New developments to share

[Frodo]

My turn to weigh in on all these new rules.

this new 1m requirement is silly. developers are just gonna build big apartments. unless mandated by the law or the govt to build units under 1m, if I am a developer, I will only build units valued at more than 1m. it's a no brainer. I dun see how this benefits poor Malaysians. The poor ones will still hafta stay far far from the city. (I actually wrote a long paragraph explaining how this policy benefits nobody. but it was just too long so I will just leave it as such.)

this GST implementation and subsidies cut will increase inflation. if it was up to me, GST would be implemented in 2 or 3 stages (3%, 5% then 7%). this will slow down inflation somewhat. so the cost of everything will go up. while in theory, the material costs of construction will not increase (cos GST costs can be recovered), the truth is overall costs will increase. Construction labour will demand higher pay due to higher costs of living. So for those who own 1m properties, it is good for you. for those under 1m, its hard to tell. it all depends on the state valuer.

There are better ways to do things. but they will hafta hire the Chinese to do the thinking for them. and that is not gonna happen anytime soon. stupid ppl dunno they are stupid.

My property is way below RM1 million, but I am perfectly OK with that because it's for own stay. And I am glad I did not have to cough out almost $400K to own a piece of land in JB. Words of an non-elite average income earner.

 

[Arowana88]

My turn to weigh in on all these new rules.

this new 1m requirement is silly. developers are just gonna build big apartments. unless mandated by the law or the govt to build units under 1m, if I am a developer, I will only build units valued at more than 1m. it's a no brainer. I dun see how this benefits poor Malaysians. The poor ones will still hafta stay far far from the city. (I actually wrote a long paragraph explaining how this policy benefits nobody. but it was just too long so I will just leave it as such.)

this GST implementation and subsidies cut will increase inflation. if it was up to me, GST would be implemented in 2 or 3 stages (3%, 5% then 7%). this will slow down inflation somewhat. so the cost of everything will go up. while in theory, the material costs of construction will not increase (cos GST costs can be recovered), the truth is overall costs will increase. Construction labour will demand higher pay due to higher costs of living. So for those who own 1m properties, it is good for you. for those under 1m, its hard to tell. it all depends on the state valuer.

There are better ways to do things. but they will hafta hire the Chinese to do the thinking for them. and that is not gonna happen anytime soon. stupid ppl dunno they are stupid.

Agree with u bro. We wlll see many units left in the shelves with no takers!
Advise to all, bring only 1 for own stay or else you might burn yr fingers!
Malaysia full of surprises!

 

[Arowana88]

I was told by lawyer that Johor govt was angry with bank valuers who give high valuation arbitrary and not being professional in their work.

Think they are angry with Chinese!!

In the Chinese news paper written..... apa cina muah lagi!!!??

Today yahoo news, Dr M review himself as a .............. (Name it yr self)!

 

[malpaso]

Ok, wait a minute.. I am abit confused.
This bank valuation and state appraisal thing, is it done at time of buying ( buyer pay, for purpose of borrow loan) or is it done at time of selling (seller pay so that he knows he is not overpaying, and also for loan application).

state appraisal done during giving of state consent. so that's why i huh? how to get state value? normally buyer accept asking price, then go ask for loan. bank valuer give valuation. everything ok.. then loan approved. but at the same time, if buyer is foreigner, need to ask state consent. state will also value. since state do things beri slow one, end up loan ok.. everything ok.. state valuation come in < min price. so whole sale sangkut after 3-5 months. buyer lost processing fees etc. seller lost opportunity cost. sibei luan one. so in the end, just sell to local la. in fact i ask around austin height, many agent got property asking 800k.. but they say straight 'malaysian only'.

 

[Frodo]

state appraisal done during giving of state consent. so that's why i huh? how to get state value? normally buyer accept asking price, then go ask for loan. bank valuer give valuation. everything ok.. then loan approved. but at the same time, if buyer is foreigner, need to ask state consent. state will also value. since state do things beri slow one, end up loan ok.. everything ok.. state valuation come in < min price. so whole sale sangkut after 3-5 months. buyer lost processing fees etc. seller lost opportunity cost. sibei luan one. so in the end, just sell to local la. in fact i ask around austin height, many agent got property asking 800k.. but they say straight 'malaysian only'.

State Consent is the "cho luan" culprit, everything hinges upon it!

 

[kopikong99]

state appraisal done during giving of state consent. so that's why i huh? how to get state value? .

Yes, cos foreigner need to apply state consent to make sure that property is above R500k. This one can get one out super fast while normal ones takes 5 plus months.

At the same time to get bank loan need banker valuers to provide valuation. Came out with low valuation below RM 500K and banker says any valuation that is below RM500k bank do not provide any financing.

Checking what other bank valuation will be like.

 

[kopikong99]

Use OCBC or Standard Chartered. These 2 will give you the full asking value.

Any banker in SC and OCBC to recommend. Can pm me.

 

[Funniman]

state appraisal done during giving of state consent. so that's why i huh? how to get state value? normally buyer accept asking price, then go ask for loan. bank valuer give valuation. everything ok.. then loan approved. but at the same time, if buyer is foreigner, need to ask state consent. state will also value. since state do things beri slow one, end up loan ok.. everything ok.. state valuation come in < min price. so whole sale sangkut after 3-5 months. buyer lost processing fees etc. seller lost opportunity cost. sibei luan one. so in the end, just sell to local la. in fact i ask around austin height, many agent got property asking 800k.. but they say straight 'malaysian only'.

Banks don't care what is the purchase price especially in the secondary market. Many times the price include goodwill and other intangibles. That is why they have their own valuers and then they adopt a certain percentage, mostly about 20% less than market price to absorb any market movements.

For state valuations, normally they take the last 3 transacted properties in the same area as comparison. That's how the valuations is done in Malaysia. All you need is to go to the land office and ask for the information before signing. I believe you have to pay for the service. Maybe some of the transactions were some years back, so the prices are not reflective of the present market price, that's where the difference in the valuations.

 

[kawan2sgmy]

So if sell to foreigner, definitely must get state consent, and this state consent dept take their own sweet time (ai mai ai mai) to process 1 application. The long wait make seller and buyer fed-up (cannot eat and sleep well, worry don't know they got attend to your file or not) Finally, the state valuation come out after long wait, alamak the figure is below expectation! Really Angry bird!

So if my unit is international unit, can I sell to local? Then no need state consent, no need appraisal? Better still, the buyer also pay CASH, can early completion.

state appraisal done during giving of state consent. so that's why i huh? how to get state value? normally buyer accept asking price, then go ask for loan. bank valuer give valuation. everything ok.. then loan approved. but at the same time, if buyer is foreigner, need to ask state consent. state will also value. since state do things beri slow one, end up loan ok.. everything ok.. state valuation come in < min price. so whole sale sangkut after 3-5 months. buyer lost processing fees etc. seller lost opportunity cost. sibei luan one. so in the end, just sell to local la. in fact i ask around austin height, many agent got property asking 800k.. but they say straight 'malaysian only'.

 

[kawan2sgmy]

Ya, depending on how you look at it:
The cup is either half full, or half empty.

Assuming yr landed and my condo cost RM600k today, your property might be worth much more in future.
I heard a friend mentioned that many many years ago, she looked at Thomson 800 and a landed at Dist 28. Both cost S$1mil. Today, the landed almost 3 fold but the condo is probably 2 fold. I am not comparing apple to apple, but the thought just come to my mind.

My property is way below RM1 million, but I am perfectly OK with that because it's for own stay. And I am glad I did not have to cough out almost $400K to own a piece of land in JB. Words of an non-elite average income earner.

 

[kawan2sgmy]

No choice, have to keep cool, until time is up!
Foreigner buy M'sia property below 1m have to sell to their locals!
Foreigner buy Australian property have to sell back to foreigner!
Restriction! Restriction!

It is not surpise wat , everybody have been talking about the 1M level for quite sometime already . Even the locals are buying houses above 600K for mass market housing , so how can the foreigner limits remain at 500K ? As for the tax part , if you hold for more than 5yrs , 5% gain tax is quite a reasonable amount to pay wat .

 

[Frodo]

Ya, depending on how you look at it:
The cup is either half full, or half empty.

Assuming yr landed and my condo cost RM600k today, your property might be worth much more in future.
I heard a friend mentioned that many many years ago, she looked at Thomson 800 and a landed at Dist 28. Both cost S$1mil. Today, the landed almost 3 fold but the condo is probably 2 fold. I am not comparing apple to apple, but the thought just come to my mind.

As a Singaporean buying property in Iskandar my first thought was to buy landed, not condo. Living in condo was to me like living in a luxury HDB (sorry for being blunt), since I have been living in flats for whole life. Landed offers a different feel though. Everyday drive/ride pass landed properties in Singapore but knowing cannot own one because out of reach, but then JB offers "salvation". :p

Anyway, my agent told me that Seri Alam would boom in near future, and my property exceeding RM1 million in near future not a problem. Don't know whether true or not, but hear already also feel good. Anyway, nearby Fortuna Hub is progressing well and should make things attractive overall. Huat ah!

 

[malpaso]

Yes, cos foreigner need to apply state consent to make sure that property is above R500k. This one can get one out super fast while normal ones takes 5 plus months.
.

can be more specific? so let's say i wanna sell my house for 1M. How do i go about going to check (in a 'super fast' procedure) whether my property is valued > 1M?

And how does this differ with the "normal one 5 months long" state consent approval valuation?

*blur*

 

[malpaso]

Banks don't care what is the purchase price especially in the secondary market. Many times the price include goodwill and other intangibles. That is why they have their own valuers and then they adopt a certain percentage, mostly about 20% less than market price to absorb any market movements.

For state valuations, normally they take the last 3 transacted properties in the same area as comparison. That's how the valuations is done in Malaysia. All you need is to go to the land office and ask for the information before signing. I believe you have to pay for the service. Maybe some of the transactions were some years back, so the prices are not reflective of the present market price, that's where the difference in the valuations.

thanks! so i gather it **should** be fairly transparent, then. Cool. I don't mind just pop over to land office and submit request, pay a little fees, to get the state value. gives me a guide in the unfortunate event i want to sell off my property.

 

[Frodo]

can be more specific? so let's say i wanna sell my house for 1M. How do i go about going to check (in a 'super fast' procedure) whether my property is valued > 1M?

And how does this differ with the "norma one 5 months long" state consent approval valuation?

*blur*

My guess is if your property is bank-valued not borderline RM1 million but around RM1.4 it should be acceptable for State Consent. But that's my guess only. And to get fast fast State Consent must send in the runners and pray hard, if not just pray even harder.

 

[RedsYNWA]

Oh TQ so very much!

Btw, it seems the foreign property investors in JB are quite 'cool' to the new announcement. How come har? Very few small fly like me, I guess all must be super rich investing in high-end properties, so not affected at all! Or issit angry until cannot talk? Hahaha! Lucky didn't commit another unit at HH although left a cheque with them to show interest, they no hue me, so didn't call me at all. Wondering whether must take back the cheque from them; it was issued to their lawyer name something like Omar something....for RM30K, but w/o the date.

Stupid lawyer is useless, despite being a big law firm. I asked him on transfer or will to foreign next-of-kin for properties below RM 1m. He stuttered and said in both cases, it "should" be ok 1, no issues from the cases so far. But I detect uncertainty in his reply.

I then asked what's going to happen to so many condo units below RM 1m in JB, e.g Country Garden. His reply was that the RM 1m was a Federal proposal, but the actual individual state min. amount may vary. It may not be RM 1m. For example, though Federal passed the RM 500K a long time ago, in certain states such as Johor, it remained at RM 250k for a long time before being revised to RM 500k subsequently.

For certain 'special' non-medini projects, he thinks there may well be 'special exemptions' from the RM 1m requirement. All in all, he said v little useful things, and I am not convinced. My regular lawyer provides better answers...... haiz...

 

[malpaso]

So if sell to foreigner, definitely must get state consent, and this state consent dept take their own sweet time (ai mai ai mai) to process 1 application. The long wait make seller and buyer fed-up (cannot eat and sleep well, worry don't know they got attend to your file or not) Finally, the state valuation come out after long wait, alamak the figure is below expectation! Really Angry bird!

So if my unit is international unit, can I sell to local? Then no need state consent, no need appraisal? Better still, the buyer also pay CASH, can early completion.

there is no such thing as "international " unit. my SEC house i bot at 658k rm is supposed to be "international" lot, now because of the new 1M min price, become "local" lot.

 

[FHBH12]

As a Singaporean buying property in Iskandar my first thought was to buy landed, not condo. Living in condo was to me like living in a luxury HDB (sorry for being blunt), since I have been living in flats for whole life. Landed offers a different feel though. Everyday drive/ride pass landed properties in Singapore but knowing cannot own one because out of reach, but then JB offers "salvation". :p

Anyway, my agent told me that Seri Alam would boom in near future, and my property exceeding RM1 million in near future not a problem. Don't know whether true or not, but hear already also feel good. Anyway, nearby Fortuna Hub is progressing well and should make things attractive overall. Huat ah!

I used to envy those staying in landed. But after trying out landed in Johor, I have concluded that staying in HDB is better as there is a Town Council to help you maintain the facilities and façade. If not for the overcrowding and much higher cost of living in Singapore, I will not be looking at Johor. But I'm really grateful for being able to buy a highly affordable freehold landed to experience how it is like.

 

[malpaso]

No choice, have to keep cool, until time is up!
Foreigner buy M'sia property below 1m have to sell to their locals!
Foreigner buy Australian property have to sell back to foreigner!
Restriction! Restriction!

i thought foreigner buy aussie prop must sell back to LOCAL?

 

[Frodo]

I used to envy those staying in landed. But after trying out landed in Johor, I have concluded that staying in HDB is better as there is a Town Council to help you maintain the facilities and façade. If not for the overcrowding and much higher cost of living in Singapore, I will not be looking at Johor. But I'm really grateful for being able to buy a highly affordable freehold landed to experience how it is like.

I share the same gratefulness as you do! And since mine is intermediate terrace, at most only maintain front (one measly garden patch) and back (not much at the back anyway).