Real estate Malaysia / TH Lim Property Malaysia

SINKING FUND: The call for accountability After eight years of living in his condominium, Hisham was suddenly informed that he had to pay a sinking fund contribution. But the contribution was supposed to come from the maintenance fees that he had been paying promptly, and now Hisham is confused. His condominium developer collected sinking fund contributions, but the swimming pool, gymnasium, security system and common areas remained in a neglected state of disrepair. Another group of buyers were upset that the sinking fund was used to off set “current liabilities” by their Joint Management Body (JMB). John Cheah tells us that his sinking fund is “zero”, his Management Corporation (MC) having utilised it for purposes he is not aware of. Yet another group of owners complained that their developer allegedly passed the sinking fund to a now defunct managing agent. The name “sinking fund” is not meant to be taken literally, but in some stratified developments, there are sinking funds

What Is Real Property Gains Tax (RPGT)?  In Malaysia, Real Property Gains Tax (RPGT) is one of the most important property-related taxes and is  chargeable on the profit gained from selling a property . Whether you’re a property investor or an owner just simply looking to sell your current home to purchase your dream home, it’s important to be aware of all costs associated with a real estate transaction. It’s not always easy though! Our Government likes to keep things relevant and current. RPGT rates in Malaysia were  most recently adjusted in Budget 2019 , with new changes announced as part of Budget 2020. Earlier this year, the government once again revised RPGT rates, giving  tax exemptions to low-cost and budget homes below RM200,000 , while increasing the tax rate to 5% for properties held by Malaysian citizens for more than five years. Budget 2019 also increased the rate for foreigners and companies selling a property after more than 5 years of ownership from 5% to 1

A) USE OF MAINTENANCE CHARGES Under Act 757 of the Strata Management Act 2013, the maintenance account shall be solely used for the purpose of meeting the actual or expected general or regular expenditure necessary in respect of the following: • Maintaining the common property in good condition on a day-to-day basis • Paying for the expenses incurred in providing cleaning services for common property, security services and amenities for the occupiers of the building • Paying any premiums for the insurance eff ected under this Act or any other insurance approved by a special resolution in a general meeting • Complying with any notice or order given or made by the local authority in respect of periodical inspection of any building in the development area in the manner as specifi ed in the Street, Drainage and Building Act 1974 • Minor painting works on the premises of the common property • Carrying out inspection of all electrical wiring systems of the common property and re

Property investment is definitely not a short term play. The majority of us do understand this basic rule of the game, but how long do we need to wait before the harvest? The experts reckon that it will take at least five years to enjoy a signifi cant capital gain from property investment, depending on location. For established areas, it may take a shorter time. To better explain how property investment can help you accumulate wealth, let’s check out  the growth of average house prices in selected areas in the Klang Valley over the past 17 years  based on Savills (Malaysia) Sdn Bhd’s (Savills Malaysia) collection of transaction data from  2001 to 2017. To put things in perspective, if you had purchased a single-storey terraced house for RM150,000 in Puchong, Selangor in 2001, after 10 or 15 years, how big would be the capital gains? According to the data, if the house was sold in 2010, it would probably receive an average price of RM237,500, which means that the capita

Ways to rent out your property – fast 1. Location This is most likely something you've frequently heard innumerable circumstances – location, location, location. Though by far most have heard this, it is extremely surprising how little consideration is paid to it. Of the considerable number of things you could do to lease your property out quick, this is likely the most hard to change. You can't change the location of your property, so it is critical that you get this correct when you decide to invest. Some important location-related questions to ask before investing:- Does the property have awesome accessibility versus proper roads, expressways, MRT/LRT, and other public transport?  Is the property near to amenities like schools, medical centers, banks, and business hubs?  Are there a considerable measure of jobs opportunities near your property? The more occupations open or made near your property, the more demand there will be for staying.  Is the proper

1) Accessory parcel — not a decorative  patch of land, but any parcel shown in a  strata plan that is used exclusively by the  homeowner. A common example is the  car park bay. 2) Assessment tax — or “cukai pintu” as  it is known in Bahasa Malaysia. It is payable twice a year to the respective local  authorities to finance the maintenance  cost of the city such as waste transportation, landscaping and street lights. It  is payable on or before every 28th FEB and  on or before every 31st AUG . 3) Base rate (BR) — a floating interest  rate determined by financial institutions  in Malaysia, based on their benchmark  cost of funds and the Statutory Reserve  Requirement. The reserve funds banks are  required to maintain under Bank Negara  Malaysia guideline. Different banks offer different BRs, with current rates hovering between 3% and 3.95%. Depending on their own efficacy in controlling borrower credit risk, liquidity risk premium and operating cost, a profit margin wi