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Main stumbling block for Malaysians hoping to buy house

Property News/ 17 June 2021 No comments

market recovery

The failure to secure loans and difficulty in managing monthly cash flow have proven to be the main stumbling block in many Malaysians’ ability to own property.

Factors such as quality, size and location of the property also determine the take-up rate, according to experts.

Citing a Bank Negara Malaysia report, National House Buyers Association (HBA) secretary-general Datuk Chang Kim Loong said the rate of increase in prices of property has far outstripped wage increments since 2012.

“Consequently, prevailing median house prices are beyond the reach of most Malaysians,” he told theSun.

“HBA has warned for years that prices are rising too rapidly, but our message has gone unheeded,”
he added.

However, for people to whom affordable homes are already out of reach, the next option is social housing.

According to the criteria outlined by Housing and Local Government Minister Datuk Zuraida Kamaruddin, an affordable home must have a built-up area of at least 900sq ft (excluding the balcony), priced from RM150,000 to RM300,000 (in both rural and urban areas) and located in areas with good connectivity with public transport and other amenities.

However, not many affordable housing schemes, especially in the Klang Valley, Selangor, Penang and Johor, meet all the criteria,
said Chang.

This leaves many buyers without a choice but to opt for social housing.

These are schemes that are usually managed by state governments, with a built-up area of less than 800sq ft and priced below RM100,000.

Chang said Singapore’s Housing Development Board (HDB) apartments are a reflection of the republic’s success in providing affordable housing to its population.

By 2019, a total of 81% of the city state’s population were already living in HDB apartments.

However, unlike Singapore, where there is a singular authority to enable a more systematic approach, housing and land matters in Malaysia come under the purview of the states, he said.

“This is further complicated by the different requirements in each state, not forgetting the quotas and discounts for bumiputras.”

For those who find affordable homes are still out of reach, there is no shortage of social housing schemes in the country, said Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia research exco Sulaiman Akhmady Mohd Saheh.

“Schemes such as the PR1MA, Rumah Mesra Rakyat and people’s housing programme offer inexpensive homes targeted at those in the B40 and low M40 groups.”

However, many Malaysians are also not opting for such homes,
he said.

“Apart from the cost, there are other factors to consider, such as quality, size, layout, location, as well as distance from amenities and workplace.”

Sulaiman said under the United Nations Centre for Human Settlements charter, an affordable home would also have to meet these requirements.

However, affordability remains the biggest issue.

A home is considered affordable if it is priced at or below three times the median annual household income of the potential buyer,
added Sulaiman.

In Malaysia, the ratio was 4.9 in 2020, according to research by the Khazanah Research Institute.

Sulaiman also cited examples of how the problem has been addressed elsewhere.

In Los Angeles, an initiative called the Motel Conversion Ordinance gives city authorities the right to convert motels into public housing for the homeless.

He said Malaysia could have a similar law that will enable the government to allow the conversion of under-utilised or vacant buildings into apartments.

However, the appropriate legislative steps will have to be taken to enable such initiatives in the country.

Source: TheSunDaily.my

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Everything about certified real estate negotiators & agents (Part 2 of 2) – Benefits and commission rate

Readers Column/ 16 June 2021 No comments

property agent

By Anders Ong

Types of Agency Appointment We Can Arrange with Real Estate Agents

  • Exclusive Agents: Appointment of one real estate agency to market and sell the property exclusively. No other agency can solicit from the owner to sell, only can direct co-agency to the appointed agency. Landlord/Vendor can’t sell/rent the property themselves to buyer/tenant.
  • Sole Agents: One real estate agency will be engaged to market and sell the property. Landlord/Vendor can sell/rent the property themselves to any buyer/tenant and pay commission based on an agreed amount.
  • Joint Agency: More than one real estate agency is appointed to market the property and only those whom manage to close the deal get paid. The number of agents appointed is limited to two to three, and all agents are aware of each other’s appointment.
  • Ad-Hoc Agency: Clients may engage an unlimited number of estate agency on an ad hoc basis and fees are paid only upon successful conclusion to the successful estate agency transaction also known as open listing.

Benefits of Appointing Real Estate Agency

  1. Your Hire Professionals to Work – The right and experienced property agent will be of great help in securing client in the fastest, shortest and quality client for your property. They may set the right price in getting the property marketed, advertised in multiple ways, screen potential client, and conduct the negotiations on owners’ behalf saving time and headache.
  2. Their Services Are Monitored & Regulated – A Real Estate Agent (REA) is bound by codes of conduct and strict laws under the Valuers, Appraisers and Estate Agents Act 1981 (Act 242). Any wrongdoing by the REA or firm will be subjected to BOVAEA’s disciplinary action which includes fines, suspension or deregistration.
  3. Knowledgeable & Educated – Every property agent may have different level of knowledge of property market and educated about all the whole transaction process. Clients could save up time by appointing an agent to assist in the whole process and getting advice from them.
  4. Price Guidance – Property agents are not allowed to advice on the value of property for sales but they can show the market prices of property on sales and advice on rental rate for more efficient market matching and transactions.
  5. Professional Networking & Wider Marker Coverage – Appointing one real estate agent exclusively may not mean it will limit the customer base as most people thought one agent may have less client compared to give open listing to all agency. Because one agency may have networking with other agency or we call it co-agency and still we have the same coverage of client and more control of the pricing.
  6. Negotiation Skills & Confidentiality – Good agent could negotiate a deal well for the clients in getting the best rate or offer they wish to have and not just passing message between clients and customers. They can negotiate a higher rate for their vendor/seller and they can negotiate lower for their buyer/tenants. Besides, they are trained to represent their clients and do not reveal their client’s confidential information from competing parties.
  7. Paper Work Handling & Marketing – Property agent may assist in marketing and advertising the property through a few mediums such as banner, flyers and online platform; besides, getting every documentation done for their clients including booking form, invoice, official receipt, tenancy agreement and inventory records. Notwithstanding that, they may also assist in arranging client and connecting them with solicitors in preparing the sales and purchase agreement.
  8. Save Time & Energy – Appointed real estate agent will handle the whole process from staging of property, advertising, filtering serious customers, viewing arrangement, negotiating, closing, documentations and finalizing the transactions so clients don’t need to make those tedious arrangement themselves.

Real Estate Agents Commission Rate

Sales or Purchase

commision-sales

Rental or Lease

commision-rental

Myth & Truth

  1. Real Estate Negotiators Make Easy Money – Truth is real estate negotiator had spent a lot of time in sourcing for client and put a lot of effort to make sure the vendor property is in the market reaching to clients. The income they get is appropriate to the time they invested in their work and not every client wanted to pay full commission so not every agent is having easy money as it seems.
  2. Real Estate Negotiators Advertise Freely – Many clients were of the belief that realtors advertise and work are free of charge and realtors do not incur any cost in advertising. Truth is most advertising platform the realtor uses their time to strategize and edit on the web are charged a fees and they may need to pay more to make sure their clients property is on the top views and even banner they put on the property are costly if of certain sizes.
  3. Real Estate Negotiators Have Fixed Income – Every or most property agent are under contract for service and they do not have basic salary to sustain their monthly expenses like most job in the market.

READ MORE: Everything about certified real estate negotiators & agents (Part 1 of 2) 

Anders
Anders Ong – PEA, Property Investor, Writer, Speaker, Real Estate Coach, Property Market Analyst & Author of Back To Property Investment To Create Wealth

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Penang to get a new international-grade racing circuit soon

Property News/ 16 June 2021 1 comment
proposed-racing-track-batu-kawan

Approximate location

Those with a love for automotive velocity may soon get their dose of it because Penang has earmarked a spot for a motorsport racing circuit in Batu Kawan next to the State Stadium complex.

Penang youth and sports committee chairman Soon Lip Chee said a 2.8ha plot had been identified to the east of the main stadium building beside Sungai Jawi.

“The state intends to build a conducive racing circuit to unearth new motorsports talents.

“It is among the projects listed in the state Pakatan Harapan manifesto during the 14th General Election and will serve as a component to turn the area into a ‘Sports City’.

“The state via Penang Stadium and Open Space Corporation called for proposals for the project last month,” he said.

The request for proposal was published on May 17 and closed last Tuesday but the state may extend the deadline for companies.

All proposals submitted by qualified companies must meet all the criteria of Motorsports Association of Malaysia.

The requirements include infrastructure like spectator areas, parking lots and administrative offices.

“The racing circuit will be used for events and competitions at the national and international levels.

“This will stimulate the growth of Penang,” said Soon.

He said Penang had a large number of talented motoring enthusiasts but they lack good opportunities to develop due to the absence of a proper racing circuit.

“This track will serve as a permanent space for people to race legally without endangering others on public roads.

“Races can be held for motor- cycles and probably other motor vehicles as well, depending on the track design.

“We hope to complete the project within three years.

“This project will be fully funded by the private sector,” said Soon.

Interested firms can go to http://ep.penang.gov.my for more information.

Source: TheStar.com.my

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UPCOMING: Bertam / Gandingan Semangat Sdn. Bhd.

Bertam/ 15 June 2021 No comments

proposed-development-by-gandingan-semangat-sdn-bhd

A proposed landed residential development by Gandingan Semangat Sdn. Bhd. (a subsidiary of Oriental Max Group) at Bertam. Located on 4.46 acres of land near Jalan Panglima 3, adjacent to Taman Keladi Indah by the same company. This development is only about 4km to Setia Fontaines township by S P Setia, under 10 minutes drive from Bertam toll plaza.

This project comprises 41 units 2-storey terrace, 16 units 2-storey semi-detached and a 2-storey bungalow houses. Judging from the previous launches within the vicinity, the guestimated price for the terrace houses should be around RM400,000 onwards.

The project is still pending approval. More details to be available upon official launch.

Project Name : (to be confirmed)
Location : Bertam, Penang
Property Type : 2-storey terrace and semi-detached
Land Area: 4.46 acres
Built-up Area: (to be confirmed)
Total Units: 41 (terrace), 16 (semi-d), 1 (bungalow)
Tenure : Freehold
Indicative Price: (to be confirmed)
Developer : Gandingan Semangat Sdn. Bhd.

Register your interest here and we will keep you updated

(This information will be used to keep you updated on the project and future development.)
*By submitting this Form, you hereby agree to our PDPA Consent Clause.

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DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

Penang Home Ownership Campaign extended until June 2022

Property News/ 15 June 2021 No comments

The Penang government yesterday announced that the Penang Home Ownership Campaign (HOC) will be extended for another year until June 2022.

State Housing, Local Government and Town and Country Planning Committee chairman, Jagdeep Singh Deo said the HOC had ended on June 9 this year.

“During the HOC, the ceiling price of affordable housing on both the island and mainland will be lowered by up to 10 per cent.

“The original ceiling price on the island and mainland are RM300,000 and RM200,000 respectively, but the prices will be adjusted during the HOC,” he said at a press conference here.

He added that the state had approved the guidelines to increase the density limit of low-medium cost (LMC) units to 120 units per acre on the island.

“These revised guidelines are part and parcel of our war against COVID-19, whereby apart from our priority placed on public security and health, we also want to assist all to rise economically,” he said.

Meanwhile, Jagdeep also announced that the first affordable housing project to be developed by the Penang Housing Board (LPNPP) at Bukit Gedung, Bayan Baru was expected to be completed by 2025.

He said the housing project, occupying 3.076 hectares of land, would consist of 1,014 units of affordable homes and 253 LMC units.

“This project will also include facilities such as shop lots, swimming pool, surau, tai chi plaza and study room,” he added.

Source: Bernama

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