𝐓𝐡𝐞 𝐭𝐫𝐮𝐭𝐡 𝐨𝐧 𝐅𝐚𝐜𝐭𝐬 𝐨𝐟 𝐋𝐚𝐧𝐝 𝐓𝐢𝐭𝐥𝐞𝐬
Have you heard that freehold property is more worthy? That it is forever yours once purchased?
There are many assumptions about leasehold and freehold properties, and not all of them are entirely true.
Right here, we will go through some of the facts that might or not be entirely true!
𝗢𝘄𝗻𝗶𝗻𝗴 𝗮 𝗳𝗿𝗲𝗲𝗵𝗼𝗹𝗱 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗳𝗼𝗿𝗲𝘃𝗲𝗿
No freehold is a guaranteed of ownership forever. Even though perpetual ownership is entitled to freehold property owners, the fact stands that all freehold lands are subject to the government's rights to acquire them if necessary due to the Land Acquisition Act 1960. If the government plans to build an MRT project right where you are standing, you will have to give them your house. You will then be compensated for the amount of the market value of the property.
𝗙𝗿𝗲𝗲𝗵𝗼𝗹𝗱 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀 𝗮𝗿𝗲 𝗵𝗶𝗴𝗵𝗲𝗿 𝗶𝗻 𝘃𝗮𝗹𝘂𝗲
This is not entirely the case. When it comes to comparing, other factors will need to be taken into accounts such as property type, location, built-up area, or supply and demand. Some freehold properties may be cheaper than leasehold. If both properties are identical except one is freehold and the other leasehold, this is when leasehold will be more cost worthy as it is priced lower than a freehold. Moreover, if the demand is higher, the leasehold value will be higher. Therefore, it is entirely dependent on the situation.
𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗳𝗼𝗿 𝗳𝗿𝗲𝗲𝗵𝗼𝗹𝗱 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗶𝘀 𝗲𝗮𝘀𝗶𝗲𝗿 𝘁𝗼 𝗼𝗯𝘁𝗮𝗶𝗻
This is true as banks are less likely to finance a buyer of leasehold properties and more so if there are only a few years left to their tenure. However, there is still a chance to secure a bank loan, though the amount will be lower than the maximum 90% margin.
𝗙𝗿𝗲𝗲𝗵𝗼𝗹𝗱 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗲𝗻𝗷𝗼𝘆𝘀 𝗯𝗲𝘁𝘁𝗲𝗿 𝗮𝗽𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻 𝗼𝘃𝗲𝗿 𝘁𝗶𝗺𝗲
The fact stands that freehold property is appreciated and remains in value over a longer run than leasehold. This is due to leasehold being only appreciated at comparable rates in the being of 20 to 30 years of tenure. Afterward, the value will remain stagnant and then deteriorate once it reaches closer to the end of the tenure. Therefore, freehold properties enjoy better appreciation over time.
𝗟𝗲𝗮𝘀𝗲𝗵𝗼𝗹𝗱 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀 𝗮𝗿𝗲 𝗵𝗮𝗿𝗱𝗲𝗿 𝘁𝗼 𝘀𝗲𝗹𝗹
Leasehold properties are harder to sell especially those which are older and nearer to the end of their tenure. This is due to the uncertainty of renewal of the lease which is entirely up to the local authorities. As such, there are fewer potential buyers which causes a harder time to sell a leasehold property.
There are many assumptions when it comes to which land is better. Before you make the decision to purchase a property, sift out fact from fiction to get the house that you really want.
In response to the COVID-19 pandemic, Mah Sing Group Berhad along with Mah Sing Foundation have joined the combat against the outbreak by donating RM3.9 million worth of heavy-duty critical-care ventilators to front line hospitals in need.
With the current rise of this formidable disease, many public hospitals are facing an acute shortage of medical equipment such as ventilators, personal protection equipment, and masks. To tackle the outbreak and the disruptions it has caused in our daily routines and lives, Mah Sing has taken up the lead to assist in the war against the pandemic.
The property developer had sourced and contributed 20 units of heavy-duty ventilators to National Disaster Management Agency (NADMA). The contribution was to aid the front liners of the critical care units in the struggle to save lives against the disease. They have placed enormous support as their aim of upmost priority to enhance the lives of the surrounding community is in line with the fight against COVID-19.
Mah Sing firmly believes that any contribution will provide significant assistance to combat the disease. Through their Mah Sing Foundation, they had also donated RM100,000 worth of medical supplies to the epicentre of the outbreak in Wuhan, China, in the earlier part of the year. This was in collaboration with Malaysian relief organisation, Ops Harapan.
To contain this virus, Mah Sing will continue to cooperate with the Government to brave through these tough times and urges other corporations to take up arms together in the brute war to limit COVID-19 spread.
Have you ever wonder who your potential target market is? What do they want and why do they buy your product? When do they make a purchase or even how to attract them?
To answer those questions, one needs to have data analysed to understand the market. To collect the data and have it analysed is, however, not an easy task. We generate a massive amount of data on a global scale, which continues to increase at an unparalleled rate. The pace of data generation is also accelerated by other factors like the evolution of new technologies and models such as the Internet of Things (IoT).
All these massive volumes of data are being created at high speeds from various sources like mobile devices, social media, and multiple sensors surrounding us. Nevertheless, with the advancement of technology in this era, we are able to accomplish that easily by using Big Data.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐁𝐢𝐠 𝐃𝐚𝐭𝐚 𝐚𝐧𝐝 𝐡𝐨𝐰 𝐝𝐨𝐞𝐬 𝐢𝐭 𝐡𝐞𝐥𝐩 𝐮𝐬?
The definition of big data is unseen in the dimensions of data. For data sets to be defined as big data, a high degree of these three dimensions are needed; 𝗩𝗼𝗹𝘂𝗺𝗲, 𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆, and 𝗩𝗮𝗿𝗶𝗲𝘁𝘆. As the era advances, two more dimensions are added to define big data, which are 𝗩𝗮𝗹𝘂𝗲 and 𝗩𝗲𝗿𝗮𝗰𝗶𝘁𝘆. The two are often proposed for business advantages.
These five dimensions are commonly known as the following:
• Velocity: the speed of data that are generated
• Volume: the amount of data that are generated
• Variety: the diversity or different types of data
• Value: the worth of the data or the value it has
• Veracity: the quality, accuracy, or trustworthiness of the data
Vast volumes of data are generally reachable in either structured or unstructured formats. Machines or humans can create structured data, which has a detailed model and are frequently kept in databases. Structured data are prearranged around schemes with visibly defined data categories. Numbers, date, and time are some of the examples of structured data that may be kept in database columns. Alternatively, unstructured data does not have a predefined model. Text files, log files, social media posts, mobile data, and media are various types of examples of unstructured data.
According to a research done by Gartner, an international research and consulting organization, the application of advanced big data analytics is part of the Gartner Top 10 Strategic Technology Trends for 2019 and is predicted to stimulate new business opportunities. The same report also forecasts that over 40% of data science tasks will be computerized by 2020, which will likely require new big data tools and paradigms.
By 2017, global internet usage reached about 47% of the world’s population, according to an infographic provided by DOMO. This shows that a cumulative amount of people are using mobile phones with an increased number of devices being connected through smart cities, wearable devices, Internet of Things (IoT), and more. As internet usage grows and other technologies such as social media, IoT devices, and mobile phones continue to evolve, we will become more connected and generate extraordinary amounts of data, all of which will require new technologies for processing.
𝐅𝐫𝐞𝐞𝐡𝐨𝐥𝐝 𝐯𝐬 𝐋𝐞𝐚𝐬𝐞𝐡𝐨𝐥𝐝
When it comes to properties, you’ll come across one of these terms, Leasehold or Freehold. Often we purchase a property with only thoughts of the physical house, whether it’s a condominium or a landed home. As such, not many homebuyers knew that the properties they are buying might not sit on the same type of land.
However! Is it essential to know the differences?
We’ll let you be the judge as we delve into the land titles.
The popular choice among homebuyers, freehold is a land that belongs to you in perpetuity. There is no government control, allowing developers to build freehold bungalows, condominiums, and even private homes on that piece of land. A freehold property holds the least stringent limitations, allowing you to subdivide or allocate the land to however you please. You could even have public works on your land! Although it is still subjected to any town planning controls.
For condominiums or other high rise residential properties, it is slightly different when owning a freehold property. The land of the development is still mainly owned by the developer. For homebuyers of high rise homes, only a stake that is dependent on the unit is owned. The transfer of ownership is less hectic than leasehold properties.
The lesser favored title in the market. Leasehold is where a plot of land is leased to you for some years. In Malaysia, it is 30, 60, or 99 years. In some cases, it could go to 999 years! When the term expires, the ownership of the land is transferred back to the State authority. To extend, one must apply for renewal before the expiration and pay a premium when it is approved, which depends on the current market value of the property. The sum expected could go up to the original sum paid.
Leasehold land is more restrictive in comparison with freehold land, limiting the type of activity that could be performed on the land, such as land cultivation. It is also more affordable than a freehold property, and better equipped with facilities as well as features to make it more attractive. Nevertheless, the uncertainty of renewing the lease in older leasehold properties may prove them difficult to sell. Bank loans are also not easily approved when you lease a property on a shorter tenure; many would prefer at least more than 50 years remaining on the lease. On the off chance that you do get the loan, the financing might be lower than a freehold property. Therefore, you have to fork out more money for the down payment.
When buying a property, is it best to be mindful of the land tenure of the property, but it should not be your only deciding factor for purchase. The objective and housing affordability are just as important to consider! Nevertheless, with the current situation, new home buyers are more concerned over the pricing rather than the land title of freehold or leasehold.
Have you ever considered setting foot in the world of real estate investment but don't know where to start? Why not own a rental property? Rental properties come with a variety of benefits and with home ownership rates at their lowest in the last 50 years, this might be the perfect time to own a rental property. Here are our top 3 benefits of owning a rental property.
𝗜𝗻𝗰𝗼𝗺𝗲 𝗳𝗿𝗼𝗺 𝗥𝗲𝗻𝘁𝗲𝗿𝘀
The greatest advantage of owning an investment property is that the leaseholders will give you an immediate pay stream. Those monthly rent dues will go straight with your bank account. Ideally, this would cover your cost for the month.
For instance, in the event that you rent your house for RM2,000 every month, that house when rented out for a complete year will put RM24,000. into your account. This is an attractive offer if you are looking to make some money on the side or if you are looking for financial security during retirement. Moreover, rental income is subjected to being taxed differently compared to your employment income.
𝗜𝗻𝗰𝗼𝗺𝗲 𝗳𝗿𝗼𝗺 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗩𝗮𝗹𝘂𝗲 𝗚𝗿𝗼𝘄𝘁𝗵
Another great benefit of owning a rental property is that your rent can increase on the property over time regardless of whether or not the property experiences any upgrades. Although, this is quite subjective to where your rental property is. In some areas, the value can increase over the years while in other areas it remains constant.
The other factor that you ought to consider is that your sweat equity is probably going to increase the value of the property as you maintain and redesign it. Doing things like putting up a fresh coat of paint, including new siding, refurbishing the inside and etc will enhance the value of your home without a significant expense. Not only would you be able to charge more on the lease, but it will also increase the value of the property itself should you decide to sell it later on.
If you are someone who enjoys home improvement projects, this ought to be a significant plus point for purchasing a rental property.
For certain individuals, owning an investment property may be a brilliant financial move to make. If you have some time and money to spare already why not take the leap on owning a rental property. Much like with any real estate investment, be patient and do your research in finding the best deal possible to get the most out of your money.
𝐖𝐡𝐚𝐭 𝐃𝐨𝐞𝐬 𝐇𝐎𝐀 𝐌𝐞𝐚𝐧 & 𝐎𝐭𝐡𝐞𝐫 𝐅𝐀𝐐𝐬
Regardless of how active you are in the real-estate world, odds are you have heard about the homeowners association at some point. How does the homeowners association work? For what reason do they exist? We answer these questions you might have in the guide below.
𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮𝗻 𝗛𝗢𝗔?
Homeowners Association (HOA) is a group of property holders or homeowners inside a specific subdivision or apartment. HOAs normally comprises of a board of directors that have been elected by local property holders to keep up the set rules and regulations. At the end of the day, HOAs are just chosen people entrusted with keeping up an area's state of affairs. Most HOAs center around saving and improving the homes inside its jurisdiction.
𝗪𝗵𝘆 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝗛𝗢𝗔𝘀 𝗘𝘅𝗶𝘀𝘁?
Homeowners association is normally formed by the real estate developer who is in charge of the community. The HOA exists so that they can monitor the neighbourhood and guarantee it keeps on thriving. Furthermore, the developers will keep the HOA up to date with their most recent projects as a method of advertising, managing and selling homes. HOAs are a path for developers to keep up their presence in the community once everything is built and handed off.
𝗛𝗼𝘄 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝗛𝗼𝗺𝗲𝗼𝘄𝗻𝗲𝗿𝘀 𝗔𝘀𝘀𝗼𝗰𝗶𝗮𝘁𝗶𝗼𝗻𝘀 𝘄𝗼𝗿𝗸?
HOA is usually set up by the developer of the buildings and is handed off to the homeowners after selling a certain number of lots. People who buy a home that is governed by their respective HOA will be required to obey the rules set by the HOA. Moreover, the homeowners have to pay monthly and annual fees which will be used to enhance the community they live in. Even though there are fees to stress about, they normally improve living conditions and in some cases may even increase the value of the homes nearby.
𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗛𝗢𝗔 𝗱𝘂𝗲𝘀?
To maintain and upkeep the neighbourhood, HOAs will require the homes situated inside their area to pay what are known as dues. Also called fees, HOA dues are usually collected on a monthly or yearly basis. These dues can be higher or lower depending on the size of the home and services provided by the HOA. For instance, neighbourhoods that offer shared amenities, such as a local pool would normally have higher dues.
𝗗𝗼 𝗿𝗲𝗻𝘁𝗲𝗿𝘀 𝗽𝗮𝘆 𝘁𝗵𝗲 𝗛𝗢𝗔?
Yes, in spite of not owning the property, tenants who move into an area with an HOA will be required to adhere to the guidelines set by the association and at times include paying the dues.
In some cases landlords could be subjected to the HOA dues, however, this would be determined in the lease agreement beforehand. Additionally, landlords are responsible for giving leaseholders a copy of the CC&Rs upon move in, so they know about the local neighbourhood rules. If the leaseholders have any questions in regards to the HOA they will need to communicate with their respective landlords.
We hope that this guide answered some of the questions you had about the HOA.
𝟓 𝐑𝐞𝐚𝐬𝐨𝐧𝐬 𝐖𝐡𝐲 𝐁𝐚𝐧𝐤𝐬 𝐑𝐞𝐣𝐞𝐜𝐭 𝐘𝐨𝐮𝐫 𝐇𝐨𝐦𝐞 𝐋𝐨𝐚𝐧
Applying for a home loan is a very tedious procedure. It takes a lot of your time and effort to get all the legal documents ready. However, not all home-loan applications go through and your application gets rejected. Here are a few reasons as to why your home loan application has been rejected.
𝟭) 𝗜𝗻𝗰𝗼𝗺𝗲 𝗰𝗿𝗶𝘁𝗲𝗿𝗶𝗮 𝗮𝗿𝗲 𝗻𝗼𝘁 𝗺𝗲𝘁
A common reason for your bank to reject your home loan is often because your income does not tally with your loan amount. Simply put, it means that the bank thinks you cannot afford the loan. For example, your monthly income could be RM3500 but your loan repayment per month is RM3000, so would it make sense for the bank to approve the loan for you?
𝟮) 𝗧𝗵𝗲 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿 𝗼𝗿 𝘀𝗲𝗹𝗹𝗲𝗿 𝗵𝗮𝘀 𝗯𝗲𝗲𝗻 𝗱𝗲𝗰𝗹𝗮𝗿𝗲𝗱 𝗯𝗮𝗻𝗸𝗿𝘂𝗽𝘁
Banks check all ongoing legal proceedings or for bankruptcy using a system called Credit Tip-Off System (CTOS). If your developer or seller has declared for bankruptcy, the transaction will not be approved by the bank. So it’s always cautious to check by yourself before applying for the home loan.
𝟯) 𝗧𝗵𝗲 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿 𝗵𝗮𝘀 𝗯𝗲𝗲𝗻 𝗯𝗹𝗮𝗰𝗸𝗹𝗶𝘀𝘁𝗲𝗱 𝗯𝘆 𝘁𝗵𝗲 𝗯𝗮𝗻𝗸
Each bank has its own record of developers that they have blacklisted. Most of the time the list varies from bank to bank. Each bank usually has their own reasons as to why a specific developer has been blacklisted. Much like the above-mentioned reason like bankruptcy, other reasons may include being sued in court or have a bad track record with that bank.
𝟰) 𝗡𝗼𝘁 𝘀𝘂𝗯𝗺𝗶𝘁𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗱𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝘀
Submitting the right documents should be given the topmost priority when you apply for a home loan. It is absolutely essential to have all the right documents including everything related to income. Some important documents that you should submit to the bank in order to ensure that the home loan application process goes smoothly include, salary credit bank statements and the booking form by the property developer. Do make a note to double-check simple things on your application forms like your address and contact number.
𝟱) 𝗬𝗼𝘂𝗿 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗵𝗮𝘀 𝗮 𝗹𝗲𝗮𝘀𝗲𝗵𝗼𝗹𝗱 𝗼𝗳 𝗹𝗲𝘀𝘀 𝘁𝗵𝗮𝗻 𝟯𝟬 𝗼𝗿 𝟲𝟬 𝘆𝗲𝗮𝗿𝘀 𝗼𝗳 𝘁𝗲𝗻𝘂𝗿𝗲
This reason solely depends on the bank. Some banks do not finance loans on properties with a remaining lease of 30 or 60 years. The bank views this type of property as “high-risk financing” as the property value itself drops towards the end of the lease.
If your loan is to get rejected, don't lose all hope. You might not be able to tick all the boxes at one bank but that does not mean that you won't be approved at the next one. Most of the reasons stated above depends on the criteria each bank has set for itself. However, it is important to note that you will have to wait 3-6 months before your next home loan application.
By 2021, It is predicted that a large proportion of home buyers and real estate will include Millennials. Why not get a head start in the financial game in life early? It might be daunting to get into real estate young but and may seem challenging, but it is definitely not impossible! Here are a few reasons why you should invest in real estate young.
One thing about millennials is that they tend to have a more flexible personal life. They aren’t tied down with children or elderly parents. Investing in real estate takes time to acquire the knowledge required. It takes a lot of surveying and paperwork to purchase a home. This is why millennials have the added advantage of leisure.
Beyond the idle hours, millennials tend to have flexible budgets. They don't have expenses like a child’s school fees or a spouse to support. This means they can put a bigger percentage of their pay checks towards real estate investments.
Millennials tend to be more open to the idea “House-hacking”. House-hacking ins when you rent out a spare bedroom or acquire a housemate for the purpose of covering the mortgage or having financial flexibility. What might seem unconventional for the older generation might simply be what’s right for the younger generation.
When you start investing young, you get the benefits early. You have the option to retire early, take that cruise ship around the world. Investing early gives you the satisfaction of retiring for a comfortable living. If you invest by the age of 25, you have at least another 25 years before you hit your retirement age.
Learning the art of real estate investments will take time and research. However, with the right decisions, you can be set for a very comfortable life!