Hi there! I was about to get a unit yesterday, but understand that the piece of land is under industrial title

Any comment??

Where u get info?

Should be previously industrial title then approved for conversion to commercial after paying conversion premium or else wouldn't be able to get development order...

Better confirm with developer

You cannot build commercial and residential under industrial title.
The title has been converted when they took over from Matsushita.

Maneki.. Investing in this project is a big decision. Suggest that you verify all facts including the land title before making a decision. But if your decision is not to buy due to industrial title, then I suggest that you don't go into property investment

Having read all of your post recently on the Dual Key and if it will provide a good yield, got me thinking again about how am I gonna get any yield at all from my iSovo unit. I bought it with intention to use it as a my own office for various reason. But if I wanted a better yield, I am actually thinking how I can rent it out by marketing the unit for what purpose... hmmm...

After ploughing through most of the 44 pages....(perhaps I would have gotten to the answer more easily by just calling a SA or dropping by the gallery)...There a wide spectrum of units available..

1. Residenz via Tower 1 (40 storeys with 249 units)
2. Creative Residences via Tower 2 with 11 layouts:
(Type B1 675, B1a 708, B2 813, B3 717, B4 922)
(Type C1 965, C2 992, C3 992)
(Type D1 717, D2 1265)
(Type E 1405)
3. iSovo via Tower 3 and 3A (436, 745, 1084, 1094 sf sizes)
4. Boutique offices via Tower 5
5. 30 Jewels Shop Office (apparently sold out)

Simple question is, are all the above sold on Commercial title basis (given it's all on the same acreage)? If yes, would max loan eligibility be capped at 85%?

On the flip-side, say it was my 4th residential property, would I still be subjected to the 70% LTV ruling if Icon City is based on commercial title?

Not sure about others but for service residence u can get LTV 90% if its ur 1st or 2nd props.
For big boss like u wif 4 property, sorry la, confirm LTV 70%

If I am not wrong, both the 2 residence towers are residential under the Housing Development Act hence subject to 70% LTV rule...

It is not only depend on the commercial title of the land. A serviced apartment or a SOHO can be on a commercial land but is residential...

@jucl and CMW123,

Thanks for the update. I've always been blurred by the soho concept of "office + residence" and whether it is bounded within the "residential" property purchase limitations.

Oh well, better save up on more bullets before aiming. =p

hi moonstone,
Am not sure about the rest, as for my iSovo purchase, I managed to secure the 90% loan, BLR - 2.2 with DIBS with Affin Bank at the very beginning during their first day launch and its commercial title. I remembered the other banks did not offer such an attractive package.

Basement in making...

ICON CITY
http://www.icon-city.com.my/



Creative Tower

Boss, hope I can clarify it below for your understanding.

A lot of SOHOs, SOVO buyers were confused of the wording of "commercial title property" to avoid LTV 70% and gets up to 85% based on commercial property ruling. This is totally wrong.

A SOHO must be build on top of a commercial title land just like STUDIO on top of Residential Land. It is just a name of the property type based on current trend where SOHO can be residential and can be office. The tricky about SOHO would be whether it is subjected to HDA Act or Non HDA. I never come across others SOVO, SOFO, i-SOVO, i-SOFO, SOSO, SOLO, or whatever XOXO is comes under HDA Act.

Before Q3 2012
A lot of developers over-smart by producing the effectiveness product of SOHO, generally smaller sizes of studio, higher pricing per sq feet and creates more number of units to create GSV and most of all, comes with HDA Act / Non HDA just to entitle the property definition as SOHO under Commercial Ruling property ( office wording ) and hence, regardless how many home loans you had before this period, ( for most of the banks as announced by BNM guideline ) your SOHO ( or SOVO ) purchased will be treated under commercial property ruling and entitle up to 85% margin and loan package under commercial such as higher rates plus max loan tenure of only 25-30 years.

After Q3 2012 to 1st Jan 2013
The ruling of HDA and Non HDA comes into power where, I was clearly remember and informed by few other banks that, as long as the SOHO is with HDA Act, it is proceeding under residential loan ( it's loan processing and not title ) where enjoying the residential loan rates, loan tenure up to 40 years and hence LTV 70% implies. For SOHO without HDA ( or SOVO, SOSO, SOFO ), it would be treated as under commercial loan, hence LTV 70% not applicable here.

After 1st January 2013, BNM curbed the SOHO with HDA and without HDA ruling to avoid buyers to escape the LTV ruling and speculate the property prices and values based on lower price ( compare to > 2/3 bedrooms condo / service apartment, where LTV 70% would require higher downpayment ) and higher discount to promised a zero or lower entry.

After this implementation, most banks are very straight forward to the said property of SOHO whether it is HDA or non HDA, it is subjected to LTV 70% guideline if the borrower already has more than 2 Housing Loans. It would be most, if not all banks. I not sure which bank able to provide 85% margin for SOHO, SOVO buyers for those who had more than 2 Housing Loans.

Any taikors are welcome to correct me if I am wrong.

The last time i checked, soho all subject to ltv70%. Other soxo are not. I even got the guideline a few months ago

Correct.

A STUDIO and CONDOMINIUM project is build on a piece of Residential Land. There is no service apartment on top of a Residential Land.
A SOHO and SERVICE APARTMENT project is build on a piece of Commercial Land. There is no condominium built on top of a commercial land.

It's not based on Commercial Title, but it's based on the project whether it is come with the protected HDA Act ruling or without HDA Act ( commercial properties are all without HDA Act )

For SOHO under HDA Act ( ex. You City, You One, Da Men, ) it would be treated as residential loan guideline and hit LTV 70% if > 2 home loans.

For SOHO without HDA Act, most of the banks would follow above guideline as required by BNM. I not sure which banks still allow up to 85% or 90% for Non HDA SOHO.

I did shared above in another thread before, but due to some members do not fully understand me, do not understand what they replied about and simply laughed me off confusing around because they heard this and heard that, self proclaimed got 7 properties and etc, therefore I lazy to reply on that thread bcz time wasting.

These SOXO, SOFO and SOLO are real confusing .... any idea what are the projects under this definition?

I only noe Icon City and I-City has i-SOVO tower.

Wow! Thanks Chris Chew for the clarification. I didn't know this when I was signing the documents during the iSovo purchase.. my bad! But my lawyer did explain clearly I was buying into a commercial / office and was not under the HDA Act. So he read every point in the SNP to me, although 20% of it I didn't really understand.

Service apartment is bascially residential built on commercial land. It is considered as fully-used as residential, hence comes under HDA.

SOHO is bascially a service apartment with office element. Most of SOHO today comes under HDA, hence residential type property.

All others are for office use hence commercial type and will not be part of HDA.

Most land left for development are commercial.

As far as developers are concerned, Kuala Lumpur will see a declining number of purely highrise residential built on residential land as commercialisation is vital to a gross development value and other land matters.

Btw, studio refers to size of apartments, it is not a genre of a product. The traditional principle is that studio refers to a small-size (normally less than 500 sf) service apartments or soho that HAS NO ROOM... this is called studio. Otherwise if it has 1 room - then it will be a 1-room service apartment or soho. It is not appropriate for Studio to be >500 sf, because the developer would have accommodate at least 1 room for sizes above 500 sf.

This post has been edited by accetera: Jul 25 2013, 09:57 AM

this icon city design change so many times until i also blur blur liao.
i remember one version also have a ufo shape icon in one of its corners.
this latest rendering of the residential block makes it looks like so ordinary, no more icon lah.
but i actually prefer this than those fancy fancy icon which might makes it outdated once its completed.
kekeke.
think still have plenty of units left to choose from.
wonder how d'sara sentral would fare?

Boss, the UFO shape is still there at the entrance. This tower 2 residential is going to be in dark grey color similar to sdb's 5 stone facade.