finance

RPGT won’t hurt genuine buyers

Banning DIBS is the right move FOR many years, the National House Buyers Association (HBA) has been urging the Government to take measures to stem the steep rise in property prices to avoid a “homeless generation” as current property prices are far beyond the reach of many low and middle-income families in urban and suburban areas. This is a ticking time bomb that will result in many social problems if left unchecked. Real Property Gains Tax (RPGT) The announcement of the revised rate of tax on gains made in the disposal of properties, namely, the Real Property Gains Tax (RPGT), formerly known as the Anti Speculation Act, under Budget 2014 is far more superior to what had been proposed under Budget 2013 (See table above) This is because, typically, if the property is purchased directly fro...Read More

Rent or buy houses: The HBA’s guide to finding the right time

KUALA LUMPUR, April 5 ― Stumped on when is the right time to stop renting? Not sure if you should defer buying a house? The National House Buyers Association (HBA) has some tips. HBA honorary secretary-general Chang Kim Loong explained that since rental does not build personal equity, renters should consider both market conditions and their financial standing. “In our opinion, it is only worth renting if the monthly rentals are approximately 50 per cent or less than the monthly loan installments required to take a housing loan of the same value,” he said. Chang gave an example of a prospective buyers eyeing a 30-year RM300,000 housing loan at a 4.6 per cent interest rate, which results in a monthly installment of RM1,538. “If the buyer has not saved enough money to buy the property and has...Read More

Malaysian housing developers ignoring freebie guidelines

SOME seven months after more cooling measures were introduced, home prices continue to inch up as developers prefer to offer rebates than price their products lower. Many appear to be not abiding by guidelines on “freebies”. Some banks are also still basing their financing on the sales-and-purchase agreement (SPA) price rather than net selling price, a survey by the national House Buyers Association (HBA) has found. On a more positive note, except for one small developer, the projects surveyed by HBA volunteers did not offer the easy financing developer interest bearing scheme (Dibs), which the government had banned from this year. Brochures and other materials gathered by volunteers at various property fairs, however, indicate that many developers – even the bigger ones ...Read More

HBA Maintains Easing Lending Guidelines is not the Solution to the Inaccessibility of Affordable Housing Loans

  PETALING JAYA: Relaxing banks’ lending criteria is not the solution to address the issue of access to affordable housing loans, said the National House Buyers Association (HBA) secretary-general Chang Kim Loong. “The current problem is that house prices are too expensive in relation to the buyers’ income. This has resulted in some prospective house buyers having their loan applications rejected. However, the solution is not to relax lending guidelines but to find ways to lower property prices. The relaxation of lending guidelines will surely worsen the situation and speed up the road to a ‘homeless generation’ that HBA has been warning about for years,” he told SunBiz, addressing the Real Estate and Housing Developers Association’s (Rehda) call for banks to be less strict in their l...Read More

Pre-requisite condition for licensing of a housing developer

It is noteworthy that the Housing and Local Government is providing further protection to house buyers against the antics of irresponsible developers. The recent amendments to the Housing Development Act comes to mind. One of the most pertinent clause that was amended is Section 6(1)(b) of the Housing Development (Control & Licensing) Act, 1966. The matter refers to the amendment to the requisite deposit, which is refundable, from the current RM200,000 to 3% of the construction cost. Small developers who build small number of houses in the smaller towns and where total construction cost is RM2mil or less, the RM200,000 that they are currently forking out actually represents over 10%. Therefore, for them the new 3% is actually a vast reduction! To a big project developer whose construct...Read More

HBA: Allow EPF to offer home loans to members

PETALING JAYA (June 19): The National House Buyers Association (HBA) is urging the government to allow the Employees’ Provident Fund (EPF) to extend financing for home purchases – particularly of affordable units – to eligible members, reported Free Malaysia Today. Its secretary-general Chang Kim Loong said this proposal would help members who are unable obtain financing without forcing banks to relax their lending guidelines. “Our preliminary thoughts are for EPF to disburse 15 to 20-year loans to a member who has been contributing for at least five years and earning less than RM5,000,” he said. To prevent abuse, the homes will be subjected to a 10-year lock-in period, he added. “At the same time, to ensure the member still has some money for contingencies, the EPF can buy insurance with ...Read More

Do necessary checks before buying

THE NATIONAL House Buyers Association (HBA) refers to the statements from the Real Estate and Housing Developers’ Association Malaysia (Rehda) that the recent proposal from the Minister of Urban Wellbeing, Housing and Local Government, Tan Sri Noh Omar for eligible property developers to be given a moneylender license is only for the property developers to lend money to buyers as a “bridge” for downpayment on their home purchases and not as a full loan as speculated claiming that most bank loans today will only give margin of financing of 80% compared with 90% previously. HBA reaffirms our earlier view that despite the clarification from Rehda that developers lend money to buyers as a “bridge” for down payment for houses priced at RM500,000 and below, this proposal is still detrimental to ...Read More