“a guide to buying a house” - ministry of urban...
TRANSCRIPT
“A GUIDE TO BUYING A HOUSE”
GURDEV SINGH
Director
Policy and Strategic Planning Division
National Housing Department
15 April 2013
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CONTENT
1.A Guide to Buying a House : Introduction
• Ways to Purchase
• Residential versus Commercial Buildings
2.Tips for House Buyers : Before
• Before You Choose a House
• Before You Purchase a House
3.Common Mistakes to Be Avoided
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A Guide to Buying a House: Introduction
Three ways to purchase property:
1) By resale through agents;
2) Direct resale by owners; or
3) Direct sale by housing developers.
Residential:
1) License is required - Act 118 applies only in
Peninsular Malaysia.
2) Act 118 applies to residential buildings, service
apartments and SOHOs
Commercial:
1) License is not required:
• Buyer is not protected – will have to take up
civil action in court against the developer.
2) Commercial buildings – SOFO, SOVO and Hotel
suites.
Residential versus Commercial Buildings
Ask around – no hidden
problems |4
Tips For House Buyers:
BEFORE YOU CHOOSE A HOUSE
Do research – define your affordability & criteria
1. Affordability – Calculate your debt service ratio (DSR)
o BNM recommendation: maximum DSR at 60%
All debt repayment obligations
Income after statutory deductions (tax, SOCSO and EPF)
i.e.: RM1500 / RM 2500 * 100% = 60%
2. Location – proximity to work and social amenities i.e. schools,
clinic and shops, recreational park
3. Space – according to your family size
4. Accessibility – public transportation
5. Noise – level of noise surrounding the area
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Tips For House Buyers:
BEFORE YOU PURCHASE A HOUSE
I. Housing developer’s license and advertising & sale permit:
at http://ehome.kpkt.gov.my
II. Type of house
a. Landed
o Schedule G, Act 118
o Completion date: 24 months from the S&P date
b. Subdivided (stratified)
o Schedule H, Act 118
o Completion date: 36 months from the S&P date
III. Land status – District Land Office / State Land Registrar
a. Freehold
b. Leasehold - number of years left?
c. Malay reserve
d. Transfer of title – no hidden charges / encumbrances
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Housing developer’s license & expiry date
The advertisement & sale permit & expiry date
Name and address of:
a. The licensed housing developer;
b. Agents or the authorised person (if any);
c. Those holding power of attorney (if any);
d. The project management company (if any)
Land status
a. Freehold
b. Leasehold
c. encumbrance
IV.Brochure Information
Tips For House Buyers:
BEFORE YOU PURCHASE A HOUSE cont…
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Location description
a. Specification of building materials
b. Size area of building
c. Amenities/services
Name of housing project
Expected date completion
Selling price of the house
Number of units
Ref. number of approved building plan & name of the
Local Authority
Tips For House Buyers:
BEFORE YOU PURCHASE A HOUSE cont…
IV.Brochure Information
Verify details of the brochure
through:
Web: http://ehome.kpkt.gov.my
Tel: 03-8891 4121
Fax: 03-88914088
Email: [email protected]
TIPS
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COMMON MISTAKES TO BE AVOIDED
1) Doing it alone
• Complex transaction
• Dependable team – lender, lawyer, insurer, referrals and
advice from family and friends
2) Buying at first sight
• Fit your family’s needs and budget
• A list of your needs and wants
• Look around – neighborhood and the community
3) Ensuring your accessibility to housing loan
• Pre-approved loan – how much? Credit rating
4) Overbuying
• Total Repayment commitment < 60% of DSR
5) Misplacing your trust
• Do not get influenced by the agent / developer
6) Relying on oral agreements
• Get it in writing
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COMMON MISTAKES TO BE AVOIDED
7) Skipping the fine print
• Ask for the document in advance
In doubt? – ask friends / lawyer
8) Forgetting or betting on resale
• House cost > 50% from the neighbouring houses
9) Bank loan and insurance coverage
• check with the bank
Sufficient purchasing capability
Adequate insurance coverage
10) Verify information with the National Housing Department
(NHD)
• In doubt?
http://ehome.kpkt.gov.my
Tel: 05-8891 4121
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COMMON MISTAKES TO BE AVOIDED
11) Paying booking fee deposit without signing the sale and
purchase agreement when purchasing from a developer
• No collection of booking fee / deposit prior to signing S&P
If you sign and transaction fails ??
12) The S&P agreement should follow schedule G or H
• S&P as per schedule (G – landed, H – stratified) in Act
118
13) Read and understand the S&P agreement
• Get your lawyer to explain
• Do not sign loose sheets of the paper if given separately
14) Check the development progress of your house
• Visit the site often
• % of progress = % of claim made by the developer
Delay ? – report to our Private Housing
Monitoring Division, NHD immediately
Tel: 03-8891 4168
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Enquiries: Contact : Director Policy and Strategic Planning Division National Housing Department Ministry of Housing and Local Government Email : [email protected] Tel : 03-8891 4301 Fax : 03-8891 4227
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NATIONAL HOUSING DEPARTMENT (NHD)
BACKGROUND
The NHD was established in 1976 to replace the Malaysian
Housing Trust which existed since the 1950s.
VISION
To emerge as an excellent organisation in planning,
implementation and monitoring of the housing sector.
MISSION
To ensure an adequate supply of quality houses for all citizens
especially those from the lower income group [those who have
monthly household income of less than RM2,500].
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FUNCTIONS OF NHD
1) Formulating policies, legislation and procedures on the
development and sustainability of the housing sector at
the national level;
2) Planning and implementing the People’s Housing
Programme (PHP);
3) Undertake research on housing issues as well as to
collect the necessary information regarding the housing
sector;
4) Managing the housing loan trust fund;
5) Processing and issuing licenses as well as sale &
advertisement permit to private housing developers;
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6) Facilitating and coordinating efforts pertaining to
rehabilitation of abandoned housing projects;
7) Conducting investigations on public complaints as well
as enforcement in accordance with Housing
Development (Control and Licensing) Act 1966 [Act
118] and Regulations;
8) Coordinating issues and matters pertaining to the
resettlement of squatters throughout the country;
9) Providing facilitation and coordinating efforts pertaining
to the Building and Common Property (Maintenance &
Management) Act 2007 [Act 663].
FUNCTION OF NHD
Cont…
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Housing Developer’s License
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Advertising and Sale Permit
BROCHURE INFORMATION – P(D) reference
• WHAT YOU CANNOT PUT ON THE BROCHURE
1. Word “FREE” / “PERCUMA” must replace with something like “yuran guaman ditanggung sepenuhnya oleh pemaju”
2. Phrase “Subject to Change”, Based on Illustration Artist”
3. Social amenities / infrastructures yet to be available / under construction
4. Distance – USE KILOMETER instead of Minutes
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