Besides the possibility of the Government providing land for free or at low cost, another issue surrounding the My First Home (MFH) scheme is the general consensus that it is unrealistic to have the same limit on monthly income and property price across the country. To date, it has been announced that houses under the scheme are priced from RM100,000 to RM220,000 per unit, and to qualify, buyers must have a monthly salary of not more than RM3,000.

Developers are of the view that the higher land values in the Klang Valley and major cities should be reflected in the MFH scheme.

“The scheme should reflect the higher land values, living costs and incomes in the Klang Valley and major cities to ensure there is no mismatch between demand and supply,” says Mah Sing Group Bhd group chief executive and managing director Tan Sri Leong Hoy Kum.

Leong and other developers say a price limit of RM350,000 is more realistic in Greater KL and Penang, and the monthly income limit should be raised to RM5,000.

Real Estate and Housing Developers’ Association (Rehda) president Datuk Seri Michael Yam says the present threshold household income for the purchase of low-cost houses is RM2,500, which is just RM500 less than the RM3,000 income limit for MFH buyers.

The minimum property value of RM100,000 should be set aside so that those who are not entitled to the RM42,000 low-cost homes be given a chance to own a property, says Yam.

Loan financing is another issue linked to the MFH scheme. National House Buyers Association (HBA) secretary-general Chang Kim Loong says buyers with a monthly income of RM3,000 may have problems with mortgage payments, despite the 100% financing provided under the scheme.

Chang explains that based on the previous BLR (base lending rate) of 6.3% and a “market rate” of BLR less 1.8%, the effective interest charged to a house buyer is about 4.5% per annum. Generally, banks practise a rule of thumb whereby any single loan repayment should not exceed one-third of the borrower’s gross pay.

“For a RM220,000 housing loan with a tenure of 30 years and 100% financing, a buyer with a monthly salary of RM3,000 would be paying monthly repayment of RM1,115, which is 37% of his gross monthly salary. These borrowers would not have much savings and could default on their loan obligations in the event of personal emergency expenses. Also, it would be impossible for these house buyers to take up additional loans to buy cars.”

Chang calls for home buyers under the scheme to be given a preferential interest rate of 3% fixed throughout the loan tenure. He also says the Government must make it compulsory for MFH projects to be based on the 10:90 BTS (build-then-sell) concept to give maximum protection to home buyers and to shield the Government from potential liabilities as such projects are easier to revive in the event they are not completed.

Under the BTS concept, a buyer only pays 10% of the price on signing the sale and purchase agreement, with the balance to be settled only after completion of the house.

Yam of Rehda concurs with Chang and calls on banks to allocate a block of loans at preferential interest rates with longer loan tenures and with the provision of having joint multiple borrowers.

SOURCE: The Star

KUALA LUMPUR: Mah Sing Group Bhd yesterday introduced a loyalty rewards programme called "M Club" designed to keep its custo-mers returning to the developer and buy more properties in Johor Baru, Penang and Klang Valley.

The enhanced loyalty programme offers its 10,000 members the chance to enjoy privileges and discounts of up to 30 lifestyle brands.

"We hope in the future our customers will view their M Club as indispensable as their identification card. In fact, in the pipeline is a new-generation Mah Sing Community website complemented by Facebook and Twitter accounts and a community-centric blog," Mah Sing chairman and independent non-executive director Tan Sri Yaacob Mat Zain said in his speech.

He added that M Club members or better known as the Mah Sing community, will appreciate select bene-fits being brought direct to their doorsteps with the simple act of flashing either their classic, gold or platinum M Club card at the merchants, with services ranging from home and living, beauty and health to wellness and personal development.

Among the 30 lifestyle merchant partners are KL Lifestyle Art Space, IHeal Medical Centre, Lightcraft and Times Bookstores.

SOURCE: Business Times

STAR Property Fair is back this year ? bigger, better and spread over four days for the first time.

Touted as Penang?s premier pro-perty expo, the fair?s ninth edition will be held at Gurney Plaza and the adjoining G Hotel from July 21 to July 24.

The exhibition will feature an exciting array of new projects both locally and abroad, property talks and forums, a roundtable discussion as well as contests offering attractive prizes.

To date, 28 major developers ? representing almost all the big boys in the industry ? along with several financial institutions have taken up booths in the fair.

The Star regional operations manager (north) Chung Chok Yin said that for the first time, foreign property by Henry Butcher, Hartamas International and Rescom Asia (Pg) would also be showcased at the fair.

?This will provide property investors with the opportunity to check out investment options in UK and Australia,? he said after the unveiling of the fair?s logo by Star Publications (M) Bhd executive director Tan Sri Kamal Hashim at Star Northern Hub in Bayan Lepas yesterday.

Chung said financial institutions taking part in the fair included EON Bank and Hong Leong Bank while other exhibitors were KPWG International, Capitawealth International and Swiftlet Ecopark.

Besides showcasing prime property projects in Penang and overseas, the fair would also include talks and forums to be conducted by specialists in their respective fields to provide useful information and updates on property investment and related issues including feng shui.

?We?re anticipating large crowds to flock to the fair,? he added.

Henry Butcher Penang director Dr Jason Teoh Poh Huat spoke on the fair?s right timing in view of the country?s buoyant and stable economy.

?The property market is showing growing signs of positive sentiment,? he said, adding that the exhibition was a great opportunity for developers to unveil new projects while potential buyers could look for hou-ses to call their own.

Dr Teoh said they would be showcasing not only new schemes from local developers but also those from London and Melbourne.

Among the major exhibitors are IJM Land, Sunway Grand, Vienna Home (Mah Sing), Ideal Property Development, SP Setia Group, Taman Sri Setia (Boon Siew Group), Ivory Properties Group, Nusmetro, MTT Properties & Development, Reka Indah Development, Lembaman Development (Belleview Group), DNP Land, GD Development, Lone Pine Group and Tambun Indah Development.

For contest buffs, there will be the ?Surf, Click & Win? contest where participants can join in a simple on-line contest and stand to win great prizes including iPad 2 devices, Acer Iconia Tabs and Samsung Galaxy Tabs.

All the contest prizes, worth RM30,000, are sponsored by IJM Land. The fair, which is open to the public from 10am to 10pm daily, is organised by The Star in co-operation with Henry Butcher Penang. Admission is free.

The event is also listed in the Penang Trade Calendar under the state government.

SOURCE: The Star

TWO dozen delegates from the Badan Pelestarian Pusaka Indonesia (Indonesian National Heritage Trust) on a capacity-building trip to Penang spent almost three days taking in the historical sights of George Town.

Comprising architects, planners, urban designers, archaeologists, heritage property owners, lecturers, government officers and journalists, their visit was in part, to learn about the city?s success in preserving its historical structures and living heritage within.

Not long after touching down at the airport on Friday, they were whisked to the Penaga Hotel ? converted from a cluster of 15 pre-war terrace and shophouses along Hutton Lane, Transfer Road and Clarke Street ? for the first stop of their tour.

They next visited the premises of their host for the day, the Penang Heritage Trust (PHT) for a brief talk by PHT honorary secretary Clement Liang, before heading to Logan?s Memorial in front of the court complex.

The entourage then visited the Street of Harmony (Jalan Masjid Kapitan Keling), taking in the sights of the St George?s Church, Kuan Yin Temple, Sri Mahamariamman Temple, Ka-pitan Keling Mosque and the Masjid Melayu Lebuh Acheh, as well as the various shop-lined side roads in between.

Writer-cum-PR officer Nirmala Ratimanjari found it remarkable that one can just walk around the city and find historical buildings that are still being inhabited, something seldom found in other heritage sites.

?We have a lot of historical buildings too but most of them are neglected,? she said, expressing her hope that their local governments would step up efforts in preserving them.

Having been in George Town once prior to the Unesco World Heritage listing, she notices a difference, adding, ?Things are quite exotic now, it?s old, but definitely not old and boring!?

Architect Arya Abieta said many locations in Indonesia faced the same dilemma of how to protect their historical structures and preserve their living heritage.

Citing Jakarta as an example, he said that the population drops from around 15 million during the day to just nine to 10 million at night.

?It becomes a ghost town after office hours because nobody wants to live there. Here it?s different and we?re quite surprised.

?It?s interesting to understand how a city can become a Unesco Heritage Site and have people living within it. This visit has given a lot of ideas that I will take back home and discuss with the relevant bodies.

?We?ll try to find ways to encourage people to live in and maintain our heritage buildings. Something needs to be done about our historical areas,? Abieta said.

PHT president Khoo Salma Nasution believes the Street of Harmony is a very good destination for any first-time visitor to Penang, as it exemplifies the city?s unique ethnic diversity.

As the majority of Indonesians visitors are in Penang for medical tourism, Khoo believes that efforts should also be made to promote local heritage and cultural attractions and show that Penang has much more to offer.

?When it comes to promoting George Town, it shouldn?t only be to Westerners. We should also think of our Asean neighbours,? she added.

On Friday night, the group was hosted to a dinner at the Dapur Restaurant in Logan?s Building, Beach Street, by George Town World Heritage Inc.

They attended a heritage forum and workshop the next day, and had more sightseeing in George Town on Sunday before leaving for home.

SOURCE: The Star

State Barisan Nasional (BN) working committee chairman Datuk Dr Teng Hock Nan, said the RM1.2 billion project would be implemented soon.

To this end, an agreement will be inked between Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui and Penang Chief Minister Lim Guan Eng in Putrajaya on Thursday.

Dr Teng said the deal showed that the federal government had not forsaken Penang although the BN was no longer at the helm.

“The project demonstrates that the BN federal government has not marginalised the state government led by the opposition pact, as claimed by Lim Guan Eng,” he told reporters here on Monday, May 30.

Dr Teng said that for the past 50 years, the BN government had been giving attention to the state’s water supply needs, which included the construction of Air Itam, Teluk Bahang and Mengkuang dams. –Bernama

SOURCE: The Edge Property