Now you can Subscribe using RSS

Submit your Email

INSPIRATION
" To be an artist
you need to exist in a world of silence."
Louise Bourgeois
WELCOME TO MY BLOG
" Interest is the most important things in life
happiness is temporary,but interest is continuous."
GEORGIA O'KEFFE
PASSION
" I've been absolutely terrified every moment of my life
and I never let it keep me from doing single thing I wanted to do."
GEORGIA O'KEFFE
L.O.V.E
" I am happy to be alive
as long as I can paint."
FRIDA KAHLO

Monday, 4 March 2019

Affordable Housing in Malaysia

Unknown







Affordable Housing in Malaysia



Image result for affordable housing malaysia


What is the interpretation of the term “affordable homes”? Nevertheless, what defines whether a house is affordable is based on the income of the targeted consumers. According to Bank Negara, an affordable home in Malaysia which is based on the monthly median income of RM4,585 and the annual median income of RM55,020, is between RM165,000 and RM242,000. Housing is a basic right of consumers. The government plays an important role in ensuring all Malaysians have access to affordable homes by introducing schemes such as RUMAWIP which offers affordable homes for middle income groups who live and work in the Federal Territory. When it comes to buying a property in Malaysia, Kuala Lumpur is would always be the first to come to mind. However, Kuala Lumpur has been found to have the most expensive real estate in the country, therefore, it is not easy for the average income groups to buy a piece of property in the capital city. So, if Kuala Lumpur is out of the question for you, where else can you consider when it comes to property purchase? Here are four major states in Malaysia and their current residential property price range and outlook.


1. Penang
Penang which is considered as a fast growing state, is hunger for a more solid yet dynamic affordable housing scheme to assist the buyers in different aspects. It is not surprise that the cost of a 5-bedroom bungalow in the town of Batu Ferringhi in Penang is the same to the price of houses in town areas in the centre of Kuala Lumpur. Until we are fitted with a more wide-ranging scheme, the coming year will continue to be challenging for affordable housing buyers. Property market will always go up and down, the economy will always vary. Still, there will always be right investments to make. For long term purpose, placing money into properties in Penang is a sound strategy because land is the most valuable goods in the island state. You must always bear in mind that property is a long term investment and be crystal clear with your financial needs and goals.


2. Melaka
Melaka has been a tourist’s attraction spot ever since it became a UNESCO World Heritage Site in 2008. Melaka has been recognized as the state with the most affordable housing with prices ranging from as low as RM80,000 compared to northern states. Besides that, properties in Melaka which are going at RM120,000 or RM250,000, would be worth RM470,000 and RM700,000 respectively in other states. Reports have also shown that a good number of new developments are coming up in Melaka. The acquired land is intended for a mixed development project comprising of a hotel, serviced apartments and retail units, which will no doubt be beneficial to the state’s economy in the long run.


3. Johor Bharu
Johor Bahru is the southern economic hub for Malaysia, partly due to its nearness to Singapore. It has also become an attractive residential location for expatriates who work in Singapore. Prices of property in Johor starts at around RM300,000 for a 3-bedroom condominium and can go as high as RM2.3 million for newly developed areas with more facilities such as golf courses, commercial outlets, and top-notch security measures. Whether you are looking to rent or to buy a house, property prices in Johor are cheaper compared to Kuala Lumpur. This is no doubt a good sign for those who are considering to settle down in the state.

4. Negeri Sembilan
With With prices of homes in Klang Valley (KV) on the rise, Seremban is now considered an ideal place for double income professionals/couples and young families. Besides housing Malaysia’s first private cancer centre, the NCI Cancer Hospital, Nilai is also home to Nilai University, INTI International University, Manipal International University, Universiti Sains Islam Malaysia and the Islamic University College of Malaysia. It is not surprising that Nilai serves as a good population catchment, as there will always be students and teachers looking for places to rent/stay.

Based on the comparison above, Melaka is considered the most affordable state when it comes to purchasing property or as a state to live in. This is followed by Negeri Sembilan, Johor and lastly, Penang, both of which have been reported to have the most expensive housing rentals in Malaysia next to Kuala Lumpur and Selangor.




Friday, 25 January 2019

An overview of the different property pricing in Singapore

Unknown










An overview of the different property pricing in Singapore



C:\Users\sbong\Desktop\hight-rise-condominium-and-office-buildings_1127-3044.jpg

With so many properties available in Singapore, such as Jurong West, Punggol and so on, choosing a location requires much consideration. There are many different types of property in Singapore that you could check out on, such as BTO flats, HDB resale flats, condominiums, serviced apartments and landed properties. Are you planning to buy a property in Singapore but you are unsure of the property pricing in Singapore? Different properties come with different price tags. A HDB resale price will definitely be cheaper than the price of a condominium unit. Fret not, this article will give you an overview of the different property pricing in Singapore.

Assuming the average price for a condominium is $1.2 million, the buyer will then have to secure a bank loan of $960,000, where 5% must be in a form of cash. The monthly housing loan for a 25 years loan tenure will cost approximately $4,1000 a month after paying $60,000 minimum cash down.

As for HDB resale flats, it will only cost approximately $2,400 a month where the minimum cash down would be only $35,000 as to buying a condominium with which costs $60,000.
There are some important fees that you will need to take into account if you plan to buy a resale HDB flat, such as:


1. Grant of option
Also known as the booking fee, this will cost approximately $1,000 and it has to be paid by cash.


1. Valuation fee
The valuation fee varies depending on the size of the flat. The valuation fees for a 1 bedroom or 2 bedrooms flat will cost $140.40 whereas the valuation fees for a 3 bedrooms or bigger flat will cost $199.25.


1. Deposit
The payment for deposit will have to be done within 21 days and it costs approximately $4,000 to $4,999.


1. Application fee
The application fee for a 1 bedroom flat or a 2 bedrooms flat cost $40 whereas the application fee for a 3 bedrooms or bigger flat will cost $80.


1. Initial payment
The initial payment for the resale HDB flat will be a 10% of the purchase price if the buyer is under a HDB loan and using his or her CPF.

The initial payment for a resale HDB flat will be 20% of the purchase price if the buyer is using a bank loan instead.


1. Stamp duty
You are required to pay for stamp duty if you buy a new HDB flat. Stamp duty is calculated based on the selling price of the HDB flat:

First $180,000: 1%
Next $180,000: 2%

Remaining amount: 3%


1. Additional Buyer’s Stamp Duty
Certain home buyers will need to pay for the Additional Buyer’s Stamp Duty (ABSD) on top of the Basic Stamp Duty:

Buyer

ABSD Rate
Singapore Citizen
1st property
NIL
2nd property
7%
3rd property and above
10%
Singapore Permanent Resident
1st property
5%
2nd property and above
10%
Foreigner

15%

Let us say if the property is bought by both Singapore Permanent Citizen and Singapore Citizen, the ABSD rate will then be higher.


1. Conveyance legal fees
The conveyancing fee cover costs such as the registration of land titles and deeds. The amount payable is as below:

1st $30,000: $13.50 per $100
2nd #30,000: $10.80 per $100
Remainder: $0.09 per $100

As for the legal fees, it will cost $2,300.


1. Caveat registration fees
The caveat registration fee is payable when you sign the Agreement for Lease and it would cost $64.45.


1. Registration fees
The registration fee for both the leave in-escrow and mortgage in-escrow is $38.30.


1. Title search fees
The title search fees are $10.40.


1. Home protection scheme
The fees for home protection scheme varies depending on the loan amount, type of loan, duration of loan and gender. You could also check out more on the home protection scheme available online.


1.  
Fire insurance
The HDB Fire Insurance Scheme is introduced to help with financial burden in case of any unfortunate event of fire. The price for the insurance will start from $1.50 for a 1 bedroom flat to $7.50 for a multi generation flat. This insurance is valid for 5 years and renewal is to be done once every 5 years.


2.  Balance of purchase price
Lastly, you will have to pay off the balance of the purchase price for your property.

Let us use an example to understand it better. A newlywed Singaporean couple in their 20s. Both of them have a combined monthly income of $6,000 every month and they are looking to buy a 3 bedrooms resale HDB flat that costs $400,000. They both have a total of $20,000 in their respective CPF accounts and are qualified for a Family grant with a total of $30,000.
They have also decided to engage with HDB loan that covers 90% of the property purchase price with a loan tenure of 25 years. In addition, they will also need to pay $1,000 as their Booking Fee for the Option. The remaining loan instalments will be paid by using the CPF amount in their accounts.

Fee Payable
Price
Grant of option
$1,000
Valuation fee
$199.25
Deposit
$4,000
Application fee
$80
Initial payment
$40,000
Stamp duty on option
$6,600
Stamp duty on mortgage
$500
Conveyancing fee
$1,009.01
Lease in-escrow
$38.30
Mortgage in-escrow
$38.30
Caveat registration fees
$128.90
Title search fees
$10.40
Home protection scheme
$241.56
Fire insurance
$4.50
Balance of purchase price
$355,000
Total
$408,850.22

Based on the costs that I have listed above, the total amount that they will have to pay would be $3850.22 if they decide to use an HDB loan.
HDB loan: $355,000
CPF: $50,000
Cash: $3,850.22

If they are using a bank loan, they will be entitled for a 80% bank loan for the total purchase price. In addition, they will have to pay $2,500 for external lawyer services.
Fee Payable
Price
Grant of option
$1,000
Valuation fee
$199.25
Deposit
$4,000
Application fee
$80
Initial payment
$20,000
Stamp duty on option
$6,600
Stamp duty on mortgage
$500
Legal fees
$2,500
Home protection scheme
$241.56
Balance of purchase price
$315,000
Total
$410,120.81

Based on the costs breakdown above, their final obligation will be $45,120.81 if they use a bank loan.
HDB loan: $315,000
CPF: $50,000
Cash: $3,850.22

In conclusion, do prepare ahead and plan a realistic budget before you make a decision to buy a property. After all, it is a huge commitment that involves a huge sum of money. You definitely do not want to get into a financial debt after purchasing your first property in Singapore.

Coprights @ 2016, Blogger Templates Designed By Templateism | Templatelib