Buying Property 2020
The start of a new decade often spurs people on to make financial decisions and goals, and if one of yours is to buy a house, you may be wondering whether 2020 is the right time to do so. The answer? It depends.
Should you buy a property 2020 ?
One good reason to buy a home this year? Mortgage rates are at an all-time low. As of this writing, buyers with a credit score of 760 or above could qualify for a 3.301% APR on a 30-year fixed mortgage.
Whether now’s the right time to buy a home should largely boil down to your personal financial circumstances more so than mortgage rates and housing market inventory. Keeping the above in mind, this year could be the right one to buy a home if you can check the following
Keeping the above in mind, this year could be the right one to buy a home if you can check the following
- You have good credit. Though it’s possible to qualify for a mortgage with a lower credit score, the higher yours is, the more likely you are to get approved for the most competitive rates available. And that could be your ticket to making home ownership more affordable.
- Your current debt load is manageable. Your debt-to-income ratio measures your monthly debt obligations relative to the income you bring in. The lower it is, the greater your chances of getting approved for a mortgage. But home loan approval aside, having less debt means you’re better equipped to take on the expense of a home, so rather than focus on that ratio alone, think about how you’re managing the debts you already have. If you can pay them easily, then taking on more debt in mortgage form is something you can likely swing, but if you’re already struggling, you may want to hold off.
- You have a solid amount of savings. You need savings to not only make a down payment on your home but also to keep up with its ongoing costs and buy yourself protection in the event of unplanned repairs. Ideally. On top of that, you should have enough money left over to cover three to six months of essential living expenses, housing costs included.
- You have a steady job. If you’ve been with the same company for years, have a good reputation, and have reason to believe your job is stable, then this year may be a good one to buy. But if you’re not confident in your job situation, it definitely pays to wait a few years, get settled at a new company or in a new career, and then move forward with your home buying plans.
Bank Negara Malaysia (BNM) cut its overnight policy rate (OPR) by 25 basis points (bps) to a record low of 1.75%
Including latest OPR cut, BNM has slashed the OPR four times so far this year for a cumulative 125bps reduction.
On Jan 22, 2020, BNM cut the OPR by 25 bps to 2.75% followed by another 25bps reduction on March 3 to 2.5%.
On May 5, BNM slashed the OPR by 50 bps to 2.00 and now witn the latest low cut rate of 1.75%.
The Impact of covid -19
The impact of COVID-19 on the global economy is severe. Global economic conditions remain weak with global growth projected to be negative for the year.
Although a trough is expected in the second quarter, broad-based weakness in labor markets and precautionary behavior by households and businesses could affect the recovery going forward and the pace and strength of the recovery, however, remain subject to downside risks emanating from both domestic and external factors.
Several major economies have begun relaxing measures to contain the COVID-19 pandemic, leading to the gradual resumption of economic activity.
The reduction in the OPR provides additional policy stimulus to accelerate the pace of economic recovery. The MPC (Monetary Policy Committee) will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth. opr rate
The HOC was a government initiative designed to support home buyers looking to purchase property. At the same time, it also encouraged the sales of unsold properties in Malaysia’s housing market.
With growing desire for home ownership among-st Malaysians, particularly in popular urban areas, the HOC initiative was designed to match aspiring home-seekers with all those empty homes.
The Home Ownership Campaign (HOC), which ran throughout 2019, was designed to encourage the increase in home ownership among Malaysians. And now, it’s back again from June 2020 till 2021.
The financial incentives & benefit that were offered as part of the scheme.
Full stamp duty exemption till RM1 million
Under the scheme, successful applicants enjoyed 100% stamp duty exemption on Instrument of Transfer for any residential home purchase up to the value of RM1 million.
Partial stamp duty exemption till RM2.5 million
For properties worth more than RM1 million up to RM2.5 million, you paid 3% stamp duty on the Instrument of Transfer for the amount that’s more than RM1 million.
|Property Prices||Stamp Duty|
|RM100,001 to RM500,000||Exempted|
|RM500,001 to RM1,000,000||Exempted|
|RM1,000,001 to Rm2,500,000||3%|
How do you save on it ?
assume your property purchased price was RM500,000 in between with & without HOC scheme.
|without HOC||with HOC|
|Down payment (500,000 x 10%)||RM50,000||RM0|
|Stamp duty on loan (450,000 x 0.5%)||RM2,250||RM0|
|Stamp duty on MOT (100,000 x 1% +|
350,000 x 2 %)
Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million (subject to at least 10% discount provided by the developer).
The exemption on the instrument of transfer is limited to the first RM1 million of the property price, while full stamp duty exemption is given on loan agreement effective for Sale and Purchase Agreement (SPA) signed between 1st June 2020 to 31st May 2021.
Instruments on secure loan exemptions.
Instruments on secure loan exemptions.
All properties within the scheme enjoyed a further stamp duty exemption on the Instrument of Securing Loan up to Rm2,500,000 purchase price.
Eligibility (term & conditions)
The Home Ownership Campaign covered registered residential properties with a value between RM300,000 and RM2.5 million. Those properties must be registered with the relevant authority for each region. it’s important to note that properties classified as a SoHo, SoFo, or SoVo were not qualified for the HOC either.
Eligibility only applies to those registered residential properties listed by developers within the scheme. covered registered residential properties with a value between RM300,000 and RM2.5 million. Those properties must be registered with the relevant authority for each region.
Know more about home ownership campaign 2020
Know more about home ownership campaign 2020
Does it apply to secondary markets?
No, the HOC 2020 only applied to new properties registered under the campaign from specific developers.
Did all properties receive a 10% discount?
A minimum 10% discount applied on all properties within the scheme, with the exception of those subject to government price controls.
Can I buy multiple properties under the campaign?
Yes, you can. There was no limit to the number of properties you can purchase, and get stamp duty exemptions for all, under the HOC 2020.
Do I have to pay a fee to participate?
No, the campaign is free. Developers must pay a registration fee but that does not apply to home owners.
What was the exemption amount on the Instrument of Loan?
The exemption on an Instrument of Loan amount covers 0.5% of the loan agreement. That amount covers the standard stamping fee for such an instrument.
**Details of the home ownership campaign 2020 will be updated upon the official release of government gazette.
The government will extend the Wage Subsidy Programmed worth RM5 billion for another three months to promote employee retention and reduce layoffs.
Prime Minister Tan Sri Muhyiddin Yassin, in announcing the Economic Recovery Plan (Penjana), said the wage subsidy was well received when it was introduced in the Prihatin Rakyat Economic Stimulus Package in March and April.
He added that the wage subsidy is set at RM600 per month per employee, for up to 200 workers per company.
Muhyiddin said that under this initiative, the wage subsidy would also be applicable for employers in the tourism sector or other sectors prohibited from operating during the Conditional Movement Control Order.
“Employers are allowed to apply for the wage subsidy for employees on unpaid leave, but employees must receive the subsidy directly.”
Meanwhile, Muhyiddin said the government would introduce a Hiring Incentive Programme worth RM1.5 billion to encourage the hiring of the unemployed.
He said it was estimated that this incentive would benefit 300,000 job seekers through two initiatives.
“The first is to hire unemployed people aged below 40, with an incentive of RM800 per month per worker.
“The second is to hire unemployed people aged 40 and above and disabled persons with an incentive of RM1,000 per month per worker,” he said, adding that the incentives would be provided for up to six months.
Home Ownership Campaign (HOC) 2019 is an initiative announced by the Minister of Finance, YB Mr Lim Guan Eng, during the tabling of Budget 2019 last November whereby Malaysian house-buyers will be exempted from stamp duties for purchase of residential units made between January to June 2019. Developers will also offer attractive discounts and packages for house purchases made during the period. HOC is open to all home buyers to encourage property ownership and stimulate the Home ownership Campaign.
Conditions for Registration of Residential Properties for Purpose of Stamp Duty Exemption
- Stamp duty exemptions are given for residential properties which are sold during the period between 1 January 2019 to 31 December 2019.
Eligibility for Exemption
- Only ‘residential properties’, defined as houses, condominium units, apartments and flats including service apartments built and used as dwelling houses – with valid Developer’s Licence (DL) and Advertisement and Sale Permit (AP) or CCC (where applicable) are eligible to register, all other property types are not included in this exercise;
- The service apartment must be for residential use only and cannot be converted for commercial activities;
- Property prices : RM300,001 to RM2.5 million (before discount);
- It must be a sale from a developer to a purchaser or co-purchasers, all of whom are Malaysian citizens;
- The stamp duty exemptions are applicable for the purchase of residential unit/s for Sale & Purchase Agreement executed between 1 January 2019 to 30 June 2019;
- A minimum of 10% discount (from selling price) is applicable to all units that are not subjected to government price control.
- Eligible properties in Peninsular Malaysia must be registered with REHDA Malaysia. Eligible properties in Sabah and Sarawak must be registered with SHAREDA (shareda.com) and/or SHEDA (www.sheda.org.my) respectively;
- The stamp duty exemption is applicable to the following in relation to the purchase of residential property by an individual Malaysian citizen:
Instrument of transfer
House Price for first RM100,000 = Exempted
RM100,001- RM500,000 = Exempted
RM500,001 – RM1,000,000 = Exempted
RM1,000,001 – RM2,500,000 =3%
Instrument on securing Loan are exempted up to RM2.5 mil
*HOC 2019 is an initiative by the Government to address the property overhang issue in the country, and to further stimulate the housing sector. As such, the Government offers stamp duties exemptions on Instrument of Transfer and Instrument on Loan Agreement.
*The Campaign is open to ALL Malaysian individuals.
*The Sale and Purchase Agreement (SPA) must be signed within the Campaign period.
*Exemptions are applicable only for residential properties (including serviced apartments) that are completed or under construction, and governed by the Housing Development Act with valid developer’s license (DL) and advertisement and sales permit (AP) and/or Certificate of Completion and Compliance (CCC).
*Only residential properties in the primary market are eligible for the stamp duties exemptions, thus sale must be from a developer to a purchaser.
*A minimum 10% discount must be given by the developer, provided that the residential units are not subject to Government price control.
*The discount is given based on approved APDL pricing and must be reflected in the SPA.Eligible properties in Peninsular Malaysia must be registered with the Real Estate and Housing Developers’ Association (REHDA) Malaysia, while eligible properties in Sabah and Sarawak must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA) respectively.
Sales And Purchase Agreement A sales and purchase agreement (SPA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service. SPA’s are found in all types of businesses but are most often associated with real estate deals as a way of finalizing the interests of both parties before closing the deal.
While purchasing a property, one will not feel secure by merely signing only the Letter of Offer and Letter of Acceptance, notwithstanding the vendor or the purchaser. This insecure feeling of will persist until the signing of the formal agreement – Sale and Purchase Agreement (‘SPA’). SPA is the main contract governing both parties and setting out the details like the agreed purchase price, conditioning precedents to be fulfilled, the payment manner, the details of the property, loan, the manner of delivery of vacant possession and any other arrangement in this buy sell event. Therefore, it is utmost important to understand every detail in the SPA because you are bound by whatever you sign.
This article will focus on the salient items in a SPA. There is no such thing as a standard SPA as the spirit of an agreement is to set out the terms mutually agreed by the parties. The purchase price is fixed upon signing the Letter of Offer, but the bargaining process continues during the period before the SPA is signed. The good news for home buyers in Peninsular Malaysia is where the lawmakers have laid down a set of SPA terms for the Developers to adopt in the Housing Development (Control and Licensing) Regulation 1989. The developers may only amend the stipulated SPA if they are offering better terms, ie. shorter delivery of vacant possession period or longer defect liability period. Although this set of SPA is only applicable when one buys residential properties from developers, it also serves as a good guideline for all other SPA terms to follow, ie. buying commercial property from developers, buying any property from sub-sale market. As a result, it will absolutely cut down the people who go to court due to the ambiguity of the SPA signed.
The most important factor in the SPA will be the manner of payment, regardless the vendor or purchasers. Purchasers must know the manner of payment of purchase price not only to manage his/her finance but also not to incur penalties by accidentally/unintentionally breaching the terms in the SPA. Purchasing a residential property from developers, the billing stages are stipulated clearly in schedule 3 of the SPA. The manner of payment in a sub-sale agreement will be less complicated as the transaction period is shorter and the property is usually ready for delivery. The common process will be the first 2-3% as a booking fee upon signing the Letter of Offer, the remaining 10% deposit is due during the signing of the SPA, then the remaining purchase price of 90% to be settled within 3 months after signing the SPA. In some events, it may be automatically extended for a further 1 month by incurring late payment interest. As mentioned, there is no standard SPA, one may decide to deviate from the norm if it is agreed by both parties.
What purchasing a property, your next major concern will be the time you can get the vacant possession. Vacant possession is a legal term that means the property is in a state fit to be occupied. In simpler words, this means the delivery of access keys and cards to your newly purchased property. For residential development by developers, vacant possession has to be delivered within 24 months for landed property and 36 months for high rise stratified building. On the other hand, delivery of vacant possession for sub-sale is usually 3 – 5 working days after the purchaser settle the full purchase price. The SPA is subjected to the tenancy when the purchaser is purchasing a tenanted unit. The purchaser will be getting the legal possession as the owner of the property but not the keys to the unit. Effectively, the rental and deposits shall be delivered to the purchaser by way of assignment of tenancy.
If you have purchased a house in secondary market, you will not notice the ‘Defect Liability Period’ clause in the SPA. A defects liability period is the warranty period which the Developer is contractually obliged to repair the defects which have appeared within the period of time due to defective in construction works and material. Contrary to the privilege of having developer’s warranty, the purchase of sub-sale properties requires sufficient due diligence of the purchaser when viewing and inspecting the property before entering into the SPA. Due diligence includes checking every part of the house especially sewage, piping, leakage, electrical appliances, rooting and any other fixtures and fittings to prevent any undesirable situation arise. Should the purchaser require the repair of anything prior to vacant possession, the purchaser shall make sure his/her lawyer inserts this in the SPA.
Be meticulous, be scrupulous. Do not make assumptions but make sure. No purchaser will want to jeopardize his/her deal or ruin your happiness due to your own carelessness. It is always prudent for the parties to inform their lawyer accordingly of their intentions and to enquire the available protection for anything that matters in the sales and purchase transaction during the drafting of the SPA, not after signing on the dotted line.
Signing the Letter of Offer, Sales & Purchase and Loan Agreement
Signing the Letter of Offer
Upon selecting the bank which provides the best offer, the borrower will then need to sign the Letter of Offer. Both parties will need to agree on the price, and upon agreeing to sign the Letter of Offer, the borrower will then need to pay a deposit of 2% to 3% of the purchase price.
The deposit of 2% to 3% is usually paid to a neutral party, often an agent as a stakeholder account. The agent is often referred to as an escrow agent – a grantee.The remaining amount of the purchase price, which adds up to 10%, is usually paid after the Sales & Purchase Agreement is signed.
Signing of the Sales & Purchase Agreement
Following the Letter of Offer, the purchaser will next need to sign the Sales & Purchase Agreement (SNP/SPA). The property buyers are usually given a period of between 2 to 3 weeks to sign the S&P agreement, otherwise they will need to ask the bank for an extension of the Letter of Offer.
Within the time period allocated, the property buyer’s lawyer will need to draft the SNP, conduct the relevant title searches, and get both the buyer and the seller to agree to the various clauses. Upon both parties reaching an agreement, the SNP will then need to be signed in front of the lawyers. A few copies of the SNP will be created, which the purchaser will need to sign all the copies.
It is during this period that the remaining of the downpayment will need to be paid. So if the purchaser has already paid the 2% or 3% during the Letter of Offer stage, they will now need to pay the balance.
The typical causes of delay in this stage is when the money for the balance is stuck in a Fixed Deposit account, or is located overseas. In these situations, there might be delays in transferring the money back to Malaysia to make the payment.
Upon receiving the balance of the money, the purchaser will then need to sign all the S&P copies. However before signing, the purchaser will first need to ensure that all the salient details are accurate. The details that should be checked and must be correct .
Signing the Loan Agreement
Upon signing the S&P which dictates the terms between the buyer and seller, the next document that the purchaser will need to sign is the Loan Agreement. The Loan Agreement is the agreement that is signed between the purchaser and the bank. This document will state all the terms of the loan. The Loan Agreement is usually skewed to the bank’s interest, protecting the bank.
The costs of creating this document will however be borne by the purchaser.
If necessary, a Deed of Mutual Covenant will also have to be signed. The Deed of Mutual Covenant (DMC) is an agreement that is usually applicable only to multi-unit or multi-storey building. It regulates the rights of the owners, and all the subsequent owners of the unit.
Another document that the purchaser may need to sign is the Memorandum of Transfer (MOT). The MOT is a document that is signed to change the ownership of the unit from the previous owner to the next owner.
Purchasers of completed sub-sale developments will be able to sign the MOT immediately – which will require payment – while purchasers of developments still under construction will need to wait for the development to complete, and wait for approximately 6 months before they will be able to sign the MOT.
Malaysia My Second Home Eligibility
The MM2H programmed is open to all countries recognized by Malaysia but the programmed has numerous requirements. These requirements include a minimum monthly income, minimum liquid assets, a fixed deposit, plus various other rules. The exclusion of foreign spouses of Malaysian citizens was removed in February 2009 and they are now allowed to apply for the MM2H visa.
.It’s encourage through an approved government agent by the Ministry of Tourism. These companies have the initials “MM2H” in the company name.
Upon Application – Financial Requirements For MM2H
Applicants are required to show they have sufficient financial resources to live in Malaysia without seeking employment or other assistance from the government.
Applicants under 50 are required to show liquid assets above RM500,000 and a monthly income of over RM10,000 (equivalent).
Applicants over 50 have to show liquid assets over RM350,000,and a monthly income over RM10,000. Applicants who receive a government pension used to be exempted from making any fixed deposit although recently this exemption is no longer being given.Applicants over 50 have to show liquid assets over RM350,000,and a monthly income over RM10,000. Applicants who receive a government pension used to be exempted from making any fixed deposit although recently this exemption is no longer being given.
Acceptable liquid assets for people over 50 include cash in the bank, bonds and securities.
Upon Approval – Fixed Deposit Requirements For MM2H
Approved applicants over 50 receiving a pension from a Government in excess of RM10,000 a month can request exemption from making the Fixed Deposit. All others have to make a Fixed Deposit as follows.
i) MM2H Applicants aged below 50 years old:
- Must place a Fixed Deposit in a bank account in Malaysia of RM300,000
- Can withdraw up to RM150,000 for the purchase of house, medical insurance or children’s education expenses after the deposit has been placed for one year
- Applicants can use their car purchase grant to withdraw part of their Fixed Deposit after two years.
- Must maintain a minimum balance of RM150,000 from second year onward and throughout stay in Malaysia under this program me.Car purchase (copy of Car Grant issued by the Road Transport Department. Receipt of booking fee is NOT ACCEPTED)
ii) MM2H Applicants aged 50 years and above:
- Must place a Fixed Deposit in a bank account in Malaysia of RM150,000
- Can withdraw up to RM50,000 of the fixed deposit after one year to purchase of house, medical insurance or children’s education expenses.
- Applicants can use their car purchase grant to withdraw part of their Fixed Deposit after two years.
- Must maintain a minimum balance of RM100,000 throughout their stay in Malaysia under this programme.Car purchase (copy of Car Grant issued by the Road Transport Department. Receipt of booking fee is NOT ACCEPTED)
iii) MM2H Applicants who have purchased a house (or houses) with a total value of RM1 million and above.
- Must show evidence of ownership and full payment of the property.
- Must have been purchased within 5 years of application for MM2H visa.
- Will have to place a Fixed Deposit in a bank account in Malaysia of RM150,000 if under 50, and RM100,000 if over 50.It should be noted that the fixed deposit does not have to be placed until after the applicant has received a letter of “conditional approval”. This letter sets out the steps that have to be completed before the visa is issued. This usually consists of placing the Fixed Deposit, having a medical examination in Malaysia and obtaining medical insurance for Malaysia. Once these steps are completed the visa can be collected from the Immigration Department in Putrajaya.
Employment/Business Investment Rules for MM2Hers
MM2H visa holders aged 50 years old and above can work for up to 20 hours a week. This is applicable to visa holders who have specialized skills in certain approved sectors. We are advised the decision on whether to approve part time work is based on the approving committee view on whether a Malaysian could do the job.MM2Hers are permitted to set up and invest in businesses in Malaysia. They will be subject to the same regulations as other foreign investors but will not be permitted to become actively involved in the day to day running of the business. If they wish to do this they must switch their visa to a work permit.
Sponsor/Security (Personal) Bond
All applicants require a Malaysian sponsor to support their application. In addition they will be required to place a Personal Bond of up to RM2000 before the visa will be issued. If the applicant uses an agent then the agent will become the sponsor and the agent is also required to place the Personal Bond for the applicant.
Insurance Coverage and Medical Report for MM2H
Applicants and their dependents must possess a medical insurance coverage from any insurance company that is valid in Malaysia. This may be waived for older applicants who are denied coverage because of their age. All applicants and their dependants are required to have a medical examination from any private hospital or registered clinic in Malaysia. Both these conditions are met after the letter of “conditional approval” is issued.
Applicants are allowed to bring along their dependents (children below 21 years of age, step children, disabled children, and parents) under their MM2H visa. Older dependent children will have to get a separate visa. Dependants attending school in Malaysia are also required to apply for a Student Pass which allows them to continue their education in schools or Institutions of Higher Learning recognized by the government.
Each participant is allowed to purchase an unlimited number of residences above the minimal applicable price set for foreigners buying property in the State where they make the purchase. In most cases the minimum price is RM1,000,000 although some States, like Penang, have lower minimums for Mm2H visa holders. All purchases must be approved by the State authorities. Certain types of property cannot be purchased by foreigners e.g. those on ‘Malay Reserve’ land.
Successful applicants are subject to Malaysian taxes on income sourced from Malaysia but income from overseas is not taxable. Even when foreign income (for example, a pension) is taxed at source by the overseas country they will stop this, once evidence is shown that the person is resident in Malaysia.
Approvals are given subject to security vetting clearance conducted by the Royal Malaysian Police. Applicants will also have to show a police clearance certificate (letter of Good Conduct) from their home country to show they do not have a criminal record.
Successful applicants are not permitted to participate in activities that can be considered as sensitive to the local people like political or missionary activities.
PERMISSION TO STUDY (For Dependent Under Age Of 21 Year Old) Applicants are allowed to bring their children who under 21 years old and not married as their dependents under this programmed.
Please note that tertiary educational institutions (private colleges and universities), requires their students to have a Student Pass. Therefore, MM2H dependents who are enrolling into tertiary educational institutions, are required to terminate their MM2H Social Visit Pass in order to apply for the Student Pass and should be insured throughout their stay under this programme.
Application guidelines for permission to study :
Applicant & Principal Must Be Present.
Application Must Be Below 18 Years Old (above 18 Years Old need to apply student pass)
Copy of approval letter & letter of Intention By Principal / Sponsor
Completed Student Personal Data Form ( available at Immigration Unit)
Original & Copy of Applicant’s Passport
A Passport Size Photo
Letter of Acceptance From Public/ Private Higher Education/ Secondary School/ Pre School or International School
Copy of Principal’s Passport
Letter From Ministry of Education (Except International School)
The Havre Bukit Jalil
A 99-year leasehold land spanning 3.58 acres in Bukit Jalil will bear witness to the development of The Havre, a fully residential high-rise property by Aset Kayamas.
There will be 1,052 units offered in total for The Havre, spread between two blocks towering at 40 storeys each. Having two built-up choices of 1,023 sq ft and 1,239 sq ft, the selling price starts from an average price per square foot of around RM550 which translates to a listing price of about RM580,000.
The Havre wins in scoring a cheaper entry price and having bigger built-up offerings but loses in terms of being a leasehold development, and having a higher number of units. Nevertheless, everyone can agree that for this part of Bukit Jalil (all three projects are developed in the vicinity of Bukit Jalil City), the homes bear premium prices.
The Havre Bukit Jalil is situated at surround of The Centre of Bukit Jalil.
Its located within walking distance to Lai Ming Chinese School, Pavilion Bukit Jalil, LRT Station
Home Loan @ Choosing the right home loan package respectively.
Buying a house is a huge financial decision, there are many types of loans in the market that you can take to pay for the property you intend to buy. How do you know which is the best for you? Take a look at the four most common home loan packages in Malaysia.
This is the most conventional of all the loans. You pay interest and principal throughout the tenure. A term loan has a maximum tenure of 35 years or age 70, whichever comes first, in Malaysia. For example, your monthly installment of RM2,129.66 will consist of RM442.16 being the principal amount and RM1,687.50 being interest incurred. You will pay more interest and less principal in the initial years of repayment. If you would like to pay more to finish the loan earlier, you will need to inform the bank before hand in order to reduce the principal. You will have to do that as otherwise the extra payment will go towards prepayment for the following months.
For overdraft, the borrowers only pay interest portion without having to pay the principal. How much interest you are charged will depend on how much you have utilised the overdraft facility. Overdraft is good for businesses, apart from withdrawing only what they need to meet commitments. Any surplus funds at anytime can be deposited into the overdraft account, therefore reducing the overdraft balances and consequently, the interest charged, which is calculated on daily rest.
Flexi loan is a hybrid between a term loan and overdraft. The borrowers will still need to pay the monthly instalment but can do any additional repayment at any time without informing the bank. The additional repayment will go towards reducing the interest charged on the flexi-loan facility as the principal owing to the bank has now been reduced. This facility makes use of the current account to operate. Be extra careful when you choose this package from the banks as there are banks that charge extra when you pay more towards reducing the principal.
Islamic loan uses the Murabahah concept under syariah principle. Under the Islamic concept of lending, banks will buy the property from the borrower and then rent it back to them. The bank will determine the profit rate in advance after considering the tenure duration. You have a choice to choose either the fixed interest rate or the floating rate. The interest on the floating rate is lower than the fixed.
Do keep in mind that the approval for whichever loan you apply for will depend on many factors – not just your credit score including whether you have a criminal record (burglary, arson, fraud, murder, etc), stable income, existing loans (car, student, personal, etc), credit card debt, and more. If you have a felony on your record, banks may still approve your loan but your interest rate will be higher than normal.
Malaysia My Second Home Program is initiated and promoted by the Government of Malaysia, to allow foreigners to stay in Malaysia for as long as possible, on a multiple-entry Social Visit Pass.
The programmed is open to all nationalities regardless of race, religion, gender or age; where applicants are allowed to bring their spouses and unmarried children below the age of 21 and parents ( above 60 years old), as dependents. The Social Visit Pass is initially for a period of Ten years and is renewable.
Malaysia, Situated in the heart of South East Asia, reflects the very essence of Asia, a bubbling, bustling melting pot of races and religions, where various ethnic groups live together in peace and harmony. The country has much to offer, not least, of which is a low cost of living, make more attractive with relatively high standards of living.
The rapid economic growth of Malaysia has resulted in substantial investment towards infrastructure and the continuous upgrading of facilities to world-class standards. Yet, in spite of rapid growth, Malaysia has not lost its traditional cultural essence and is well-known for its extreme contrasts, which further add to its ” diversity” towering skyscrapers look down upon wooden houses built on stilts, while five star Hotel sit jest meters away from ancient reefs. All this and more has made Malaysia a perfect choice for as my second home.
Malaysia is made up of two distinct geographical parts – Peninsular Malaysia to the west and the state of Sabah and Sarawak on Borneo Island to the east, both of which sit just north of the equator and separated by the South China Sea. Peninsular Malaysia has a border with Thailand to the north and the island of Singapore sit offshore in the south, while Malaysia Borneo shares borders with Brunei and Indonesia.
The total area of Malaysia is approximately 330,000 square kilometer, with most of it located on the island of Borneo. Peninsular Malaysia only comprises approximately 40% of the total area.
Malaysia is not located within the Pacific Ring of Fire Zone, making it free from major natural disasters such as volcanoes, tsunami, typhoons and earthquakes.
The country enjoys a tropical climate, with weather that is pleasant, warm and balmy with moderate rain throughout the year. There are also highland residential areas and resorts with permanent spring-like weather throughout the year, which temperatures are between 15″c (59″F) to 25″c (77″F).
The People of Malaysia
Malaysia is a multi-racial country consisting of Malays, Chinese, Indians and numerous indigenous people. Having lived together for generations, all these cultures have influenced each other creating a truly Malaysia culture.
Culture – A land of charming Diversity
Malaysia is a mosaic of cultures, owing to its colourful historical past and being part of the international spice route many hundreds of years ago. The amalgamated culture is a colorful heritage that is still a large part of daily life practices, despite urbanization of the cities.
The English language is well established as an international language of choice with a large number of people conversing in fluent English. This makes Malaysia especially attractive to native English speakers or those speak enough English to communicate.
Recreation & Entertainment
Recreation and entertainment facilities are abundant in Malaysia, owing to the year – round pleasant weather and natural wonders of its tropical environment. The country has everything for the family, or for individual pursuit of fun and creation – theme parks, jungle trails, world – class cinemas, performing arts theaters and art galleries, sports facilities, water sports and golf courses.
Food and Fruits in Malaysia
Malaysia food is a varied culinary spectrum, originating from Malaysia’s multi-ethnic population. Malaysian relish and celebrate their diverse food, which include an eclectic mix of international food as well; to suit all tastes and budgets. Indulge in gourmet cuisine created by amazing chefs in designer restaurants, or sample an endless amount of treats found at malls, store- fronts, street-side hawker stalls or the 24-hour local ‘mamak’ restaurants; which are run by Muslim-indians. The best part is that eating out is thoroughly affordable in Malaysia.
Shopping – experience the indoor and outdoor shopping.
Malaysians love shopping, which is why there is a huge number of luxury malls, as well as the local street-side stalls and stores. Local regulations ensure items are price-tagged and prominently displayed, Particularly at department stores in shopping mall where prices are fixed. Upmarket shopping malls where everything is designed for shopper convenience; contain banks, foreign currency exchange counters, supermarket, restaurants, entertainment centres such as complexes and bowling alleys and hundred of shops offering a tremendous range of goods.
For interesting curios and local face, shoppers can visit one of the many weekly flea markets and night markets – ” Pasar Malam” where haggling is a much required skill and presents an interesting insight into the live of the locals.
Malaysia – Future Development
High Speed Rail (HSR)
High Speed Rail expected to be completed in year 2026, with the ripple effect of the project, development in Malaysia looks set to surge, as the newly-accessible prime estate along the tracks awakening now-sleepy towns hosting transit stations.
Future Development – Bandar Malaysia
Foreign Universities Branch-Campus
- Xiamen University Malaysia Campus
- Monash University Malaysia
- The University of Nottingham Malaysia Campus
- De Montfort University
- Heriot-watt University Malaysia
- Manipal International University
Local University Branch Campus
- Taylor’s University College
- Sunway University College
- Inti International University College
- Limkokwinf University of Creative Technology
- University College Sedaya International
- Alice Smith School
- Australian International School
- French School
- Say fol International school
- International School of Kuala Lumpur
The MM2H programmed is open to all countries recognized by Malaysia but the programmed has numerous requirements. These requirements include a minimum monthly income, minimum liquid assets, a fixed deposit, plus various other rules. The exclusion of foreign spouses of Malaysian citizens was removed in February 2009 and they are now allowed to apply for the MM2H visa. It’s encourage through an approved government agent by the Ministry of Tourism. These companies have the initials “MM2H” in the company name.