BOVAEA Moving On 18 Jan 2010

To:
Registered Estate Agents, Appraisers & Valuers;
Probationary Estate Agents, Appraisers & Valuers; and
Members of the Public,

Please be informed that with effect from 18 January 2010, the BOARD OF VALUERS, APPRAISERS & ESTATE AGENTS OF MALAYSIA (a.k.a Lembaga Penilai, Pentafsir dan Ejen Hartatanah Malaysia) shall be located at the following address:

A-27-15 Level 27
Menara UOA Bangsar
No. 5 Jalan Bangsar Utama 1
Bangsar
59000 Kuala Lumpur

Tel No: 03-2288 8815/2288 8816/2288 8817
Fax No: 03-2288 8819

Yours truly,
Douglas GT Tan (E 1579)

Footnote:
The above announcement is based on a Notice dated 5 January 2010 issued by the BOVAEA. The BOVAEA can be reached via email or its website as follows:
Email: lppeh@po.jaring.my
Homepage: http://www.lppeh.gov.my/

5% RPGT Only If Sold Within 5 Years

Dear Readers,

In a Bernama report dated 23 Dec 2009, Prime Minister Datuk Seri Najib (of Malaysia) was quoted as having announced that the 5% RPGT - real property gain tax introduced in the recent budget - would only be applicable to real estate properties sold within 5 years of their purchase.

Recently, in the budget announcement, the 5% RPGT - which was intended to take effect on 1 Jan 2010 - would be applicable regardless of years of holding of the properties by their vendor-owners. "...the decision was made following requests from the business sector and Federation of Chinese Associations of Malaysia or Hua Zong...", the Prime Minister was reported to have said.

With the change, the report further says: the Government will be foregoing about RM200 million in real property gain tax revenue - "We are willing to forego a substantial amount of revenue so that the sector can expand and grow", the Prime Minister was quoted as saying in a speech at the swearing-in of Hua Zong's office-bearers for the 2009-2011 term at Marriott Hotel, Putrajaya.

I am sure all real estate players in the country including the Malaysian property agents (of which I am one) welcome the announcement by the Prime Minister with thanks - it's Good News by the Prime Minister on the threshold of the incoming New Year 2010.

Merry Christmas & A Successful New Year to ALL!

Cheers,
Douglas GT Tan

For Sale: 523.6-Acre Land Near Iskandar Development Johor

Dear Investors & Developers,

1. Some years back, the area that is Mont Kiara/Sri Hartamas today was negatively perceived as a backwater area - an area that was perceived as:
* associated with the undeveloped part of Segambut;
* that would remain unaffected by surrounding developments;
* where land could be bought real cheap - only RM7psf (for only the astute and far-sighted such as Mewah Cooperative and a few parties which were or still are the major land owners there today!)

2. Today, Mont Kiara/Sri Hartamas is a much sought-after area. It's the real estate jewel of Klang Valley: Rapid developments in Klang Valley plus some good developers (Sunrise, etc) have transformed what was perceived as a backwater area into what is now a prime real estate enclave in Klang Valley.

3. The southern part of Johor, without a doubt, is undergoing rapid development and transformation like the yesteryears of Klang Valley. It's too late if you have not bought any land there - no more cheap buys like before. But, like the Mont Kiara story, there is always opportunity lurking in backwater areas -- an area currently deemed not so attractive but is near enough to Iskandar & Singapore to have the potential to enjoy great appreciation in value some years down the road.

4. All astute investors and good developers should consider this piece: 523.6-acre land at Machap (12km northwest of Simpang Rengam) -located about 50km from the northern part of Iskandar Development Johor. It is for sale by tender at only 51sen psf - Yes, 51sen psf! Outlines are as follows:

* Total Land Area: 523.6 acres
* Total Parcels: 19
* Freehold Parcels: 18 (179.8 acres)
* Leasehold Parcel: 1 (343.8 acres - 29 years left, expiring on 27 June 2039)
* Indicative Price: RM11.637 million
# reflects 51 sen on total land area of 523.6 acres;
# reflects RM1.49 psf on the freehold-land-parcels area of 179.8 acres (with FREE ownership of 343.8 acres of the leasehold parcel for 29 years until 27.6.2039!)

* Even if you put in a bid at RM12.8 million, it works out to be only RM1.63 psf on the FREEHOLD-Land-Parcels of 179.80 acres with the huge leasehold parcel FREE!

Hurry! It's an opportunity not to be missed by the farsighted and astute.

Tender closes at 5pm, 14th Dec 2009 (Mon)

Full details are in the Tender Package (RM100/= per pack)

To buy the tender package, call me directly at: 012-288 6993 / 03-7958 8821.
Golden opportunity awaits no men. Call me now!

Regards
Douglas, Tan Gee Tick (E 1579)
Proprietor/CEO
GT REALTY [E (3) 0698]
22-B (2nd. Floor), Jalan 19/36,
46300 Petaling Jaya,
Selangor

For Sale: Bungalow with Pool at Bangsar, KL

Dear Readers,

(Update on 17.6.2010: As at this morning, this bungalow is OFF the market because it has been rented out. All the facts in this post are for your reading pleasure only until further notice in the future.)

This bungalow with a swimming pool located at Bangsar Park (near Bangsar Shopping Centre) is for sale as well as to let.

Located in an exclusive neighbourhood. Owner briefed me as follows:

* A neighbouring house No. 4 with about the same land area (12,000 sf) but older was sold at RM6 million in June 2009;

* Neighbour No. 19 was let-out at RM15,000/= per month

* Neighbour No. 8 with about the same land area (12,000 sf) is in the market asking RM6.8 million.

And, the subject bungalow with a RM80,000/= brand new swimming pool being constructed (ready in a month) is to be sold or let-out as follows:

* Land Area: 12,077 sq. ft (1,122 sq. m.)

* Build-Up: 7,000 sq. ft (650 sq. m.)

* Freehold

* Rebuilt: Yr 2004

* 7 Rooms 6 Baths

* Ideal For: VIP, Ministers, Corporate Big Wigs, Malaysia My 2nd Home Expatriates

* Location: Lor. Limau Manis (near Bangsar Shopping Centre & Bangsar Telawi area)

Price: RM6.5 million

Rental: RM16,000/= per month

For more information, contact:

Mr. Douglas GT Tan (E 1579) at Handphone No.: 6-012-288 6993

GT REALTY [E (3) 0698] at Tel No.: 6-03-7958 8821

Warmest regards,

Douglas GT Tan

For Sale: 8.53-Acre Freehold Vacant Commercial Land at Sec 27 Shah Alam Selangor

Dear Investors,

(19 Oct 2009). There is currently a piece of vacant commercial land available for sale at Section 27 Shah Alam along the western side of Persiaran Klang (within Taman Bunga Negara) - please see Location Plan; Layout Plan and Photos (taken as at 19.10.2009) attached to this post. You may also find its location or study its surrounding from "Google Map" by entering "persiaran klang, taman bunga negara".

Other details:

* Title No.: H.S.(D) 63624;

* Lot No.: P.T. 626;

* Mukim: Damansara;

* District: Petaling;

* State: Selangor Darul Ehsan;

* Tenure: Freehold

* Provisional Land Area: 34,514.208 square metres (371,520 square feet or 8.53 acres)

* Category of Land Use: "Bangunan";

* Express Condition: " Bangunan Perniagaan"

* Restriction in Interest: Nil

Indicative Price: RM24.15 million (RM700 per sq. m or RM65 psf)

For further details or to make a formal written offer to buy, please contact me at 012-288 6993 / 03-7958 8821.

Regards,
Douglas GT Tan (E 1579)
Proprietor/CEO

GT REALTY [E (3) 0698]
22-B (2nd. Floor), Jalan 19/36,
46300 Petaling Jaya,
Selangor D.E.

Tel: 6-03-7958 8821 / 6-012-288 6993
Fax: 6-03-7958 7821
Email: tanhalim1@gmail.com

Regulations, Rules or Guidelines on Purchase of Selangor Residential Houses by Foreigners

Dear Readers,

(Updated on 26.1.2010): When we talk about regulations, rules or guidelines on the purchase of Malaysian properties by foreigners or foreign interests (non-Malaysians including MM2Homers), generally we refer to the following regulations, rulings or guidelines namely:
1) the FIC rules (Foreign Investment Committee's rules) (applicable only before 1 July 2009 thereafter superceded by EPU Guideline effective 1.Jan.2010 - FIC was disbanded on 1.7.2009);
2) the National Land Code rulings: e.g. that of Sec 443(e) of the NLC 1965 (Act 56).

Before 1 July 2009, the FIC rulings were set by the Foreign Investment Committee of the Prime Minister's Economic Planning Unit (EPU); on 1 July, the FIC was disbanded; and on 1 Jan 2010, the EPU has come up with a set of new Guidelines - please click on the EPU Guideline link given in the preceding paragraph to know the details.

Both the FIC rules and the new EPU guidelines were are set by the Federal Government which since independence has been under the control of the Barisan National; so also almost all the States of Malaysia until the last General Election on March 8, 2008,

Since March 8, 2008, five (5) States were no longer under the control of the Barisan National -- it is only to be expected that the FIC rules of the Barisan National Federal Government may not be followed by the States under the Pakatan Rakyat's control, namely: Selangor, Perak, Penang, Kedah & Kelatan.

Incidentally, towards mid-2009, the Federal Government has (please read this report) decided to liberalise the FIC rules including those on foreigners or foreign interests buying properties or real estate in Malaysia. By this, it does not mean that after the aforesaid liberalisation, any foreigner or foreign interest can freely buy any Malaysian property without any restrictions. NO, this is not the case -- because, there are now EPU Guideline effective 1 Jan 2010 and another set of applicable regulations set by the state authority on the purchase of properties by foreign parties under Sec 443(e) of the National Land Code (Act 56) which section remains intact or unchanged.

Sec 443(e) states clearly that for any "land" (a technical term defined in NLC which for the purpose of this post, it may be taken to mean "real estate") which is not categorised as "industry" - that is, which is categorised as "agriculture" or "building" (residential, commercial or other types of non-industrial properties such as educational institutions, hospitals, etc) - prior approval of the state authority must be obtained by any non-citizen or foreign purchaser before the Registrar (of the land office or the land registry) may endorse any memorial of transmission on the Register Document of Title of the property in favour of the foreign party.

What section 443(e) of the NLC means is: that the purchase of any real estate in Malaysia by any foreign party (other than the purchase of industrial property /land) requires the approval of the State in which the property is located, failing which, its ownership by the foreign party cannot be duly registered on the title of the property -- that is, cannot be recognised in law under our Torrens system of land ownership; and is to be considered null and void. Sec 443(e) therefore clearly recognises that land matters fall under the purview of the respective State authorities.

In the case of Selangor, notwithstanding the FIC rules and their subsequent liberalisation by the Federal Government, the State Government under the Pakatan Rakyat originally decided that foreigners or foreign interests may only buy Selangor residential units priced at RM250,000 or above for PR spouses of Malaysians; and, RM500,000 or above for other foreign parties, to be effective from June 1, 2009. However, the Selangor State Government shortly thereafter deferred implementation of these new threshold limits until the economy improves - please read the official document from the Selangor Government on this.

However, what is interesting is that: even this deferment which restored the lower thresholds in Circular 5/2009 of the Pengarah Tanah & Galian Selangor has now been superceded by a subsequent Circular 8/2009 issued and effective on 10 Dec. 2009 which raised the lower thresholds to RM250,000/=  and above for purchase of Selangor residential properties by foreigners including permanent residents.  

Puan Rahmah (Tel: 03-55447824) of the Pejabat Tanah & Galian Selangor has, this morning 11:30am (26.1.2010), verbally confirmed that the applicable threshold is that announced in Circular 8/2009 effective 10 Dec 2009. As at today, there is no review to the RM250,000/= threshold yet. Thus, if the date of your SPA is prior to the next reviewed threshold, then the RM250,000/= threshold in Circular 8/2009 shall apply.

To recap, as far as the purchase of Selangor homes or residential houses by foreigners or foreign interests are concerned, the threshold is now RM250,000/= and above - meaning, 1) permanent residents of Malaysia; and 2) any foreigners (including MM2Homers) are allowed to buy residential units priced at RM250,000 or above with effect from 10 Dec. 2009.

The above should answer the query of a reader of this blog who asked in Jan 2010: Whether the thresholds for foreign buyers of Selangor residential properties have, with effect from 1 Jan 2010, been reviewed upwards to RM500,000? (Answer: No. Circular 8/2009 merely raised the lower thresholds set in Circular 5/2009 to RM250,000/= with effect from 10 Dec. 2009 and this Circular is still in force as at today - you can call: 03-55447824 (Puan Rahmah) or 0355447765 (Enc. Hanafi) to confirm on/verify this.); And, what is the position of foreign buyers under the Malaysia My 2nd Home (MM2H) programme? (Answer: MM2Homers are governed by the same set regulations, rules or guideline foreigners buying Selangor or other Malaysian properties.)

Go to "comments" section of this blogpost to follow the email exchanges between me and the reader on his queries. Your credible inputs are also most welcome!

A public service article by,
Douglas GT Tan
Proprietor/CEO
GT REALTY

H/p No.: 012-288 6993 / 6-03-7958 8821
Email: tanhalim1@gmail.com

New Fee for Malaysian Estate Agents

Dear All,

At a seminar held for the property professionals at Hotel Istana yesterday morning (Oct 6), the Board of Valuers Appraisers & Estate Agents of Malaysia (a.k.a "BOVAEA" or Lembaga Penilai Pentafsir dan Ejen Hartatanah Malaysia) announced, among others, the new scale of fees for Malaysian estate agents applicable to any sale or purchase land, buildings and chattels by way of private treaty, tender or other mode of disposal or acquisition as follows:

* 3% (an increase from 2.75%) for sale or purchase of land and buildings;

* 10% (like before)of the proceeds for sale or purchase of chattels (or, movable properties) including plant and machinery.

Subject to a minimum fee of RM1,000 per property.

The new scale of fees does not apply to:

1) Project marketing; and
2) Marketing of foreign properties in Malaysia or Malaysian properties in foreign countries - In both cases, the agency fee chargeable will be on negotiated basis between the agent and his client;

Professional fees, commissions or agency fees chargeable by Malaysian real estate agents on tenancy or leasing remain unchanged.

The new scale of fees were introduced by the Board in the exercise of the powers conferred by section 32 of the Valuers, Appraisers & Estate Agents Act 1981 (Act 242) with the approval of the Minister of Finance and the due process (gazette, etc.) - The full text by the Lembaga Penilai on the new scale of fees may be read at HERE!

Regards,
Douglas GT Tan

P/s: A representative from MITI also briefed the property professionals about Malaysia's commitment to Asean to liberalise the propety sector (re: services under codes CPC 821 & 822) up to 70% by year 2015; however, to hasten the contribution of the services sector to Malaysia's economic growth or GDP, the Malaysian Cabinet has recently made the decision to full liberalisation of the sector by end of 2012. Many participants felt that they have not been adequately prepared to face this eventuality in so short a time - it's like going to war (read: marketing or business war) in just a few years' time without concrete or comprehensive plans/programmes to prepare the foot-soldiers to face it. Your comments, please.