I predicted bubble.. so you must have bought few units this year? What units are they

Whn burst? Which month and which year. I buy more.

Latuk, morning. Kopi?

I predicted bubble.. so you must have bought few units this year? What units are they

Just buy only no burst oso can buy.. yearly still can get 5 to 10% yearly increment despite bullrun is over..

Bad news for bear bear. Bear bear prediction gst will bulldoze prop price down? Wrong again.

If bear bear stil dun wan to buy, better go yaksi. Gf oso run away with zuiko. 
Rehda: GST will push up home prices by 2.6%

Tuesday, 21 October 2014

By: ISABELLE LAI

PETALING JAYA: Home prices will rise by about 2.6% once the goods and services tax (GST) comes into play, said the Real Estate and Housing Developers’ Association Malaysia (Rehda).

The chairman of the association’s task force on accounting and taxation, Datuk Ng Seing Liong, said that the calculation was based on its consultations with industry experts and member developers.

Rehda’s 2.6% estimate differs from that of the Customs Department, which expects the GST to have an impact of between 0.5% and 2% on house prices, assuming there’s no change in supply and demand conditions.

Ng said the association was in full support of the GST and concurred with Customs GST director Datuk Subromaniam Tholasy, who had said that land did not incur the 6% GST rate.

However, he said land was by no means the largest cost component in property development.

“As our calculation clearly spells out, the construction cost, which constitutes 46% of the total development, is not only the largest component but also the component which will attract the GST of 6%,” he said in a letter to StarBiz.

He said the GST on this component would inevitably lead to an increase in house prices.

Appending calculations for a housing unit originally priced at RM400,000, Ng said the price post-GST would be around RM410,560.

Under the 46% construction component, costs were broken down into non-service taxable and service taxable segments, representing 44%, or RM176,000, and 2%, or RM8,000, respectively.

Under the non-service taxable segment comes items such as cement/concrete, steel, bricks and sand, while the service taxable segment includes tiles and fittings/sanitary. Under the existing sales and service tax, no tax is imposed on the non-service taxable category, while the service taxable category has a tax of up to 10% imposed on it.

Post-GST, Rehda’s calculations showed that the non-service taxable cost had gone up to RM186,560, while the service taxable cost remained at RM8,000.

It maintained the same cost estimates for other items, including land (15% or RM60,000), infrastructure and pre-development works (10% or RM40,000), professional fees and marketing costs (6% or RM24,000), finance costs (6% or RM24,000) and profit (17% or RM68,000).

Ng said Rehda also disagreed with Subromaniam, who had said that developers could easily absorb cost increases as their margins were around 30%.

He said it was currently impossible for developers to earn up to a 30% profit, as most development costs were on the rise, along with various capital contributions and charges imposed on developers.

“On average, as tabulated in the calculation, developers, most of which are public-listed companies, are only making around 17% at best,” he said.
However, Ng said it was still too early to determine the actual house price increases post-GST, as Rehda was still in discussions with the Government and there appeared to be many more issues to be ironed out.

It's interesting to see that 6% is spent on marketing by the developer.

So for anybody who is buying a house of 500,000 they are paying 30,000 for the developer to market their house. 

I'm in food line. Some wellknown food or drinks products spent more than 10% in ads. Some even up to 15% worldwide. Its norm in biz.

Further to tat adidas oso spent a lot to capture MU shirt sponsorship. Ppl who buy adidas actually contributing to footballer's wages.

Bro bear ur prediction seems to go wrong all the time wo. U r toking bout bubble which ll go either way. Burst or slowly up. In tis case its not burst wo. U wasted too much time posting here and became non productive in ur work. Hence increment of ur salary oso ll b limited.

The advance of IT today actually helps lotsa ppl to gain more moolah. But u r spending ur precious time taruk up down left right front back here. Not sure u joined any other forum. If u do I wonder how much time u hav to do so.

Anw, come la v go lim kopi susu. I cant help much but I'm a gd listener. U tell me I help u to post here. I ll make sure I keep repeat those points u tell me here like wat u alwiz did.

A property is not food.

What developers spend these days on marketing is very high.

Boss index in 2017 won't b 50 la. Worst is 85. But I can c 50 in yr 2077. Not sure if bro bear can wait.

If wanna wait til 0 maybe need to inform the kids but oso turn out no such thg.

It's interesting to see that 6% is spent on marketing by the developer.

So for anybody who is buying a house of 500,000 they are paying 30,000 for the developer to market their house. 

Bro.. why 2013 and 2014 2015 100 95 and 90.. small margin?

It's interesting to see that 6% is spent on marketing by the developer.

So for anybody who is buying a house of 500,000 they are paying 30,000 for the developer to market their house. 

He said it was currently impossible for developers to earn up to a 30% profit...

Statements like this piss an already pissed off crowd. Just what the heck is this REDHA dept. This is as typical as some ah beng in the market TCSS kind of justification when you ask them to lower price, or give some discounts. Gosh, hopeless PR. Say la something better in a different angle. 30% yea right on paper la. ***!

Just buy only no burst oso can buy.. yearly still can get 5 to 10% yearly increment despite bullrun is over..

No more 5% to 10% after yesterday. Burst will start in 2015, and the worst effect is 2017. So, the best timing to buy is 2017. Don't buy in 2015. Tell your gf and in-laws

No more 5% to 10% after yesterday. Burst will start in 2015, and the worst effect is 2017. So, the best timing to buy is 2017. Don't buy in 2015. Tell your gf and in-laws

Wrong prediction lah, base on 10 years cycle, next down turn should be 2018, but by then even house price never go down also OK for Bear2, because GF cabut liao, probably already mother of 2 marry to a good husband living in a nice house..

A property is not food.

What developers spend these days on marketing is very high.