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Thursday, December 11, 2014
Tuesday, September 23, 2014
NEW Selangor guidelines on Property purchases by Foreigners Effective September 2014
SELANGOR imposes restrictions on foreigners buying properties in some districts
Developers and property agents were thrown into a flux last week over a new set of guidelines on property purchases in Selangor by foreigners, permanent residents (PR) and foreign companies.
Generally, the new guidelines restrict foreigners from buying all types of properties costing less than RM2mil in most of the districts inthestate.
Previously,the cap was set at RM1mil,as announced during last October’s budget. Some property developers are still in the dark over the matter while others are coming to grips with the significance of the move’s effectin an already slowing market.
The measures, outlined in a circular dated Aug 28, were effective from Sept 1 this year. The circular was signed by Department of Lands and Mines Selangor director Datuk Kamarulzaman Jamil.
According to the new guideines, residential, commercial and industrial properties are divided into three zones.
The minimum price for purchases by foreigners is based on the zones.
Foreigners, PR holders and foreign companies are only permitted to buy residential properties that are priced at a minimum RM2mil for Zone 1 and 2, and a minimum threshold of RM1mil for those located in zone 3, according to the circular.
Zone one encompasses the districts of Petaling, Gombak, Hulu Langat, Sepang and Klang.
Zone one encompasses the districts of Petaling, Gombak, Hulu Langat, Sepang and Klang.
Zone two are Kuala Selangor and Kuala Langat while the districts under zone three are Hulu Selangor and Sabak Bernam.
Besides increasing the minimum threshold, the land office permits foreigners, PR holders and foreign companies to buy strata and landed strata properties only.
“The new guidelines have raised the threshold price considerably besides putting up new barriers on the type of properties they can buy,” a developer said
New Selangor guidelines on property purchases by foreigners
In the commercial and industrial sub-segments,they are only permitted to buy propertiespricedRM3mil andabove locatedinallthe three zones.
They are barred from buying properties set aside for bumiputras. As for non-bumiputra units, they can buy not more than 10% of those units.
Agricultural land, Malay reserve land, non-strata landed residentials and auction properties are off limits.
The new guidelines also govern participants of Malaysia My Second Home programme.
They are to buy directly from the developers and not from the secondary market and are eligible to buy one residential unit only per family.
“This means the state of Selangor is going the way of Johor. Land is a state matter. While the Federal Government may propose its policies – unveiled during each budget – the individual states can go along with the measures proposed, or they can propose their own measures,” a source said.
“We saw the state authorities in Johor proposing their own rules with regard to land issues a few months after Budget 2014. We now see Selangor doing the same,” the source added.
The property source said that the Aug 28 circular seemed to be “a preemptive measure” to prevent foreign developers from entering the state in a big way.
Source: The Star online
Tuesday, July 22, 2014
OPR & BLR Increase from 10th July 2014
Source from www.malaysiahousingloan.com
This OPR hike may translate to an increase in the pricing of loans for consumers.
Banks had started to announce their increase in Base Lending Rate (BLR). Public Bank are one of the banks that had confirm their new BLR is 6.85% effective 10th July 2014.
Most analysts are expecting a high probability of a rate hike in 2014, which it is true. While less a handful opined that it could go up to 50bps by end of 2014. If there is a 50bps hike, one can generally expect that BLR will increase to 7.10%.
The OPR is an overnight interest rate set by BNM. It is interest rate at which a bank lends to another bank.The OPR, in turn, has an effect on employment, economic growth and inflation. It is an indicator of the health of a country’s overall economy and banking system.
If you’re a borrower, when the interest rate goes up, you need to pay more in terms of instalment. Alternatively, your term of loan (loan tenure) increases if you don’t want to change your instalment payment.
But, if you are a depositor, for example you have fixed deposit or saving account with the banks, this mean your fixed deposit and saving account dividend will be increase too.
OPR, BLR & deposit interest rate are co-related. Once OPR increase, BLR and deposit interest rates will be follow suit too.
Here is the example of how it would affect you:
Based on the example above, the 25bps hike will not be severely affect. However, over the loan period, it comes up to a substantial amount.
This OPR hike may translate to an increase in the pricing of loans for consumers.
Banks had started to announce their increase in Base Lending Rate (BLR). Public Bank are one of the banks that had confirm their new BLR is 6.85% effective 10th July 2014.
Most analysts are expecting a high probability of a rate hike in 2014, which it is true. While less a handful opined that it could go up to 50bps by end of 2014. If there is a 50bps hike, one can generally expect that BLR will increase to 7.10%.
The OPR is an overnight interest rate set by BNM. It is interest rate at which a bank lends to another bank.The OPR, in turn, has an effect on employment, economic growth and inflation. It is an indicator of the health of a country’s overall economy and banking system.
If you’re a borrower, when the interest rate goes up, you need to pay more in terms of instalment. Alternatively, your term of loan (loan tenure) increases if you don’t want to change your instalment payment.
But, if you are a depositor, for example you have fixed deposit or saving account with the banks, this mean your fixed deposit and saving account dividend will be increase too.
OPR, BLR & deposit interest rate are co-related. Once OPR increase, BLR and deposit interest rates will be follow suit too.
Here is the example of how it would affect you:
Tuesday, June 24, 2014
Green Building Index (GBI)
2014 ~ More Malaysian developers are supporting green building initiatives. Right now, we have the #GreenBuildingIndex or #GBI to evaluate the sustainability of buildings in Malaysia. The Diamond Building in Putrajaya is certified green. Here's how you can make it to the certified list, too.
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