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BLR Increase - what is the impact to you?

PETALING JAYA: More banks have announced a revision upwards of their interest rates following Bank Negara's hike of the benchmark overnight policy rate by 25 basis points to 3% last Thursday.

Hong Leong Bank Bhd, Hong Leong Islamic Bank Bhd, EON Bank Bhd and EONCap Islamic Bank Bhd said their respective base lending rate (BLR) and base financing rate (BFR) would respectively be raised by 30 basis points to 6.60% from 6.30%.

Seem like government start to "focus" back in property market, impose max 70% loan for 3rd house, increase BLR, re-introduce RPGT Tax ....

BLR have been re-adjust few times since few years ago, this definitely cause more burden to those who still have outstanding property loan with bank. Let's take this time adjustment of 0.03% for example, how much does it means to you?

If you have RM300k loan ==> Extra RM75 +- per month
If you have RM500k loan ==> Extra RM125 +- per month

Don't forget, BLR have been re-adjusted few times every year.....it increment is faster than lot of people salary increment, so, be prepare and don't over leverage...

http://biz.thestar.com.my/news/story.asp?file=/2011/5/13/business/8675369&sec=business

Jump in Penang property prices - StarProperty.my

Jump in Penang property prices - StarProperty.my

Seem like Penang house price is like Taman Tun house price at KL !!!

On the island, single storey terraced houses in Green Garden recorded an increase of 16.5%, ranging from RM455,000 to RM550,000. Similar houses in Jalan Van Praagh were transacted at a higher range of RM530,000 to RM580,000. Bandar Bayan Baru saw both its single and double-storey terraces charting gains of 16.1% and 20.2% to record RM275,000 to RM340,000 and RM403,500 to RM490,000 respectively.

Other locations which had notable increases were in Taman Sri Nibong, Taman Sri Mewah and Taman Sunway Banyan. Houses in Taman Sunway Banyan went as high as RM750,000. Other popular areas were Island Glades and Island Park, recording sales between RM560,000 and RM800,000 for its residential units.

 

Renting Office Business

Have a chat with a friends about renting office business. There are companies doing business by renting out office space to those company that wanted to have temporary office space. They will provide full office facilities like table and chair, partition, air-cond, internet connection, cleaning services, receptionist and etc. One of the example is Regus http://www.regus.com.my/

Currently they are charging a 200ft office space at around rm2-3k per month, while 500ft office space at around rm5-8k per mth, price vary based on the location.

I was thinking, since SOHO concept is start getting hot lately, why not those SOHO owner rent out their unit like Regus by providing this extra services, in which the rental return is quite lucrative???

Just some thought...

Empire City Update 2

Ok, time to write some update about this development.
http://wickinv.blogspot.com/2010/09/another-empire-mammoth-art-empire-city.html

Basically this is a huge development at 23 acres land, something like Bangsar South City by UOA, but this development is call "Empire City" by Mammoth Empire.

Mammoth Empire start as small developer at Bangsar area, subsequently they build Empire Subang, which at that time everyone still have doubt about their capability. Then magic happened, they successfully transform Subang Parade area become higher class area using Empire Subang. The success of Empire Subang bring valuable brand and followers to their company future projects. Riding of this success, Empire Mammoth aggressively launch others project like Empire Damansara, Empire City, Empire Residences and etc.

Empire City would be their biggest project launched so far, and it execute almost same times as Empire Damansara (this make me a bit worry whether they able to cope with multiple projects at same time). If you use LDP towards Kepong area, you can see they start clearing the land right opposite Damansara Perdana area. So far, they have start offer some of the Empire City for sales as below:

1. 2 blocks of Studio Office name "Halo" and "Sunday". Size about 400sf++, fully furnish, selling around RM200k-300k, total have about 641 units

2. 1 block of SOHO name "My Loft" - Size about 700sf++, same concept as SOHO at Empire Subang, using mezzanine as second floor for @ 16ft ceiling height. Selling from RM350k above.

3.  1 block of SOHO name "Colonial Loft" - Size about 900sf++, same concept as My Loft but bigger size. Selling from RM400k++ onwards.

4. 1 block of SOHO office with 20ft ceiling height. Selling from RM400k++ onwards.

So far the developer have sold most of the units above, with some leftover units. They are using "outsourcing" as they marketing tactic.

Based on Mammoth Empire Master Plan, foresee there will be more launches in future, like Hotel, Shopping Center and etc. Seem like they would like to duplicate the success of Empire Subang here, with bigger scale. This is also what their buyer hope when they buy Empire City. (FYI, Empire Subang SOHO market price now is more than double the initial developer selling price).

Personally, building Empire City is a big challenge to Mammoth Empire, looking at their company size. But it is much more bigger challenge whether they execute the Master Plan correctly, like brand it to become one of the hottest shopping area at PJ.

Never the less, the developer price the unit at quite acceptable price looking at current HOT market. Just a quick comparison with SCOTT SOHO which is now selling at RM450k++ for 700sf++ units, Empire City is only selling at RM350k++ for similar size unit at My Loft. No doubt SCOTT SOHO is using better material with higher ceiling height. However what investor is looking for is overall concept of the City, while SCOTT SOHO is just a block of building with Tesco beneath. Your choice :)

Also see below:
http://wickinv.blogspot.com/2010/07/property-101-developer.html

Sky Vista @ Taman Pertama Cheras

A friends of mine would like to buy a larger unit condo for own stay, and he came across this project: Sky Vista, at Taman Pertama Cheras. He is interested in 1700sf unit, which is selling at about RM680,000.

Below is some of the info gathered:

Developer: Orlando Holdings Sdn Bhd (Relatively small)
Previous Project: Vistaria Residensi / Victoria Condo (under construction), Sri Angkasa Home at Puchong

Location wise I am not very familiar with Cheras, need actual side visit to appreciate it, especially the road and the surrounding. However if purchase for own stay, as I mentioned in Parklane article, you have to see it from different perspective.

For own stay, people will choose the location they like to live at, the environment they want they kid to growth up with, the surrounding community, is the security ok, is the property near to family/relative and etc.

I told my friend, if you do not have any particular reason that like this location or property, then you have plenty of choice with RM680,000. Maybe is better to think what kind of environment you want to live in as start.

For those who interested in this project, you may refer to link below:
http://www.iproperty.com.my/propertylisting/767578/Sky_Vista_@_Taman_Pertama_Condominium_ForSale
http://mytotallyproperty.com/blog1/?p=628

Developer accepts responsibility - Ken 3

http://thestar.com.my/metro/story.asp?file=/2011/5/7/central/8633277&sec=central

KEN Property Sdn Bhd, the developers of Ken Damansara 3 Condominium has taken remedial measures to prevent further erosion at the collapsed retaining wall behind the high-rise blocks. Its managing director, Kenny Tan, said a meeting was held with councillors from Petaling Jaya City Council (MBPJ), consultants and a neighbouring developer to discuss the problem.

He said the affected area had been covered with plastic sheets to prevent further soil movement, including the cutting of trees as requested by MBPJ. He agreed with MBPJ councillor K.W. Mak’s statement that the responsibility for the damage should fall on the developer as the wall was designed and built by them.

Tan added that he was not aware the neighbouring developer had not handed the wall plans to the Department of Drainage and Irrigation (JPS). He also had no knowledge of the JPS refusing to take responsibility for the collapsed wall.

He added that none of Ken Holdings Berhad’s representatives were present during the meeting where the statement was made by a representative of Henry Butcher Property Managing Sdn Bhd.

Retaining Wall Collapsed @ Ken 3

Residents want the authorities to repair the collapsed retaining wall behind the Ken Damansara 3 Condominium in SS2, Petaling Jaya.


A large amount of soil beneath the perimeter wall has been swept away by strong currents of Sungai Penchala near the condominium block. The trees lining the river bank and the temporary fence have also sunk into the eroding soil. There is a danger to the condominium block because of soil movement and the residents are worried.
Residents of the low-cost Bestari apartments nearby also voiced their concerns about the emerging cracks on the roads and pavements. A member of the Ken Damansara 3 Joint Management Body (JMB), Gavin Khoo, said about 200 condo residents fear the collapse of the wall would pose a danger to the building structure. “Most of the residents are young families and students and we want quick action before the situation worsens,” he said.

Another JMB member said he wanted written certification from the authorities rather than verbal assurance. He said several Petaling Jaya City Council (MBPJ) officers and the developer, Ken Holdings Berhad, had visited the site, but no action had been taken the rectify the problem. MBPJ councillor K.W. Mak said the council had requested for an independent audit assessment to determine the cause of the collapse by the second or third week of this month.

“In the meantime, the damaged area has been covered with plastic to minimise further soil erosion,” he said. He added that the developers should be responsible for the damage because the wall was designed and built by them. A representative from Ken Holdings Berhad said the management was waiting for the investigation report from the council.

“We will take action after reviewing the report from the engineer,” he said. He added that the local Drainage and Irrigation Department (JPS) refused to take responsibility for the collapse. “JPS claims that the developers did not hand over the wall building plans and therefore they will not take responsibility,” he said

http://thestar.com.my/metro/story.asp?file=/2011/5/4/central/8594179&sec=central

Is the 5/95 housing loan scheme a better option? - StarProperty.my

Is the 5/95 housing loan scheme a better option? - StarProperty.my

In the short term, it may seem attractive. After all, one only has to pay 5% or 10% of the price of the house and the next payment is only when one takes delivery of the house. The developer will also bear other entry costs such as legal fees, stamp duty on the sale and purchase agreement and loan agreement as well as memorandum of transfer for purchases under the campaign.


A mortgage loan officer who has done his rounds being on the panel of bankers for various developers says the conventional loans and not the interest-bearing ones, are better options in the long run.

He says that no developer will bear legal fees, interests or stamp duty for free. All these are in fact factored into the price of the house. He says that 5/95 schemes are popular particularly among entrants to the job market because they have problems forking out the downpayment, which is usually the biggest challenge when purchasing big ticket items such as a property.

Because they are young, time is on their side. Such schemes are also popular among speculators because their intention is to sell the house the minute they take delivery of it.

Interesting News - Unholy Alliance

Curb rising cost of houses — National House Buyers Association

May 04, 2011MAY 4 — Prices of Properties, in particular Landed Property, have increased substantially over the last five years. House prices have really increased steeply and noticeable in certain areas. Just to share some trends:

In Kajang, Taman Bukit Mewah, a Double Storey Link/Intermediate 20 X 75 by Metro Kajang was launched in 2004/2005 for RM238,900. In 2009/2010, the new launch for the type of Property in the same area was launched at RM327,600, an increase of RM88,700, or 37 per cent. Now, Kajang is considered a “Not Hot Area”.

In Seri Utama, at Kota Damansara, which is considered a “Hot Area”, a 22 X 75 intermediate by See Hoy Chan Group was launched in 2004/2005 at an average of RM330,000. Today, the average asking price is about RM600,000, an increase of RM270K, or 80 per cent.

In Bandar Puteri Puchong by IOI, the average asking price in 2004/2005 for an intermediate DSL was only RM400,000. Today, it has gone up to an average of RM600,000, an increase of RM200,000, or 50 per cent.

The reason lies in unsustainable speculation fuelled by easy credit and low interest rates.

There exists a ‘unholy alliance’ between certain developers, valuers and banks. In an environment of hot demand, the banks work in cahoots with developers assisted by those wayward valuers. Our ‘teh tarik syndrome’ is also very relevant. When the price of condensed milk increases by 20 sen, the entire cost of ‘teh tarik’ increases by 20 sen. Similarly, when the cost of construction increases by 20 per cent, the equivalent cost of housing increases. Greed versus the market environment!

It has always been the Government’s aspiration for every citizen to have a roof over their head and the Government should continue to push this agenda. Genuine house buyers should always have access to affordable financing as more social problems will arise when citizens cannot afford homes.

http://themalaysianinsider.com/breakingviews/article/curb-rising-cost-of-houses-national-house-buyers-association/