RE: Boot tenants out or face court action, Penang tells low-cost homeowners

I remember a friend of mine telling me its easy to be a property tycoon! Just get a form for one of those low cost (LC) house units at Komtar level 3 and then you are on the way to rent out your place to gain some income!

Simple right?

Well, to those have done that..the Penang government is taking action and they are serious 

Check this article out:
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Boot tenants out or face court action, Penang tells low-cost homeowners

By Opalyn MokApril 8, 2014

The Penang government believes there are thousands of low cost home owners who rent out their units. ― Picture by K.E. Ooi
GEORGE TOWN, April 8 ― Low-cost homeowners must evict their tenants and move into the units themselves within the month or face possible jail time, the Penang government warned today.
Housing development state executive councillor Jagdeep Singh Deo told the owners that renting out the homes is a breach of their low-cost housing contracts.

“So, this Friday, at the state exco meeting, I will have the state legal advisor go through the legal notices that we will be sending to all LC owners to evict their tenants in 30 days time,” he told a press conference this morning.

Under the sale and purchase contracts signed by LC purchasers with the state government, owners are prohibited from renting out their units and must live in it themselves.

The contract also states that if they fail to do so, the state reserves the right to repossess the homes and charge them in court for cheating, under section 420 of the Penal Code, which stipulates a jail term of not more than a year and not less than 10 years or whipping or fine upon conviction.

“If the LC owners fail to fulfil the contract conditions and refuse to comply with the legal notices we send to them, we may have to initiate criminal proceedings against them,” Jagdeep said.

He said the homeowners should not complain as when applying for the units, they had claimed they needed the homes for themselves.

Jagdeep added that the state has been receiving many complaints on social problems due to a high number of foreign workers are renting LC units in residential areas in the state.
“We are looking at thousands of LC units in the state being rented out, many are to foreign workers,” he said, adding that he does not have any exact figures.

Jagdeep said the state is currently keeping vigilance over a block of flats with 226 units that it believes have been rented out to foreign workers.
He said once legal notices have been sent out, these foreign workers will be evicted and they will have no where to go.

“This is a two-pronged problem, if we get the LC owners to evict them, our next problem will be there is no place for them to go which is why it is time the state look into setting up designated foreign workers hostels,” he added.
Jagdeep said he will push for a foreign workers hostel at the next state legislative sitting, modelled after the one in Singapore.

“If we look at the foreign workers hostel in Singapore, it is a very nicely planned space covering 10 acres complete with in-house shops facilities, sports facilities and security which are better than the deplorable conditions of some of these places that the foreign workers are living in now,” he said.
He said the state will have to work out a mechanism to set up such a hostel, either through public private partnership or for developers to build and then rent.

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RE: Most expensive states to rent in M’sia

What is happening with the real estate market today?

Because of the downtrend of our Ringgit performance (as vs against the USD) and also the economic inflation that is happening, allot of young people have come to a stage where owning through buying/ purchasing a property is not really much of an option anymore.

Because of that, many who are not from the main cities opt to work and relocate to bigger cities where prospect opportunities are high and jobs are plentiful.

But then, that brings about the issue of cost of living, and many are forced to rent properties. Now, lets take a look at this very informative article on this issue:

Most expensive states to rent in M’sia
March 27, 2014
By Michelle Brohier



For many Malaysians who can’t afford the downpayment on a new home; renting is the only option (unless they have option and are keen to live with their parents til death do them part). We previously covered some of the cheapest places in Malaysia to rent but where is the most expensive?

Selangor
With many thriving cities within Selangor such as Petaling Jaya and Damansara, it’s no wonder the prices of rental here are pretty expensive and they vary in different areas as well. In Ara Damansara, renting a townhouse costs RM11,000 a month which is fully furnished and has 5 bedrooms and 7 bathrooms. A 3-storey terraced house in Selayang is being rented out at RM9,200 a month where it has 7 bedrooms and 5 bathrooms. Another expensive rental area to look out for would be Sungai Buloh where a 2-storey terraced house with 6 bedrooms and 6 bathrooms is being rented out for RM9000 a month.

That’s not to say you can’t find cheaper rentals (in the region of RM2,000) – it’s just that they wouldn’t be in areas such as Petaling Jaya, Damansara or the heart of Kuala Lumpur. Some time back, particular local newspapers ran headlines about how the Klang Valley is still affordable. These figures beg to differ. Or perhaps the definition of ‘affordable’ has changed.

Penang

Batu Ferringhi and even Georgetown can definitely be an expensive place when it comes to rental. On average, you can get a terraced house around these areas for around RM12,000-RM15,000 a month, with various stages of furnishing and with mostly 4-5 bedrooms and bathrooms. There are even other rather expensive areas such as Tanjung Tokong where a partially furnished house cost up to RM9,500 a month, and it comes with 5 bedrooms and 6 bathrooms.

Again, cheaper rentals are possible but not that much more so. Of course, be ready to stay in tiny flats either in ill-repair or overlooking cemeteries.

Johor

It’s possibly a little surprising to see Johor in this list, but there are properties there that are being rented out at RM18,000 a month which is even more than the current listing in Kuala Lumpur! This one is in Jalan Pelita and it’s a 3-storey house with 4 bedrooms and 4 bathrooms. A 2-storey terraced house costs up to RM15,000 a month in Skudai and it actually has 5 bedrooms and 5 bathrooms, with even more land than the other so in the end, the location plays a part when it comes to Johor. There are other areas such as Taman East Ledang where the rental price for a 2-storey terraced house costs between RM11,000-RM13,500.

This could be because of many Singaporeans or Malaysians working in Singapore choosing to live in JB and commute to the island. Singapore property prices are known to be ludicrous so the amounts above are likely a ‘steal’ in comparison.

Kuala Lumpur



While Johor is still pretty expensive, Kuala Lumpur still has the most number of expensive rentals which shouldn’t be sneezed at as well, especially with units such as a 3-storey terraced houses. One 3-storey terraced house in Casaman, Desa ParkCity in Kepong can cost up to RM15,000 a month for a 5 bedroom, 4 bathroom house in a unit that is gated and guarded as well. Another is located in Ampang with a rental price of RM13,000 a month, also with 5 bedrooms and 4 bathrooms.

If you’ve guessed the most expensive states in the right order, then you must be just as aware of how expensive rentals can be. While it’s still possible to find rent in these states that are affordable for flats, landed property will definitely cost a lot more. Again, it’s not impossible to rent but you may find yourself in less ‘attractive’ parts of the city.

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Developers in bed with underworld contractors face ban, Penang says

We have all heard rumors of developers dealing with underground thugs in development of real estate. Here is a good article that covers that:

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Developers in bed with underworld contractors face ban, Penang says

Penang has vowed to crack down on any developers found in cahoots with 'gangster contractors' who allegedly intimidate and threaten new home buyers into engaging their services. — Picture by K.E. Ooi

GEORGE TOWN, March 28 — Penang will blacklist any developers found in cahoots with “gangster contractors” who intimidate home buyers into engaging them for renovations.

The state government said it has arranged to meet with the Penang police chief to crack down on the group allegedly intimidating and threatening new home buyers into engaging their services, especially in high rise projects.

“We will not tolerate this. If we find any developer involved in designating these gangster contractors to intimidate and threaten home buyers into booking their renovation services at their projects, we will not hesitate to blacklist the developer,” said Penang Housing state executive councillor Jagdeep Singh Deo.

He told a press conference that he had recently received complaints from home buyers who alleged they were threatened for not engaging the project’s designated contractor to undertake renovation works on their newly completed apartment units.

“They now fear for their safety as they had been threatened,” he said.

This is not the first time such incidents took place, and Jagdeep admitted that it has been going on for years in other residential high rise projects in the state.

Such cases involve “designated” contractors who set up temporary stations at newly completed apartments and allegedly coerce home buyers planning to renovate their units to use their services.

Home buyers who appoint their own contractors will be forced to either pay a “fee” or to buy renovation supplies such as cement and tiles from them.

“I have said this before, there is nothing in the law that requires home buyers to up take up renovation packages if they don’t want to and this most definitely is not in any sales and purchase agreement,” Jagdeep said.

He called on all home buyers who faced similar issues at their apartments to lodge police reports against the errant contractors.

“This is criminal intimidation and harassment. The police can take action against them,” he said.

He said the state will urge the police to act harshly against these contractors while the state will check to ensure the developers are not in cahoots with these contractors.

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The ultimate tax relief guide for Malaysians

Here is an interesting infographic on the taxation matters in Malaysia

It speaks on what are tax reliefs, how to calculate your taxes tax reliefs

like Robert Kiyosaki says - knowledge is power!

Hope this helps! 

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Malaysian's PR1MA Scheme

What is PR1MA?
Let's find out together!

Check out this informative article below for more info:

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Are you a middle-income household member who’s looking to buy a home? Then, it might be worth your while to check out PR1MA – an initiative by the Malaysian Government to develop affordable housing for middle-income households.

In our 3-Part PR1MA Series, we will examine how PR1MA works, what the benefits are, and how you could go about applying for one.
What is PR1MA

PR1MA stands for Perumahan Rakyat 1Malaysia (or the 1Malaysia People’s Housing Programme in English). The objective of PR1MA is to develop affordable housing for middle-income households in key urban centres of Malaysia. For the purpose of PR1MA, middle-income is defined as a joint monthly income (encompassing both husband and wife’s earnings) of RM2,500 to RM7,500.

Why Establish PR1MA?

PR1MA was established by the Government as a means to help the intended demographic manage the cost of living in urban areas, specifically, in elevating their chances of owning a home amidst escalating property prices in Malaysia.
What Kinds of Homes Will Be Available Via PR1MA?

Houses available under PR1MA will be located in sustainable communities and be priced between RM100,000 and RM400,000.

As of March 2013, areas that have been identified and are under various stages of development include Seremban Utara, Negri Sembilan; Kuantan, Pahang; Nusajaya, Johor; Bukit Gelugor, Penang and Alam Damai, Cheras (Source: NST). An estimated 80,000 PR1MA homes will be built in Klang Valley and the Federal Territory alone.

How Much Cheaper will PR1MA Properties be?

There are no official confirmations as yet. However, in an interview with The Star on 11 March 2013, Prime Minister YAB Dato’ Sri Haji Mohd Najib bin Tun Haji Abdul Razak had been quoted as saying PR1MA houses will be “at least 20% lower than market rates”.
How does a Person buy a PR1MA Property?

PR1MA properties are offered via an open ballot (i.e. the process of drawing lots). To become a qualified candidate, you will need to complete a registration process and get your own PR1MA number. Thereafter, you can submit an application for balloting to the PR1MA property of your choice.

source: http://www.imoney.my/articles/pr1ma-1

RE: RINGGIT MAY DOWNTREND to 3.33 level against US$ by yr-end - HSBC economist

Uh-oh, so during the Chinese New Year, our uncles and aunties, cousins, siblings and friends have been discussing about the economy growth right? 
I'm sure it was hidden somewhere between the pile of discussions after your aunty brags about the new house or jewelry or about the latest holiday trip..
or was it your cousins whose children had the higher score and top of the class?

It all later boils down to the economy and our Ringgit Malaysia (RM) is expected to decrease in value as compared to the USD. 

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KUALA LUMPUR - The Malaysian ringgit is expected to touch the 3.33 level against the US dollar by year-end on the back of the strengthening greenback, said HSBC ASEAN Economist, Lim Su Sian.
At the end of last year, the local currency was traded at 3.25 against the greenback.

"The ringgit is not the only ASEAN currency that is weakening against the US dollar as the US Federal Reserve is printing money at a slower pace to strengthen the dollar.
"However, we see the ringgit remaining strong as the underlying fundamentals remain strong," Lim told a media briefing on the Economic Outlook 2014 in the capital, Thursday.

She said Bank Negara Malaysia does not interfere with the market value of the ringgit, especially when compared to some other central banks, which intervene more than BNM does.

BNM allows market forces to set the price of the ringgit, she added. -BERNAMA

source:  http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=218022:ringgit-downtrend-to-333-level-against-us$-by-yr-end-hsbc-economist&Itemid=3

New Rules in housing/ real estate in buying and selling

Whats the latest with Penang housing laws and updates?
After the DAP took over Penang, they have been making lots of changes and improvement

Here is one to shout about..in fact, even scream! Yes..they have changed the rules again...and allot of people need to readjust their spending/ investing. The rules of the investment game has been tightened and speculating investors are now looking at a very hard time...

Trading houses/ real estate is now going to be such a breeze now and its going to take time

Well, to me I say: Kudos to the Penang gomen for implementing these rules
Penang will see more stable property/ real estate growth in the near future because of this
Sure...there are some angry speculators but hey, you can't please all right?
 
Don't burn the whole forest just because you want a tree - think of others too!

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The state of Penang is set to enforce new housing regulations on the proposed date of February 1, 2014.
At its core, the new regulation is designed to minimise speculation in the state’s property market and to ensure public housing and affordable homes are accessible to low and middle-income first-time home buyers.

The new regulation affects citizens and non-citizens buying low cost homes (up to RM42,000), low-medium cost homes (up to RM72,500), affordable homes on the island (below RM400,000), and affordable homes on the mainland (below RM250,000) and covers all past and future purchases.
Our infographic below illustrates the new housing regulation and restrictions imposed on home buyers.


Homeowners who wish to sell their house within the 5 or 10-year lock-in period must first make an appeal to the state government. Additionally, these houses can only be sold to “listed buyers” which are certified middle-income individuals registered with the state government’s Housing Department.

source: http://www.imoney.my/articles/penang-new-housing-rules