Kiaramas Cendana, Mont Kiara

Kiaramas Cendana is another property developed by Asia Quest Holdings. It is located in Mont Kiara, an area favored by expatriates and upper middle class Malaysians alike.

The developer seems to have learned from their experience in previous projects, especially complaints from its Kiaramas Sutera, to build a fine quality condominium this time. The facilities include a hot water spa, infinity edge lap pool, separate service lift lobby, and remote video surveillance system.

Kiaramas Cendana is a freehold residential with 29 storey high and built on elevated ground, 18 storey higher than existing neighboring developments. It is 416 feet above sea level, with panoramic views and is accessible through a new 80 feet wide tree-lined road.

Standard units are 1,650 – 2,460 sf built-up while penthouses are 2,852 – 4,830 sf built-up. Every unit comes with a water spa; separate shower area and long bath for every master bathroom; additional wet kitchen area, complete with worktop and a single bowl sink; extra utility room; 4 pair incoming lines for all your telephony and internet use; computer networking points to all bedrooms to enable shared internet surfing; large porcelain polished tiles (600mm x 600mm) for dinning area and other bedrooms; timber flooring for master bedroom; solid decorative door for all bedrooms; built in kitchen cabinets complete with homogeneous acrylic solid surface kitchen top; and 2 adjacent car park bays for standard unit and 3 adjacent car park bays for penthouses.

Tenants at Kiaramas Cendana can have the convenience of shopping for groceries in nearby Plaza Mont Kiara, while an international school is available in walking distance. Mont Kiara and Desa Sri Hartamas area are known for food and fine dinning, so there will not be a lacking of cuisine at night and during weekends. There are plenty of culinary to choose from be it western, locals, or fast food. Bars are also available at Plaza Mont Kiara for those who preferred to have a drink after work. For those who need to do simple shopping, one can drive 5 minutes to nearby Plaza Damas.

Property Details

• Name: Kiaramas Cendana
• Address: Mont Kiara, Kuala Lumpur
• Developer: Asia Quest Holdings
• Completion Date: March 2006
• Type: Condominium
• Tenure: Freehold
• No. of Storey: 29
• No. of Units: 184
• Built-up: 1,659 – 4,830 sf
• Maintenance Fee: RM0.20 psf
• Subsale Price: RM440 – RM500 psf
• Rental: RM3.00 – RM3.50 psf

Facilities

• Hot water spa
• Infinity edge lap pool
• Wading pool
• Barbecue area
• 2 adjacent car park bay
• Gymnasium
• Squash court
• Tennis court
• Cafeteria
• Sauna
• Jogging track
• Mini market
• Children playground
• 24-hour security surveillance
• Wired for remote video surveillance
• Separate service lift for loading and service lift for lobby

Analysis

Kiaramas Cendana is linked to Sprint Highway and residents could drive easily to Kuala Lumpur International Airport, the North Klang Valley Expressway, Petaling Jaya, Shah Alam and Port Klang if the traffic is smooth. Traveling to Kuala Lumpur city center will also be easy if the traffic is a breeze. As the area is near to a police station, it is quite safe and quiet in the surroundings. Kiaramas Cendana is also low in density, at least for the moment given that many projects are being carried out in the area.

After launching a few projects, Asia Quest Holdings has learned from its past experience and built Kiaramas Cendana with fine quality. The condominium is built on elevated ground and the view of KL city from your home is worthwhile. The developer has also made an effort to build Kiaramas Cendana with a concept of comfortable living environment and healthy lifestyle.

The area where Kiaramas Cendana resides is famous among expatriates, and owners should have no problem renting out the units. Security in the area is also good as there is a police station nearby. Not only that, residents who live here will also have easy access to variety of good culinary, which is what Sri Hartamas is famous for. Just a walk to nearby Plaza Mont Kiara, one can find cuisine of different types be it western, local, Japanese or fast food. One can also drive less than 5 minutes to Desa Sri Hartamas, where plenty of other restaurants and pubs are available.

There are also some factors that potential buyers need to look into before deciding on investing in Kiaramas Cendana. There are not much complaints about the quality of the built, but many would compare it with other better constructed condominiums around and find it still not the best in the area. Many preferred Kiaramas Ayuria for its quality and materials used. Well, these things are subjective and differed from one person to another.

There is also a problem with excessive developments in Mont Kiara. Those who bought homes here love the green scenery surrounding it, while enjoy its peaceful, quiet and exclusivity of the place. As more and more projects are being planned, the landscape of this area might be changed someday. Fortunately, Kiaramas Cendana is situated on the hillside slope of Mont Kiara, thus further away from the commercial area.

Traffic wise is ideal for those working in Sri Hartamas area, as it is less jam. If one needs to travel outside the area, such as Subang Jaya or KL city for work, one will find the access roads in/out of the area congested at most times. Besides that, public transportation will also be a problem for those without a car. There is rarely any bus service, with approximately one bus in an hour, while no LRT services at all. The only alternative to bus services is taxi services.

Although one could get their daily necessities and food with ease, for those that need to frequent shopping malls will have to travel about few kilometers away. This may change once shopping malls such as Solaris Dutamas and One Mont Kiara in the area are open.

Kiaramas Sutera, Mont Kiara

Kiaramas Sutera is a high-end condominium located in one of Kuala Lumpur’s most prestigious development area, namely Mont Kiara, an area that attracts many expatriates that reside in Kuala Lumpur. This condominium is developed by Asia Quest Holdings, which also developed several other condominiums in the area such as Vista Kiara, Lanai Kiara, Kiaramas Cendana, and Kiaramas Ayuria.

Kiaramas Sutera is a freehold 29-storey high condominium with 315 units in total and normally 3+2 and 4+3 built. The size ranges from 1,347 to 4,100 sf. The area is also linked with many access routes and this will be a convenience to car owners. The major highway that links the area is Sprint Highway.

This highway is accessible to Kuala Lumpur International Airport, the North Klang Valley Expressway, Petaling Jaya, Shah Alam and Port Klang. It is also accessible to Kuala Lumpur city center too and therefore, it is easy for one to travel around in car.

The surrounding area of Kiaramas Sutera is quiet, neatly developed and low in density. The surrounding is filled with hills and greenery, at least for the moment before any major development takes place. It is also near to two international schools namely Garden International School and Mont Kiara International School.

Residents can also access to Plaza Mont Kiara in a walking distance for food and dining as well as some groceries shopping. There are many offices in Plaza Mont Kiara, as well as nearby Desa Sri hartamas which is less than 5 minutes drive. The traffic in Hartamas and Bukit Kiara surrounding is a breeze if compared to most areas in Kuala Lumpur and Petaling Jaya.

Property Details

• Name: Kiaramas Sutera
• Address: Mont Kiara, Kuala Lumpur
• Developer: Asia Quest Holdings
• Completion Date: 2004
• Type: Condominium
• Tenure: Freehold
• No. of Storey: 29
• No. of Units: 315
• Built-up: 1,347 – 4,100 sf
• Maintenance Fee: RM0.20 psf
• Subsale Price: RM400 psf
• Rental: RM3.00 psf

Facilities

• Children’s splash and wading pool
• Half Olympic size swimming pool with water cascades
• A complete range of recreational, landscaping and community amenities
• Water sculpture
• Waterslide and fountains
• Barbeque area
• Car park
• Sauna
• Gymnasium
• Squash court
• Tennis court
• Business center
• Cafeteria
• Jogging track
• Mini market
• Nursery
• Salon
• Children playground
• 24-hour security surveillance
• Two tiered security electronic card access system

Analysis

The construction of Kiaramas Sutera is well done with the finest materials used and its workmanship. The developer has built the grand porte-cochere to welcome guests and visitors. Inside the house, you will get quality floor finishes, wardrobes, detached vanity area in master bathroom, separated shower areas and long baths and also advanced telecommunication infrastructure.

As for the shared facilities in Kiaramas Sutera, you will get good quality built of a hot water spa integrated with its natural surroundings, an aquascape that links a half Olympic size swimming pool with water cascades, water sculpture, children’s splash and wading pool, water slides, fountains, and a complete range of recreational amenities. It is also equipped with two tier security electronic card access system and 24 hour security.

Kiaramas Sutera is built in a low density area of Mont Kiara and is preferred by those who like to have privacy and quietness. It is also true for those who work around Sri Hartamas, as they do not have to travel too far to office everyday. It is also made convenient with food outlets just a walking distance to Plaza Mont Kiara or a few minutes drive to Desa Sri Hartamas. Furthermore, Sri Hartamas Shopping Center is located just minutes of drive away.

Although there are many advantages that attracts one in owning a unit at Kiaramas Sutera, there are equal amount of drawbacks to be considered too. One of it is the lack of public transport. Other than taxi and less frequent bus services, there is no other choice of public transport. It is important to consider purchasing a car for those that need heavy traveling.

On top of that, there is a slight noise pollution for some units that are facing Sprint Highway. Besides, some people also suggested that the facade of Kiaramas Sutera looks very rectangle and not modern. With so many new condominiums with futuristic architecture being constructed elsewhere, this one will look a decade old for some.

Vista Kiara, Mont Kiara

Vista Kiara is a condominium located in prestigious Mont Kiara and Sri Hartamas vicinity. Its development was targeted to cater small and medium sized families. This condominium is famous among expatriates as well as professionals.

Vista Kiara is built in twin towers which both consist of 28-storey block. These twin towers are named Triomphe and Concorde blocks, and designed in bold arch-forms with greenery landscaping and functional layouts. It is situated next to Flora Murni and Laman Suria in Jalan Kiara 3.

Nestled in one of the hottest area in Malaysia, there is no doubt that Vista Kiara is a dream home for most of us. You can easily access to NKVE highway, Jalan Duta and Sprint highway. Plus, it only takes minutes of driving to Plaza Mont Kiara and Solaris Mont Kiara. It is also nearby Garden International School and Mont Kiara International School.

Property Details

• Name: Vista Kiara
• Address: Jalan Kiara 3, Mont Kiara, Kuala Lumpur
• Developer: Asia Quest Holdings
• Completion Date: April 1997
• Type: Condominium
• Tenure: Freehold
• No. of Blocks: 2
• No. of Storey: 28
• Land Area: 6.8 acres
• Built-up: 1230 – 3210 sf
• Subsale Price: RM360,000 onwards
• Rental: RM2,000 onwards
• Maintenance fee: 0.20 per sf

Facilities

• Barbecue area
• Cafeteria (Japanese cafe)
• Club house
• Covered parking
• Gymnasium
• Jogging track
• Mini market
• Playground
• Salon
• Sauna
• Squash court
• Tennis court
• Badminton court
• Swimming pool
• Wading pool
• 24-hour security with CCTV around the area

Analysis

Vista Kiara is a good place to live if one works in Bukit Damansara, Sri Hartamas, Bangsar and Petaling Jaya areas. One can even view breath taking greenery hills or KLCC from the balcony and windows. It has one of the largest compound area for residents to walkabout and jog as compared to the newer condo which are more densed and compact. Besides, Vista Kiara also offers much privacy as each level only houses 4 units.

As Vista Kiara is located right in-front of Garden International School, which is convenient for families to send their kids to school, it also suffers traffic jam before and after the school period. Thus, it may take several minutes for residents to get pass of the area during school times.

There is a private access gate at the back of Vista Kiara which is only accessible by residents using the condo access card to Plaza Mont Kiara. Aside from that, the upcoming Mont Kiara One may also boost the marketability of Vista Kiara as residents can just take a 10 minutes walk via the back gate once MK1 is up and running.

Some complained that the common area of Vista Kiara is not very well maintained. Furthermore, there are also other facilities seem to be neglected by the management. Some residents lodged complaints about the badminton court cleanliness and gas pipes in the refuse area seem to be rusty. Maybe it is because of its 10 years of age. However, the management has since repainted the tennis court and badminton court. This condominium is managed by Triumph Vista Management.

If you are thinking to purchase or rent out a unit at Vista Kiara, make sure that you find one with enough covered parking. Most of the units come with one covered parking, and larger units come with two parking spots. There are also some units come with more than two units as the developed allowed buyers to purchase parking units upon purchase.

Another solution is to rent out the parking spot from other residents, or you can try your luck and ask the management for parking rental. Alternatively, one can join the bandwagon to park the car on the side of the street, but prepare to get summon by the traffic police, and also have to battle for nearest spot that is near to the entrance.

Before the economic downturn, the smallest basic unit (1,230 sf) at Vista Kiara was priced around RM450,000. But due to the downfall of property market these days, the price has slumped to around RM410,000 (Auction price as at Sept 2010). As for its rental, the rental was around RM2,400 for basic unit previously, but nowadays the price falls to around RM2,200.

Most of the units are partly or fully furnished, as most units are rented by expatriates who mostly prefer to have furnished units. Also, most owners love to rent their units to expatriates with furnishings to gain higher rental income.

Kiaramas Ayuria, Mont Kiara

Kiaramas Ayuria, Mont Kiara

Kiaramas Ayuria is another Mont Kiara project developed by Asia Quest Holdings. This condominium has the biggest piece of land among the other two Kiaramases, Kiaramas Cendana and Kiaramas Sutera, standing tall on a 9.155-acre freehold land, 470 feet above sea level. Kiaramas Ayuria is quite big comparing to the rest of the condominiums around Mont Kiara and Sri Hartamas area.

Mont Kiara or Bukit Kiara area is said to be easily accessible and only 10 minutes away from Kuala Lumpur city centre via Sprint Highway that will lead you to Jalan Duta, Damansara Heights and the North Klang Valley Expressway. Garden International School, Mont Kiara International School, Kuala Lumpur Golf & Country Club and Royal Selangor Club are just nearby.

Kiaramas Ayuria is developed by Asia Quest Holdings, an experienced developer, especially when it comes to condominiums. They have reasonable credentials, with developments such as Lanai Kiara, Vista Kiara, and Villa Banyan in the vicinity of the same area; plus some developments in Singapore and China.

There are three similar blocks in Kiaramas Ayuria, each block has 35-storey blocks and each block has 5 interlinked towers. This development has 480 condominium units with three 2-storey low-rise blocks, where the units seemed more exclusive. There are 4 types of single units and 4 types of duplex for you to choose from.

The standard units have built-ups from 1,600 to 2,000 sf; while 3,200 to 4,000 sf for the deluxe/penthouse units. For standard units, they all have 3+1 bedrooms, powder room and balconies. The view is great from the balcony so that is a plus point. Duplex units start from level 29, making them a double-up of the single units. The good thing about these units are – they have reasonably huge built-ups and not too expensive.

Property Details

• Name: Kiaramas Ayuria
• Address: Mont Kiara, Kuala Lumpur
• Developer: Asia Quest Holdings
• Completion Date: 2008
• Type: Condominium
• Tenure: Freehold
• No. of Blocks: 3
• No. of Storey: 28
• No. of Units: 480
• Built-up: 1,605 – 2,013 sf
• Maintenance Fee: RM0.25 – RM0.28 psf
• Launch Price: RM542,100 – RM2,058,000
• Subsale Price: RM550 psf

Layouts

• Type A & A1 (2,013 sf) (3+1)
• Type B (1,605 sf) (3+1)
• Type C (1,733 sf) (3+1)
• Type D (1,605 sf) (3+1)
• Deluxe/Penthouse (3,200 – 4,000 sf)

Facilities

• 2 lap pools
• Waterslide
• Water cascade
• Water sculpture at the porte-cochere of each block
• 520 ft long meandering aqua scape pool
• Half Olympic length swimming pool
• Children’s wading pool
• A hot water spa
• 2 tennis courts (flood-lit for night play)
• 1 squash court
• 2 indoor badminton courts within the multipurpose hall
• 2 children’s playground (1 covered and 1 open-air)
• Gymnasium (3 quarter of perimeter wall fully glazed)
• Multipurpose hall (cum badminton court)
• Barbecue pit
• Function room
• Sauna
• Condo management office

Analysis

All the units at Kiaramas Ayuria came with quality finishes with creatively designed layout. The ceiling height is 10 feet with 8 feet high windows and doors. The spaces are quite pleasant and comfortable. Plus the rooms, kitchen and dining rooms are well positioned. The walk-in-wardrobe in the master bedroom and an extra-large bathroom with long bath and shower cubicle.

Kiaramas Ayuria has a wide range of facilities with complete recreational, landscapes and also surrounding amenities. One of the most prominent features in Kiaramas Ayuria is the 520 foot long winding landscaped water feature around the towers.

There is a multi-storey car park caters to almost a thousand parking bays for the residents. Can you imagine the flow of traffic then? There are 2 adjacent car park bays for standard unit and 3 adjacent car park bays for penthouse/duplex unit. The facilities are on the podium itself and soon there will be townhouses built on it as well. The overall facilities in this condominium are quite complete and satisfactory, comparing to what the competitors are offering along with the price tags.

The thing about Kiaramas Ayuria is, there are choices of layouts and the pricing is quite reasonable for such mid-high luxuries. Since Kiaramas Ayuria is in a prime location with potentially high occupancy rates, one can expect high resale value with significant capital appreciation.

Kiaramas Ayuria is very nice, and it comes with a great price tag. Though the residents are potentially exposed to traffic congestion, the area is still a great location for investments. In fact, Kiaramas Ayuria is located on a quieter side of Mont Kiara, on top of a hill.

Buying & Selling Property In Malaysia

Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.

There are two choices:

Purchaser finds his own banker.

His lawyer can submit to his panel of bankers.

The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:

Purchaser’s & Vendor’s identity card or passport if foreigner.

A copy of the previous S&P from the Vendor

A copy of the title (if any)

Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.

Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.

The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.

As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.

Home Loan Guide

What can I afford

Before you commit to purchase a property, you should first work out a budget to help you determine how much you can afford and the ceiling price on any property you may wish to buy. As a guide, your monthly commitments on paying instalments for your house, car and other payments should not exceed 1/3 of your gross monthly household income.

Your source of funding can be all or any combination of the following:

i.Savings

ii.Withdrawal from Employee Provident Fund (EPF) account

iii.Loan facility from a financial institution

Choosing your Financial Institution

You should shop around before you decide on any financial institution. Remember that when you take up a housing loan, you will be dealing with the financial institution on a regular basis for a period of time. Therefore, you should also consider factors other than just interest rates. Below are some of the factors you should consider:

•How professional is the financial institution in dealing with customers?

•Does it offer quality service in terms of efficiency and reliability?

•What are the available loan packages and which package suits you best?

•What are the charges involved?

For example, legal fees, related government fees and charges, disbursement fees and others. You should also be informed when and how often these charges are to be paid

An innovative financial institution may offer a more suitable loan package that suits your needs and their application process may be faster and hassle-free. It usually takes about one to two weeks for your loan application to be approved from the time you submit all relevant documentation.

Loan Applications: Documents Required

You should shop around before you decide on any financial institution. Remember that when you take up a housing loan, you will be dealing with the financial institution on a regular basis for a period of time. Therefore, you should also consider factors other than just interest rates. Below are some of the factors you should consider:

•How professional is the financial institution in dealing with customers?

•Does it offer quality service in terms of efficiency and reliability?

•What are the available loan packages and which package suits you best?

•What are the charges involved?

For example, legal fees, related government fees and charges, disbursement fees and others. You should also be informed when and how often these charges are to be paid

An innovative financial institution may offer a more suitable loan package that suits your needs and their application process may be faster and hassle-free. It usually takes about one to two weeks for your loan application to be approved from the time you submit all relevant documentation.

Fees and Charges

There are also related costs such as professional fees and government charges that you would have to pay. Below are some of the common fees and charges you would expect to incur:

Please note that the type of charges and the amount charged might change in the future. You should meet with your financial institution's loan officer for further advice and discussion regarding any questions that you may have concerning the type of fees and legal services

Assesing your loan repayment capacity

A common criterion is that your monthly loan instalment repayment should not be more than 1/3 of your gross monthly household income. If you have savings or fixed deposits, they can be used to support your loan application as financial institutions may take them into account in evaluating your eligibility. Different financial institutions have different criteria in calculating the repayment capacity. In the case of a floating rate loan, you should also note that your monthly repayment may increase substantially when interest rates go up.

For example, when there is an increase in the Base Lending Rate (BLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment throughout the loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure. You should check this out with your financial institution.

Margin of financing

The amount of financing provided by a financial institution depends on the market value (for completed properties only) or purchase price of the house, whichever is lower. The margin of financing could go as high as 95% of the value of the house.

It is assessed on factors such as:

•Type of property

•Location of property

•Age of the borrower

•Income of the borrower

Loan Tenure

The length of a loan can range anytime up to 30 years or until the borrower reaches age 65 (or any other age as determined by the financial institution), whichever is earlier.

Common housing loan packages offerd by financial institusions

i.Term Loan

•A facility with regular predetermined monthly instalments. Instalment is fixed for period of time, say 30 years

•Instalment payment consists of the loan amount plus the interest

ii.Overdraft facility

•A facility with credit line granted based on predetermined limit

•No fixed monthly instalments as the interest is calculated based on daily outstanding balance

•Allows flexibility to repay the loan anytime and freedom to re-use the money

•Interest charged is generally higher than the term loan

iii.Term Loan and Overdraft combined

•A facility that combines Term Loan and Overdraft. For example, 70% as term loan and 30% as Overdraft

•Regular loan instalment on the term loan portion is required

•Flexibility on the repayment of overdraft portion

Daily rests vs monthly rests

Financial institutions may charge you interest either on daily rests or monthly rests depending upon the products offered. In the case of daily rests, the loan interest is calculated on a daily basis, while in the case of monthly rests, interest is calculated once a month based on the previous month's balance. Under both types of loan, the principal sum immediately reduces every time a loan instalment is made.

Graduated payment scheme

A graduated payment scheme allows lower instalment payments at the beginning of the loan but this will gradually increase over time. This type of payment scheme will help house buyers to reduce burden of loan repayment for the first few years and allow them to allocate more money for other purposes. Over time, as earnings of house buyers increase, their repayment capabilities will also increase thus allowing higher repayment instalments at a later stage.

A graduated payment scheme is also suitable for a house buyer who wishes to purchase a more expensive house but is restricted by his/her repayment capability during the initial years.

Prepayment flexibility

Different financial institutions may have different terms and conditions imposed on prepayments. Check the loan package to see if it allows you the flexibility to make prepayments or extra payments. Flexibility to make prepayments and paying interest on a daily rest basis, may help save considerable interest charges. It is also possible to start repayment of the loan during the construction of the house, thus saving more interest charges. What is important is to make prompt monthly repayments.

Partial prepayment of the outstanding loan

Many borrowers find it useful to shorten the loan tenure by making partial prepayments with surplus savings or annual bonus. Partial prepayments can be in any amount. However, some financial institutions may impose restrictions on the amount to be pre-paid while others may impose a penalty. It is extremely effective in reducing the interest charges you would have to pay if prepayments are made during the early years.

Early termination penalty

Financial institutions may impose a penalty on full repayment of loan. Generally, the penalty imposed can either be a flat rate or an 'x' number of months' of interest (e.g. 1 month's interest). This is because when a loan is granted for a certain term, the financial institution would expect the loan to be repaid over the period agreed and has planned their cash flow on this basis. An early termination of the loan would therefore disrupt the financial institution's cash flow planning. As such, some financial institutions do not charge a penalty if sufficient notice is given (as stated in the terms and conditions of the loan) or if the settlement is made after the required minimum period to maintain the loan with the financial institution has passed.

Documentation

The primary documentation involved in applying for a housing loan is the loan agreement.

A Loan Agreement is a contract signed between the buyer and the financial institution. A Loan Agreement contains major provisions such as the terms of the loan, principal sum of the loan, interest rates, default interest rate, penalty charges and repayment terms. It also sets out the duties of borrower and the lender and in the event of default, the rights and remedies of each party.

The other common legal documents that you may need to sign are Deed of Assignments, Charge documents and Power of Attorney.

Remember that throughout the tenure of the loan, your property is charged to the financial institution (i.e. the financial institution has a claim over your property). Whether you are buying a completed property or a property under construction, you should obtain an explanation from the attending lawyer on the major clauses of the agreement and the implications of each clause.

Valuation report

This documentation may be required if you purchase a fully completed property from a houseowner. The financial institution will appoint a property valuer from its panel of valuers to appraise the property. The valuation fee for this service starts from a few hundred ringgit upwards, depending on the value of the property and you will be charged for this service.

Insurance

It is extremely important to take insurance coverage when you purchase a house. The most important factor is that it gives you and your loved ones peace of mind, in the form of financial security if an unfortunate event should occur.

There are two important insurances to consider:

•The House Owner/Fire Insurance policy

This policy provides coverage for your property against natural disasters such as flood, fire, riot, strike and malicious damage. For properties with strata titles such as apartments or condominiums, you need not buy the insurance because the Management Corporation (MC) would have taken up insurance on the entire building. You should ensure that you obtain the sub-certificate of the Master Policy issued by the insurance company from the MC and present it to the financial institution. This is necessary so that the financial institution is aware that the property has been insured and will not buy another fire insurance on your property. In such a case, you will be required to assign your rights under the policy to the financial institution.

•The Mortgage Life Assurance or MRTA

This type of policy provides for full settlement of the outstanding balance of the housing loan with the financial institution, in the event of total permanent disability or death of the borrower. Premiums can usually be included in the loan amount, and the repayment period of the premium is usually spread over the loan tenure. The premium is only incurred once. There are no monthly or yearly premiums to be paid. In the event of early termination of housing loan, you will generally have the option to request for a refund of the premium for the balance of the unexpired period or to continue the insurance coverage.

Financial institutions have their own panel of insurers and most of them can arrange insurance on your behalf with the annual premium charged to your loan account.

Loan disbursement

The financial institution disburses (pays out) the loan once it has received advice from its lawyer that the legal process has been completed and the loan documents are in order. At this time you will be informed of the date and amount of the first instalment you have to make.

Rights and duties of the borrower and financial institution

Both borrower and financial institution have certain rights and duties during the course of the loan. Some of the more important ones include:

RIGHTS

i.Borrower

•Right to have access to all information that would affect your borrowing decision

•Right to be treated professionally, courteously and without prejudice

•Right to be consulted on changes to the terms and conditions of your loan

•Right to have accurate information on a regular basis on your loan account

•Right to enforce legal action in the event of a breach of contract

ii.Financial Institution

•Right to have full relevant disclosure of information on borrower's credit standing

•Right to correct and truthful information on the borrower

•Right to timely repayment of interest/ instalments of the loan

•Right to enforce legal action in the event of default/breach of contract

DUTIES

i.Borrower

•Duty to read and understand all terms and conditions of the loan

•Duty to observe the terms and conditions of the loan at all times

•Duty to enquire and get clarification on all aspects of the loan to their satisfaction

•Duty to make prompt payment on the fees, charges, interest and instalment of the loan

ii.Financial Institution

•Duty to discharge borrowers' obligations as described in the loan agreement

•Duty to consult borrowers on any changes made to the terms and condition, fees charged and other relevant information

•Duty to attend to all queries made by borrower

A Loan Officer can provide invaluable assistance, and clarify issues which you are unsure. Take the time to discuss your housing loan questions with a loan officer at length so that you can choose a loan facility that best suits your needs.

Lying in the magnificent Lang valley, Kuala Lumpur property investment is increasingly becoming a worldwide attraction for property investments with all indications showing that the property investment market is destined to become a global attraction. As the tourism industry grows, the capital city s tourist, residential and commercial property markets is also expanding towards the tourist areas as well as social and professional housing needs.

Why Invest in Kuala Lumpur?

Malaysia offers a stable, democratically elected government

• The country enjoys a stable economy
• Kuala Lumpur has grown extensively and is the regional headquarters of many of the world s major corporations
• The old town maintains some links to its colonial past with narrow and winding streets and a delightful hybrid of Chinese and European architecture
• Malaysia practices a justice system based closely on the British legal system
• Foreigners can buy up to 2 houses and are entitled to 60% bank loans
• Kuala Lumpur continues to benefit from a growing tourism market helping to create a mature rental market
• Kuala Lumpur is extremely well connected major airlines fly to the Kuala Lumpur International Airport
• Kuala Lumpur s education and medical services are some of the best in the Pacific Rim

Past Trends of the Kuala Lumpur Property Investment Market

In the recent past, purchase of investment property was a reserve of foreign companies or local government development partners. Past trends indicate that besides looking for commercial and high-end real estate property sectors, foreign property investors have been seeking to undertake property development projects in the Kuala Lumpur property investment market. For the past decade there has been a steady increase of foreign property investment consortiums in the Kuala Lumpur Property investment sector. The most notable foreign property investment consortiums include Singaporean institutions such as the Government of Singapore Investment Corp (GIC) and Capital land Limited. These international property investors have been taking up equity stake in established Kuala Lumpur property investment companies.

Foreign property Investment consortiums have also ventured into property development in Kuala Lumpur s real estate property. In the past two years this trend has also caught up with other countries such as Indonesia, Hong Kong, Japan, Australia, Europe, South Korea and the Middle East as well as European countries. Recent major office transactions by Middle East consortiums include Macquarie Global who purchased the Empire Tower, Crown Princess Hotel and City Square Shopping Centre in Kuala Lumpur for RM680mil; Injaz Mena Investment who purchased the Menara ING at RM495per square feet; and Injaz Asia Equity who purchased the Kenanga International at RM555 per square feet.

Current Trends of the Kuala Lumpur Property Investment Market

Unlike the past when ownership of investment properties was a reserve of foreign owned companies and government s development partners, Malaysia property investment market has opened up even to individual investors. The Kuala Lumpur property investment market is evidently reaping from the benefits of the Government s attempts to attract both foreign investors and workers. The growing expatriate community, under Malaysia My Second Home (MM2H) or direct foreign investment in real estate, is increasing demand for new accommodation in up-market central districts.

Current trends in the purchase of investment property in Kuala Lumpur are characterized by both real estate property investments within the capital city as well as new investment properties within the coastal resorts. The City s property investment opportunities are growing in line with the direct foreign investments from China, Japan and the US. Off-plan properties are being sold to international property developers with impressive guaranteed rental yield of between 6 and 10 percent.

A survey by Real Estate and Housing Developers Association (REHDA) indicates that enquiries from foreigners for Malaysia s property investments increased by 13% in the second quarter of 2007. Property Investors mainly target the medium to high-end gated and guarded residential projects, prime condominiums and service apartments in and around the Kuala Lumpur City Centre area. Grade A office towers in Kuala Lumpur's central business district, malls, hotels and warehouses with good tenants are also major property investment attractions. With yields in certain countries below 4%, Kuala Lumpur's office assets - yielding 6% to 8% are very attractive. As a result of these increased activities in the Kuala Lumpur property investment market the rental trends have also changed significantly, with a general increase in the value of rents payable.

Future Prospects for the Kuala Lumpur Property Investment Market

Malaysia s property investment market is taking on new dimensions due to a major government s Initiative, the Ninth Plan, which calls for impressive new provisions for the country s infrastructure. Economic experts are predicting that Malaysia s Economy is on a firm long term growth path, with growth of 5.3% reported in the first quarter of 2007. The influx of both foreign businesses and foreign national is increasing every other day.

According to Deutsche Bank, Malaysia is going to sustain a 5.5% annual gross domestic product (GDP) growth till 2020 due to its young population, investment in human capital development and trade openness. Kuala Lumpur real estate property market is the fastest growing property investment hotspot in Malaysia. According to property investment analysts, the recent spate of multi-billion property investments by international consortiums in Malaysia in general is just but an indication of bright prospects for Kuala Lumpur property investment market.

When you add in the fact that unemployment remains low, interest rates are relatively low and the GDP is steady, the building blocks are there for what will be a lucrative property investment market for years to come. The Kuala Lumpur Structure Plan 2020 will be the instrument to guide it over the next 20 years and will also form the basis for the preparation of the Kuala Lumpur Local Plan. Strategies and policies have been formulated in earlier chapters of this Plan, which are derived from the all-embracing vision of Kuala Lumpur as A World-Class City.

Do Properties REALLY Make the “Perfect” Investment?

Do Properties REALLY Make the "Perfect" Investment?



The following are the various attributes to consider when evaluating any type of investment:

1.    Returns: The Expected Returns must be powerful i.e. greater than 15-20% p.a. Since most properties yield an average Rental Yield of 4-7% p.a. (depending on property type, location, etc) + Capital Appreciation of 5-10% p.a. (depending on economic growth, inflow of foreign investment, etc), Properties are considered to be Moderately Powerful.

The returns are usually more than enough to keep up with and even outperform your family's "unofficial" inflation rate of 6-10% p.a. Hence, properties are an excellent long term investment for keeping up and even out-performing inflation.

2.    Stability in Both the Market Value and the Annual Returns. Properties are considered to be extremely stable and hence safe. They are less risky investments as the Volatility or Price Fluctuations are extremely low. On the other hand, it's fairly common to see prices of even blue-chip property stocks fluctuate between +/- 20% in any given year.

3.    Liquidity: How Fast Can You Convert to Cash either by Selling or Refinancing. Unfortunately, properties fare very badly in this regard. Properties take time to sell and convert to cash. The earliest, if you are lucky, is approximately 1 month to sell and another 3 months to get paid. Leasehold properties in undesirable locations may easily take 6 months to sell and another 9 to 18 months for the transaction to be completed.

However, if your property is fully paid-up or if you have built up sufficient equity by reducing your outstanding loan, you will have the option of revaluing and refinancing the property. It will take approximately 2 to 3 weeks to refinance a property with the same bank. If you are refinancing with another bank, it will take a few months for the paperwork to be completed.


4.    Leverage: Does the investment offer you the opportunity to borrow money + does it give you the flexibility to choose your borrowing level? In properties, you can choose to borrow anywhere from Zero to as high as 100% of the purchase price whereas for Futures or Options contracts, the gearing levels are fixed as the contracts are standardized.

No other investment has this unique benefit. In some instances, it's even possible to borrow 100% of the purchase price if you are familiar with creative financing techniques. The advantage of borrowing money for property investments is that your loan is gradually being reduced thanks in part to your hard-working tenants and your asset is appreciating over time thanks to inflation.

5.    Expenses or Costs at the point of
a)    Entry or Purchase and
b)    Exit Point or Sale of the investment.

Properties are costly investments, both at the entry and exit points. During purchase, there are legal fees, stamp duties, mortgage insurance to cover the loan amount and several other costs involved. During exit, there may be property agent's fees payable, legal fees to redeem your outstanding loan and other costs.

While the above may not seem to be a complete list of attributes to consider when evaluating any type of investment, but they are a few of the main attributes to consider when choosing an investment type to invest.

6.    Capital Gain Taxes on the Disposal of the Investment. On 1 April 2007, the Real Property Gain Tax (RPGT) was abolished, hence properties are now on par with other investments with regards to this point.

7.    Annual Operating Costs such as Income Taxes, Other Expenses (e.g. Quit Rent, Assessments, etc), Interest Costs, Repairs, Management Fees, etc in up-keeping the investment. Properties fare badly in this regard.

8.    Time taken for transaction to be completed, at the point of purchase and sale. On average, it takes anywhere from 3 months at the earliest to even 12 months in some instances for the property transaction to be completed and for money to exchange hands. For portfolio investments, it usually takes only 3 working days for contract to be concluded.

9.    Stress or Headaches involved in maintaining and up-keeping your investments. With properties, you must be mentally prepared to deal with numerous problems with regards to property and tenant management issues.

10.    Maintenance of Proper Records for Bookkeeping purposes if there are tax issues involved. Due to the various fees and charges involved, and the tax implications of them, it's absolutely essential to maintain proper bookkeeping records. The more properties you have, the more time, effort and money you will have to spend to ensure your records are kept properly.

11.    One Time Effort Needed. Properties score a perfect 10 here. You only have to work once to acquire the property. Thereafter the property will continue working for you forever, as long as you keep it. On the other hand, portfolio investments requires regular monitoring as they are susceptible to any changes in the economic environment.

12.    Impact of Mistakes. Mistakes are bound to be made by everyone especially new investors. The impact of buying the wrong property type, in the wrong location, taking the 'wrong' type of loans or having a nightmare tenant is thousands of dollars and a few years of your life to undo the damage done. Hence it's extremely important to get it right the first time and every time in all aspects of property investments. Mistakes are extremely costly both in money and time costs.

13.    Market Efficiency: Are prices of the investment freely disseminated and known to everyone? Unlike mutual funds or stock prices, property prices are not freely available. To compound to the problem, valuation of properties is extremely subjective. The value of a property in the eyes of the seller, property negotiator, valuer, banker and buyer is different. This presents numerous challenges to novice investors as well as opportunities for savvy property investors who possess the knowledge of property values.

14.    Investment Horizon: Is there any minimum period the investment ought to be kept? Properties should ideally be kept for a minimum of 3 to 5 years as the entry and exit costs are extremely high and the returns are only moderately powerful. Property investments are usually not recommended for those who want to get rich fast or for those who need their funds back in less than 3 years. However on some occasions, it's possible to make money by using "flipping" strategies by buying below market and disposing above market.

15.    People Skills: Property investment is a people intensive business and you must be able to build rapport and get along well with real estate agents, sellers, tenants, lawyers, bankers, contractors, etc. Also you need to possess good negotiation skills and almost everything is negotiable. If you do not have these skills, you may not find real estate your investment "cup of tea".

 

Cheers!

Article attributed by Milan Doshi

Malaysia Property Market

Malaysia offers a real estate investment opportunity in one of the fastest growing economies in the world. We believe the following factors make Malaysian real estate an exceptional opportunity.

Malaysia's strong political stability and stable economy encourages a more than favourable climate for investors locally and from overseas. A high literacy rate and widely spoken English makes the country a preferred choice. Its GDP is expected to grow around 4% in 2009.

The likely appreciation of the Ringgit: The Malaysian currency is the third most undervalued currency in the world and is 51% undervalued relative to the US Dollar, according to the latest "Big Mac Index" published by 'The Economist'. The Ringgit is widely expected to strengthen as government controls are gradually eased.

Recent abolishment of property gains taxes: Property gains taxes have been abolished from 1st of April 2007.

Liberal investment rules relative to other emerging markets: Malaysia has amongst the most liberal property-ownership regulations for foreigners in Asia, with the process of liberalisation continuing.

High development margins: Development margins are strong due to the increasing real estate requirements of a rapidly growing and increasingly-wealthy population.

Growing competition between banks driving down lending margins: Decreasing lending margins have a favourable impact on real estate valuations Increasing international interest in Malaysian real estate, particularly from the Middle East.

Malaysia is the only country in South-East Asia which offers both conventional and Islamic financing.

Questions and Answers -

Property (Revised First Edition)

How much can I afford?

How much can I borrow?

How long does it take to process a loan?

What is the difference between conventional financing and Islamic financing?

Why do I need a valuation?

Do I need to appoint a lawyer? Can I choose my own lawyer?

Who pays for the legal fees?

What if I run into financial difficulties and cannot meet my loan repayments?

Can I pay off my loan in full earlier than the agreed loan tenure?

Is there any waiver of penalty fees for early loan settlement?

Why does my outstanding loan remain high at the initial stage despite the repayments made?

Can I make extra payments other than the monthly contractual repayments?

Do I need a guarantor for a loan facility?

Does the financial institution have the right to charge my loan account for any miscellaneous charges incurred by them such as late payment charges, legal costs, insurance, etc?

How long is the grace period for payment of my monthly instalment/interest?

When does the financial institution release the loan to the seller/developer?

Can I purchase a house under joint names and apply for the housing loan only under my name?

If the developer abandons the project, am I still required to service my interest/instalment payments?

What happens when the loan is fully repaid?

What happens in the event of death of a borrower who has not bought insurance?

What can the financial institution do if I do not make repayments?

What is the most convenient way to repay my loan?

Should I consider refinancing my loan if I am offered a lower interest rate?