Sale And Purchase Agreement
January 8, 2024 / 0 comments / 6413 views / Tags: Malaysia, property, property agent, Real estate, Selangor / Category: Article and lifestyle
Sales And Purchase Agreement
The sales and purchase agreement (SPA) is a legally binding contract that outline the details of a property sale between buyer and seller.
The SPA ensures that both parties mutually agree on the terms and conditions of the property transaction, It protects by preventing either parties from altering the agreed-upon terms to their advantage.
Upon signing the SPA the deal is essentially closed, No further negotiations can occur and both parties much adhere to the terms and specified in the agreement.
Importance of SPA
The SPA is a legally binding contract that outlines the terms and conditions of a property transaction, whether you’re buying a new property from a developer or a secondary market property.
The SPA lays out all transaction details, terms and conditions in meticulous details in case anything goes wrong, there’s hard proof to fall back on, safeguarding the interest of both parties.
SPA involves two parties which is the Seller (who sell the property) and the Buyer (who purchase the property), The seller must legally own the property or have authority to deal with it .
Pre-contract documents ( such as Letter of Offer or Booking Form) may precede the SPA with the buyer paying an earnest deposit to firm the deal.
In a property transaction the Seller transfer ownership (property) to the buyer in exchange for cash payment.
Cancellation
In the case of buyer need to cancel SPA there may be consequences, standard SPA’s often include a clause impose a penalty ( usually 10% of the purchase price) for cancellation.
But if the seller wants to exit the deal, it’s challenging to do so once the SPA is signed.
Restrictive Covenants
These may conditions or restrictions impose on the property include limitations on alterations, use or development (especially in Land deal).
Warranties and Indemnities
Warranties are assurances given by the Seller regarding the property’s condition, title and legality.
Conditions Precedent
There are some conditions that must be fulfilled include obtaining financing, obtain regulatory approvals (consent to transfer) etc.
Completion mark the transfer of ownership from Seller to Buyer, it involve the payment of the purchase price and the handover the keys.
After completion the Buyer becomes the legal owner and any post-completion matter such as utilities transfer are addressed.
Vacant Possession
The Sale and purchase process for a property in Malaysia involve several parties including the vendor, purchaser, land office, Inland Revenue Board, lawyer, developer and valuer thus times it takes can be vary.
The entire process for sub-sale properties in the secondary market may take up to 4 months or more subject to Freehold or Leasehold property.
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 Properties development by developers, vacant possession has to be delivered within 24 months for landed property and 36 months for high rise stratified building.
Tenancy Binding
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.
Defect Liability
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.
Real Estate and Property Agent Selangor Malaysia
January 1, 2024 / 0 comments / 684 views / Tags: Malaysia, property agent, Property agent service, Real estate, real estate broker, Selangor, Selangor factory for rent, Selangor factory for sale / Category: Article and lifestyle
Real Estate and Property Agent
Real estate agents play a crucial role in facilitating property transactions whether it involves buying, selling, renting or leasing properties.
Our work involves a variety of features and responsibilities to provide value and ensure successful real estate transactions .
Residential Property Selangor , Malaysia
Industrial
Commercial
Land
(Registered real estate agent’s in Selangor Malaysia)
How do you calculate Return On Invest Property ?
December 10, 2023 / 0 comments / 698 views / Tags: Kuala Lumpur, Malaysia, property investment, Selangor / Category: Article and lifestyle
Return On Invest Property
Return on invest property when you are interest investing in real estate you need to know how to measure the profitability of your properties.
One of the most common and useful metric is the return on investment (ROI) which tell you how much income you earn form your property relative to its cost.
Calculating return on investment in real estate is essential for investor to assess the profitability of their real estate investments
ROI helps investors determine whether a particular property or investment opportunity is a sound financial decision how to calculate ROI in real estate and why it’s important and what factors affect it.
Why and How to calculate
ROI is the ratio that compares the net income you generate from a property over the total amount you invest
Net income is the difference between your rental income and your operating expenses such as taxes, insurance, maintenance and mortgage interest payments.
Total amount invested includes the purchase price, closing costs, renovation costs and any other upfront or ongoing costs.
How to Calculate ROI in Real Estate:
The basic formula for calculating ROI in real estate is as follows:
ROI (%) = (Net Profit / Total Investment) x 100
Why Calculating ROI in Real Estate is importance
Calculate ROI is important because it helps you evaluate the performance of your property and to other investment options.
Higher ROI means that you are earning more income relative to your costs which are profitable and efficient investment.
By calculating you can determine if a property is worth buying, selling or holding and how to optimise your cash flow and equity.
Summary
- ROI provides a clear financial assessment of a real estate investment to evaluate neither the property is generating positive returns
- By calculating the ROI for multiple properties you can determine which one offers the best potential for returns.
- Lower returns may indicate higher risk while higher returns may suggest a more attractive investment opportunity
- It helps investors decide whether to purchase, hold or sell a property when the ROI is below expectations
- It helps achieving a certain annual or building long-term wealth and track progress toward these goals.
- Financial institutions often use ROI as one of the metric to access the creditworthiness of a real estate investment and a health ROI may can make it easier to secure financing
What is consider a good Return on invest
There is no definitive answer to what is good return on invest for a property as it depends on various factors such as your goal, risk tolerance, market conditions and opportunity costs.
Some general guidelines can help you access your ROI like compare to average ROI of similar properties in same area.
How to get ROI improve
To improve your ROI on a property there’s have two main options by increase your income or decrease your costs.
- To improve your income return you can raise your rent, add value-added services, improve your occupancy rate or use a property advisor to optimise your marketing and tenant screening.
- To decrease your costs you can refinancing your mortgage or claim tac deductions and depreciation, by doing these things you can boost your net income.
Industrial Master Plan (NIMP 2030) by Malaysia Government
September 5, 2023 / 0 comments / 759 views / Tags: Economy, industrial land, Investment, IT, Malaysia, property, property agent, Real estate / Category: Article and lifestyle
New Industrial Master Plan
The government’s implementation of the New Industrial Master Plan 2030 to propel the country’s economic growth.
Four missions have been formulate to drive industry transformation at a large scale
- Encourage industries to innovate and produce more sophisticated products
- To embrace technology and digital transformation to dive into innovative and enhance productivity
- Pushing to net zero through sustainable practices and green initiatives
- Safeguard the economic security and inclusivity via enabling supply chain security
Interventions for high-impact sectors like E&E, Chemical, EV, Pharmaceuticals, Minerals and metal and due to industry’s growing trajectory to the creation high-skilled jobs
Value-added and improvement in automation and technological advancements expected to grow the median salary in the manufacturing sector to reach from Rm1,976 to Rm4,510.
To provide the immediate roll-out of NIMP implementation several mission-base projects have been identify. These fundamental projects are expect to accelerate the developments of an inclusive ecosystem that integrates SME’s into the value chain and rally the entire industry.
The New Industrial Master Plan 2030 expect costing some RM95 billion in total investment over the seven year long plan period of its implementation towards higher value-added activities is expect to provide employment for 3.3 million people through the creation of high-skilled jobs.
Amazon Web Services (AWS) invest in Malaysia by 2037
September 1, 2023 / 0 comments / 684 views / Tags: Economy, Investment, IT, Malaysia, property, property agent, Real estate / Category: Article and lifestyle
Amazon Web Services
Amazon Web Services announced to invest at lease MYR 25.5 billion in Malaysia by 2037.
AWS is a subsidiary of Amazon.com, inc. by 2006.
It is a comprehensive and widely used cloud computing platform that offers a variety of cloud services including computing power, storage, databases, analytics and more.
Infrastructure and services
AWS provides a vast of cloud-based infrastructure and services to individuals and businesses or organisations.
The popular offerings include
- Amazon EC2 ( elastic compute cloud )for scalable victual servers
- Amazon S3 ( simple storage service ) for object storage
- Amazon RDS ( relational database service ) for manage relational databases
- Amazon Lambda for server less computing.
AWS has a global network of data centres and availability zones allowing customers to deploy their applications and services worldwide while ensure redundancy and high availability.
Played a significant role in transforming the IT industry by enable to scale their resources on-demand, reduce infrastructure costs and innovate more rapidly.
What it can bring to country when invests in Malaysia
When Amazon Wed Services invests in Malaysia it can bring several benefits and features to the country. follow are some of the potential advantages;
- Job recreation – often lead to the creation of jobs in various sectors including IT, data centre operations and support services.
- Economic growth – contribute to the country’s economic growth by attracting other businesses startups to use AWS services
- infrastructure development – Invest in local infrastructure networking and data centre facilities to establish and operate data centres and cloud services
- Skills development – typically provides training and certification programs to local IT professionals
- Support for startups – offers support and resources for startups and small businesses, this can encourage entrepreneurship and innovation in Malaysia.
- Reduced latency – having local data centres can reduce latency for businesses and users in Malaysia when accessing cloud services.
- Redundancy recovery – builds multiple data centres in a region which can provide redundancy recovery capabilities to reduce crucial for businesses.
- Attracting foreign investment – AWS’s presence can signal to other international tech companies that Malaysia is a favourable destination for investment to attract more foreign direct investment (FDI) and boost the country’s tech ecosystem.
- Global reach – easily expand their operations globally leveraging AWS’s extensive global network of data centres and services.
However it’s can also be challenges about data privacy and security, potential environmental impacts and competition with local providers.
Government to address these issues ensure that the investment is mutually beneficial for both parties and the Malaysia economy as a whole.
Tesla to invest in Malaysia boosting economic growth
July 21, 2023 / 0 comments / 575 views / Tags: Economy, Investment, IT, Malaysia / Category: Article and lifestyle
Tesla
An American electric vehicle announced its strategic establish expansion into Malaysia market on July,20 2023.
The company known for its innovative electric cars, battery technology and renewable energy products to accelerate the world’s transition to sustainable energy by offering electric vehicles that are high-performance and a small environment impact compare to traditional internal combustion engine vehicles.
Location
The company will set up its head office and service centre in Cyberjaya, Selangor Malaysia as the central hub for all corporate operations, sales, training, vehicle services and customer support .
Cyberjaya, in the industrial state of Selangor is a home to several international automakers and assembly plants operate by likes of Toyota, Honda, BME, Mercedes-Benz and more.
Model 3 and Model Y
Tesla will introduce its lineup of electric vehicles to Malaysian consumers starting with its Model 3 and Model Y.
Conducting online sales of its Model 3 and Modal Y in Malaysia and will be opening a headquarter, Tesla experience and service centre as part of the country battery electric vehicle global leaders initiative.
Charging Infrastructure
As electric vehicle require charging infrastructure Tesla collaborate with local partners to establish a network of charging stations across the country include Pavilion, Gamuda, Sunway, Quill, MRCB and Levn. These supercharger stations provide fast charging for Tesla vehicle.
Boosting local economy
- Establishing a manufacturing plant in Malaysia could potentially create job opportunity and boost the local economy
- Lead to job creation across various sectors including sales, manufacturing, research, maintenance and development.
- Reduce air pollution and greenhouse gas emissions in Malaysia helping the country move towards its sustainable goals
- Promote technological advancement in the automotive and renewable energy sectors encouraging local innovation and research
Q&A section
OPR Interest Rate By Bank Negara Malaysia
July 10, 2023 / 0 comments / 1135 views / Tags: Article, bank negara malaysia, Lifestyle, OPR rate, property, property agent / Category: Article and lifestyle
Overnight Policy Rate
Bank Negara Malaysia (BNM) cut its overnight policy rate (OPR) by 25 basis points (bps) to a record low of 1.75% .
- Including latest Overnight Policy Rate cut, BNM has slashed the OPR four times so far this year for a cumulative 125bps reduction
- Jan 22, 2020, BNM cut the OPR by 25 bps to 2.75% followed by another 25bps reducing on March 3 to 2.5%.
- On May 5, BNM slashed the OPR by 50 bps to 2.00 and now with the latest low cut rate of 1.75%.
The Impact of covid -19
Due to the impact of COVID-19 on the global economy is severe. Global economy conditions remain weak with global growth to be negative for the year.
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 global factors.
Several major economies have begun relaxing measures to contain the COVID-19 pandemic, leading to the gradual resumption of economy activity.
OPR provides additional policy stimulus to accelerate the pace of economy recovery. The MPC (Monetary Policy Committee) will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth.
Mortgage Reducing Term Assurance (MRTA) – review
June 8, 2023 / 0 comments / 2342 views / Tags: Malaysia, MRTA, property / Category: Article and lifestyle
Mortgage Reducing Term Assurance
MRTA is a reducing term life assurance that provides home financing borrowers with financial protection in the event of premature death or total permanent disability.
MRTA and MLTA are financial terms related to insurance, a specifically mortgage insurance policies.
What is MRTA ?
It is a type of insurance designed to protect borrowers and their families from the financial burden of an outstanding mortgage loan in the even of the borrower’s death or permanent disability during the mortgage term.
- MRTA provides coverage for the outstanding balance of the mortgage loan as the borrower pays off the mortgage over time the sum assured also reduces in tandem with the outstanding loan amount
- In the unfortunate event of the loan borrower’s death or permanent disability, MRTA will settle the outstanding mortgage loan amount relieving the burden on the borrower’s family or dependants.
Benefits and features of MRTA
- Financial security – Provides peace of mind ensuring that the family’s can keep their home even if the borrower passes away or become permanents disability.
- Affordability – Usually more affordable compared to other life insurance policy’s making it accessible to boarder range of borrowers.
- No cash value – Its a pure protection plan without have a savings or investment component, it serves its purpose solely as mortgage protection.
Why do you need it?
This home loan life insurance is essentially a protection mechanism for all people with mortgage, and especially for household with sole breadwinner.
Generally, in the event of untimely death or disability of a housing loan borrower, the greatest problem facing surviving household members is their ability to pay off the outstanding loan.
In many instances, the survive family members may even need to sell off the property at less-than-competitive price just to pay off the outstanding amount.
Surviving family members will not be left with such burden because it covers part or all to the unpaid portion of a housing loan.
MRTA is a life insurance plan with decreasing sum assures over time and it used just to cover your home financing.
There is a personal plan where you and your dependents are financially protected when you are no longer around or have disability to generate income.
Mortgage Level Term Assurance (MLTA)
MLTA is another type of mortgage assurance provides level coverage throughout the policy term, meaning the sum assured remains constant.
- MLTA offers coverage for a fixed amount throughout the policy term and it is not directly tied to the outstanding loan balance. The payout from MLTA remains the same regardless of the remaining mortgage amount.
- Offers more flexibility as the payout can be used for purposes other than setting the mortgage loan. The beneficiaries can use the proceeds to cover others financial obligations or maintain their lifestyle.
On the other hand MLTA are slight variation from MRTA and offers an alternative for borrowers who looking extra protection plus savings by life insurance policies.
MLTA is best for an extra financial protection in the worst case scenario as it also has a cash value at the end of the policy. This is best for those who have many financial dependent like children and spouse.
Benefits and features of MLTA
- The level coverage provided by MLTA ensures that the beneficiaries receive the same payout regardless of the outstanding mortgage amount
- The payout from MLTA can be used for various purposes providing the beneficiaries with financial flexibility to address their needs
- MLTA does not have a savings component
Its importance to note that the specific terms and benefits of MRTA and MLTA can vary depending on the insurance provider, Before deciding on any insurance policy, its essential to carefully review the policy documents, terms and conditions to ensure it aligns with your specific needs and circumstances , Additionally it’s advisable to consult with a financial advisor or insurance expert for personalised guidance.
Which mortgage life insurance do I need?
In Malaysia, there are two types of life insurance available – Reducing Term Assurance (MRTA) or Decreasing Term Assurance (MDTA) and Level Term Assurance (MLTA).
