I am wondering if I can buy a leasehold bumi lot apartment from 5th time auction ? The settlement date is only given 120 days but extension with interest can be given. My lawyer advises me not to buy due to too many complicated procedures which may not be completed within the settlement date given. Apart from that, no one could give me a clear idea whether I can buy it or not, so I need your advice who had this experience before.

Ask for a copy of the Proclamation of Sale..any restrictions will be stated in the document.

Be careful as a strata titled property may be sold via private auction,where the chargee exercised their rights in the power of attorney. Any restrictions will apply llike a normal sub sale.

Thanks, the POS does not mention anything important, just say the sales is subject to consent. (But 10% will not be refunded if Icannot get ownership). This property was state project and the owner was a bumi, hence state consent must I apply. The risk is quite high as I have to bear the arrears, and the completion date is not really comfortable in the case when state consent is required. You know the efficiency of our G.

i dont think you can settle in 120 days (working days???)
normal leasehold (non bumi) will take around 6 months.

I also think so, 6 months is for normal transaction. In this case non bumi buying a bumi unit will even take longer time than 6 months I guess. As such, I have to pay the interest every extentied month. If the property is below 25% from market price, will you guys take the risk ?

-Pros ;
1) 25% below than market price
2) Nett rental return about 4%
3) Nice view.

-Cons ;
1) 10% won't be refunded if consent rejected.
2) House bad condition, needs to be repaired.
3) Arrears up to RM16K which I have to pay.
4) Many hidden cost and issue.
5) Leasehold

from my limited understanding, a LH property isnt tranferable from a bumi to non-bumi, as state concent is almost imposible to get even for the well connected.

Unless there has been some massive relaxation on the transfer policy recently, the above should apply.

If it's a designated bumi lot, don't touch it.

Consent application would take a long time & approval is not guaranteed.

U risk losing ur deposit, legal fee, time & effort.

2 possible scenarios that I will give a yes.


Court auction bumi properties

and

Properties release from bumi status

Hi Jason, can elaborate more on this?

Normally bumi properties started from private auction and only bumiputras / putris are able to bid.

After a few auction, it will move to court auction.
During then anyone can buy.
On the legal document, it's still a bumi lot but a consent is given.

Now, a non-bumi bought it and the price will increase 40% to 50% following non-bumi market rate. If it's sold back to a bumi, it will return back to bumi status.

no, bumi lot is reserved for the bumi

Landed properties designated as Bumi lot can be sold to a non bumi if it is auctioned via High Court Order.

For strata titled units where titles are not issued, sale is thru private treaty..ie it's like a sub sale,all restrictions re transfer still applies. In TS's case, no, I'll not consider the unit in question.4% nett returns is NOT really attractive. Unless there's a huge capital upside potential, there are lots of capital guaranteed investment opportunities available in the market with similar rate of returns.

For all auction cases, buyer must have contingency plans to pay bal of bid price in 120 days...come rain or sunshine. Possibility of delays due to complications is quite common. Otherwise, be prepared for 10% forfeiture.

Edit:due to critical omissions in original post.

This post has been edited by ??!!: Sep 29 2009, 02:54 PM

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Added on September 29, 2009, 2:46 pm

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Added on September 29, 2009, 2:46 pmGreat stuff guys, learnt something new today.

This post has been edited by Pai: Sep 29 2009, 02:46 PM

That would be bumi reserve land.

The correct term is actually 'Malay' Reserve (Rezab Melayu).

Btw, High Court & Land Office only auction properties already with individual title (permanent or temporary).

I totally agree with you, my lawyer also advises me to have a plan B, to prepare for cash buy first if time is out of control. Too many things have to be considered, therefore I conclude the risks are not worth to take.

After all, there will be a 10% drop in the next auction.

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Added on September 29, 2009, 5:39 pmDo you think when a bumi lot sold to non bumi from auction, it can be freely transacted again without any restriction ?

This post has been edited by rayloo: Sep 29 2009, 05:39 PM

So far never heard of restriction.
I have encounter 1 bumi land freehold put at court auction.
It's in an area that I don't want, so the deal didn't go through.

This post has been edited by jasonhanjk: Sep 29 2009, 05:45 PM

Since it is stated as "Bumi" lot.. dont touch it.. You might end up with lots of hassel