Posts Tagged ‘Malaysia Property Sector’

Malaysian Budget 2009 highlights and its impact on property sector

Saturday, August 30th, 2008

The 2009 Budget Speech was presented by the Prime Minister of Malaysia in Parliament House on 29th August 2008 and the highlights of the RM207.9 billion Budget are here(English), here(Malay) and here(Mandarin).

Highlights of Budget 2009 on property and housing :

a) First time house purchasers are eligible for 50% stamp duty waiver on sales and purchase agreement signed during the period of 30th August 2008 to 31st December 2010. Unlike budget 2008, The 50% stamp duty exemption to be extended to loan agreements as well to further reduce the cost of buying medium-cost houses of up to RM250,000. More related information on 50% stamp duty waiver at here, here and here.

The move is expected to help purchasers for homes costing under RM250,000 to save up to RM2,625.00 on stamp duty waiver on transfer instrument and loan document.

Example :

Stamp Duties

i) Loan Agreement
0.5% of the loan amount
ii) Transfer of Title (for completed properties)
1% for the first RM100,000
2% for the next RM400,000
3% on the excess above RM500,000

Purchase Price;RM250,000.00, Housing loan @90% of purchase price; RM225,000.00

Stamp Duty payable on transfer instrument; RM4,000.00
Stamp duty payable on loan document ; RM1,125.00
Total stamp duties payable ; RM5,125.00
Apply for 50% waiver on stamp duties ;RM2,562.50
Amount payable ;RM2,562.50

Savings for house purchaser ;RM2,562.50

b) Reducing withholding tax on dividends of Malaysia REITs to 10%

c) RM330m allocation for Jabatan Perumahan Negara to complete 4,400 units of Program Perumahan Rakyat (PPR) Disewa, 1,500 units of PPR Bersepadu and 600 units of PPR Dimiliki. In addition, Syarikat Perumahan Negara Berhad will build 33,000 low cost houses.

d) Increase the size of the Housing Credit Guarantee Scheme (SJKP) to RM100m from RM20m to assist those without fixed income to own affordable houses.

e) RM50 Million conservation funding for heritage buildings following the recent inscription of Malacca and George Town as historical cities of the Straits of Malacca under Unesco’s as World Heritage Sites(WHS). The Unesco listing of these two historical cities is expected to boost tourism and a boon to the property sector of these two cities.

For advisory on individual property investments, purchases and rentals of Penang Properties, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Listing of HEKTAR REIT

Thursday, November 16th, 2006

Hektar Goup has announced the listing of Hektar Real Estate Investment Fund (REIT) on the main board of Bursa Securities tentatively on 4th December 2006. Hektar Group is offering 159 million new reits at a retail price of RM1.05 per unit or indicative institutional price of RM1.11 per unit begining from 15 Nov 2005 to 22 Nov 2006.

Hektar REIT comprises of 2 retail / shopping complexes namely Subang Parade in Klang Valley and Mahkota Parade in Melaka. Both buildings have a total net lettable area of 944,000 square feet valued at RM523 million. The projected distribution yield is 8.00% to 8.80% per annum over the next 3 years. The prospectus of Hektar REIT can be downloaded here .

Izrin &Tan Properties Sdn Bhd (I &T) is the appointed Property Management Company (PMC) of Hektar REIT. Read more on PMC .

For more info on Hektar Reit, click here .