Property Hunter Magazine Issue 87 - March 2017 | Page 46

NEWS
Limit Resale of PR1MA Homes
WM
After the owners have met Certificate of Completion and the five-year moratorium Compliance, instead of when period, PR1MA homes the land title was officially should only be resold to transferred to the buyer. qualified Malaysian citizens who are purchasing a house Meanwhile, HBA praised the for the first time, according government for implementing to the National House the Special PR1MA End Buyers Association( HBA). Financing Scheme( SPEF), which will help low-income
“ This is to ensure that earners to obtain housing such PR1MA units are loans for such properties, as not purchased en-bloc by many have been rejected by property speculators and banks. rented out again at very high rentals, depriving future“ However, as this is a special generations of lower and financing scheme for the middle-income buyers.” lower income group, HBA hopes that this financing According to PR1MA Corp’ s scheme is only reserved for CEO Datuk Abdul Mutalib first-timers as PR1MA has Alias, they are urging the already allowed second-time authorities that the five-year home buyers to buy PR1MA moratorium for the resale properties.” of PR1MA homes should start from the date of the On February 12( Monday),
PR1MA homes should only be resold to qualified Malaysian citizens who are purchasing a house for the first time
PR1MA Corp announced the years, while payment for the details of SPEF, which was principal only takes effect jointly set-up by the Employees thereafter until the mortgage Provident Fund( EPF) and the is fully settled. Bank Negara Malaysia along with AmBank, RHB Bank, For the second option, buyers Maybank and CIMB Bank. can loan a larger amount, as the partner banks will Under SPEF, home buyers also take into account their can get step-up funding and monthly contribution to EPF a similar facility but with an Account 2. However, SPEF’ s option to withdraw from lending rate higher is higher EPF Account 2. Under both at 4.75 percent compared to options, interest is only 4.45 percent for similar loans paid during the first five available at present.
Minimum Property Purchase Prices for Foreign Buyers
SB
Malaysia, with its improving infrastructure, average cost of living, diverse cultures and almost natural disaster-free environment, has attracted many foreigners to live here.
Buying property in Malaysia is a relatively easy process. On June 30, 2009, the Economic Planning Unit( EPU) produced a comprehensive set of guidelines on property acquisition by foreigners to replace the previous approving authority under the Foreign Investment Committee.
The EPU had also revised the minimum threshold on the acquisition of properties by foreign interests from RM500,000 to RM1 million, effective March 1, 2014, which is stipulated nationwide.
It must be noted that although the EPU guidelines on property acquisition by foreigners apply nationwide, the acquisition is still subject to the respective state authorities’ approval.
The transfer of property to a foreigner based on family ties( only allowed among immediate family members) also falls under the jurisdiction of the respective state authorities.
There are, however, exemptions from EPU approval for certain transactions, as well as exemptions given by respective state governments.
KGV International Property Consultants( Johor) Sdn Bhd executive director Samuel Tan tells TheEdgeProperty. com that although there
are sufficient incentives provided to encourage foreigners to buy properties in Malaysia, there are areas that still need to be improved.
He feels the government should promote foreign property ownership as a form of foreign direct investment given that Malaysia seems to have a love-hate feeling towards foreign property purchasers for fear that they will impact the interest of the locals.
“ Policies must be consistent and transparent while the fees for the application for approvals by
foreign purchasers must be reasonable while safeguarding the interests of the locals,” he says.
Tan also suggests that developers sell properties that offer business propositions so there will be greater economic spillover from their projects.
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