Posted by relaks > 2018-11-03 19:06 | Report Abuse

I agree increase within 1st 5 yrs makes more sense than after. http://www.theedgemarkets.com/article/increase-rpgt-rates-within-first-5-years-would-make-more-sense-says-peps
Gomen, pls reconsider. This budget will make property market even more stagnant!

Posted by relaks > 2018-11-03 19:20 | Report Abuse

Foreigners won’t invest now. :( B40 cant buy the properties T20 & foreigners can afford. No point so focus on B40. To move the whole market, try give tax exemption for 1-2 year, see what happen? Tax on stamp duty , gomen also can laugh all the way to the bank! Remember the tax hol we had recently, how the car sale suddenly surged like no body’s biz! Property overhang in this country quite serious.
https://www.edgeprop.my/content/1441093/budget-2019-rpgt-hike-could-discourage-foreign-property-buyers-says-cbrewtw

Posted by trulyinvest > 2018-11-03 19:32 | Report Abuse

Scare investor awat

Posted by ks55 > 2018-11-03 19:34 | Report Abuse

Property market is dead with this lousy policy.
Who want to buy second time for upgrading or downsizing?

You bought your first house at 28 years old with a shoe-box fit your head.
10 years later at 38 years old, you earn enough for a 3-room apartment.
You plane to sell your-shoe box, using difference from your proceed and balance of your housing loan.

Yesterday Finance Minister announced you will have to pay 5% PGT, today say first house you sell exempted from PGT.

Nevermind lah whether if there is going to have exemption or not, second house you sell going to pay 5% PGT even if you keep for next 30 years.

Question now :

1. Are you going to sell your shoe-box even you are now having 2 children at 38 years old, if you need to top up your down payment using proceed from sale of shoe-box (for those upgrading)?

2. If you need not depend on proceeds from shoe-box, and you can afford outright down payment for second house. After another 10 or 20 years (by then you will be at 48 or 58 yo),and when you need money for your children's university education or medical purposes, will you sell your shoe-box or your second house to get 5% PGT exemption? Shoe-box worth very little, but 'profit' very high in terms of %.

3. Now you are at 68 years old, and your children already left. The (2nd) house you bought 30 years ago at age 38 years may seem already too big for you to take care.
You plan to downsize to a more suitable apartment. If you already sold your shoe-box earlier, are you going to sell (2nd) house for downsizing, bearing in mind for last 30 years, your (2nd) house may have appreciated 5 or 6 times (6% - 8% yearly). You want to waste buta-buta 5% PGT?


If answers to above question are negative, you will never want to buy (2nd) house whether is upgrading or downsizing.

Effect is very obvious, LGE as Finance Minister is hopeless.
He kills property market which is already half dead.

不是天災
是人祸

Posted by TrippleZ > 2018-11-03 21:37 | Report Abuse

ks55, no worry. People will still buy properties.

Posted by trulyinvest > 2018-11-03 21:41 | Report Abuse

Got buy la, u go ideal forum. A lot naive ppl there rushing to buy ideal condo next mon. Kikiki

Posted by KLCI Going Heaven > 2018-11-03 22:00 | Report Abuse

Got money only can buy oh kikiki

Posted by relaks > 2018-11-03 22:29 | Report Abuse

No need debate d. :( We better shut up. Lol Tun says Govt will defend budget from any criticisms - Dr M
Read more at https://www.thestar.com.my/news/nation/2018/11/03/govt-will-defend-budget-from-any-criticisms-dr-m/#UoZ5RgrrWBBh6Cvf.99

Posted by KLCI Going Heaven > 2018-11-03 22:30 | Report Abuse

hahahahha not like debating is going to change anything, Tun's decisions are always final. See ProTiga and any other thing you know liao. MRT 3 continue considered very lucky liao kikiki

Posted by relaks > 2018-11-03 22:37 | Report Abuse

Read this 1! Aiyoyo! hohoho PH will only consider if BN knee down, and beg ! Lol Let’s see who will do that! Hahaha!

—
PUTRAJAYA: Pakatan Harapan parties will not accept Barisan Nasional MPs en masse, but will vet them when they are on their bended knees.

Pakatan Harapan chairman and Prime Minister Tun Dr Mahathir Mohamad said that there is no intention to blacklist anyone from BN but court decisions will be taken into account.

"If they leave the party and become neutral and support the government and (then) they appeal on bended knees to join us, we will consider," said Dr Mahathir.
Read more at https://www.thestar.com.my/news/nation/2018/11/03/dr-m-acceptance-of-umno-members-into-pakatan-on-case-by-case-basis/#qfWSoGu6HfzcR164.99

Posted by speakup > 2018-11-03 22:44 | Report Abuse

why the govt soooo obsessed with affordable housing???
how about affordable iphone instead? i'm sure B40 group also want use iphone X

Posted by 4444 > 2018-11-04 05:28 | Report Abuse

Sell E&O, Plenitude, Cresndo and Mulpha on Monday.

Posted by relaks > Nov 3, 2018 07:06 PM | Report Abuse
I agree increase within 1st 5 yrs makes more sense than after. http://www.theedgemarkets.com/article/increase-rpgt-rates-within-first...
Gomen, pls reconsider. This budget will make property market even more stagnant!

Posted by relaks > 2018-11-04 11:57 | Report Abuse

https://www.fundmyhome.com/calculator
This is the new scheme.

To stay on after 5th yr, need to refinance the appreciation. Of course there are quit rent, assessments,stamp duties, maintenance etc to take care of by owner as well. If sell after 5th yr, not 1st property kena RPGT also upon exit. Investors can take 80% profit of propertys appreciation.

I wonder if good deal for investors? You see, if value appreciate must divide among investors. if depreciate, owner kena aborb the loss. So investors quite safe? What do you think? Better than FD for investors? Wonder if retail investors like us can participate?

Posted by ks55 > 2018-11-04 14:13 | Report Abuse

Same as PRS
When PRS first introduced, with govt tax incentive given to participant, but fail to see all those providers were all half-past-six fund managers, PRS participants all went to holland.

How come as many as 19 funds removed from PRS?
Out of which 13 were from Public Mutual Funds?
Why Public Anal-lists were chosen in the first place?
Are they not half-past-six and all half-cooked?

Posted by ks55 > 2018-11-04 14:17 | Report Abuse

Once bitten twice shy
Don't be a guinea pig for something not proven
LGE is simply amateur to introduce financial derivatives without in-depth study consequences if failed

Posted by chinaman > 2018-11-04 14:44 | Report Abuse

so, we bring in US mortgage debt derivatives bomb ideas into MY. How confident property value sure appreciate after 5 years whereby sold value higher than 1st bought price? what if end up lower for certain reasons? wakaka

Posted by chinaman > 2018-11-04 15:12 | Report Abuse

I guess the focus is wrong. govt. too focus on unsold property issue i/o mass population income level. I/o arguing why property price so expensive beyond average folks' affordability, we should arguing why poor salaryman income stagnant, grow so slow causing so many hanging property. We're copying US derivatives...
quote**
Warren Buffett – Derivatives Are Financial Weapons Of Mass Destruction. ... One of my favorite gems is in the 2002 shareholder letter in which Buffett describes derivatives as 'financial weapons of mass destruction', carrying dangers that, while now latent, are potentially lethal. It's a must read for all investors.Feb 22

Posted by chinaman > 2018-11-04 15:18 | Report Abuse

Banks sure got strong reasons why reject so many lendings. Now, we're going towards US derivatives to solve over unsold houses. If all poor salaryman income increase, naturally demand will increase which unfortunately our govt. not able to achieve in short term. So, we come up with this weapons of destruction. stupid ideas. wakaka

Posted by relaks > 2018-11-04 15:45 | Report Abuse

Lets say after 5 yrs, most 1x home owners decide to sell, will there be a ready market? Klau market still overhang macamana? Bole tak Owner just pindah, cant be bother with the investment? If like that semua investors yg sangkut perlu byr tu rpgt, cukai pintu, cukai tanah? Klau x mau byr, rumah dirampas gomen ya? Hahaha!

Susah if involve with owner yg bgt. Too many parties involved.

Posted by ks55 > 2018-11-04 16:03 | Report Abuse

I was expecting LGE with the help of Cambridge Tony Puah will address critically and objectively to the problem of property (housing) overhung, but I was wrong.

They are barking at wrong tree.
Instead of addressing root problem, they choose to dampen property market further.
If property prices fall below the mortgage, loan become negatively pledged. All banks that loan big to property developers, contractors, and property buyers sooner or later will go holland. This was how US subprime mortgage crisis got out of control when FED decided to hike interest rate, just as what they are doing now.

What I can say is LGE is not up to the mark to be Finance Minister.
We don't expect him to be perfect, but we do expect him to bring in brains when preparing for national budget.

I won't be surprised if he is replaced as Finance Minister if Malaysian economy getting worse because failing to have foresight and long term vision.

頭痛医頭
脚痛医脚






Blog: Govt proposes panel to monitor cost components of houses

Oct 11, 2018 10:34 PM | Report Abuse

Can someone enlighten us how does a housing developer determine selling price of :
1. Condo
2. Terrace house
3. Low cost flat/ PR1MA

I am no expert in housing, but try to figure out composition of each component:

1. Terrace house (say 100k)
1.1 Cost of house sold (60k)
1.2 Contribution to School reserve, Field and playgroud, Police Station, Bomba, Road reserve etc (6k) -- Assuming conversion rate 65%
1.3 Contribution to Bumi Quota with 7% discount, Low cost housing and PR1MA (6k)
1.4 Road, drainage, street light and other infra (3k)
1.5 Sales and marketing (3k)

Gross Profit is 100k - 60k -6k -6k -3k -3k = 22k
So, if you sell a million dollar house, gross profit is 220k

Of course, you will have to give more discount under present weak market sentiment.
Some developers give up to 15% or more (Understood MK Land gives up to 20% discount).
Then you will just have 7% gross profit.
What about interest expenses during construction period?
What about interest expenses after houses already completed but not yet sold?
What about HQ expenses?

Surely looking at the numbers, most developers will be losing money, unless the land cost is low.

How to make sure houses selling cheap, and developers still make decent profit?
Only way is to removed items stated in para 1.3, that will save up to 6%.


For Condo and high-rise apartment, land cost component normally take up around 15%.
Only problem is the developers tend to overpay for the land.
So they will have to build 30 or 40 storey high-rise.
That will take them 4 years to build before they can deliver VP to buyers.
In between, if sales not good, they will receive less progress payment, and paying 4 years bank interest is enough to kill fly-by-night developers like Jaks Resources.
Many such developers will prefer to abandon the project like Plaza Rakyat, for they could not afford to pay LAD.

As how to reduce selling price for the high-rise, better leave it to the authority to work it out.
If the authority concerned is so dumb, learn the trick from S'pore HDB......