Private Dweller Ownership Scheme, just announced by the Selangor government, is indeed a welcoming initiative. This scheme allows Selangor residents to apply for lease renewal and extension with easy payment scheme of only RM 1,000 premium. This has completely solved the problem of expensive lease renewal for the residents in PJ Old Town with expiring lease.

Beginning 1st June 2011, all residential property owners in Selangor can apply to renew and extend the land lease to 99 years by paying RM 1,000 premium. This shows that the state governments led by Pakatan Rakyat have continued to introduce policies that benefit the public and reduce the burden of escalating living cost. In terms of affordability, the lease extension premium under this scheme is unprecedented in our country’s history.
I believe that this scheme is fair, as it applies to all types of residential properties and it has no limit on the size of land. It also benefits the residents of New Village, including those low-income residents in the rural areas and fishing villages. This scheme also applies to the case whereby the lease is transferred to their children, but limited to only one time of transfer. However, this scheme does not apply to the sales of land and transfer of title to persons other than children.

Since Pakatan Rakyat started governing Selangor in 2008, my service centre has received many complaints by the public regarding the expensive premium on lease extension. Based on the previous government’s methodology, the premium is calculated based on RM 10 to RM 25 per sqft. In many residential areas, especially PJ Old Town, the senior citizens cannot afford to pay RM 70,000 to RM 120,000 for lease extension. After discussing this matter with the Pakatan Rakyat leaders and Selangor Mentari Besar, the Selangor government has decided to implement a uniform lease extension premium of RM 1,000 to benefit the people in Selangor.

This scheme has solved the all problems related to lease extension in Selangor. This is in line with the philosophy of Pakatan Rakyat that every citizen should own a home, with the land titles that belong to them.

Earlier, the BN government, especially the MCA, accused the Pakatan Rakyat of charging expensive premium for lease extension. This scheme has put the accusation to rest. The promise to introduce beneficial policies to the people has been honoured. Additional details regarding this scheme will be announced by the Selangor Mentari Besar in the near future.

http://cheanchung.wordpress.com/2011/06/02...-lease-renewal/

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Petaling Jaya Old Town residents can now extend their leasehold titles to 99 years by paying a premium of RM1,000 under the Selangor government’s Private Dweller Ownership Scheme.

Petaling Jaya Selatan MP Hee Loy Sian said details of the scheme would be made public soon.

PJ Old Town encompassing Section 1 to 4 comprises about 2,300 households.

According to Hee, 70% of the families there could not afford to pay the high premium to extend their expiring leases.

Villagers without land titles and TOL holders who have lived on the TOL land for more than 10 years are also entitled to the scheme with terms and conditions.

However, he said those who planned to sell the land or transfer the title would have to pay the full premium, though they would be given a 30% discount if they paid within six months.

“In the past, New Village residents needed to pay RM0.50 and RM2.50 per sq ft for an extension of 60 and 99 years, respectively, but now they only need to pay RM1,000.

“The Selangor government expects to receive a lot of revenue from lease extensions, while the public will benefit from extending the lease at a low cost. This is a win-win outcome,” he added.

He also encouraged those who could afford the full premium to pay it so that there would not be any hitches if they wanted to sell their properties.

http://www.starproperty.my/PropertyScene/T...htBox/12421/0/0


This post has been edited by smallizard: Jun 7 2011, 11:40 AM

good news ! this is so called rakyat's gomen

only in pj old town ??? how about the others area ? my condo now left 90 years, its worth to pay another 1k and extend to 99 = 90 + 99 ??? = 189 year ? is it count like this ??

because PJ old town left only few years if not mistaken... so after renew, set back to 99 years...

ur condo still early to renew

I live in section 4 pj.
Renting a room over there.
A lot people must be happy over there with this kind of news

more importantly, leasehold properties in selangor is set boom boom boom.
bbb mode in pj old towns especially.
those who firesale sect 14 last and this year sure feeling the pain with this news.

i read in chinese daily, it's for whole selangor state.
no, the lease extension max is only 99years. meaning to say if u renew now, your lease extension is 90 + 9=99

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Added on June 7, 2011, 11:30 amhope that PR can be the state gov forever...

This post has been edited by smallizard: Jun 7 2011, 11:30 AM

Great!!!!!!!!!!

Walao...

When Kl's turn ? hahahah ... do you think possible or not? i meant in this 5 years...

maybe when the same people running s'gor is in control at kl?

Haha......of course it is really a good news especially for the senior citizen who less money in the pocket.

But, why i understand that after the renew to 99 years old, if the owner what to sell the unit, they needed to pay back the balance of the renew value to selangor gomen.

eg.

Actual needed to pay maybe 80k, now u pay 1k.....later u sell it off after renew.....u need to pay back 79k to selangor gomen.

I think the concept is like that....

yes, when u sell the property.. u got to pay back the premium following the market value.
but at least good for those who really need home for generation.

good news la. it supposed to be this way. easy for rakyat to renew their lease. however i believe, if u have 99leasehold, but if gov really want your land, they can take it and give you a compensation and thats it right?

Change the gomen, as simple as it!

this is a powerful weapon for PKR..i was once a fence sitter, now i will support all out for PKR in selangor

U should since last yr. coz i find dat many road inklang has retarred

Better Malaysia? Yeah....

last time the news the uncle paid 10k+ for 100k+ house... scary.... now changed, better

promises versus actually done.

"some people" promises the sun and the moon but the sun and the moon never came.

"other people" never promise anything but:
1. leasehold land have been converted to freehold
2. free water every month
3. extension of leasehold land
4. record attraction of fdi for growth
5. and the list goes on and on and on .....

just wondering what if the "other people" group does oust the "some people" group would have been like?

Kudos to Selangor. Now BN sure will copy Selangor Gomen to benefit rakyat. Hooray.. But of course we all know who is more sincere la..

Although i am pro-Pakatan, I think this move is irresponsible and merely to win votes.

It is not sound economics and very unfair to the rest of the rakyat!

By reducing to payment to a mere RM1000, it reduces the state government income by RM50-100k per conversion. Assuming 100,000 homes (just a wild guess) converted on this basis for the whole of Selangor, this would mean that the state government has foregone income of RM5-10 billion!! This income could have been used to build new infrastructure to better serve the general rakyat -- rather than a few privileged few (who own leasehold properties).

After all, leasehold properties are sold at a lower price than a freehold property -- so, isn't this unfair to someone who had used his hard-earned savings to buy a more expensive freehold property!

BTW, I know of many investors who have actually bought land/houses in anticipation of this government move and have made a windfall gain -- at the expense of the rest of the rakyat.

It would lead to a trend that freehold price = leasehold price

Good news to leasehold
Bad news to freehold...

this is so called responsible state govt. they do not depend on this land renewal $ to develope the state. instead they improve the efficiency, attract fdi, prevent leakage, increase investments,, improve biz environment and tax revenue etc to run the state. why burden the rakyat? the best to follow resource rich Brunei, no tax at all. Msia is one of the resourch rich country
p/s: as someone has clarified, the actual conversion premium is still with state govt, after they sell the prop.

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Added on June 12, 2011, 11:04 amit still better than bn who plan to take over selangor at any expenses. imagine how many $, contracts, AP, tolls, fees, leakages etc will cost rakyat? at the end rakyat will suffered.

p/s: i really mad about touch n go - why they charge us 10% when use in parking and 50cent when u top up? imagine how many billions cost to rakyat??? i never see a countries do this (msia boleh mah). singapore, taiwan even give discounts when u use or topping up. imagine how many interest this pre-selected cronies earned wiht billions of top up values?? instead of giving discounts they charge u somemore!!!

This post has been edited by lucerne: Jun 12 2011, 11:04 AM

why categorized a good policy as irresponsible? are u a freehold property owner in selangor? if owner resell their leasehold property, they still hv to pay the premium according to market rate. the policy is merely for real owner, not for investor.

U should vote for BN. I do not own any leasehold properties but I am happy as well with this news. Good governance is not making money solely from its people. A good goverment should make money from outsiders as much as possible instead and give it to the rakyat. That is brilliant. Making money from taxing heavilly ur own people seems incompetent to me..

wrong. Unaffected, freehold will remain strong, because as a freehold you wouldn't have all these renewal issue anyway...

And that RM1k is under the condition of you can't resell the house.... so this smart condition is in place to prevent speculation, because otherwise PJ 14 house will increase price overnight by one fold...

A fast moving and developed state should have more leasehold lands compares with freehold lands to ensure/encourage land owners to develop else value of land depreciate over time and you need to payback to the state for the time wasted holding the empty plot of land yearly. This is called efficiency.

Existing tenants on leasehold already paying assessment fees and making full use of the land for the development of the state and hence should not be penalize just because lease is expired.

If you own freehold, good on you. What else do you ask for? You can sleep well.

If you own leasehold, at least you can sleep well for now, pending whether BN will win back state of Selangor.

As far as we know, PR reducing easily >20-30% of assessment fees to town councils, free 20l water (though no quite agreed v cheap water and willing to pay), cutting wastage of the past gomen etc.

Oh I attended one sitting at the council meeting, still remembered how arrogance the fello chairman telling everyone off as if town council is the king. Good riddance!

Should have walked out to show displeasure. Tat's my regrets for giving face to the assole.

http://www.hba.org.my/news/2002/1002/leasehold.htm

He gave the example of the owner of a 99-year leasehold property who decides to surrender his lease and apply for re-alienation in 2002 although its term only expires on Sept 1, 2022.

“When the application is approved, the clock on the new 99-year lease - if it is approved for 99 years - will start. Thus, the remaining 20 years on the lease will be forfeited,” he said.

actually not reduce but its just initial premium payment...the rest you can appeal to land ofis for installment...
for me this method not affair bcoz in this area majority r well income people.... bungalows in 60s, 70s they can buy at that time can u guys imagine their income at the time? the situation same as today banglow in town nowadays all of u know d price right? so who r income with certain amount per month can buy..
no offence, if wanna help high society community but lower society in selangor especially u must help them too....for example provide more land lot for rakyat with rakyat method for all races in selangor....that more merakyatkan ekonomi for me!!

This post has been edited by Raffy: Nov 25 2012, 01:30 PM

If this continues and just pay RM1000 for renewal, better buy leasehold properties. No point paying premium for freehold

Nowadays leasehold properties also very expensive.

the RM1000 renewal only for those who decide to stay , but if afterwards want to sell then must pay the full premium . That means the price of the property will become more expensive lah since the seller will pass the burden to the buyer by increasing the price of the property even more . In the end its the buyer who will end up paying the cost of the full premium ! Consider the example below , the seller of the the land will likely increase the price by RM618000 just to cover the full premium !

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the Selangor Land Rules 1966. For residential areas, the formula is 1/2 x 1/100 x land size x market value of property x tenure of lease. For commercial and industrial properties, the formula is 3/4 x 1/100 x market value of property x tenure of lease"

A 10,000 sq ft plot of land in Tropicana at RM250 psf, for instance, would be worth at least RM2.5 million, based on current market rates of RM250 to RM350 psf.

Based on the formula, the land renewal premium is a hefty RM618,750 at current market prices

This post has been edited by azi_fauz: Nov 25 2012, 01:55 PM

Check the detail of the conditions for the Rm1000 renewal carefully.

Has anyone here done this successfully? gotten their renewal up to 99 years by just paying 1K?

Few months ago heard this guy being interviewed on BFM who said about 99% of the ppl who tried to do this faced a lot of issues and weren't successful

Not sure how true is that

ease renewal for just RM1,000
Dec 20, 2011
PETALING JAYA (Dec 19): Owners of leasehold residential properties in Selangor have reason to rejoice — they will no longer have to worry about hefty land renewal premiums when their leases expire.

Residents of Selangor will be able to renew land leases under the newly introduced Private Residential Ownership Scheme at an affordable token premium of just RM1,000, instead of the current market rate, provided they remain on the property. In view of rising land costs, the scheme will make premium payments much more affordable for owners of leasehold properties, holders of Temporary Occupation of Land (TOL) licences and those who have just converted the status of their land (from agricultural to residential). Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim told The Edge Financial Daily in a recent exclusive interview that the philosophy behind the move is to ensure that the people of Selangor can realise the wealth of their assets.

"Let's say, for example, people who have lived in Petaling Jaya for two generations and have a [99-year] lease. They are now left with another 30 years. The value of the land, which has a lease of 30 years is different from the value of the land which has a lease of 99 years. This is very straightforward. "So why can't you give it to the people? Because after all they are going to stay there. Why don't you ask them to realise the value and the government will not lose out? "Based on that concept, we allow you to renew your lease for RM1,000 instead of calculating [the premium] based on the market price. The premium is based on market price... a quarter of the value, and the RM1,000 renewal fee is just a fraction of that," said Khalid.

However, if the owner decides to sell or transfer the property subsequently, he would have to pay up the full premium.[U] The current premium for lease renewal is calculated based on one-quarter of the land's current market value, divided by 100 and multiplied by the number of years renewed. In effect, for the renewal of a 99-year lease, the owner has to pay around a quarter of the property's current value. A 10,000 sq ft plot of land in Tropicana at RM250 psf, for instance, would be worth at least RM2.5 million, based on current market rates of RM250 to RM350 psf.

Based on the formula, the land renewal premium is a hefty RM618,750 at current market prices — compared with RM1,000 under the new scheme if the owner continues to live there. With land prices escalating yearly, the scheme offers a cushion and assurance that the homeowner or the next generation will not not be kicked out of their homes due to a lack of funds for premium renewal. The scheme exempts transfers due to inheritance from paying the full premium, while owners of 60-year-old leases will be able to convert their leases to 99 years. For those who can afford to pay the full premium, a 30% discount will be given if it is settled within the next six months from the date of the policy announcement. It is anticipated that the new policy will benefit 100,000 households in the state, with the numbers expected to rise as more developments are undertaken on leasehold land. New areas being opened up in the state are increasingly leasehold — as opposed to freehold — as they are mostly state-alienated land.

"As the state is the biggest landowner, it is only natural that state-alienated land becomes a major source of new township development. Plantation land is the only other major source of large landbank for development which is freehold," a property analyst told The Edge Financial Daily. He cited Kota Damansara and Tropicana as examples of state-alienated land that have become prime leasehold developments in Petaling Jaya, and noted that most of Shah Alam is leasehold.

"For freehold township developments, large landbanks can only come in the form of plantations. That's why developers are moving towards less prime areas such as Beranang, Semenyih and Rawang," he said. The analyst also expects leasehold and freehold prices. "It's already happening ... the stigma of leasehold properties is no longer there as there is a scarcity of new freehold projects. This move should further narrow the distinction," he added.

"The next big project is the RRI [Rubber Research Institute of Malaysia] land in Sungei Buloh. Given that it is privatised government land, potential buyers will be watching to see if its freehold or leasehold." The issue of renewing land leases has plagued Selangor residents for the past few years, especially those who have property in prime but older parts of Petaling Jaya, such as Sections 1 to 5, whose leases are running out. "What we are doing is giving wealth back to the people in a way that it is no loss to the state, but will instead give potential to the state. That is what ‘merakyatkan ekonomi' [the people's economy] is all about," Khalid told The Edge Financial Daily.

The scheme came into force on June 1 this year with little fanfare, and is not well-known within the state or even among property developers. It is also not without criticism from some quarters, while there were grouses from owners who did not know of its existence. Indeed, several property developers as well as owners of leasehold properties contacted by The Edge Financial Daily last week said they were unaware of this scheme. Khalid aims to organise workshops explaining the workings of the scheme.

"Very shortly we will organise a workshop on what to do in order to increase the lease. There are a lot of people who wanted to debate with us on the economics and political philosophy. We don't mind the debate, provided you [have the same] knowledge as we do," he said, adding that it took a couple of meetings with the state district officers to convince them that the scheme is workable. VPC Alliance (KL) Sdn Bhd chartered surveyor and director James Wong said the move is good for homeowners, as they need to pay only a nominal sum to renew the lease whether for 99 or 60 years.

He said under the Selangor Land Rules, the additional premium would come up to quite a huge sum. He reckoned that owner of a bungalow of 10,000 sq ft would have to pay between RM150,000 and RM250,000 in premium to renew the lease. However, Wong also said the move would hurt the state government's coffers as collections by the land office contribute a large part of state revenue.

"Perhaps to be more fair and equitable, there should be an assessment means test for those whose income falls below a certain level. This would be a good gesture from the government.

"But for those who can afford it, they should be made to pay the actual sum as it is quite common to get a discount," said Wong, adding that the policy is good for retirees and pensioners who want to continue to live in the one house they own as they would be short of savings in their twilight years to pay a hefty renewal premium.

This post has been edited by azi_fauz: Nov 25 2012, 02:01 PM