May 30 2012, 11:59 PM
QUOTE(comics_junkie @ Aug 9 2011, 11:12 PM)
H, want to make a thread here, everything and anything under the sun related to Malay Reserve Land or Tanah Rizab Melayu and Bumiputera House & Property quotas.
First off, want to ask about desirability of owning Malay Reserve Land. Is it worth it in terms of investment and also for stay (with view of selling in long-term)?
Usually when you buy, you can't profit a lot since restricted only to a particular group, however prime locations dictate otherwise such as Kampung Baru and certain other Kampung Melayu surrounding KL. So, what are the early signs or indicators of which Malay Reserve Land (MRL after this) will be worth it? is it worth purchasing MRL say in Putrajaya or Nusajaya (Kota Iskandar) etc, with a view of selling in long-term? Or will profit margin be too minimal compared to other investment vehicles? Flipping MRL doesn't usually happen if any so its usually for long-term hold.
As for Bumiputera quotas, is it worth buying from this quota since again reselling is restricted to certain group? So, if looking to flip, almost no chance and won't fetch as high a price as other open or international houses. Then again, what if in the view of buying a Bumi lot, but then apply to get it changed to open status when reselling? It's possible in Selangor under current PR govt and just pay about RM5k if im not mistaken. So, will it be a higher profit margin if do this route in terms of investment (flipping)?
Another question, lets use an example of a house in Malay Reserve land which automatically means bumi lot and much tougher to sell, what would be the desirables that would make it much easier to sell or resell? in terms of demographics, what type of houses, size, features or amenities if any, that would make it desirable in long-term?
Hope the gurus can share some opinions on this. even if not fully experienced with bumi lots and MRL, atleast can provide some info and expertise or experience in situations similar to this?
OK. I think a lot of people do not understand the differences between Malay Reserve and Bumi lot. These are two distinctly different types of properties. First off, want to ask about desirability of owning Malay Reserve Land. Is it worth it in terms of investment and also for stay (with view of selling in long-term)?
Usually when you buy, you can't profit a lot since restricted only to a particular group, however prime locations dictate otherwise such as Kampung Baru and certain other Kampung Melayu surrounding KL. So, what are the early signs or indicators of which Malay Reserve Land (MRL after this) will be worth it? is it worth purchasing MRL say in Putrajaya or Nusajaya (Kota Iskandar) etc, with a view of selling in long-term? Or will profit margin be too minimal compared to other investment vehicles? Flipping MRL doesn't usually happen if any so its usually for long-term hold.
As for Bumiputera quotas, is it worth buying from this quota since again reselling is restricted to certain group? So, if looking to flip, almost no chance and won't fetch as high a price as other open or international houses. Then again, what if in the view of buying a Bumi lot, but then apply to get it changed to open status when reselling? It's possible in Selangor under current PR govt and just pay about RM5k if im not mistaken. So, will it be a higher profit margin if do this route in terms of investment (flipping)?
Another question, lets use an example of a house in Malay Reserve land which automatically means bumi lot and much tougher to sell, what would be the desirables that would make it much easier to sell or resell? in terms of demographics, what type of houses, size, features or amenities if any, that would make it desirable in long-term?
Hope the gurus can share some opinions on this. even if not fully experienced with bumi lots and MRL, atleast can provide some info and expertise or experience in situations similar to this?
Malay Reserve land is actually provided for under the National Land Code. These land are specifically for MALAYS, not bumiputera as there are many types of bumis in Malaysia. Once a land is gazetted as Malay Reserve, then it is virtually impossible to convert to an "international" title UNLESS a similar piece of land (international lot) with similar value can be provided for in exchange to convert this land to unrestricted (this is provided for under NLC). Malay Reserve land has too many restriction and hence is very reduced in value. The best example as shown by TS is Kampung Baru where if it has been international, it would be a massive gold mine. Development built on Malay Reserve can only be sold to Malay and hence it might be difficult to garner any impressive values. In future these properties can only be sold to Malay. With so much restriction, it is very often that most people are reluctant to develop Malay Reserve land. I have done it once before and completely failed at Exco level 3 times even though I personally appeal the entire Exco and MB. Apparently it was a lot easier done more than 10 years ago than it is now.
Bumi lot is NOT provided for under National Land Code. There is no specific section in dealing with it. That's why I find it interesting that a land title can be chopped Bumiputera Lot but yet can easily be converted to non-bumi as long as MB signs the approval. In order to convert to non-bumi, you need to advertise in the newspaper for no less than 3 times within 3 months and that there is no interested parties EVEN at a reduced price. Conversion can be done at land office but seriously, I have never attempted to do it myself. I normally used a runner and so far it has been 100% foolproof. The fastest approval is 3 months to my longest is 18 months. My rate of success so far is 100% and I have done over 30 conversions. So I believe conversion should be easy and on hand I am still waiting for approval for 2 properties purchased in March 2012. Do not ask me for my contact for lawyers or runners as they prefer to do business with people there are familiar with. My apologies.
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