, Wisdom does. We are biased against actions that lead to regret. People attach too much weight to gains and losses rather than wealth.
9. Hot tips usually burn your investments – Avoid them. Remember the reverse of TIP is PIT. So a tip usually dumps you in a PIT almost always.
10. Taxes are important – But not at the cost of a bad investment. Only Death and Taxes are certain, true ~ But don’t make bad investments just to save tax. Don’t be Penny Wise Pound Foolish.

Article from: EnrichWise

Saturday, October 31, 2015

Loan Street:Upping your game: Residential to commercial properties

In the vast field of investment options, property investment is traditionally perceived as safe and long-term. However, within this sphere itself, there exist two different worlds: residential and commercial property. While housing is a generally safe investment, wading into the commercial property market is a whole different ball game.One major reason why shifting from residential to commercial property is considered upping your game is that while investors are only allowed 70% financing for their 3rd home loan onwards, there are no such regulations for commercial properties; there are no policies to force lower financing margins whether it’s your 1st or 10th purchase. So, if you’ve gotten your feet wet with residential property investment, and are looking for your 3rd piece, shifting to the commercial property sector means that you wouldn’t have to deal with higher down payments. Let’s explore the other key differences from an investor’s point of view. Risk & Return
In the residential world, demand and supply are the hero factors, whereas in commercial property, risk fluctuates in tandem with the Malaysian economy – worse conditions mean less purchasing power, leading to lower demand for retail spaces and ultimately lower property value and rental rates. However, the adage higher risks higher returns rings true here, as the lucrative prospects generally offset the gambles.
Less stress on tenant management
In this area, commercial property investment comes out champion by a long shot. For residential property, furnishings and renovations are pretty much a necessity to rent out your unit in competitive areas. On the other hand, commercial property tenants prefer their units bare, as they usually want to design and renovate them to their liking.
Subsequently, tenant management is much easier, comparatively. Residential property owners often face problems of frequent complaints and runaway tenants leaving outstanding rent and utilities. Commercial property tenants, conversely, generally pose much less problems and are more likely to adhere to the terms of tenancy agreements.
Additionally, if your commercial unit is in a competitive area, tenants would be lining up should your existing one choose to terminate or not renew his tenancy, sparing you the hassle of finding new tenants. Finally, as tenancy periods for commercial units are longer compared to residential ones, you save on agent commissions.
A lucrative market
Yes, in general, property prices have been surging recently, but in the commercial property sector, especially for prime areas, property value appreciation in general is much higher and faster. The reason for this is that for commercial property, rental rates have a direct and more relevant impact on property value, as opposed to the residential sector, where demand and supply play a bigger part.
Additionally, rental rates for prime commercial units shoot up substantially higher and faster than for residential units. It isn’t uncommon today for commercial units’ rental rates in busy areas to revolve around the tens of thousands, many times more than a residential piece of the same square footage in the same area. So, the benefit here is two-fold: higher property value and higher rental rates.
Financing your purchase
If you have ever taken a home loan, you would know that banks in general aren’t particular about the type of property they’re financing, be it apartments or houses. But when it comes to commercial property loans, banks become hyper-selective about the type of property and may give you a lower margin of finance and/or shorter loan tenure based on the property type. If you do get offered a bum deal on a commercial property loan, shop around – different banks tend to like different types of commercial properties, so you might get a better deal at a different bank.
Conclusion
To sum it up, although you stand to gain more in the commercial property market as opposed to residential units, there are many caveats you should look out for, as factors like location, property type and economic conditions have much bigger impact on your investment.
Comparing_Investments_into_Residential_VS_Commercial_Properties