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> So, hows Budget 2008 affect housing sales?

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TSashburn98
post Sep 7 2007, 09:52 PM, updated 17y ago

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Well, it is announced that the money Account 2 can be used to pay monthly installments. But say I earn 3K per month, how much money is actually going into my Account 2 every month?

Usually, nowdays S&P and legal fees are borne by the developer. Any guarantee the developer gonna pass down the stamping fees' saving to purchasers?
SUSDavid83
post Sep 7 2007, 09:58 PM

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QUOTE(ashburn98 @ Sep 7 2007, 09:52 PM)
Well, it is announced that the money Account 2 can be used to pay monthly installments. But say I earn 3K per month, how much money is actually going into my Account 2 every month?

Usually, nowdays S&P and legal fees are borne by the developer. Any guarantee the developer gonna pass down the stamping fees' saving to purchasers?
*
Monthly income: RM 3k
EPF monthly contribution by employee at the rate of 11%: RM 330
EPF monthly contribution by employer at the rate of 12%: RM 360
Annual contribution is RM 8280.

Let say Account 2 amounts to 40%: RM 3312 (RM 276 monthly) or if 30%: RM 2484 (RM 207 monthly)

This post has been edited by David83: Sep 8 2007, 07:25 AM
ataris
post Sep 7 2007, 10:04 PM

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hmm, this is indeed an interesting question.
yewkhuay
post Sep 8 2007, 12:34 AM

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tht will help lessen the house loan installment burden,.....
vin_ann
post Sep 8 2007, 12:49 AM

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hmmm... not yet read the budget....
anyways, will come back to this topic after tomolo...
hehe

what david mention is correct.
kenji1903
post Sep 8 2007, 01:32 AM

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most probably low cost housing will have better take up rate...
SUSDavid83
post Sep 8 2007, 07:25 AM

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I'm eyeing for a low or medium cost housing project.
yewkhuay
post Sep 8 2007, 08:23 AM

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low or medium cost housing project has risk of getting similiar class of buyer / tenants, becareful...
SUSDavid83
post Sep 8 2007, 11:42 AM

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I can't get you. Similar class of tenants/buyers? Meaning?

What needs to be caution?
ts1
post Sep 8 2007, 11:56 AM

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QUOTE(David83 @ Sep 8 2007, 11:42 AM)
I can't get you. Similar class of tenants/buyers? Meaning?

What needs to be caution?
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usually way kind of ppl stay in low cost house? the environment will b like tat tongue.gif
SUSDavid83
post Sep 8 2007, 11:59 AM

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QUOTE(ts1 @ Sep 8 2007, 11:56 AM)
usually way kind of ppl stay in low cost house? the environment will b like tat  tongue.gif
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Then if you buy high end or range condominimum, those stay at there will be majority same class of tenants too.

Well afforadable families, professionals and etc.
Pai
post Sep 8 2007, 01:10 PM

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QUOTE(yewkhuay @ Sep 8 2007, 08:23 AM)
low or medium cost housing project has risk of getting similiar class of buyer / tenants, becareful...
*
Very good advise smile.gif

While low cost properties can easily yield min 8% returns, the risk are huge as well, and often not worth the nightmare. U'll most likely meet ppl who'll destroy your house, run away with 6 months unpaid rent and even try to chop you when u scold them for rental delays in low cost properties. Again, not all low cost tenants will behave that way, but the likelihood is higher compared to medium cost - high end properties, as the affordability level is different.

I suppose for entry level investors like me, any props above 100k is a safe starting point wink.gif


Added on September 8, 2007, 1:15 pm
QUOTE(ashburn98 @ Sep 7 2007, 09:52 PM)
Well, it is announced that the money Account 2 can be used to pay monthly installments. But say I earn 3K per month, how much money is actually going into my Account 2 every month?

Usually, nowdays S&P and legal fees are borne by the developer. Any guarantee the developer gonna pass down the stamping fees' saving to purchasers?
*
technically, I'd say about RM240 goes to your account 2 every month.

my take on the topic, we'll see a boom in demand for low-med cost properties. Figure wise, the properties ranging 100k-500k will most likely be the biggest winner from our 2008 budget.

All is good thumbup.gif

This post has been edited by Pai: Sep 8 2007, 01:15 PM
yewkhuay
post Sep 8 2007, 05:39 PM

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QUOTE(David83 @ Sep 8 2007, 11:42 AM)
I can't get you. Similar class of tenants/buyers? Meaning?

What needs to be caution?
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i mean low cost property will get low cost tenants which give u high posibility of destruction of ur property or delay in rental payment...
vin_ann
post Sep 8 2007, 07:44 PM

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it's RM250K below....
SUSDavid83
post Sep 8 2007, 08:38 PM

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Housing loan scheme won't affect EPF earnings

PUTRAJAYA: The freeing of RM9.6bil in Employees Provident Fund contributions to pay for the purchase of homes by the public will not affect the earnings of the body.

Second Finance Minister Tan Sri Nor Mohamed Yakcop also put paid to fears that this mechanism to make it easier for every Malaysian to own a home would lead to those retiring not having enough funds to cover their expenses in the future.

"The purchase of a home is a good form of investment and not consumption.

"The buying of homes should not be put off by people until they retire. This is because the prices of homes would have appreciated so that by then, these would be too expensive.

"Housing is the one thing we want all Malaysians to have," he told reporters in a briefing on the Budget tabled by Prime Minister Datuk Seri Abdullah Ahmad Badawi in Parliament on Friday.

Nor Mohamed said EPF had indicated that it was very happy to assist with the Government's announcement to let contributors use the amount in Account 2 to offset or pay their housing loans.

This means that a working person with a salary of RM2,000 can use the RM138 estimated to be the monthly contribution to Account II to offset the housing instalment.

"This mechanism will enable a lot of people in the lower and middle income group to own their own or even second homes," said Nor Mohamed.

EPF posted a gross investment income of RM13.3bil in 2006 and an asset size of around RM290.2bil, with around 11.4 million members. It also recorded total contributions RM26.2bil.

URL: http://biz.thestar.com.my/news/story.asp?f...53&sec=business
dchk
post Sep 9 2007, 11:46 AM

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In the first place, there aren't many residential development, landed or non landed that falls below the RM250k range. Most residential projects in Klang Valley are above RM250K. I feel that G should increase the range to RM400K. Nowadays, to buy an intermediate terrace house can easily reach up to RM300K. If I am not mistaken, a couple of years ago, the G actually provide free stamp duty for purchase of home by individual. It is actually a half hearted attempt to give 50% discount on stamp duty and even worse, many people won't be entitled cause we can't find a residential home that cot below RM250K.

Personally, I feel allowing us to use our EPF to fund our own housing loan it a double edge sword. Besides EPF, how many of us has allocated savings for our golden years. Why can't the G give actual incentives like, lower income tax (weird only company enjoys tax reduction in 2008 budget) & abolish stamp duty.

In some countries, the banks have also knows that one generation might not be able to pay off a house loan. They have actually allowed 2nd generation loan to span more than 40 years, which would indirectly decrease the prepayment montly amount but increase the interest over the duration of the tenure.

I do acknowledge many of use would love to complete our housing loan as soon as possible, but with cost of buildings increasing as well as living expenses, not many of us can afford to continuously make such payment.

This post has been edited by dchk: Sep 9 2007, 11:51 AM
kevyeoh
post Sep 9 2007, 02:43 PM

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i have no experience in house purchase...but monthly withdrawal vs yearly withdrawal..will that make a big difference?

one thing need to take note is how easy it will be for us to withdraw the money monthly? if it's easy, then maybe worth it...
but if it's cumbersome...then some ppl might not wanna do it monthly...imagine wasting your time going through the purchase to do monthly withdrawal...
guanteik
post Sep 9 2007, 02:55 PM

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QUOTE(kevyeoh @ Sep 9 2007, 02:43 PM)
i have no experience in house purchase...but monthly withdrawal vs yearly withdrawal..will that make a big difference?

one thing need to take note is how easy it will be for us to withdraw the money monthly? if it's easy, then maybe worth it...
but if it's cumbersome...then some ppl might not wanna do it monthly...imagine wasting your time going through the purchase to do monthly withdrawal...
*
monthly EPF withdrawl will ease your monthly loan payment. E.g. RM200 from monthly EPF will help you on your RM1000 per month installment. Instead of paying RM1000 like normal, you pay RM800 + RM200 from ur EPF.

Yearly will tend to decrease the principle sum of your total loan..
TSashburn98
post Sep 9 2007, 07:25 PM

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QUOTE(guanteik @ Sep 9 2007, 02:55 PM)
monthly EPF withdrawl will ease your monthly loan payment. E.g. RM200 from monthly EPF will help you on your RM1000 per month installment. Instead of paying RM1000 like normal, you pay RM800 + RM200 from ur EPF.

Yearly will tend to decrease the principle sum of your total loan..
*
Agree.

Monthly EPF withdrawal will help in the monthly loan repayment.

Any idea when this system will/would be implemented?
Oblivon
post Sep 9 2007, 07:27 PM

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is it apply for car loan also ?


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