Rubber Research Institute of Malaysia (RRIM)

The redevelopment of the Rubber Research Institute of Malaysia (RRIM) land is part of the greater Kuala Lumpur Strategic Development initiative, under 10^th Malaysia Plan.

Rubber Research Institute of Malaysia (RRIM)

It is in the news that the prequalification process for bids of Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh, Selangor will start by end of this year. EPF will call for the prequalification bids as soon as it gets the government’s nod for the proposed development of the land. Developers who meet the requirements of financing, expertise, reputation and innovation will be considered.

EPF (Kwasa Land Sdn. Bhd., EPF’s wholly owned unit) is the landowner and master developer of the project. EPF bought 890 hectares of the total 1,215 hectares supply from Federal Government for over RM2bil. EPF will then carve the land out into 20 hectares to 200 hectares each parcel. The balance of Rubber Research Institute of Malaysia (RRIM) land is for :

• Malaysian Rubber Board hub (217 hectares)
• My Rapid Transit (MRT) Sungai Buloh depot (72 hectares)

The latest news as published in Star last week, Dijaya Corp Bhd is talking with EPF on jointly developed certain parcels of Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh. Rubber Research Institute of Malaysia (RRIM) land begins from My Rapid Transit (MRT) Sungai Buloh depot in the Northern portion and end with the Southern portion bordering the Tropicana Gold & Country Resort, a development by Dijaya. In order to have an access directly to Petaling Jaya, an access road through Tropicana Golf Resort is required. As such, Dijaya is currently in the midst of preparing an amalgamation deal. Dijaya in April already entered into agreements with several vendors for a proposed acquisition of 73 properties, comprising 49 parcels of land and 16 buildings for RM949.9mil.

Rubber Research Institute of Malaysia (RRIM)

Costs involved to buy a property in Malaysia

What are the costs involved to buy a property in Malaysia? Below are the summary of it : -

Booking fee:

2% of the purchase price. The amount is subject to negotiation between the seller and buyer.

Down payment upon signing of Sales & Purchase Agreement (SPA): 10% of the purchase price (inclusive of the booking fee.

Stamp duty for Memorandum of Transfer:

First RM 100,000	1%
Next RM 400,000	2%
Above RM 500,000	3%

Legal fee:

Legal fee for Sales & Purchase Agreement *	First RM 150,000	1%
	Next RM 850,000	0.7%
	Next RM 2 million	0.6%
	Next RM 2 million	0.5%
	Next RM 2.5 million	0.4%
	Next RM 7.5 million	Negotiable

*The legal fee is subject to a minimum RM 300 fee and for the purchase of a low-cost or medium cost houses governed by the Housing Development (Control & Licensing) Act 1966 (HAD 1966), special concession of flat rate of RM 250 is given to the lower income group.

Valuation fee (applicable for subsale buyer for loan security purposes):

	Fee for other capital valuation / rating valuation services based on an 'Improved Value' basis 1		1/4% of the first RM100,000
			1/5% of the residue up to RM2 million
			1/6% of the residue up to RM7 million
			1/8% of the residue up to RM15 million
			1/10% of the residue up to RM50 million
			1/15% of the residue up to RM200 million
			1/20% of the residue up to RM500 million
			1/25% of the residue over RM500 million
Estate agency fee  (applicable if you engage an Estate Agent):
Sale or purchase		Land and buildings Maximum fee of 3%

And of course abit of miscellaneous charges from developer, lawyer and banks to be paid for buying a property in Malaysia.

KUALA LUMPUR INTERNATIONAL FINANCIAL DISTRCIT (KLIFD)

If you have heard of KUALA LUMPUR INTERNATIONAL FINANCIAL DISTRCIT (KLIFD) yet not sure what is it about, below is a summary of the KUALA LUMPUR INTERNATIONAL FINANCIAL DISTRCIT (KLIFD) .

This is one of the early entry point projects under Malaysia’s Economic Transformation Programme (ETP), national roadmap to more than double Malaysia’s per capita income to RM48k in 2020, while propelling the nation to a high-income economy. This RM26 bil project, which will house a physical clustering of the right mix of key international institutions and support services, is estimated to grow to 3 times its current size by 2020. The Kuala Lumpur International Financial District (KLIFD) is a key to strengthen the position of Kuala Lumpur as the global financial city of choice.

The master planner Machado and Silvetti Associates and the Malaysian partner, Akitek Jururancang (M) Sdn. Bhd. are the master planners for KLIFD. With the land size of 28.3 hectare, this project will spearhead a greener Greater KL with green spaces, sustainable buildings, limited motor vehicle usage, large tranquil parks coupled with rooftop gardens and solid waste management eco-system.

KLIFD is with the aim to make sure the green areas are highly functional, encourage the creation of community, making public spaces viable and adopt the top waste management system.

The preliminary work will start on 1^st July, and in operation in 2016.

Location

Located in the heart of KL, KLIFD lies at the city’s southern tip. It sits in between Jalan Tun Razak, Jalan Sultan Ismail and the Putrajaya elevated highway. KLIFD will expand the city’s business centre and touist belt, from the Kuala Lumpur City Centre (KLCC), the Pavilion Retail Centre to Bintang Walk.

To accelerate the development of KLIFD, the Government proposes the following incentive package:

• Income tax exemption of 100% for a period of 10 years for KLIFD  status companies;
• stamp duty exemption  on  loan  and  service  agreements  for KLIFD  status companies;
• Industrial Building Allowance and Accelerated Capital Allowance for KLIFD Marquee Status Companies; and
• Income tax exemption of 70% for a period of 5 years for property developers in KLIFD.

KUALA LUMPUR INTERNATIONAL FINANCIAL DISTRCIT (KLIFD)



KUALA LUMPUR INTERNATIONAL FINANCIAL DISTRCIT (KLIFD)



KUALA LUMPUR INTERNATIONAL FINANCIAL DISTRCIT (KLIFD)



KUALA LUMPUR INTERNATIONAL FINANCIAL DISTRCIT (KLIFD)

You One @ Subang USJ launched in June 2012

You One @ Subang USJ

You One @ Subang USJ is located at Subang Jaya. This project consists of 2 blocks of serviced apartments with 35-storey and 31-storey respectively. Both the blocks were continuously launched within 3 weeks in June 2012 and received quite good respond. One of the block is 100% sold and the other one is 40% sold.  


location map (You One @ Subang USJ)

Summary details of this project :
Land area : 2.9 acres
Tenure : Freehold
Total Unit : Block A : 269 & Block B : 311
Sizes : 650, 1300, 2600
Density : 200 units per acre (commercial title, plot ratio applied)
Average Selling Price : RM650psf
Developer : PJD landmark Sdn. Bhd.
Webpage : http://www.pjdprop.com.my/youone/


You One @ Subang USJ

Review :
Location : This project is situated at very central of USJ, near to Subang Summit and Giant.

Design : The facade looks good. Various sizes are from as small as 650 to 2600sf, only 8 units per floor.
Price : The pricings at 650psf is at the average condo pricing. This pricing is equal to Mont Kiara and Damansara areas. 
My Notes : Location is good, design look quite up to trend, pricing is a bit steep at USJ area, where at this pricing of 500k onwards, there are still many options of landed properties in this areas, but all are old houses. This project is entitled for DIBS scheme, and all are given 10% discount with additional 2% during the special preview which will make the price at the average of RM580psf.

Malaysia My Second Home (MM2H)

Malaysia My Second Home (MM2H) programme is promoted by the Government of Malaysia to allow foreigners who fulfill certain criteria to stay in Malaysia as long as possible on a social visit basis with multiple entry Visa.

Malaysia My Second Home (MM2H) programme

The Social Visit pass is for a period of ten (10) years (depending on the validity of the applicants’ passport) and is renewable.

Why you should choose Malaysia My Second Home (MM2H)?

• This Malaysia My Second Home (MM2H) program is fully  supported by the Government of Malaysia
• You will have high standard of living with modern infrastructure and facilities
• The cost of living is one of the lowest in Asia
• This is the country that political stability
• People live peacefully with multi racial and this is a cultural country
• All recreation / entertainment / shopping / medical / education facilities well equipped
• There are alot of quality residences in Malaysia

What are the Benefits / incentives of Malaysia My Second Home (MM2H)

• You will have multiple entry visa of 10 years
• May import 1 motorcar from country of citizenship or where last domiciled or purchase 1 new motorcar made or assembled locally free of excise duty & sales tax subject to terms & conditions.
• May purchase up to 2 units of residential houses at a minimum prices above RM250,000 each except for certain areas in Sarawak (Kuching, Miri, Sibu) with the minimum price of RM300,000 each
• May apply for one maid / domestic helper subject to the guidelines of immigration department of Malaysia
• Allow to bring the children who under 18 years old and not married as their dependants.

Do you need to pay Tax?

• Participants are bound by the taxation policies and regulations of this country. However, pension remitted into Malaysia is exempted.

What are the financial requirements?

a. Upon Application

If you are age below 50 years old

• To show proof of liquid assets worth minimum of RM500,000/- and offshore income of RM10,000/- per month

If you are age 50 years old and above

• To show proof of liquid assets worth minimum of RM350,000/- and offshore income of RM10,000/- per month. For those who have retired, show proof of receiving pension from government of RM10,000 per month

b. Upon Approval

If you are age below 50 years old

• To open a fixed deposit account of RM300,000
• To maintain a minimum balance of RM150,000 from 2^nd year onwards under this programme

If you are Age 50 years old and above

• To open a fixed deposit account of RM150,000 or monthly off-shore income of RM10,000
•  To maintain a minimum balance of RM100,000 from 2^nd year onwards under this programme



MM2H

What are the medical requirement?

• All applicants and their dependents are required to submit medical report from any private hospital and clinic registered in Malaysia.
• All applicants and their dependents must possess medical insurance policy which is applicable in Malaysia .

New Launch : Concerto North Kiara

3 blocks of Concerto North Kiara

Concerto North Kiara comprise 2 blocks of 27-storey and 1 block of 29-storey high-rise condominium. It is located at in at the Segambut area, along Jalan Dutamas Jaya. The preview for the 1st block (27-storey) was set on 9 June 2012 and thereafter was officially launched in 7 July 2012. This condominium is developed by BCB Berhad. A developer on listed board based at Johor and Seremban area .

Summary details of this project :
Land area : 5 acres

Tenure : Freehold
Total Unit : 440 (Phase 1 : 162 units)
Sizes : 1580sf – 1867sf
Density : 88 units per acre
Selling Price : RM650psf
Sales status : 65% sold
Webpage : http://www.bcbbhd.com.my

Review :
Location : This project is situated at  Dutamas area, near to Changkat View apartments.

Design : The facade looks good. Standard sizes catered for current family. All the units come with private lift. The units are fully furnished with kitchen appliances ie. fridge, oven & etc. Moreover, in the brochure, they are highlighting the usage of best technology on Dainage System.
Price : RM650psf is a standard market condo rate. As a comparison, Changkat View condo was sold at the range of RM400psf.   

My Notes : Nowadays, we could see condo was sold at the range of RM650 to 700psf.

Upcoming launch : The Veo @ Desa Melawati

The Veo (formerly known as DMBC4) is located at Desa Melawati and is an upcoming launch by Sime Darby in August 2012. The Veo consists of 2 blocks of 30-storey high-rise condominium. It is built on a piece of land 4.2 acres, overlooking into KLCC and Melawati hills.

Summary details of this project :
Land area : 4.2 acres

Tenure : Freehold
Total Unit : 350 (175 units a block)
Sizes : 745 – 2275sf (single unit) ; 2945 - 3245sf (duplex)
Density : 83 units per acre
Indicative Selling Price : RM600psf – 700psf
Webpage : http://www.simedarbyproperty.com/property_view.aspx?productID=738ea257-91d8-44c6-941c-7a7aa16fdca2

Review :
Location : This project is situated on the hilltop of Melawati hill, overlooking into KLCC or mountain. This is a quite good location in overall.

Design : The facade looks good. Various sizes are from as small as studio unit to 2+1 as well as duplex.
Price : The pricings at 600psf – 700psf is at the average condo pricing in Damansara, Petaling Jaya as well as Mont Kiara. 
My Notes : Location is good, design look quite up to trend, pricing is a bit steep at Desa Melawati area. Choosing a good unit with a good view can be considered.

New launch : Bayu Sentul

Bayu @ Sentul is 2 blocks of 26-storey high-rise condominium. It is located at in the heart of Sentul (Taman Dato Senu) encompassing 2.38 acres of land. The 1st block was launched in 30 June 2012 @ 400psf and 2^nd block was launched at 430psf in 7 July 2012. This is condominium developed by Arus Embuna member of Melati Ehsan Group. It is about 3km from YTL project Tamarind and Capers in Sentul.

Summary details of this project :
Land area : 2.38 acres (commercial title)

Tenure : Leasehold
Total Unit : 360
Sizes : 1230 - 1630sf
Density : 150 units per acre
Indicative Selling Price : RM400psf – RM430psf

Webpage : http://www.melatiehsan.com.my

Review :
Location : This project is situated at  at Taman Dato Senu nearby Naili's Corner . It is surrounded by old stalls, old landed houses. It is near to Sentul town, next to a 3-acre central landscaped park.

Design : The facade looks good. Standard sizes (1230 -1630sf) catered for current family size.
Price : The pricings at 400psf (1st phase) & 430psf (2nd phase) are reasonable at current market. 

My Notes : In comparison to Capers launched in 2010 @ 500psf average, this project of course not so impressive in terms of façade and design and inferior location and, yet it could definitely worth the value of RM400psf to RM430psf. Choosing the units facing the park will be a good choice.

What is Sales and Leaseback?

In short this is a sales of an interest in property (freehold or leasehols) and lease back to the seller. This is a easy way and can be considered as best tools to generate capital from Real Estate. This is an effective tool to remain the intention of the seller on what he / she is going to do.

Sales and leaseback is also used by the the corporate or developer mostly in commercial property. The commercial property will be sold at fair market value and leased back. This is important for teh corporate to retain the control of the property.

What are the benefits of sales & leaseback?

• Income guranteed.
• Free-up capital for re-investment.
• Improve the balance sheet.
• Receive 100% of Open market value.
• Low payments with long terms (up to 30 yrs or more.).

How do you start?

• Firstly determine the Open Market Value of the property
• Then you will need to ensure the existing or potential cash flow/opportunity cost in the said property.
• Then you determine the Yield that you will be provided
• You will then need to structure the "deal" i.e. Vendor"s Obligations, Purchaser"s Obligations and in some cases, a third party "Lessee"s Obligations".
• The next is of course to package the whole thing together and commence the marketing of the product.

Issues to look out for in a Sale and Leaseback scheme include:

1. Term of Tenancy. The longer the better, but the norm is usually 3+3
2. Date of Commencement of Tenancy, especially if you have bought an off the plan development. Ensure that the date is confirmed
3. Rental Amount. It will usually be a percentage of the Purchase Price or in some cases will also include a profit sharing ratio. 6%-8% on both gross and nett levels are acceptable. While the profit sharing ratio will be 65% to the owner and 35% to the Seller/Nominee. Ensure the operating expenses are captured or excluded. 
4. When the Rentals are Paid. For cashflow reasons, please check this clause carefully. Payment mode will differ from Quarterly, Half Yearly or even Yearly in advance
5. Furnishing (if applicable). In most serviced apartments or hotel, furnishing is a requirement. Ensure if it is part of the purchase price or is separate and also ensure that the furnishing is the same for the whole development. This would make sure that there are no preference units.
6. Sinking Fund. Look out for the establishment of the sinking fund for the Building. Very important especially is sale on Strata. In event the sale includes the Furniture, ensure the Seller/Operator also provides a sinking fund for your furniture.

How a foreigner can invest in Property in Malaysia

All property acquisitions by foreign interest that do not require the approval of FIC but falls under the purview of relevant Ministries and / or government departments are as follows : -

1. Acquisition of commercial unit valued at RM500,000 and above
2. Acquisition of agricultural land valued at RM500,000 and above or at least five acres in area for the following purposes :
• To undertake agricultural activities on a commercial scale using modern or high technolog
• To undertake agro-tourism projects
• To undertake agricultural or agro-based industrial activities for the production of goods for export
3. Acquisition of industrial land valued at RM500,000 and above
4. Acquisition of residential units valued at RM250,000 and above. The said minimum threshold will be increased to RM500,000 beginning 1 January 2010
5. The transfer of property to a foreigner based on family ties is only allowed amount immediate family

Restrictions
Foreign interest is NOT allowed to acquire : -

1. Residential units valued less than RM250,000 per unit (RM500,000 per unit as of 1 January 2010).
2. Properties other than residential units valued less than RM500,000 per unit
3. Residential units under the category of low and low-medium cost as determined by the State Authority
4. Properties built on Malay Reserve Land
5. Properties allocated to Bumiputera interest in any property development project as determined by the State Authority

How to calculate return on investment?

A simple question, how to calculate return on investment?

Investment in property may take much time and effort than you may expect. When you find a great deal, you might need to leverage on other people’s money to increase your return of investment.

How to calculate the return of investment?
Generally, there are 2 components of returns, rental yield per annum and capital gain or so-called capital appreciation.

What is rental yield?
Rental yield is the return based on rental income from the property less maintenance expenses incurred versus the total purchase price of the property. There are gross and net rental yield. Gross Rental Yield is rental versus the purchase price before the expenses incurred and so on and so forth. In rules of thumb, the Net Rental Yield is approximately 85% of the Gross Rental Yield.

There is another rental yield called Net Leverage Rental Yield. This means, the financing cost is taken into calculation when rental yield calcualted. The expenses incurred inclusive of finance cost versus the net gain is defined as Leverage Rental Yield.

What determine the property value in Malaysia

What is the main concern of buying a property? Location? Type? Rental Returns? Property Value?

Thinking of this question, we must first ask ourselves what are the investment objectives, namely, target of return, investment time horizon and etc.

Amongst the main determinants of property value include : -

1. Location – This is to determine there is a demand by the target market for this location. Research on the historical rate of property value appreciation in that particular location for similar property is essential.
2. Property type and size – residential or commercial each have different target market, dependent on location, attracts different tenant profiles.
3. Rental returns – Find out how much rent can fetch by researching the rental values of similar properties in the area and determine the cost of owning and maintaining.
4. Cash flow – evaluate the property’s potential to generate income as against cash outflows. Earliest positive cash flow is excellent.

Always, will property value appreciate is the main consideration when investing in property no matter where.