Home Loan BYTES FROM OUR KITCHEN

Home Loan News Malaysia 2018

  • BNM to Introduce New Home Loan Scheme to the Market

    Malaysia’s central bank- Bank Negara Malaysia (BNM) is ready to roll out a special housing loan scheme next month, reports suggest. This scheme is believed to be targeted to the low-to-middle income group and it will deal with first-home ownership. Several top banks are supposed to participate in this new plan introduced by BNM.

    As per the reports, explaining more about the planning, the ministry of finance (MoF) said that this scheme will give flexibility to the banks to decide their lending guidelines while offering a loan for the first home buyers. This may require the buyers to attend a financial counselling before taking a loan so that they can get a fair idea about the ownership costs such as insurance and stamp duty charges.

    TMeanwhile, the first home buyers in the country can keep on registering for the first-home scheme by BNM and other banks such as, My First Home Scheme, Skim Pembiayaan Fleksibel PR1MA, Skim Sewa-Beli Hartanah, and Skim Jaminan Kredit Perumahan

    BBazaar Malaysia

    24 August 2018

  • Cagamas Issues Bonds and Sukuk Worth RM825 Million

    Cagamas Berhad, a national mortgage company has issued a one-year bond and Sukuk (Islamic bond) worth RM825 million in order to fund the mortgage loan and Islamic home financing purchase.As per reports,  an amount of RM800 million is for the Conventional Medium Term Notes (CMTN) and the remaining RM25 million is for the Islamic Medium Term Notes (IMTN).

    Datuk Chung Chee Leong, President and Chief Executive Officer of Cagamas stated that RM800 million was raised by reopening the current bond tranche. Post reopening the bond, the outstanding amount of RM200 million has now been upgraded to RM1 billion. He also mentioned that the remaining maturity period of the bond is 1 year.

    The initial reopening amount has been increased from RM500 million to RM800 million CMTN due to the enormous response they received for issuances. The response tightened the pricing by 2 basis points amounting to 3.95%. Similarly, IMTN is also priced at 3.95% and received a private placement.

    Cagamas has issued many foreign currency denominated bonds in addition to the ringgit-denominated bonds.

    An aggregate on primary bond issuance in 2018 sums up to RM9.3 billion. It marks an increase of 24% in the primary supply of the organisation as compared to the aggregate primary supply of 2017, i.e. RM7.5 billion.

    BBazaar Malaysia

    17 August 2018

  • Malaysian Customers Holding Back on Taking a Home Loan!

    In a study recently conducted by the AmInvest Research, Malaysian customers are restraining themselves from taking a property loan due to rising cost of living and increased domestic debt. The study also reported that the currently raised prices of apartments, and a low loan-to-value (LTV) offered by the banks are the major factors.

    The research also stated that as many consumers are unable to be eligible for the available home mortgage schemes because of the high debt service ratios (DSR).

    Furthermore, the research shows a revised fair value of UEM Sunrise (UEMS) reaching from RM1.25 million to RM1 million based on the 40% discount to its RNAV (realised net asset value). This has resulted in a cut of 1.1% in financial earnings of FY18 however, it will result in upsurge for FY19 by a good 7.7% after attributing new assumptions and information into its model.

    The report further expects UEMS to record net earnings of RM243.4 million, RM271.3 million, and RM233.2 million from the financial year 2018, 2019, and 2020, respectively. Various ongoing key projects of UEMS are expected to bring this improvement.  

    BBazaar Malaysia

    10 August 2018

  • Rehda Institute Finds Issues in Affordable Housing Policies

    The Real Estate and Housing Developers Association Malaysia (Rehda) Institute has unveiled a report listing down nine structural problems in providing affordable housing to Malaysians.

    The issues are lack of coordination between public and private sectors, scarcity of land, unsuitable locations, the inclusion of cross-subsidies making homes costlier, inflexible housing policies, the increase in the cost of materials, misuse of public funds, low financial approval rate for low income earners, and lack of the latest market data.

    The report has suggested banks to offer 100% housing loan to lower-income groups and first-time home buyers. It also suggests the sale of affordable homes to those who can afford.

    According to Datuk Jeffrey Ng, Chairman of the Rehda institute, there is not much coordination between the government agencies and private sectors that take care of affordable housing. The lack of coordination has led to a disparity in demand and supply and as a result, there are thousands of unsold units.

    Ng is of the opinion that a Special Purpose Central Agency has to be set up to take care of these nine structural issues. He feels that the government should be responsible to formulate affordable housing policies, and the private sector shouldn't impost price control and quota when they deliver market-driven units

    BBazaar Malaysia

    07 August 2018

  • Property Overflux Expected, says IDEAS!

    According to The Institute for Democracy and Economic Affairs (IDEAS), the government must be prepared for property overflow as it could lead to economic crisis. The property bubble was generated years back between 2012 and 2013 due to an increase in property transactions.

    Dr Carmelo Ferlito, a senior member of IDEAS, says that investment has increased in the property sector as a result of high demands. With a decrease in the profit opportunities, there is a dire need to restructure the allocation of the capital. Ministry of Housing and Local Government, Malaysia is currently working with the central bank to ease the housing loan requirements for homebuyers in order to reduce the number of unsold residential properties in Malaysia.

    Dr Ferlito feels that the government must come up with proper solutions to tackle this problem. The private sector should be encouraged to get involved in the market, and the government agencies should reduce their involvement.

    The government can also educate Malaysians on how to save and how to how to make use of the opportunities in the rental market as well as ease the property regulations for foreigners. The property bubble burst can be delayed readjusting the credit support promised by the government.

    BBazaar Malaysia

    31 July 2018

  • Housing Ministry Working with BNM to Simplify Home Loan Requirements

    The Housing and Local Government Ministry is in talks with Bank Negara to restructure the housing loan requirements so that the number of unsold completed residential units decrease.

    Bank Negara is currently creating new guidelines to renew the lending schemes. According to Minister, Zuraida Kamaruddin, many units are unsold due to their inaccessibility and exorbitant costs. Moreover, individuals are finding it difficult to get their loans approved.

    The ministry had a meeting with regard to this with Bank Negara, other local banks, the Employees Provident Fund, and the Ministry of Finance. As a result of the meeting, Bank Negara has agreed to prepare new guidelines for more liberal borrowing schemes in order to help individuals get loans easily. The guidelines will be discussed throughout the month, and they are expecting the final proposal by August. The Ministry hopes to launch a new loan package to cater to the needs of all household groups.

    As per the National Property Information Centre’s first-quarter property overhang report, there were a total of 34,532 unsold and completed residential properties worth RM22.67 billion in the country. By the end of last year, the numbers have increased by 40%.

    BBazaar Malaysia

    31 July 2018

  • MAPEX Penang 2018—Approval Fee Exempted on House Purchases

    The Malaysia Property Expo (MAPEX) Penang 2018 has been organised in Penang from 22 July 2018 to 22 August 2018. MAPEX Penang 2018 is expected to include low-cost houses targeting the B40 and M40 groups.

    In this context, Free Malaysia Today reports that the customers who purchase houses at the event will be exempted from approval fee payment. The exemption is applicable only if the home purchase gets completed in one month.

    Jagdeep Singh Deo, Chairman of the Penang’s Housing Committee says that the state government has waived the approval fee of 1.5% for foreigners and 2.0% homeowners who are selling their properties that were purchased within the last 3 years.

    Jagdeep revealed that the approval fee will be paid by the event’s organiser, Real Estate Housing Developers’ Association (REHDA), instead of the home buyers. The initiative was implemented to improve the current economy of the property market.

    BBazaar Malaysia

    30 July 2018

  • EPF Could Facilitate Financing for Affordable Housing—HBA

    The National House Buyers Association (HBA) recommended the government to allow EPF withdrawals for the purpose of financing affordable home purchases, reports suggest. The proposal would be helpful for those who are not able to get financing easily from banks.

    The first proposal of HBA says that the EPF must disburse financing for a tenure of 10 to 20 years for those who are earning RM5,000 or less; if they have contributed to the EPF account for a minimum of 5 years.

    HBA also suggested preventing misuse of the affordable housing facility. The body proposed a policy where the houses come with a lock-in period of 10 years.

    The importance of an insurance was also discussed. HBA suggested that the EPF can buy an insurance with endowment benefits, such as an MRTA or an MLTA. The idea is useful because an MRTA policy takes care of the loan in case the applicant could not repay.

    On the similar lines, an MLTA policy takes care of the applicant’s dependents if he/she cannot repay the loan due to an injury/death. If EPF pays the insurance premium, the bonus earned from the endowment account can be credited to the applicant’s account.

    HBA says that the borrowed money would be paid back by the applicant the same way as repaying a bank loan.

    BBazaar Malaysia

    25 July 2018

  • Bank Negara to be asked to review home loan criteria

    A group of associations have teamed up with the state government requesting Bank Negara to look into the home loan schemes for first-time homeowners.

    The team comprises of Real Estate and Housing Developers Association (REHDA) Penang, Penang Malay Chamber of Commerce, Penang Chinese Chamber of Commerce, International Real Estate Federation (FIABCI) Malaysia, and Penang Indian Chamber of Commerce.

    This action was taken following the reports that the rate of home loan rejection has increased to 60%. Moreover, first-time home buyers are finding it difficult to get affordable housing options at good interest rates.

    According to Jagdeep Singh Deo, the State Housing Committee Chairman, the issue of home loan rejection was raised way back in 2016. Though the parties involved reached to an agreement to make amendments, there was no further development.

    The signed statement will be sent to the Housing and Local Government Minister, Zuraida Kamaruddin for further action.

    BBazaar Malaysia

    17 July 2018

  • The Risk of Easing Home Loan Rules

    Analysts in Malaysia have said that the government’s decision to mellow down on home loan approval process may not be the solution to the existing housing woes. The government has been planning to facilitate the home ownership to the youngsters and had decided to review the current lending rules of the banks.

    But the experts feel that this may just introduce additional risk as most of the country’s bankrupt population has majority of people aging between 25 to 44 years. It has been expected that the government may relax the current debt-to-service (DSR) ratio of 60%. But one of the analysts said the DSR was introduced in order to prevent the lower-income group to borrow more than what they can afford to repay.

    Another data shows that housing loan defaults have just been after the car loan defaults in recent years. Analysts have also suggested that instead of introducing a relaxation to the lending rules, developers should focus on making affordable products. A bank official has suggested that the government should introduce a separate classification for buyers of the affordable houses offered by the government than the general housing terms.

    BBazaar Malaysia

    15 July 2018

  • TPPT Offers Emerald Residence At 1% Down Payment For Early-Birds

    TPPT Sedan Berhad is all set to launch B1, of Emerald Residence located at Teluk Kumbar Heights. The condominium is spread across 4.37 acres with three towers consisting of 411 units. The built area per unit ranges from 1,114 square feet to 1,183 square feet priced at RM428/square feet.

    Listing out the benefits, Steven Cheah, Director, Property Talk Sedan Berhad said that a rebate of 9% on the property value will be offered by the developer to people who purchase within the first few days. The buyers need to pay just 1% of the unit’s total cost and the remaining 90% of the cost should be paid upon the completion of the project. Property Talk is the market agent designated to promote the project.

    The buyers can also get a voucher of RM10,000 that can be used at select stores such as Harvey Norman, IKEA, and Senheng and to buy electrical appliances or furnishing. Also, the developer offers an exemption on stamp duty, waiver on legal fees involved for sale and purchase and even on the loan agreements.

    The condominium has six units on each floor and each unit gets two car parking lots. It also provides amenities such as gym, infinity pool, internet connectivity and recreation area situated on the fourth floor.

    TPPT has been in the development field for a long time and has built around 20,000 units in various states.

    BBazaar Malaysia

    13 July 2018

  • The Risk of Easing Home Loan Rules

    Analysts in Malaysia have said that the government’s decision to mellow down on home loan approval process may not be the solution to the existing housing woes. The government has been planning to facilitate the home ownership to the youngsters and had decided to review the current lending rules of the banks.

    But the experts feel that this may just introduce additional risk as the country’s bankrupt population has majority of people aging between 25 to 44 years. It has been expected that the government may relax the current debt-to-service (DSR) ratio of 60%. But one of the analysts said the DSR was introduced in order to prevent the lower-income group to borrow more than what they can afford to repay.

    Another data shows that housing loan defaults have just been after the car loan defaults in recent years. Analysts have also suggested that instead of introducing a relaxation to the lending rules, developers should focus on making affordable products. A bank official has suggested that the government should introduce a separate classification for buyers of the affordable houses offered by the government than the general housing terms.

    BBazaar Malaysia

    29 June 2018

  • Public housing tenants to be granted 30% refund

    Ministry of Housing and Local Government (KTPT) is in the process of applying the SelangorKu model in the country in order to ease home ownership amongst public housing tenants.

    As per the scheme, 30% refund will be granted to a tenant who is moving out of a government unit, provided that they have rented the unit between 2 to 5 years. This sum could help them pay off the down payment of their next rented house without any hassle.

    According to the Minister of Housing and Local Government, Zuraida Kamaruddin, they will have a meeting held with Bank Negara and the Treasury in order to discuss this scheme in detail. Zuraida says that she is aware of the plight of young people whose home loans are being rejected, as they are blacklisted by PTPTN, making home ownership quite difficult for them.  

    She is of the opinion that if they have extra income from part-time jobs, or have their families to back them up, the banks will be able to provide them the loan they are looking for.

    Zuraida later received a donation of RM100,000 from GD Holdings' Executive Chairman, Datuk Seri Yeat Sew Chuong.

    BBazaar Malaysia

    27 June 2018

  • Home Loan Application Process Gets Simpler For First-Time Home Buyers

    The Malaysian Government reconsidered the loan application process for the first-time home buyers. Prime Minister Tun Dr. Mahathir Mohamad announced that they are coming up with a new home loan application procedure for the young generation who buy their first home.

    Dr. Mahathir said that the government has realised that the banking regulations have been very stringent, thereby making it difficult for the public to own house. He announced about introducing new procedure and loosening the strict rules after a cabinet meeting.

    Zuraida said that as part of the new plans towards improving housing, the ministry will make efforts to change the mentality of the citizens towards housing, especially the low-income earners. A self-renting scheme will be brought in action for the B40 and M40 groups.

    When asked about the complexity of getting a housing loan approved, Zuraida revealed about the discussion with the Economic Affairs Minister on the issue. And, she mentioned that the ministry will come up with a solution that will be a win-win to the public and the banks.

    The Housing and Local Government Minister Zuraida Kamaruddin had recently given a press statement on making housing an affordable and comfortable option for Bottom-40 and Middle-40 groups. She also announced that she would discuss the matter with the Finance Minister and Bank Negara Malaysia.

    26th June 2018

  • The New Minister Shares A Few Plans On Housing Development

    Pakatan Harapan had proposed to improve the housing policy with a special housing loan scheme for youth and to waive off the maintenance fee on low-cost houses. Zuraida Kamaruddin, the new Housing and Local Government (KPKT) Minister has assured that the proposal will be taken care of.

    The minister said that all the housing projects will be revisited to bring about any required changes including the PR1MA. She also shared her thought that PR1MA must be moved from Prime Minister’s Department into the home ministry in order to increase the effectiveness of the programme.

    Zuraida said that as part of the new plans towards improving housing, the ministry will make efforts to change the mentality of the citizens towards housing, especially the low-income earners. A self-renting scheme will be brought in action for the B40 and M40 groups.

    When asked about the complexity of getting a housing loan approved, Zuraida revealed about the discussion with the Economic Affairs Minister on the issue. And, she mentioned that the ministry will come up with a solution that will be a win-win to the public and the banks.

    She also mentioned that the People’s Housing Project (PPR) will be moved under the local authorities (PBT) due to the inefficient maintenance of the current authorities.

    1st June 2018

  • Residential Property Lending: Growth And Risks

    The household lending has started to decline in emerging markets, especially in Malaysia and Thailand as confirmed by Fitch Ratings. The Asia-Pacific banks, are expected to witness high property risks. Malaysian banks have been able to withstand these risks with help of loan-loss reserve buffers.

    Offering a comparative study of different markets, Fitch notes that Thai banks saw a strong growth in commercial real estate lending in 2017. This growth led to a better operating environment even though it included risks in consumer lending. The same growth is also seen in Philippines.

    The rising interest rates are considered a potential trigger to strengthen the banking sector to fight the upcoming property risks. The stringent rules on property lending have made the situation better in Singapore and Taiwan. This has increased the loss-absorption buffers, and maintained the lending standards.

    Australian and New Zealand banks have the highest residential property risks observes Fitch as he mentions that they offer low-interest rates and high financing margins to drive mortgage loans.

    19 April 2018

  • Cagamas SRP Mortgage Guarantee Programme Strengthens MBSB Bank

    MBSB Bank Berhad has entered into a contract with Cagamas SRP Berhad which allows MBSB to access a mortgage guarantee programme. As part of the contract, MBSB becomes a valued partner of Skim Rumah Pertamaku. Skim Rumah Pertamaku helps young borrowers to get up to 100% financing from different banks in order to help them buy their first home.

    Cagamas SRP helps the bank in improving its capital adequacy ratio and provides more capital for financing. With Skim Rumah Pertamaku, the bank will now offer up to 100% financing for individuals up to the age of 40 years provided Cagamas SRP guarantees the first 10% of the financing, said Seri Ahmad Zaini, President and CEO, MBSB Bank.

    MBSB Bank has been handling 9 projects under PR1MA lately. The gross development value of these projects is RM1.61 billion. Also, the bank is managing 15 projects with PPA1M and 6 projects with RUMAWIP worth RM7.5 billion and RM600 million, respectively.

    19 April 2018

  • Establishment Of A Special Bank For Housing Loans

    The proposal of establishing a dedicated bank to facilitate housing loans will be passed by Barisan Nasional (BN) if the people show their support in the 14th General Elections (GE14). Young buyers will not be subjected to strict guidelines for house purchase says Tan Sri Noh Omar, Urban Wellbeing, Housing and Local Government Minister.

    One of the initiatives in the BN manifesto for GE14 is the establishment of a special bank for affordable housing. This was announced by the Prime Minister Datuk Seri Najib Tun Razak.

    While launching the Baling People’s Housing Project (PPR), Noh also said that there are 12 PPR construction projects set up in Kedah. These projects constitute 5,910 units of homes. Out of this, about 2,494 units are complete and 1,416 units are under construction. The other 2,000 units are in pipeline.

    He also stated that RM10 million has been allocated to upgrade Gua Reban Lake as an herbal park.

    16 April 2018

  • Liberalisation on Lending Guidelines: Effects On Property Market

    Discussions on the ways to make housing more affordable to all classes of Malaysian citizens are heard lately. As part of this discussion, Datuk Siders Sittampalam from PPC International Sedan Berhad says that the proposal to have relaxed lending guidelines on housing loans is not the solution. He says that the proposal would bring in a high risk of buying and selling.

    Siders Sittampalam recalls that three years ago there was a similar situation which exponentially increased the demand for housing, raising the demand in a short period of time. Therefore, he warns that such a situation must be handled carefully. He also supports the stringent policy of BNM brought out in order to balance loan performance, house prices and citizens’ income. As per Siders, any relaxation on financing limit will create artificial demand giving rise to property flippers who look for quick investment returns.

    Ramlan Ahmad, MD, Global Business Transformation Consulting Sedan Berhad also shared his opinion on the issue supporting BNM’s stand. He says properties are overpriced and suggests banks to avoid any increase in non-performing loans.

    15 April 2018

  • GE14 Obliquely Affects Malaysian Property Sales

    As the 14th General Election (GE14) is approaching, a steady dip has been noticed in the interest levels of Malaysians when it comes to purchasing property. Datuk Paul Khong, MD, Savills Sedan Berhad says that the public has chosen to delay their property purchase ideas. Therefore, the property market is anticipated to have no positive growth this year.

    Currently, the residential properties are witnessing 10%-20% discounts on property prices said Khong to The Malaysian Reserve. In spite of the dull atmosphere in the market, Khong mentioned that the residential properties with an established neighbourhood still has the same demand. Khong specified that there may be some improvements in the property purchases by the end of 2018 i.e., after the successful completion of GE14.

    Speaking about the current state of the market, Tang Chee Meng, COO of Henry Butcher Real Estate Sedan Berhad listed the possible difficulties a Malaysian citizen would face to buy a property would be to secure finances, capping on loan margins, lack of job security and more.

    2 April 2018

  • Malaysian Government Spends RM40 million Under the New Home Financing Scheme

    The Government of Malaysia has reportedly spend near to RM40 million First House Deposit Financing Scheme or MyDeposit - a facility that makes it easier for first time home buyers to purchase a property. According to reports, since April 2016, the scheme has benefited more than 1,474 people.

    According to The Ministry of Urban Wellbeing, Housing and Local Government, between 7 April 2016 and 31 December 2017, the Government has reportedly spend RM39.55 million through the scheme. Prime Minister Datuk Seri Mohd Najib Razak said that he is ready to continue with the MyDeposit scheme. He also said additional RM25 million will be allocated for the scheme – an RM5 million increase from last year’s allocation. This will be done to ensure that more Malaysians qualify for the scheme.

    Since its inception in April 2016, around 6,298 Malaysians have registered themselves under this home loan scheme.

    21 March 2018

  • PR1MA Programme is a Unique Game Changer

    Recently, in a home expo in Sabah, Chief Minister Tan Sri Musa Aman praised the Perbadanan PR1MA Malaysia (PR1MA) programme by calling it as one of its kind because of its all-inclusive housing programme. The uniqueness of PR1MA lies in the fact that the projects are well-equipped with abundant facilities and lifestyle amenities keeping in mind the lower and middle-income groups. It is also designed to foster community living.

    PR1MA plans to launch low-cost and affordable housing projects in Sabah with an estimated Gross Development Value (GDV) of RM7.5 billion. It revealed in a recent statement that it has further plans to showcase many such projects all over Malaysia.

    The main highlights in the expo include the PR1MA projects in Kota Marudu, Borneo Cove, Sandakan and Ranggu and the expo aims to attract all the first time home buyers who plan to own their dream home soon. For this, PR1MA has also introduced the Flexible Financing Scheme to help potential home buyers to pay lesser house loan instalments as compared to the normal loans.

    19 March 2018

  • Bank Negara Malaysia to Screen Housing Glut

    Bank Negara Malaysia will keep a close watch on the surplus production of houses, especially in segments like office space, shopping malls, as well as high-rise residential property.

    The Central Bank further said in a recent statement that henceforth, Malaysian banks will be cautious in lending to these segments and the Financial Stability Committee would keep a vigilant eye as well. Moreover, in a recent meeting, the committee predicted that the domestic financial stability would be preserved and supported by banks along with domestic financial markets.

    According to Bank Negara, households have retained their debt servicing capacity even amidst poor impairment levels. This happened due to income improvements and employment opportunities.

    Meanwhile, the banking and takaful sectors in Malaysia have been robust due to capitalisation and the domestic financial intervention is said to be encouraging more economic movement.

    15 March 2018

  • Sheda Home & Property Roadshow 2018 To Roll Out Special Offers For Property Buyers

    Sarawak Housing and Real Estate Developers’ Association (Sheda) Home & Property Roadshow 2018 will roll out special offers and promotions for potential home buyers, reports suggest. Event attendees can spend RM1,000 at any of the event booths to be a part of the ‘Buy & Win Lucky Draw’ contest and win inspiring prizes in the process.

    The roadshow is scheduled to take place from March 16 to March 18, will also allow event attendees to meet property developers from Sabah, Sarawak, and Peninsular Malaysia.

    According to reports, the roadshow will feature interesting events and sessions that would help property buyers to gather more information about their financial status. The event will also feature a counselling session hosted by Agensi Kaunseling Pengurusan Kredit (AKPK). The session, which will take place on March 17 and March 18, will have AKPK provide Central Credit Reference Information System (CCRIS) information. Home buyers can attend the session to know more about their credit history.

    Interested home buyers can find out their credit rating and even check if they qualify for a home loan. With banks having stricter lending norms, many first-time home buyers can find it challenging to qualify for a loan amount.

    With over 24 developers already acquiring booths and a lucky draw contest for purchasers who spend a minimum of RM1,000, the roadshow aims to bring property buyers and sellers under one roof.

    9 March 2018

  • Banks expected to benefit from loan expansion in 2018

    According to analyst Imran Yassin Yusof of MIDF Amanah Investment Bank Bhd, banks in Malaysia are expected to perform well this year, as they will continue to benefit from improved loan expansion percentage. The analyst further stated that the GDP (gross domestic product) growth seen last year, will continue to affect the loan growth ratio positively.

    Yusof also indicated possible increase in business related loans this year, considering country’s strong trade and economic stability.

    Talking about the growth in loan facilities, according to the data of Bank Negara Malaysia, Malaysian banking system has seen a growth of 4.2% year-on-year in January 2018 as compared to that of 4.1% boost in December 2017.

    The rate of total loan applications has also increased in the first month of 2018 with an upsurge of 26.2% in household applications and 24.6% in non-household applications.

    Besides, deposits are also projected to witness an affirmative progress in 2018 supported by the growth in CASA (current account and savings account) accounts.

    7 March 2018

  • Malaysian banks to continue to support home buyers

    AMB (Association of Banks in Malaysia) confirmed that commercial banks have supported home buyers by approving home financing in 2017. AMB also assured that banks would remain supportive to eligible home buyers in 2018.

    This news is a response to a recent news report on concerns of home buyers over strict financing requirement guidelines. AMB said that the overall home financing approvals in 2017 amounted to around RM161 billion for more than 375,000 home buyers. Around 73% of home loans were approved in 2017 where 71% of borrowers were first-time house owners of affordable homes.

    AMB also encouraged new home buyers to explore various other housing schemes initiated by the government that are designed to suit different levels on incomes. Home buyers are also urged to discuss with their banks and financiers to work out a plan and choose financing that would be ideal for their needs and affordability.

    6 March 2018

  • Experts Advise Young Property Buyers To Purchase Second-hand Units

    With skyrocketing property prices, experts are advising young Malaysians to buy second-hand properties rather than purchasing new ones. Secondary units are usually sold at marked down prices and are more affordable when compared to new properties.

    According to Dr Azizul Azli Ahmad, a real estate and investment writer, Kuala Lumpur has numerous secondary homes that have a price tag lower than RM200,000.

    According to Bank Negara Malaysia, purchasing a house in Malaysia is seriously unaffordable considering the median household income, which stands at RM5,228. The most moderate house price stands at RM282,000, based on the property cost burden approach. In 2016, the average home price was marked at RM313,000, a price that’s beyond reach for most Malaysians, especially those who have just started their career.

    Dr Hairul Nizam Mansor, coordinator of the property management programme at Universiti Teknologi Mara, urged the Government to take a proper stand and exert greater control over the property sector. He said that the Government could ask banks to keep a stricter housing loan approval process in place.

    1 March 2018

  • Low-cost Properties Should Be GST Free, Says DAP Representative

    Costs of affordable properties can be brought further down by abolishing the Goods and Services Tax (GST), said Jagdeep Singh Deo, Penang’s housing Executive Councillor. He said that Putrajaya should scrap GST for homes that cost RM300,000 or lower.

    He said that the proposed exemption will make low-cost houses even more affordable for the people. Jagdeep made this statement while addressing at the sales and purchase agreement ceremony between the purchasers of the Jiran Residensi affordable housing project and Penang Development Corporation (PDC).

    Under the new scheme, medium to low-cost houses, around 707 units, are priced at RM72,500 each. The price for 150 affordable homes is capped at RM200,000 each, whereas another 204 houses have a purchasing tag of RM250,000 each.

    1 March 2018

  • Are Secondary Properties a Better Investment Than a Pricey New Home?

    In its recent quarterly bulletin, Bank Negara revealed that new homes in Malaysia are unaffordable for most first-time home buyers. While aggressive policy changes can be made to control ever-increasing property prices, truth is that a new home is still out of reach for the young buyer.

    This is where buying a secondary property can be more viable. Dr Azizul Azli Ahmad, a real estate and investment writer, describes a secondary property as one that’s sold by another party instead of the developer. These sub-sale homes are ready to be occupied and well-connected to local facilities. More importantly, the buyer has a direct line of contact to the seller at all times.

    Dr Ahmad also observed that buying a secondary property is almost always cheaper than investing in a new home. A quick glance on property comparison sites showed a number of sub-sale homes are on offer in Kuala Lumpur for well under RM200,000 – a very affordable price point for new home buyers who are still in their first job.

    22 February 2018

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.