Construction status as at 08/03/2011

To buy or to rent a house?

In Malaysia property market environment, is it more viable to buy or rent a house?

Most people prefer to own a property because the loan you pay to the bank is equivalent to the rental you are paying, but one's financial ability will play a big part in the decision to buy or to rent a house.

Property buyers are advised to assess their finances before buying a house to ensure their ability (for example debt ratios not too high). Especially for the first timer, they should consider the stability of their jobs to ensure they will be able to service the loan repayment. If a person's debt ratio in relation to his salary is already approaching 50%, chances are banks will not approve the housing loan. If a person mortgage amount to be paid is more than half of a person's salary, the bank may have doubt in the person's ability to repay and hence require more evidence of good financial situation in order to approve the loan.

As per to date’s Employees Provident Fund (EPF) policy, house buyers can utilize their EPF savings to purchase a property. Couple with the easy payment schemes offered by banks and first-time house buyers are qualify for loans of up to 90%, owning a house has become easier than the years before.

During Budget 2011, the Government mentioned it will implement a scheme called "Skim Rumah Pertamaku" or "My First House" through Cagamas Bhd, which will provide a guarantee on the 10% deposit for houses below RM220,000. This scheme is for first-time house buyers earn less than RM3,000 household income per month. With this, the house buyers will receive a 100% loan without paying for the 10% down payment. On top of that, first-timer will also be exempted from stamp duty of 50% on instruments of transfer on house prices below RM350,000. The Government also proposed that a stamp duty exemption to be given on loan agreement instruments to finance such first-timer.

For those who rent a house in today's environment of rising prices, he or she will never benefit from the appreciation in the property value. Moreover, even if the value of the property does not increase over time, the mortgage balance decreases and equity accumulated.

Many people also see property as a way to fight inflation. With the sight of inflation creeping up, any delay in buying a property will result in paying more lately. In terms of disadvantages in owning a house, there are many variable costs involved, for example the quit rent, assessment, service or maintenance fees and insurance among others. Selling the house may also not be as quick as, say, disposing your share investments in stock market. The whole process of selling can take up to a year, depending on the location of the property. If there is already a potential house buyer, the process can be shortened for up to 3 months.

The following scenario is a quantitative example between buying and renting a property.

A typical average 2-storey terrace house at the edge of Kuala Lumpur city, may cost around RM400,000 and the rent is RM1,500 a month. The net yield comes up to 3.8%, a reasonable yield for landed property. Assuming the household income is about RM7,000 a month, this means that the ratio of the household income per year to the property price is 4.76 times. To buy this house based on 90% loan financing at a fixed interest rate for 30 years, you would have to pay a 5% interest, which means a monthly expense of approximately RM1,900 a month. Hence, it is clearly better to rent than buy.

Still, this analysis is based on what is considered the typical housing type. Different considerations may apply for different types of housing units in different locations. Another powerful motivation in favour of buying rather than renting is the social imperative to own a home. Owning a house allows you to raise credit as and when it is needed, for all kind of purposes. Hence, this is a powerful motivation for property ownership.

Based on the article by Hong Yie Chong

Welcome to Harbour Place (24/02/2011)

The much-anticipated Entrance Statement to Harbour Place is finally up. Once the finishing touches are applied, this entrance statement will majestically greet every entry and return to Butterworth's first Metrocity in the making.

The benefits of maintaining a Green Home

Maintaining a green home only offers you numerous benefits with no harmful side effects. Not only does it give that peace of mind that you have always wanted to experience in your home, it also does wonders for your environment. A good number of the previous ways that people used to construct buildings caused numerous negative impacts on our environment. Out of all the benefits one can experience as a result of maintaining a green home, is the huge difference of the money spent when paying utilities since you end up saving a lot. The environment around you is also impacted in a positive manner. Going green in your home does not necessarily mean revamping your home from top to bottom. It can be as simple as doing away with energy-consuming equipments and replacing them with new energy star appliances.

This concept is not something new since it has been there for quite some time. However more better and effective methods of saving energy and doing away with loss are now being used. The appliances used are readily available and even cheaper when compared to the difference of the reduced costs.

In the long run you and your family will benefit from the eco friendly changes you make to your home. Your environment will also become safer and healthier or you to leave in. Other than the health benefits a green building is also looks more attractive. Saving energy and water are just a few of the benefits of maintaining a green home and one will be able to save between 5 to 10 percent of your previous utility bills..

Maintaining a green lifestyle is something that will make you feel good about yourself as you protect and preserve your environment. This will also ensure your children grow up in a clean and healthy environment.

Based on the article by Byron Jonas.

Construction status as at 14/02/2011

Popular Styles of Home Architecture Today

If you are a fan of modern architectural designs, then you probably want to know the different trends in terms of home architectural designs. You will be amazed with the variety of wonderfully designed properties with highly functional spaces.

Knowing the different trends will help you decide how to upgrade current home. This will also enable you to apply new trends in your home. Some of these trends can help you conserve energy better and live a healthier and an environmentally friendlier home.

Here are few of the most common trends today:

1. Eco-friendly home designs. Many builders today are concerned about the environment. This is why they gearing towards the use of sustainable materials. This is a good thing because everyone can benefit from this. Aside from using eco-friendly materials, properties are also designed to lower the carbon footprint of the property. Designs are looking to maximize the natural light so that household will use less of the artificial lights during the day. Rooms are also built to reduce the use of air-conditioning.

2. Prefabricated homes are in today. The parts of these homes are manufactured off-site and the parts are shipped to the location where they are assembled. Many builders are using this because they are able to build homes with good quality faster. There are several designs to choose from. This is why properties can still be customized to address the needs of the home buyers.

3. Re-purposing and reusing home structures. Due to concern for the environment, builders today are not throwing away structures or materials when home building. They find good uses for old structures and incorporating it in new homes without compromising the quality of the property. Many builders are also doing this to preserve history.

4. Accessible home designs. This is perhaps one of the most notable trends in new home designs. The designs are simpler, allowing the homeowners to move around easier. Owners can also get to their things easier because they are more accessible. For instance, high cabinets are replaced with a more convenient storage where users can easily get to their stuff.

5. There are also several additional features that lets the owners relax and enjoy their home better Family rooms are among these features. Owners are looking for that extra room in the house where they can just hang out. They are also interested in having more living space where they can bond with family and entertain friends.

Houses today are simpler and more spacious. This is because of how contractors integrated the wise use of spaces in the house. There has also a significant change in the choices of materials for the construction of properties. Homeowners are moving towards the use of sustainable materials. This is due to the growing awareness of the troubles that the environment is facing.

There are also new trends on the rooms and features that homeowners value today. Many are more drawn to family rooms as well as home offices. Familiarize these trends to choose an applicable design for your home.

Based on an article by Roby Hicks.

Choosing to invest in property

It's not easy to invest in property. With the volatile market, you never know what might happen to your property or your money.

When it comes to property, there are no guarantees. The best thing you can do is simply to protect your investment by making smart choices.

To do this, you have to think hard and plan ahead. After all, property is always a substantial investment.

Determine what kind of property you want to invest in. You can go for a condominium unit if you can afford it or start with a simple apartment if money is tight. On the other hand, you can also purchase a vacation house especially if you travel a lot. Whatever you decide on, it's always best to weigh your options before you plunge ahead.

If this is your first time to invest in a property, it might be a good idea to start with something smaller in order to limit your risk exposure. In this case, an apartment building might be a good option as it is easier to get tenants and it offers a more stable income.

But regardless of the kind of property you choose, the one thing that you should pay attention to is its location. In fact, location is everything when it comes to property. A good location is one where there are schools, banks, hospitals, markets, and public transportation nearby.

After you have decided on a good location, keep abreast of the developments in the area. Of course, it would be ideal if you can choose a property that can help you pay off the mortgage.

To help you get the best deal, engage the services of a real estate agent. An agent can tell you all you need to know about a certain property so you can easily evaluate your options. Finally, look for a good financing company. Remember that the higher your credit score, the higher the likelihood of getting a good deal on the mortgage.

Based on the article by Andrew Capster who has been writing articles about investment for the past four years