By Datuk Alan Tong

Many people kick-start the new year with a fresh set of resolutions.

I always like listening to resolutions from the younger generation and take a peek at their life goals. It is interesting to keep our finger on the pulse.

Buying a new house and a new car usually top the list of the young generation.

I was curious, “Should you buy a car or a house first?” Their answers varied, with most of them, voting for a car instead of a house, due to the need for transportation.

I started this column eight years ago with the first article entitled “Buying a car or a house first?” This is a topic I have been passionate about, and I hope the examples below help people make better decisions.

Eight years ago, a friend bought a brand new car at RM140,000. Today, that car is only worth RM40,000 if he were to sell it. It has depreciated more than 70% since he bought the car!

Another friend purchased an affordable apartment with RM100,000 around the same time eight years ago. That apartment is now worth more than RM250,000! My friend doesn’t plan to sell the unit because of its potential for further capital appreciation.

These real-life examples paint a clear picture between “good debt” and “bad debt”.

Given a choice, would you prefer to get a loan to buy an item that depreciates over a short period which is deemed as “bad debt” or commit on a “good debt”, which is to purchase a house or asset that will appreciate in the long term?

A car used to be a symbol of freedom and ease of mobility. I could understand the dilemma of having to choose between a house and a car a decade ago.

Even then, we should still have chosen a car within our means to manage our financial position.

Today, with public transportation and the availability of ride-sharing services such as Grab Car, we can now really have the option of buying a house first. This gives us both shelter and value appreciation.

This choice has just been made easier with Budget 2019 and the recent announcement by the Finance Ministry.

The government has rolled out several measures to assist homebuyers, including stamp duty exemptions.

Homebuyers will get a stamp duty waiver for memorandum of transfer (MoT) for the purchase of houses priced up to RM1mil, during the six-month Home Ownership Campaign (HOC) from January to June 2019. In addition, the stamp duty on loan documentation is fully waived up to RM2.5mil.

Besides that, the Real Estate and Housing Developers Association (Rehda) has also agreed to cut the prices of its completed and incoming units by at least 10%.

When I talk to potential homebuyers, they always ask about the right time to own property.

There is no perfect time to buy a house on foresight. If the price is within your means, and you plan to buy it for own stay or as a long-term investment, then anytime is a good time.

However, with the property market at the bottom half of the cycle now, this could be a good time to commit to a house with the attractive tax incentives rolled out by the government.

Homebuyers can grab the “duty-free” opportunity now to explore the property market. Those living in the Klang Valley will be able to find their dream home during the Homeownership Campaign Expo at the KLCC Convention Centre from March 1-3.

The campaign is jointly organised by Rehda and the Housing and Local Government Ministry. Besides having all developers under one roof, the ministry will also be featuring homes under RM300,000 by PR1MA, SPNB, PNB and others.

The Homeownership Campaign was first held in 1998 to lessen the burden of homebuyers and to encourage homeownership. It is re-introduced after two decades now with the same objective.

For homebuyers who don’t like the risk of buying a house under construction, there are plenty of completed units for sale in the campaign.

Buying a house can be emotional and uncertain for many homebuyers. However, in the long run, we can rest assured that we are buying an asset that will appreciate.

For homebuyers, always buy within your means as you can upgrade your house in the later stage of your life.

In this auspicious Chinese New Year, I hope you decide to prioritise a new house over a new car. Gong Xi Fa Cai!

*Datuk Alan Tong has over 50 years of experience in property development. He was the World President of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email bkp@bukitkiara.com

Source: TheStar.com.my

Join Mah Sing’s 25th Anniversary Celebration on coming Saturday & Sunday (16 & 17 Feb 2019), from 10 am to 6 pm. An event with a full day of fun for all members of your family.

With Mah Sing’s 25th Anniversary this year, every purchaser during CNY will get to spin the Wheel of Prosperity and win a guaranteed prize worth up to RM25,000. Other prizes include Samsung TV, Samsung Note 9, iPhone, iMac, MacBook and more.

Apart from enjoying Special CNY Deals, the purchaser also entitles to get a Gold Foil if the booking is made on the event day.

Feel free to bring all your friends and family. Entrance and parking are free.

For more info, please visit
https://www.mahsing.com.my/cny2019

A newly proposed mixed development by Paramount Property at Machang Bubok in Bukit Mertajam. It is strategically located along Jalan Kulim, approximately 3km away from Penang-Kedah border.

This project will be developed in multiple phases, offering a mix of shop offices and gated housing with full clubhouse facilities:

Phase 1

• 2-storey shop office (30 units)
• 2-storey semi-detached (14 units)
• 2-storey clutered house (92 units)
• 2-storey terrace (95 units)

Phase 2

• 2-storey semi-detached (72 units)
• 2-storey terrace (108 units)

Phase 3

• 2-st0rey semi-detached (116 units)
• 2-storey terrace (69 units)

Phase 4

• Future development

This project is still pending for approval, more details to be available upon official launch.

Property Project : (to be confirmed)
Location : Machang Bubok
Property Type : Mixed development
Tenure: Freehold
Total Units : 269 (terrace), 220 (semi-d), 92 (clustered), 30 (shop office)
Indicative Price : (to be confirmed)
Last Updated: Apr 2024
Developer : Paramount Property

Location Map:

Aloft Hotel, the first international class hotel in Batu Kawan, will be opened at Aspen Vision City here.

Aspen Group president Datuk M. Murly and Marriott International Inc Hotel Development, Asia Pacific senior vice-president Kevin Chen signed the agreement to build the 308-room hotel in the mainland province of the state, witnessed by Chief Minister Chow Kon Yeow.

The two companies also signed a Memorandum of Understanding (MoU) for the purpose of developing one of the residence towers of Vogue Lifestyle Residence under the Aloft brand where Marriott International will provide various services for the marketing and management of the residence where they can also enjoy the exclusive hotel services at the Aloft Hotel.

“The excellent connectivity and infrastructure at Batu Kawan has opened the floodgate of commercial activities and business opportunities, shifting Penang’s economic landscape to this growing metropolis,” said Murly in his speech before the signing ceremony.

“Being a world-class leading hospitality brand, the commitment from Marriott International will further strengthen Batu Kawan as a regional commercial hub and enhance the local economic growth.”

The 260,000 square foot hotel will be complemented by full fledged hotel facilities.

It also has direct access to the regional integrated shopping centre and IKEA Batu Kawan and seamless accessibility to other development components within Aspen Vision City.

Speaking at the press conference, Chen was asked on the reason for agreeing to have the hotel here at Batu Kawan whereas majority of the big name ones were located on the island.

He said that Batu Kawan had the potential to provide a unique experience to their customers.

“We want to give something that is appealing and we saw the potential Aspen Vision City here can offer for them,” he said.

The 30 storey hotel is expected to open in 2023.

Source: NST Online

The government has announced several new incentives for the housing market in a bid to address the issue of unsold homes, including at least 10% discount for properties bought during the Home Ownership Campaign (HOC).

Finance Minister Lim Guan Eng said for homes priced up to RM2.5 million, the stamp duty on transfer of ownership title or memorandum of transfer (MOT) will be waived for the first RM1 million and reduced to 3% for the subsequent RM1.5 million. The 3% stamp duty will revert to 4% after the campaign ends.

Speaking to reporters at a briefing today, he said that the stamp duty on loan agreement will also be waived for the purchase of homes priced above RM300,000 to RM2.5 million.

These new incentives are only applicable for purchases from the primary market during the nationwide campaign which runs from January till June 2019.

The stamp duty waivers are on top of other incentives announced under Budget 2019 such as stamp duty waiver for the first-time purchase of houses priced up til RM1 million and also the RM1 billion Fund for Affordable Homes launched by Bank Negara Malaysia.

In addition, developers have agreed to reduce house prices by at least 10% during the campaign, for all completed but unsold homes.

The Real Estate and Housing Developers’ Association Malaysia (Rehda) and the Housing and Local Government Ministry have been tasked to ensure that the developers who participate in HOC provide 10% discount against the advertised selling price.

“Developers must advertise the prices before and after discount,” said Lim, who urged developers participating in HOC to give more than 10% discount.

He said the government will take action against participating developers who do not reduce prices by at least 10% with additional tax or penalty.

He hopes that the incentives and discounts would be able to reduce the supply overhang situation and improve the nation’s economy. As of third quarter last year, there were 30,115 units of unsold homes.

Meanwhile, National Housing Department director-general N. Jayaseelan who was also at the briefing, announced several additional perks such as allowing developers to offer free legal fees and additional items such as furniture.

He said the government is also allowing flexibility in terms of payment such as staggered payments, to make it easier for purchasers. These additional perks are available for one year.

He said there are 3,384 units of houses priced RM150,000 and below that are unsold, out of a total 16,528 units built within this price range.

The HOC exhibitions will be held nationwide during the six months period, organised by Rehda members in the various states, as well as Sabah Housing and Real Estate Developers Association and Sarawak Housing and Real Estate Developer Association in Sabah and Sarawak.

Source: TheSunDaily.my