KUALA LUMPUR: The rise in residential property prices is still manageable and measures such as the My First Home Scheme will allow those in the lower-income brackets to own homes.

Prime Minister Datuk Seri Najib Tun Razak said at a press briefing yesterday, following the annual meeting with Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, that the rise in house prices was being monitored.

“We’re watching the increase in property prices closely which we think is still manageable,” he said, adding that the My First Home Scheme, which was launched on Tuesday for those earning less than RM3,000 a month, was a people-friendly measure to enable the lower income groups to own houses.

Those who qualify for the scheme can obtain 100% financing to buy their first home with a repayment period of 30 years for houses costing between RM100,000 and RM220,000.

Najib added that the Government was also looking into the supply side of housing to see if measures had to be taken to build more residential properties around the RM200,000 level.

According to data released by the Valuation and Property Services Department, the national house price index rose 6.2% year-on-year in the third quarter of 2010 after rising 6.2% in the second quarter and 5.7% in the first quarter.

Najib said any new issues of Islamic bank licences and foreign banks looking to increase their shareholding in local banks would be looked at on “merit” and on a “case-by-case” basis.

He said last week during a visit to Australia that the Government was open to allowing Australia & New Zealand Banking Group Ltd (ANZ) raise its stake in AMMB Holdings Bhd, which owns AmBank (M) Bhd.

Currently the limit for foreign shareholding in local commercial banks is 30%. ANZ has a 26.59% stake in AMMB, making the Australian bank the single largest shareholder.

Najib said the foreign shareholding limit for banks here would be reviewed individually and there would not be any changes to the Banking and Financial Institutions Act 1989 because this was an “administrative issue”.

So far, there has been no proposal by ANZ to raise the bank’s stake in AMMB and other foreign banks have also not applied.

Meanwhile, Najib said the economy was expected to grow by 5% to 6% this year but would face challenges due to slower global growth, which would affect external demand.

He said the challenges were from higher crude oil prices, inflation and the sovereign debt crisis in the euro-zone.

“We’ll monitor these developments closely and take the necessary steps,” Najib said.

He added that several interim measures would have to be taken to support private consumption and investment should energy prices continue to rise to a “critical point”.

However, Najib said the Government was committed to long-term subsidy rationalisation, although on a gradual basis, with savings from the lower subsidy to go to those in the lower-income brackets.

SOURCE: The Star

KUALA LUMPUR: Young working adults can now buy themselves a new home without having to pay a sen in down payment.

Those earning less than RM3,000 a month can obtain up to 100% financing to buy their first home under a new scheme launched yesterday.

The My First Home Scheme, launched by Prime Minister Datuk Seri Najib Tun Razak yesterday, will enable them to buy houses costing between RM100,000 and RM220,000 with a repayment period of up to 30 years.

The scheme sees the participation of 25 conventional and Islamic financial institutions including major banks like AmBank, CIMB, Hong Leong, Maybank, Public Bank, RHB and Standard Chartered.

To qualify for the scheme, which is for both houses under construction and completed properties, house buyers must be those working in the private sector and are confirmed employees with a minimum of six months in the job.

The self-employed do not qualify for the scheme while joint applications are allowed, provided that both are in the private sector and are family members, such as siblings or spouses.

The monthly financing repayment sum must also be not more than one-third of the applicants’ monthly gross income.

However, this sum can go up to 50% of their income if additional credit is permitted under the banks’ underwriting policy.

The Government through Cagamas Berhad – a national mortgage corporation – will bear the costs of the initial 10% deposit for the house while normal interest or profit rates for Islamic banks apply under the scheme.

The scheme does not cover refinancing of a home.

In his speech during the launch yesterday, Najib said the scheme would enable young adults in the country to own their first home within a short time.

“This scheme is a government initiative to help the young citizens as well as to inculcate confidence and desire in them to own houses.

“It is also part of the Government’s objective to provide affordable housing to all Malaysians in rural and urban areas,” he said.

The Prime Minister had announced the scheme during the tabling of the Budget in October.

Later, Najib witnessed the agreement signing between the Finance Ministry and the participating institutions, which was also attended by Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz and Treasury secretary-general Tan Sri Dr Wan Abdul Aziz Wan Abdullah.

Also present was Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah, Deputy Finance Minister Datuk Donald Lim Siang Chai and Cagamas Holdings Berhad chairman Datuk Ooi Sang Kuang.

SOURCE: The Star

The Society for the Prevention of Cruelty to Animals (SPCA) has urged residents of high-rise units in Penang not to leave their pets unattended in their premises.

Penang SPCA administrator Lily Leng said pets should also not be kept in balconies as the animals are not fully protected from the rain or sunshine.

She said pet owners should keep their pets in a secured place where there is no risk to the animals.

“If the owners are not around, they should ensure that the pets do not become a nuisance to their neighbours,” she said.

Leng was commenting on a complaint it received on a mongrel which was howling in pain for about an hour in a condominium in Bandar Baru Air Itam yesterday. A resident had called up the SPCA after he spotted that one of the dog’s paw was trapped in the iron grille of the balcony of the ground floor unit.

But before the SPCA’s personnel could reach there, the owner returned to the unit and freed the canine.

The woman was seen keeping another dog in her unit.

The SPCA’s team which arrived about 20 minutes later advised the woman to relocate the animals.

It is learnt that she agreed to send the dogs to her mother’s house elsewhere within two days.

Penang municipal councillor Ong Ah Teong said the council has no authority to act against residents of high-rise units who keep pets in their premises.

“Only the property management companies can take action under the Strata Title Act.

“Residents can lodge a complaint to their property management companies if the pets are causing a nuisance,” he said, adding that they only take action on pets kept in council-owned buildings.

Meanwhile, Bandar Baru Air Itam Management Sdn Bhd (BBAIM) building supervisor James Ng said pets were not allowed to be kept in high-rise units.

“When we receive a complaint, we would notify the owners in writing to relocate their pets,” he said.

He said there were pet owners who do not scoop dogs’ droopings after walking them in their vicinity.

A resident of Tanjung Court Condominium, who declined to be named, said he was irked that there were many dogs roaming in the condominium’s compound.

“Some people are keeping dogs, including exotic breeds in their units even though they know that this is not allowed.

“These people are educated but they are not bothered about the inconvenience it causes to others.

“When their dog defecates or urinates in the lifts, they do not clean up the mess and the foul odour lingers for hours. Somebody else have to clean up the mess,” he said.

SOURCE: The Star

The Lunar Year of the Wood Rabbit will bring good fortune to Johor Baru, Penang and Kuala Lumpur, according to feng shui readings by Joe Choo, president of the Malaysian Institute of Sciences (MINGS).

Peninsular Malaysia is divided into four elements according to the four points on a compass – east is Wood, west is Metal, south is Fire and north is Water. Each of these elements, when combined with the energy brought by the Wood Rabbit, will produce a specific energy/reaction as a result of the energy flow and interaction.

Choo expects JB’s popularity among investors to spike this year and ranks the city as the top performer in terms of economic and investment activity.

She attributes the positive outlook for the city to its location in the south and the direction’s corresponding element of fire. “JB will grow because Wood (Wood Rabbit year) produces Fire,” she explains.

The property market in the city will also do well. “JB will do well,” Choo observes. “The prices of shop lots there, especially, are moving up and going crazy. A lot of investors are buying property there.

“The implementation of the proposed high-speed rail project under the Economic Transformation Programme will boost property values in JB as well.”

Up north, Choo ranks Penang as the second-best investment growth hot spot after JB in 2011 as its location corresponds with the Water element. Water produces Wood, explains Choo. She believes that the property sector in Butterworth and the south of Penang island will see property values escalate with the completion of the second bridge connecting the mainland to the island.
Another island that Choo feels has great potential is Langkawi in Kedah. “It can be a vibrant property investment location, provided a bridge connects it to the mainland.”

In the west, Metal contrasts with Wood, resulting in a vibrant outcome. Hence Kuala Lumpur, third on Choo’s growth prospects ranking for 2011, can expect to see growth along with the 10 development projects proposed under the ETP, “provided the projects are built facing the Klang River”.

“If the river is at the back of the project, it will be treated like a drain,” she says, adding that existing buildings along the river can improve their performance by moving their entrances to face it.

The 10 hot spots are Putra World Trade Centre (PWTC), the Tiong Nam area, Kuala Lumpur City Hall, Masjid Jamek-Jalan Melayu, Merdeka Square-Dayabumi, Kampung Baru, Kampung Hujung Pasir-Jalan Ampang, Klang Bus Stand-Central Market, Little India and Brickfields Government Quarters.

Also assisting KL’s growth is the Titiwangsa mountain range, which continues to pour positive energy into the Klang Valley as energy flows from higher ground. The Titiwangsa range is the largest in the peninsula.

As for the East Coast, Wood “cancels out” Wood, hence there will be little or no growth in 2011 for the eastern states, says Choo. But things should pick up in 2012, she adds.

Predictions for the 12 zodiac animals in 2011

Rat
The year begins on good financial standing but there will be a slowdown after the first Chinese lunar month. Those born in 1948 will fare the best.

Ox
Nothing much to worry about as you will have guardian angels with you throughout the year to help you solve any problems you may encounter. The money luck of those born in 1985 is exceptionally good but those born in 1961 have to watch their health during the first and second Chinese lunar months.

Tiger
This is a good year, better than the last, for the Tiger. Guardian angels stand by you throughout the year, money luck is good during the first Chinese lunar month, but after this period, finances will be slow. Thus, you must watch your expenses, especially while you are travelling. Among the Tigers, the luckiest are those born in the 1950s.

Rabbit
You will be given a special task or project to lead. Complete it without expecting any returns other than words of appreciation. For those born in 1975 and 1963, career luck is good and they will do well financially. It is a good year to upgrade yourself with new knowledge or skills.

Dragon
It is a peaceful year, no major ups and downs. Your money luck is good during seventh Chinese lunar month.

Snake
You are very lucky, guardian angels always show up when you need help. Those born in 1977 will do well in their career and financially. Friends of the opposite sex will bring you opportunities. Money luck is good during the third Chinese lunar month.

Horse
The year starts with good news but you must pace yourself to ensure your energy lasts throughout the year. Whenever you have problems, remember to go back to your family as they will give you love and support. Those born in 1990 have travelling luck, but be careful. You will have extra financial gain in the fourth Chinese lunar month.

Goat
There are guardian angels around to help you. Just take up the special jobs or projects given to you and show your capabilities. Your career line is going upwards – though not financially – it will make you happy. Life will be smoother after the fifth Chinese lunar month. Just focus on what you want to do.

Monkey
Your career is going on the up curve, but not financially. Despite this, you will end your year with some celebration. You can avoid financial problems if you have a plan to follow, especially while you are travelling. Those born in 1968 are going to pick up some new knowledge so do it at your own pace. Your money luck is good during the seventh Chinese lunar month.

Rooster
Good news comes to you one after the other. You may get a promotion and a good increment. You have guardian angels helping you in the beginning of the year while in the second half, you will have good financial income.

Dog
The best year among the 12 animals in 2011. This is a good year to do long-term investments; avoid investing for the short term.

Pig
It may sound difficult to work and study at the same time, but go ahead and do it. There are plenty of guardian angels to lift you up. This will help elevate your career to a higher level. Those born in 1947 must take care when travelling during the first Chinese lunar month. Everything will be moving smoothly after the fourth month.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 844, Feb 7-13, 2011

SOURCE: The Edge Property

PETALING JAYA: Property prices of the local residential sub-sector are expected to be flat in the next few months as fears of rising oil prices due to the political unrest in the Middle East may damper investor and buyer confidence.

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez said the local residential sub-sector would not see “insane run-ups” in prices like last year due to both global and local factors.

“Stock markets in the region have not been on the run-up. The uncertainty in oil prices and measures taken by Bank Negara to curb rising property prices will see (prices) within the local residential property sector holding,” he said when contacted by StarBiz yesterday.

Fernandez said the local residential sub-sector experienced “insane run-ups” in prices towards the second half of 2010 but, in light of both local and foreign events, the run-up in prices “will be arrested.”

Henry Butcher Malaysia Sdn Bhd chief operating officer Tang Chee Meng said he expected prices of the residential sub-sector to be stable in the next three to six months.

“Property prices won’t go up as crazily as it did last year,” he said.

There would still be interest for landed properties and high-rise developments would experience a bigger slowdown, he said, adding that if oil prices shot up, people might put off property investment.

In its report, DTZ said that to push sales, developers were now selling smaller units in line with market demand, especially aiming at the investment segment of the market which was still relatively strong.

“Capital values are stable in most locations with an average of RM599 per sq ft, but rental rates continue to experience deterioration as new completions add competitive pressures to existing projects,” it said.

Tang also said if oil prices shot up, people might put off property investment.

SOURCE: The Star