THE Penang Government has identified a total of 31.16ha of land on the mainland and island for phase two of its affordable housing project.

Chief Minister Lim Guan Eng said details of the project would be released after acquiring a report from the Penang Development Corporation (PDC) and other experts.

“Meanwhile, under phase one, 4ha of land in Kampung Jawa in north Seberang Prai has been earmarked for mixed development, while 7.68ha in Ampang Jajar is catered to low-cost housing.

“Other identified plots of land included Bukit Mertajam in central Seberang Prai, Juru Heights, Teluk Kumbar and Lebuh Bakau,” he told a press conference during lunch break at the State Assembly building yesterday.

Lim said the state government was committed towards building more affordable housing in the state.

“Though we are building affordable houses, developers are still required to build 55% of houses that cost below RM500,000 in certain high density areas, including 30% of affordable houses,” he explained.

He said phase three of the affordable housing development would be announced later.

Source: The Star

KUALA LUMPUR: The responsible lending guidelines issued by Bank Negara for banks since the beginning of this year may have less of a downside impact on loans growth than initially thought, Hong Leong Research said.

Hong Leong Research’s banking analyst Low Yee Huap said in a report that the impact of responsible lending has so far affected mainly the lower income group which consisted 12.7% of total loans.

This is also premised upon the latest banking statistics for March which showed that year-on-year (y-o-y) loans growth accelerated to 12.2% from a growth of 11.9% in February, after two consecutive months of slowdown due to seasonal and festivities factors.

In March, banking statistics showed a higher y-o-y loans growth to the business sector for the purposes of construction and working capital with a y-o-y growth of 19.2% and 10.4% compared with 16.2% and 10% respectively in February; while the household segment slowed to 11.9% from 12.1% in the previous month likely due to the responsible lending guidelines.

Low had maintained loans growth target of 9% in 2012 with an overweight call on the banking sector adding that a boost from the economic transformation programme (ETP) and would also positively impact consumer credit.

“The (banking) sector is the best proxy to the domestic economic growth and will enjoy significant multiplier effect from implementation of ETP projects.

“Continued consumption will indirectly boost demand for hire purchase, mortgage, personal loans and credit cards,” he said in the report.

The overweight call is also underscored by the banking system’s health which is in a “better position” today but also highlighted that the stress point to the system’s health would most likely be from the lower income group, while the middle to higher income group are financially sound.

“As for the lower income group, we laud Bank Negara’s preemptive moves and the role played by Agensi Kaunseling dan Pengurusan Kredit in ensuring the system’s health,” he said.

Meanwhile, CIMB Research analyst Winson Ng Gia Yann, who maintained a neutral stance on the banking sector , had a less sanguine view despite the higher y-o-y loans growth in March as compared with the previous month.

“We do not view this as a surprise because the improvement (in loans growth) was small, and loans approval, which is a leading indicator, increased by 17.6% y-o-y in February,” Ng said in his report.

“We still see downside risks for loan growth from March’s level given the moderating trend for the leading loan indicators in March,” Ng added with an industry wide loans growth forecast of 9% to 10% for the entire 2012.

Source: The Star

A SERIES of activities has been planned to promote Penang beyond the cleaner and greener initiatives.

State Local Government and Traffic Ma­­nagement Committee chairman Chow Kon Yeow said they hoped to improve the state from safety and health aspects.

“Besides promoting cleaner and greener campaigns, more interactive activities will be held to promote the importance of leading a healthy lifestyle among Penangites.”

He hoped that Penang would continue to be rated as one of the most liveable cities where its people feel safe all the time, and are healthy.

“We are looking into ways to make public spaces more accessible to the public as well as enhancing the environment in local neighbourhoods.

“The setting up of voluntary patrol units in the state also augurs well for our long-term plan to transform the state into a cleaner, greener, safer and healthier place,” he said.

Chow, who was at the ‘Green Our Home’ project in Macallum Street Ghaut in George Town yesterday, said the local government had done its part such as putting up street lights, railings and street furniture which are conducive.

More than 150 people, including Pengkalan Kota assemblyman Lau Keng Ee and Penang Municipal councillor Teh Lai Heng, joined Chow at the event before they threw 6,000 mudballs into the sea near the Tow Boo Keong Kew Ong Tai Tay Temple in George Town.

The mudballs were sponsored Penang Municipal councillor Tay Leong Seng.

Before the event began, the participants also took part in a lymphatic exercise.

Among those spotted at the event was technician Chew Chin Kok, 42, who came with his son Shang Yuan, six, and daughter Yee Chien, eight.

“It feels good to be involved in such a healthy activity and the green initiative. In fact, it was my son who woke me up to take part in this event.

“I hope to cultivate them from young, so that they care for Mother Nature,” he said.

Source: The Star

Orchardville, strategically located within the established township of Sungai Ara. This residential development comprises condominium units with built-up area ranging from 1,202 sq.ft. to 1,577 sq. ft. Each unit comes with 2 covered carparks.

Special features:

• Treehouse and Spa hut
• 75% Greenery with fruit orchards as part of property
• Dual Key Unit – 1 unit per floor
• Nature inspired recreational activities
• Security perimeter fencing
• Sporting facilities
• Residential Green Building

Property Project : Orchard Ville
Location : Sungai Ara, Penang
Property Type : Condominium
Built-up Area: 1,202 sq.ft – 1,577 sq.ft.
Land Tenure : Freehold
Developer : Reka Indah Development
Indicative Price : RM548,000 onwards

Location Map:

BUYING a house will most likely be the biggest single investment in a person’s life. But for first-time buyers, going about purchasing a home can be a procedural nightmare, especially without the proper planning or guidance.

The following are some simple tips for first-time buyers to consider before ploughing their money into their “dream home.”

Weighing your options

The first thing to do is to determine what exactly you are looking for.

“Visit a few property showrooms and also attend a few launched to see what’s available in the market. If you’re a first-time buyer, you’re probably looking for something below half-a-million ringgit,” says VPC Alliance (Malaysia) Sdn Bhd director James Wong.

Also, determine if you’re looking for landed property or an apartment.

“You need to weigh your options. An apartments comes with additional running costs, such as service charges – it’s part of a communal thing,” Wong points out.

“If you stay on landed property, the advantage is that there is no service charge. Furthermore, you may also have access to a garden of your own,” he adds.

Malaysian Institute of Estate Agents president Nixon Paul concurs that there are certain advantages to owning landed property.

“Landed property would make a better buy as you have control over your own house. With an apartment, the biggest consideration is the management running it. If there is no effective management, it could really go downhill,” he says.

Location

With land getting increasingly scarce, more so within the Klang Valley area, affordability can be an issue. “With land getting more expensive, the chances of getting landed property below RM500,000 close to the city is slim,” says Wong.

He adds that a person’s distance from work should be factor to consider when buying property.

“You need to determine what is the commuting time to and from work that you can tolerate everyday,” he says.

Nixon however believes that it’s still possible to find property below RM500,000 within the Klang Valley.

“They’re available but you just need to look harder. You can find apartments within this price range in places like Kepong, Selayang and Puchong. You just have to go out further (from the city),” he says.

A viable option, says Wong, is to purchase property that will be located “not very far” from the proposed stations that will be built for the light rail transit (LRT) Ampang and Kelana Jaya line-extension and Mass Rapid Transit (MRT) projects.

“Once these lines are up, there will be improved connectivity within the Klang Valley.”

He adds that property along the proposed lines won’t necessarily be expensive.

“The lines also go through the outskirts of the city and it would be good to study where the stations will be. If you live within 10-minutes driving distance of the stations, it won’t be a problem.”

Wong says a mistake in the past was that there weren’t sufficient parking facilities for the LRT lines.

“But I was informed that the future lines will also have parking facilities,” says Wong.

Another way for new housebuyers to around the issue of affordability is to try and apply for the My First Home Scheme.

Launched in March last year, the scheme allows young working adults obtain 100% financing from banking institutions to purchase their first home valued at a maximum of RM220,000 (for single applicants) or a maximum of RM400,000 (for joint applicants of husband and wife with household income below RM6,000 per month cumulatively).

Applications are made to participating banking institutions and upon approval, Cagamas – a national mortgage corporation – would provide a guarantee for the first 10% of the loan.

“It is a good move by the Government to promote home ownership,” says Wong. However, he notes that properties launched under the scheme are not located within the city.

“There were launches in Negri Sembilan and the Puchong area. However, if your workplace is within 5km of these homes, then why not,” he adds.

Inspect the property

If the property you’re buying is physically present (such as secondary property), it’s best to inspect it to ensure there are no shortcomings or flaws that will incur you additional unwanted costs.

“A house might look beautiful in pictures or from the outside, but you never know for sure until you take a closer look at it yourself,” says property investor Kamarul Ariff.

“It’s best to inspect the house inside-out, floor to ceiling. Check to see if the walls and fixtures are in good condition, or if the house is infected with white ants, for instance. Bring along a friend who’s a better judge of things like this, as it’ll save you a lot of unnecessary cost in the future.

“Also, it doesn’t hurt to inspect the property on a rainy day – a good way to find out if you’ve got leaks!”

Sorting out your finances

A major factor in the home-buying process is the issue of financing. Of course, one needs to have the financial resources first before going house-hunting.

Noteworthy is that effective January 1, Bank Negara has implemented its responsible lending guidelines, whereby loans are now approved based on net income compared with gross income previously.

The new guidelines are intended to help manage the household debt in Malaysia to reasonable levels.

“Currently, banks are tightening on housing loans and potential property buyers may not be able to secure up to 90% financing. Instead, they may only get between 70% and 80%. They now need to have as much as 20% cash or equity, unless its a gift or a loan from your parents,” says Wong.

But Nixon believes that securing a loan is not a problem, especially for young property buyers inspite of the new loan rules.

“From what we’ve been hearing, it’s not the younger generation that’s been having problems getting loans, but instead, the older generation.

“This is because the younger generation don’t usually have debts – at most it might be a car loan. We find that it’s the older generation, those with several ongoing loans or debt that have problems getting their loans approved under the new lending guidelines,” he says.

Bank officer Razlan Hashim says potential property buyers should ensure that their monthly loan payment will not be a burden on their spending. “You need to ensure that the home you’re buying is within your means,” he says.

Source: The Star