How Applicable Is Leasehold & Freehold Property Nowadays?
If you are doing property sales freehold enable you to transact easily. While for leasehold you need to get state govt approval which will take 6 months or more to transact. The con with leasehold is the property depreciates when the lease periods are to end. There are talks about extending the lease. But eventually it depends on the mercy of current state govt & the municiple council in charge. For freehold one need not be bothered about this. But with the current everchanging govt/politics the future for freehold is unpredictable. We read about ammendments to the constitution which allow freehold property to be set for development purposes. The owner are not given immunity over the matter.
For own stay leasehold is good enough. Let say at 25 years old you buy a new house. You just live up to 85 for example b4 the lease period ends. Even nowadays grown up children prefer to stay outside independantly persuing their career goals than depending on parents. Hence they are eagerly waiting to sell the house when you depart. No matter if lease or freehold. In short you are giving them a silver/golden spoon.
During our grandparents time, they insist on freehold as they want all their childrens to grow up & start a family empire under one roof. The setback is there are bound to be family politics going around which causes unease among all. If you watched chinese movies you know what I mean. Like in Malay "banyak udang banyak garam. banyak orang banyak ragam".
With the availability of choices in different location. Most people prefer areas which are convenient to them in order to work, play & raising childrens. Hence they surely need a house for shelter or apartment for example to serve their basic needs.
For own stay leasehold is good enough. Let say at 25 years old you buy a new house. You just live up to 85 for example b4 the lease period ends. Even nowadays grown up children prefer to stay outside independantly persuing their career goals than depending on parents. Hence they are eagerly waiting to sell the house when you depart. No matter if lease or freehold. In short you are giving them a silver/golden spoon.
During our grandparents time, they insist on freehold as they want all their childrens to grow up & start a family empire under one roof. The setback is there are bound to be family politics going around which causes unease among all. If you watched chinese movies you know what I mean. Like in Malay "banyak udang banyak garam. banyak orang banyak ragam".
With the availability of choices in different location. Most people prefer areas which are convenient to them in order to work, play & raising childrens. Hence they surely need a house for shelter or apartment for example to serve their basic needs.
Source:
http://www2.thinkproperty.com.my/realestate/Forums/Buying-property/ReHow-applicable-is-Leasehold-Freehold-property-nowadays.html#5778
What Is MRTA?
Mortgage Reducing Term Assurance (MRTA) is also frequently referred to Mortgage Life Insurance. MRTA helps you settle your housing loan in the event something happens to you.
Although many people don't like talking about it, disability, illness or death can occur any time. MRTA will cover the unpaid portion of your loan if this happens. It gives you peace of mind and protects your family from losing a home. It provides coverage even during the construction period. The premium is reasonable, and it can even be financed by your bank.
Although many people don't like talking about it, disability, illness or death can occur any time. MRTA will cover the unpaid portion of your loan if this happens. It gives you peace of mind and protects your family from losing a home. It provides coverage even during the construction period. The premium is reasonable, and it can even be financed by your bank.
What are the benefits?
-> Lump sum repayment to your mortgage loan in case of death or total and permanent disability due to natural causes, illness or accidents.
-> Coverage is 24 hours, worldwide.
-> Premiums can be financed by the bank.
-> Discount on the premium for joint life application if your home is jointly owned by your spouse or immediate next of kin.
What does MRTA cover?
It covers disability, illness or death and also total and permanent disability. However, there are exclusions such as:
-> Death due to suicide and AIDS/HIV
-> Total or permanent disability due to self-inflicted injuries, armed forces, riot and civil commotion, flying other than as a fare-paying passenger, racing on a horse or wheels
-> Pre-existing conditions such as AIDS/HIV
How much would my premium be?
Premium factors depend on the sum assured, interest rate, term, construction period, premium financing, joint-life, age at next birthday.
If you are between 18 and 60 years of age and in good health, you are eligible to take up MRTA. You can always make an application by filling up an application form at the Bank.
Source: http://www.memylife.com/MyHome/mh_ArticleLevel.asp?Category=15&Article=61&Name=Home%20Insurance
I’ve just purchased a shop lot and the lawyer sent me four (4) copies of Deed of Assignment and we were asked to pay for the stamping fees. Isn’t the DOA an agreement with the vendor and their financer?
If you are a purchaser in a sub-sale transaction for property without title, then the vendor can only assign all rights,title and interests via deed of assignment.
The parties to this present deed of assignment will be the vendor and purchaser. Stamping and assessment for adjudication is required.
As for the earlier deed of assignment between the vendor and the vendor’s financier, upon the full redemption of the property released via the purchaser’s financier, a deed of receipt & reassignment will be carried out.
The earlier power of attorney on the earlier deed of assignment between the vendor and the vendor’s financier will also be revoked.
A new power of attorney will be registered with the High Court for this present deed of assignment between the vendor and purchaser.
Later, upon the confirmation of revocation of the earlier power of attorney by receipt & reassignment, the present deed of assignment will repeat the same process
to register a new power of attorney with the High Court.
Abstract from Horlic Lim post:
How to calculate your ROI for rental income. An example if you're to purchase a house:
Purchase price : RM235K
10% Down payment : RM23K
Loan amount : RM210K
for a 20-year loan, to keep it simple we'll we'll just divide it by 240 months to get the amount of you'll be repaying the loan in a month:
RM210K/240 = around RM1K.
with people living in KL earning around RM4K, RM1K a month to pay the loan might be too steep, so you can rent it out. But before purchasing the house or renting it out, you need to figure out if the rental will bring you in more cash than you out out, i.e the rental should be more than your monthly loan repayments, _plus_ any other expenses to maintain the house.
In horlic lim's post, he estimated that it takes around RM800 for monthly expenses. expenses here include:
1. service charges
2. fire insurance
3. property agent fees
4. quit rent
5. no rent income due to no tenant for 2 months
6. repairs
SO, if you set your rental to RM2.2K, your gross will be:
RM2.2K - RM800 (expenses) = RM1400
and your nett will be
RM1400 - RM1000 (loan repayment) = RM400
RM400 here is your monthly cash flow.
To calculate rental yield (ROI), you do:
(RM2.2 (rental price) x 12 / RM235K) * 100 = 11.2% p.a (per annnum, or yearly)
Horlic lim says that your p.a for the property must at least double the amount a fixed deposit at a bank can give you, as a good benchmark. so if a fixed deposit at a bank is giving your 3% p.a, then this property with a ROI of 11.2% is definately a good buy.
credit to : http://mariproperty.com/forum/view/thread/37/1/
A new power of attorney will be registered with the High Court for this present deed of assignment between the vendor and purchaser.
Later, upon the confirmation of revocation of the earlier power of attorney by receipt & reassignment, the present deed of assignment will repeat the same process
to register a new power of attorney with the High Court.
Calculating ROI on Rental Income
Abstract from Horlic Lim post:
How to calculate your ROI for rental income. An example if you're to purchase a house:
Purchase price : RM235K
10% Down payment : RM23K
Loan amount : RM210K
for a 20-year loan, to keep it simple we'll we'll just divide it by 240 months to get the amount of you'll be repaying the loan in a month:
RM210K/240 = around RM1K.
with people living in KL earning around RM4K, RM1K a month to pay the loan might be too steep, so you can rent it out. But before purchasing the house or renting it out, you need to figure out if the rental will bring you in more cash than you out out, i.e the rental should be more than your monthly loan repayments, _plus_ any other expenses to maintain the house.
In horlic lim's post, he estimated that it takes around RM800 for monthly expenses. expenses here include:
1. service charges
2. fire insurance
3. property agent fees
4. quit rent
5. no rent income due to no tenant for 2 months
6. repairs
SO, if you set your rental to RM2.2K, your gross will be:
RM2.2K - RM800 (expenses) = RM1400
and your nett will be
RM1400 - RM1000 (loan repayment) = RM400
RM400 here is your monthly cash flow.
To calculate rental yield (ROI), you do:
(RM2.2 (rental price) x 12 / RM235K) * 100 = 11.2% p.a (per annnum, or yearly)
Horlic lim says that your p.a for the property must at least double the amount a fixed deposit at a bank can give you, as a good benchmark. so if a fixed deposit at a bank is giving your 3% p.a, then this property with a ROI of 11.2% is definately a good buy.
credit to : http://mariproperty.com/forum/view/thread/37/1/
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