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Real Estate Knowledge

Australia Property Overview | How to Invest During a Crisis!

Australia is one of the best places to live in the world, especially amongst Hong Kong & Chinese people. But recently, it has been facing exorbitant property prices that have been keeping many first-time buyers from entering the market. What is happening? And, what can you do amidst its property crisis?

In this video, we break down the market conditions, how we got here and how you can still turn a profit. Here are the highlights:

How bad is Australia’s real estate scene?

  • In 2021, Darwin’s median dwelling price increased by 21%, followed by 19.6% in Hobart and 18.1% in Canberra.
  • As of 2022, Sydney ranks just behind Hong Kong as the second most unaffordable housing market in the world
  • Over the last 20 years, average house prices have almost tripled in Australia
List Affordable International Housing Markets 2022; Source: Demographia International Housing Affordability Survey

What are the reasons behind Australia’s property market condition?

As mundane as it sounds, the answer almost always boils down to “supply vs. demand.” In Australia’s case, some specific events have led to a market mismatch.

Root Cause #1 – Extreme Housing Demand

In November 2020, the Reserve Bank of Australia decided to cut interest rates to historic lows – 0.10% – in an effort to combat inflation and unemployment rates. And suddenly, Australians had unprecedented access to mortgage loans, which led to a surge in demand that led to soaring property prices.  In just two years, the total value of Australia’s residential real estate has increased by 2.6 trillion AUD.

Root Cause #2 – Poor Housing Supply

The other half of the issue is the lack of supply. During the mining boom in the 2000s, an influx in immigration pushed up housing demand. But supply did not keep up with this increase in population, as house prices jumped by 88% in the noughties. Today, poor housing supply continues to plague the country. 

Australia’s housing market outlook in 2022

The key word is – uncertainty. The following are the main expert sentiments:

Expert Takes #1:

  • Property values will keep rising
  • Unaffordability will still be a problem for new homebuyers
  • The National Australia Bank forecasts a 4.9% lift in property values 
  • The Commonwealth Bank expects a 7% rise in house prices 

Expert Takes #2:

  • A bubble might be brewing
  • Rising debt levels point towards financial instability, & house price drops 
  • The Reserve may raise interest rates, which could further push down prices

Expert Takes #3:

  • Australian federal elections are only a month away
  • Home ownership could be a central issue with a huge impact on market sentiment
  • In 2021, foreign investors made up only 3.7% of new home sales and 2.2% of established homes
  • More than 80% of Australians blame Chinese investors for the rising house prices

Foreign buyers – what do we suggest?

If you’re looking to buy, it might not be the best time to enter the market. However, if you’re looking to sell – the opposite might be true. The timing is perfect because:

  • Price growth is starting to slow down, which indicates a market peak
  • There’s expectation of a rate rise by August 2022, which means buyers would want to buy a property asap
  • Upcoming election may slow the market due to uncertainty 

Immigration – what do we suggest?

While locals may struggle to afford housing, property developers would still target foreigners who work or study in Australia. It’s a good idea to move soon if you were planning to do so and build up your mortgage credentials.

In 2022, the government has lowered thresholds for several visa subclasses (read the details here), including those for Hong Kong or BNO passport holders.

Look Ahead!

Things might be uncertain but that doesn’t mean there isn’t an opportunity to make an investment! Keep your eyes peeled and follow Denzity to catch the latest updates on Australia, Canada, Malaysia and the UK.


Malaysia investment information:

  1. Malaysia | Why you should Immigrant in Selangor
  2. Immigrate to Malaysia | Lower housing costs are the best choice for Hong Kong residents

Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

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Canada | Popcon Factory | 6,000-square-foot York Mills mansion space remodel

If you remember, Youtuber Con Con visited a 6,000-square-foot York Mills mansion a year ago. The owner has since spent a fortune to renovate the indoor living space to give it a more modern style. Con Con decides to take everyone back to the old place and examine the newly improved interior. Has it become more noble and elegant?

Mansion

This 6,000-square-foot luxury mansion in York Mills comes with 5 bedrooms, 6 bathrooms and a basement. After the renovation, a lot of details have been added, showing a modern style.

The owner opened up the living room and dining room to increase the space for activities and enhanced the lighting effect.The owner has placed a great deal of importance on the kitchen, remodeling it to a fresh blue, and adding some marble patterns. In addition, 6 stoves have been added, suitable for homeowners who love to cook! There are also a whole bunch of new additions such as the range hood, an oven and so on.

In particular, this mansion has obtained a feng shui certificate, and its influence can be seen everywhere, even if the overall style of the mansion is relatively modern. Clearly, the owner has invested a lot of time and money to build his dream mansion.

Information of Popcon Factory 

Youtuber Con Con is a Hong Kongers who enjoy living in different places. Because she likes to travel and wants to practice film editing, she started making videos to record her life.

Welcome to Con Con’s channel, Popcon Factory – For Concepts That Pop. Here’s the factory that turns all the crazy ideas of Con Con into reality. Con Con believes that creative ideas will pop up when you need them, like making popcorn. Therefore, Con Con hopes that everyone will subscribe and become “popcorners” to motivate her to show everyone different worlds.

This article has been reproduced in text with the permission of the YouTube channel Popcon Factory.

Canada investment information:

  1. Canadian Taxes | The tax facts you need to know before moving to Canada
  2. Canada Investment | What do Hong Kong investors need to know when they invest in Canada?

The Canada local information:

  1. Montreal 
  2. Toronto

Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

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UK | AdventureInCreativity | Is UK property worth buying now?

In our previous article, “10 Power saving tips for the UK“, we shared some strategies on how to reduce your electricity bills at the source. This time, British property consultancy company AdventureInCreativity will elaborate on recent UK property prices and postulate whether they will fall in the near future. Read on below for some useful tips!

Latest price index

British bank Nationwide released the latest price index, pointing out that the average property price in the UK has exceeded £260,000 in February, with an average increase of £29,162 in the past 12 months, which is the largest increase since the bank recorded the price index in 1991.

Rising property prices also mean it’s harder for Brits to purchase the property. Nationwide’s chief economist, Robert Gardner, said UK property prices were now worth 6.7 times the average UK national income, compared with 5.8 times in 2019.

Property price expectations

Recently, the inflation rate and interest rate in the UK have risen significantly, and the national consumption capacity and the desire to buy a home have declined. Many people expect that the UK property price should have peaked. Mortgage expert Pete Mugleston said in an interview with the British “Daily Express” that the number of approved mortgages continues to be high, as demand for British housing still exceeds supply. First home buyers do not want to miss out on opportunities in the current hot market, especially with the government’s preferential policies. It’s predicted that the property price rise will continue. Will property prices fall in the future? If so, when will that happen? That is still unknown.

Information of AdventureInCreativity  

AdventureInCreativity (AIC) is a UK registered property consultancy company. Their multicultural team includes UK natives and expats from Hong Kong and other parts of Asia, rooted in the UK and connected to Asia. They focus on helping clients find high-quality properties in the UK. The team has many years of UK property experience, local connections, and understanding of the unique requirements of Asians.

This article has been reproduced in text with the permission of the UK property consulting company AdventureInCreativity.


The UK mortgage information:

  1. Help to Buy | The UK government helps you get a property with 5% down
  2. Buy to Let | The UK real estate mortgage loan scheme | Top 10 Best Buy to Let areas

The UK local information:

  1. Salford
  2. Liverpool

Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

To receive more property information relating to the UK, Canada and Hong Kong, sign up to our newsletter at the bottom of this page.

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UK | AdventureInCreativity | UK Investment Hotspot – Leeds

In our previous article “7 UK Retirement Destinations“, we shared the top 7 retirement destinations in the UK. This time, the British property consultancy company AdventureInCreativity shares the popular investment areas of Leeds. Read on below for some useful tips!

Leeds

Located in West Yorkshire, Leeds is one of the five largest cities in England. Its banking and financial industry is second only to London’s. It is also the largest legal service center in the UK. It also has five universities and attracts 65,000 students that live and study every year.

The property price trend of Leeds is flat, the return is high, the appreciation is fast. The rental market also moves quite fast. For these reasons, it has always been an investment hotspot. The current average property price in Leeds is only £211,437, which is 27.67% lower than the average property price in the UK, but the average rental return here is 8.97%, which is an impressive achievement. The appreciation potential of Leeds is not to be underestimated. According to Savills’ forecast, the value of houses in Leeds is expected to increase by 18.8% by 2026. In fact, in the past 12 months, the price of houses in Leeds has increased by 7.06%. The Leeds rental market is also very active, with rental demand in Yorkshire rising by 3% last year, the largest increase in the UK, according to housing search site Zoopla. Therefore, when investing in Leeds, the best investment strategy is buying to let – buy a property and then rent it out to obtain a stable return.

Here are the popular investment areas in Les:

1. Leeds City Centre

Average house price: £179,183

Return on investment: 5%

2. Headingley

Average house price: £216,734

Return on investment: 7.4%

3. Woodhouse, Burley and Hyde Park

Average house price: £220,082

Return on investment: 5-10%

4. Armley, Henslet and Beeston

Average house price: £137,200

Return on investment: 5-6%

5. Roundhay, Moortown, Alwoodley, Adel and Horsforth

Average house price: £250,000+

Return on investment: 2.24-3%

6. Crossgates and Garforth

Average house price: £254,545

Return on investment: 5%

Information of AdventureInCreativity  

AdventureInCreativity (AIC) is a UK registered property consultancy company. Their multicultural team includes UK natives and expats from Hong Kong and other parts of Asia, rooted in the UK and connected to Asia. They focus on helping clients find high-quality properties in the UK. The team has many years of UK property experience, local connections, and understanding of the unique requirements of Asians.

This article has been reproduced in text with the permission of the UK property consulting company AdventureInCreativity.


The UK mortgage information:

  1. Help to Buy | The UK government helps you get a property with 5% down
  2. Buy to Let | The UK real estate mortgage loan scheme | Top 10 Best Buy to Let areas

The UK local information:

  1. Salford
  2. Liverpool

Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

To receive more property information relating to the UK, Canada and Hong Kong, sign up to our newsletter at the bottom of this page.

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Canada | Kin Toronto Real Estate | $620,000 Downtown Toronto Pickup

In the last episode, Youtuber Kin discussed how a “Bank lends you money to buy an off-the-plan property”. This time, Kin introduces a property that might be to your liking. He’s shot a short virtual tour for you to see all the house’s features.

Property information

The property is located at the junction of Bay Street and Youge Street, which is an excellent location. The property was fully refurbished in 2019 with a brand new kitchen and toilet. The downstairs property management committee does a good job on a conservative management fee of $500. Thus, you can enjoy various clubhouse facilities and equipment.

Neighborhood

  • Downstairs, there are restaurants, supermarkets and stores of various daily necessities.
  • 2 universities nearby
  • Streetcars, subway stations and buses are nearby, making transportation super convenient

This article has been reproduced in text with the permission of the YouTube channel Kin多倫多地產 .


Canada investment information:

  1. Canadian Taxes | The tax facts you need to know before moving to Canada
  2. Canada Investment | What do Hong Kong investors need to know when they invest in Canada?

The Canada local information:

  1. Montreal 
  2. Toronto

Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

To receive more property information relating to the UK, Canada and Hong Kong, sign up to our newsletter at the bottom of this page.

Follow us on:

👉 Facebook: https://www.facebook.com/Denzity.io 

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UK | YouTuber Ying Tse | Check the UK tax system before moving to the UK

Hong Kong has always been a low-tax paradise, but the British tax system is completely different, and the tax year is slightly different from that of Hong Kong. The British tax year is from April 6 each year to April 5 of the next year. So once you step foot into April, be prepared to file the year’s tax return from the previous April onwards. 

Who needs to file taxes?

If you earn more than £1,000 from work, you already have to file a tax return. For example, Mr. Ying is a photographer and does some photography and filming work. Mrs Ying has a Youtube channel and has advertising revenue. Anything over £1,000 has to be taxed.

Another stream of income you must consider is that from rent. Property rental income is taxed by deducting personal allowance (£12,570) and adding tax relief for property allowance (£1000).

Consolidated tax return

Consider a couple where both spouses are employed – one earns less than £12,500 a year and the other earns between £12,500 and £50,000. The lower earning party can transfer the 10% tax-free allowance to the other party. If one of the couples does not have a job, i.e. if one spouse manages the house full-time housewife, then their allowance can be transferred to the other partner to use up the UK couple’s allowance.

Estate tax

After immigrating to the UK and becoming a local tax resident, once the estate is passed on to a person other than a spouse or legal partner, even if it is a child or grandchild, as long as it exceeds the tax-free allowance of 325,000 pounds, it is necessary to pay inheritance tax. If the estate includes owner-occupied property, the exemption will be increased to £500,000 accordingly.

BN撈 information

The name of the channel “BN撈” means refers to Hong Kong people – British National (Overseas) – that are hoping to integrate into British culture and life in pursuit of a better life. The word “撈” is a Guangdong word that Hong Kong people often mention, displaying our desire to pass on Cantonese to the next generation. Hence, the channel’s name “BN撈”.

BN撈 shares with you some clips on how to integrate into the local British culture, and continue to carry forward the spirit of Hong Kong people in different places, knowing how to drink, eat and play. Due to the limited power of one’s own efforts, netizens are also welcome to provide information that can help other Hong Kong people integrate into British culture.

This article has been reproduced in text with the permission of the Youtube BN撈.


The UK mortgage information:

  1. Help to Buy | The UK government helps you get a property with 5% down
  2. Buy to Let | The UK real estate mortgage loan scheme | Top 10 Best Buy to Let areas

The UK local information:

  1. Salford
  2. Liverpool

Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

To receive more property information relating to the UK, Canada and Hong Kong, sign up to our newsletter at the bottom of this page.

Follow us on:

👉 Facebook: https://www.facebook.com/Denzity.io 

👉 Instagram: https://www.instagram.com/denzity.io/ 

👉 LinkedIn: https://www.linkedin.com/company/denzity 

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Real Estate Knowledge

Malaysia | Top 3 expense for buying property in Malaysia

In recent years, the Malaysian government has launched the “Second Home Program“, which has attracted many investors to invest in properties in Malaysia. Buying a house is not a small expense, as additional costs you must pay attention to in Malaysia. Investors should budget in advance and ensure you have enough funds to sustain your investment.

Tax

  1. Memorandum of Assignment (MOT):

Laws pertaining to property ownership. Applies to the transfer of property rights from the seller (such as the developer) to the buyer.

Stamp Duty (One-time Payment upon Completion): Fees are charged progressively.

2. Real estate gains tax

Real Estate Gains Tax: Taxes payable when a property is sold in the future

Sale of the property* within 5 years from the date of purchase, subject to VAT at 30% of the profits.

Sales of the property* after 5 years from the date of purchase are subject to VAT at 10% of the profits.

*Note: Purchase Date = Date of Signing the Sale and Purchase Agreement

3. State taxes

State Tax: Foreigners who buy property in Penang should pay 3% of the property price within 30 days from the date of the state consent letter issued by the state authority.

For foreigners buying property in the following areas:

Penang – State tax is 3% of the property price

Malacca – State tax is 2% of property price

Johor – State tax is 2% of property price

Penang, Malacca and Johor are the only states that levy state taxes.

Annual expenditure

1. Management fee

Management fee (including 10% management fund): Paid monthly for repairs and maintenance. Sinking funds are used for major repairs or maintenance—generally included in the cost of repairs and maintenance.

2. Land tax

Property Tax: A property tax charged by the state government. The actual amount is subject to assessment by the state government.

3. House Tax

House Tax: is a land tax levied by local councils to develop and maintain infrastructure and services such as road lighting, city cleaning, waste collection, etc. The actual amount will be confirmed by the Council after the issuance of the Certificate of Completion and Code (Construction Completion) and will be settled twice a year. The amount depends on the annual rental value of the property, which is determined by the size of the unit. After the certificate of completion and the certificate of compliance are issued, the annual rental value of the property and the area of ​​each unit will be determined by the government. Payment is required twice a year.

4. Fire Hazard

Fire Insurance: Under the Strata Title Act, the Building Management Office is required to purchase fire insurance for the entire building. Individual unit owners are required to pay their respective premium rates to the Building Management Office.

5. Rental Income Tax

Rental Income Tax: Tax on rental income. Non-Malaysians need to pay 28% of the rent and can deduct expenses, including land tax, house tax, fire insurance, mortgage interest rate, rent collection expenses, lease renewal expenses and property maintenance.

6. Property management services

Including property rental or sale, maintenance and housekeeping arrangements. Charged at 5% of the total rent per year (depending on the fees charged by different real estate agents).

Lawyer fee

Sale and Purchase Agreement Attorney Fees

  • First RM 500,000: 1% (minimum RM 500)
  • For subsequent RM 500,000: 0.8%
  • Subsequent RM 2,000,000: 0.7%
  • Subsequent RM 2,000,000: 0.6%
  • For subsequent RM 2,500,000: 0.5%

Sale and Purchase Agreement Lawyer Expenses:

For first-hand real estate, the payment of legal fees is subject to the quotation made by the legal representative of the developer.

Stamp duty on loan agreement (applies to purchasers taking out a mortgage)

0.5% of total loan amount

Loan Agreement Legal Fees

  • First RM 500,000: 1% (minimum MYR 500)
  • For subsequent RM 500,000: 0.8%
  • Subsequent RM 2,000,000: 0.7%
  • Subsequent RM 2,000,000: 0.6%
  • For subsequent RM 2,500,000: 0.5%

Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

To receive more property information relating to the UK, Canada and Hong Kong, sign up to our newsletter at the bottom of this page.

Malaysia investment information:

  1. Malaysia | Why you should Immigrant in Selangor
  2. Immigrate to Malaysia | Lower housing costs are the best choice for Hong Kong residents

Follow us on:

👉 Facebook: https://www.facebook.com/Denzity.io  

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Real Estate Knowledge

How Bank of Canada interest rate hikes will affect your mortgage?

Housing experts in Canada who say prospective homebuyers hoping the recent interest rate hike will cool the country’s heated real estate market will likely be disappointed.

G+G believe the pent-up demand for homes is so high and supply still so scarce that the Bank of Canada’s decision to hike the rate to 0.5 per cent won’t take much of an edge off the real estate market. In the past, when there was an interest rate increase coming, people say things like “maybe it’s not the time to buy,’ but it’s been the opposite,” We have many people have received their rate hold and pre-approval with the banks done’ … They’re ready to go.

If you want to read to whole article, please download Genuine + Gencan: Buying Canadian Real Estate Guide now:

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Real Estate Knowledge

Malaysia|What should you pay attention to when applying for a joint loan in Malaysia?

Buying a home is not an easy task, especially for first-time home buyers. Although Malaysia’s real estate prices have fallen sharply under the pandemic, people may still not be able to afford a home, so they might elect to apply for a joint name loan and share the financial burden. This article will point out the advantages and disadvantages of applying for a joint name loan in Malaysia, as well as the points that need special attention.

What is a joint name loan?

It is quite common in Malaysia to buy a house through a joint name loan, especially among many husbands and wives, parents and children, siblings, boyfriends and girlfriends, and even relatives and friends, as well as investment partners.

Many people will choose to share the down payment, improve the success rate of loan with the bank and share the return on investment through joint names.

3 Pros and Cons of Applying for a Joint Name Loan in Malaysia

ProsCons
Can cover the cost and expenses of buying a house together​​Banks tend to be stricter in approving joint loans for non-family members
Combine the income of the joint names and have the opportunity to borrow a higher home loan from the bankFirst-time buyers who jointly buy a house will use up the opportunity to enjoy the discount at the same time
Helps solve the problem of not getting a loan due to a bad credit scoreThings can get messy if one of the co-buyers falls out or dies

3 Advantages of Applying for a Joint Name Loan in Malaysia

1) Share the cost and expenses of buying a house

Once you find someone to jointly buy a house with you, it means that you can muster up a bigger down payment enabling you to afford a house with a higher price.

Especially when one of the parties has a high debt service ratio (DSR), adding the income of other co-signers can bolster the application.

At the same time, parties who jointly buy a house can withdraw a part of their savings from their respective employee provident fund EPF accounts to pay the 10% down payment for the purchase of a house, further reducing their financial pressure.

2) Combine the income of the co-signers and increase the application limit of the home loan


When a joint borrower applies for a home loan, the bank will combine the personal income of all joint borrowers, and then use this total income to evaluate the home loan application.

Generally speaking, combining two or more incomes can greatly increase the total loan amount ultimately available to the lender, allowing joint buyers to buy a higher-priced home.

3) Solve the problem of not being able to borrow due to poor credit score

In addition to being able to combine income, the credit history and scores of joint lenders are also taken into account by the bank.

In other words, if you couldn’t get a home loan because of a bad credit score such as CCRIS or CTOS, you can find a person with a good credit score to apply for a loan together with you, so that you have the opportunity to improve your loan success rate.

But from another perspective, if you have a good credit score, your loan success rate may be dragged down by co-lenders with poor credit scores, affecting your loan success rate.

3 Disadvantages of Applying for a Joint Name Loan in Malaysia

1) Banks will be more strict in approving joint loans for non-family members

A notable issue is that banks tend to be strict and cautious when approving joint loans between non-family members.

Therefore, unless you are buying a house jointly with family members such as husband, wife, parents, children, siblings and relatives, a joint loan application by friends and business partners will generally be strict in the eyes of the bank and may increase the difficulty in getting a successful loan.

2) First-time buyers who jointly buy a house will use up the opportunity to enjoy the discount at the same time

In Malaysia, the government provides many preferential policies for first-time homebuyers, including building affordable homes, assisting with mortgages of up to 110%, and free stamp duty before 2025.

These first-time buyer offers are quite attractive and can be of great help in assisting first-time buyers to buy a home.

However, if both parties involved in the joint purchase are both first-time buyers, they will use up the opportunities to enjoy these discounts at the same time, and will no longer be able to use them when buying a second house in the future. They also lose the opportunity to borrow a 90% mortgage for their second house.

3) If one of the co-buyers falls out, goes bankrupt, gets divorced, or dies, things can get very troublesome

a. Divorce, a break-up, disassociation from family friend or business partner

The most feared problem when buying a house with a joint loan is that there might be a future disagreement with the other party, resulting in the inability to reach a consensus on the handling of the house and the loan.

This is often seen in the breakup of boyfriends and girlfriends, disputes between investment partners and friends, and disputes between family members. Once this happens, one party may no longer be willing to pay the monthly mortgage payment installment, or one party may want to sell the house, while the other party refuses.

b. Death of one of the joint names

Bank Negara Malaysia (BNM) stipulates that home buyers can borrow up to 90% of the mortgage amount when purchasing the first and second residential properties, but can only borrow up to 70% for the third residential property. %.

If one of the parties dies, his/her share of the property rights in the house during his lifetime will be inherited by his family and relatives.

If one of the parties dies without leaving a will, the estate will be distributed in accordance with the Distribution Act 1958 of Malaysia.

This means that the deceased may have several family members who become owners of the house. If you want to sell in the future, you would need to discuss it with the news owners and seek their consent. Buying and selling a home can be tricky when there is no communication.

c. The party who buys the house jointly declares bankruptcy

If one party goes bankrupt, the Malaysian Department of Insolvency will take over the other party’s property, including his share of the property title.

At this time, the Malaysia News Agency may:

  • Take the other party’s share of property rights to auction
  • Freeze and take over title shares and other assets until the other party pays off the debt
  • Negotiate with other co-signers to buy the other party’s share of property rights, or sell the house together
  • No matter which method is adopted, it will bring great trouble to other people who jointly bought the house together.

If I have a falling out with the other party, what is the solution?

No matter how good the relationship is, break-ups can be hard to avoid. Therefore, when buying a house jointly, it is best to have everyone sign a joint-ownership agreement.

With a co-ownership agreement, the respective rights, obligations and solutions after a falling out can be clearly listed in this legal document, so that it can be used as a basis for negotiation in the event of unpleasant things, avoiding a never-ending and fruitless quarrel.

If the parties to the joint name have not reached an agreement in advance, then the only option is to try to negotiate in the following three ways to find a solution acceptable to all:

1) Sell the house and split the proceeds equally

This is perhaps the most straightforward solution, allowing all joint owners to receive equitable access to the sale proceeds according to their share of property rights, and to terminate all legal obligations regarding property rights and loans.

2) Purchase of another party’s share of property rights

In the case of two joint names, if you want to sell the house, but the other party refuses, you can propose to sell your 50% share to the other party, so that both parties can achieve the results they want.

If you want to do this, you need to sign a new sale and purchase agreement (Sale and Purchase Agreement) and loan agreement (Loan Agreement), and the process is the same as buying and selling a second-hand home.

3) Make an agreement to share ownership of the property

If all parties in the joint name want to continue to hold the house, then consider drawing up a joint ownership agreement to clarify their respective responsibilities and obligations, such as allowing one party to continue to live in the real estate and the other party to continue to pay the mortgage, Then, when the property is sold in the future, the proceeds will be distributed according to the proportion agreed by the parties.

In this way, all parties who jointly buy a house can reach a consensus, and at the same time, there is a legal document that can serve as the basis for all responsibilities and obligations, which can be said to be the best of both worlds.

4) Resolve through legal channels

If the parties to the joint name have no way to reach a consensus, resolution can only achieved through legal means, that is, going to a civil court to resolve their differences.

Generally speaking, this method is a last resort because going to court is time-consuming and expensive, and sometimes attorneys’ fees and court fees can exceed the value of the real estate itself!

Conclusion

Before applying for a joint home loan, it is better that both parties reach a consensus. If you want to know more about overseas investment and buying property, remember to follow Denzity to learn more.


Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

To receive more property information relating to the UK, Canada and Hong Kong, sign up to our newsletter at the bottom of this page.

Malaysia investment information:

  1. Malaysia | Why you should Immigrant in Selangor
  2. Immigrate to Malaysia | Lower housing costs are the best choice for Hong Kong residents

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Malaysia|Malaysia Property Market Outlook 2022

On August 11, 2021, Malaysia restarted the Malaysia My Second Home (MM2H) visa program. The government has added stricter requirements and higher benchmarks to attract high-quality investors., hoping that MM2H participants would truly contribute to Malaysia’s economy (please refer to the latest updates about MM2H for details). However, is it the best time to invest in Malaysia now? Will Malaysian property prices increase in the future? This article will analyze the future economic development and property price trends in Malaysia, to help you understand more about the Malaysian property market in 2022.

Malaysia’s GDP is expected to grow by 6.2% in 2022

According to data from Standard Chartered Bank, Malaysia’s economy is about to rebound in 2022. In addition, more than 78% of the local population has been vaccinated. The vaccination rate will further promote national economic growth and accelerate the speed of economic re-opening. It is expected that the national GDP growth will increase by 6.2% in 2022.

Under global macroeconomic recovery, it is expected that the rise in national disposable income and the continuous improvement of local employment prospects will support national private consumption expenditure. Coupled with recovery of the stock market and the wealth effect of improved consumer confidence, private consumption expenditure will further increase. It is expected that the growth of private consumption in the whole year will increase from 4.1% in 2021 to 7.9% in 2022, and private consumption expenditure will drive the recovery of domestic demand.

The real estate market is expected to see steady growth in 2022

The global economy will fully recover in 2022, driving the real estate market. Economists pointed out that this year’s advantage lies in the strong CPO [Crude palm oil] pricing which has risen to an all-time high of MYR 5000, which will strongly promote real estate growth and spending. Economists have also pointed out , OPR [Overnight policy rate] will be adjusted slightly, which can alleviate the pressure of high inflation. 

Recently, steel prices have risen by nearly 300%, which further confirms that real estate prices will continue to improve. The short-term fluctuations caused are due to cost Rising leads to rising assets, and it is believed that the low interest rate will be sufficient to support the residential mortgage market.

This is also in line with the prospects for an overall improvement in the Malaysian economy, which is expected to perform better in 2022. Furthermore, the categorization of crises from “pandemic” to “endemic” means that the government is adopting sustainable long-term policies in response to COVID-19. This will lead to more consistent regulation of economic activity and bring greater clarity to business operations, improving sentiment on financial security and consumer confidence.

Malaysia Property Price Index Chart

馬來西亞樓價指數-malaysia-house-price-index-翡翠島
2020-2021 real estate market during the covid-19 pandemic

The real estate market has been dragged down by the economic downturn following the COVID-19 global pandemic. During the period from the second quarter of 2020 to the second quarter of 2021, due to the impact of the pandemic and government anti-covid measures, real estate transaction activity fell sharply, resulting in lower prices and reduced supply chains.

According to data from Standard Chartered Bank, Malaysia’s economy will enter a rebound period in 2022. Coupled with the smooth progress of the government’s vaccination program, more than 97% of adults and 78% of people over 12 years old have been vaccinated, and the vaccination rate will further promote national economic growth. And to accelerate the pace of economic opening, the national GDP growth is expected to accelerate from -3.8% in 2021 to 6.2% in 2022.

Positive price indicators captured in the fourth quarter of 2021 point to a stabilizing market in the first quarter of 2022. Despite the apparent price mismatch in the real estate industry prior to the onset of the Covid-19 pandemic, it is widely believed that demand remains strong among homebuyers.

A prevailing environment of low entry costs for real estate and attractive sales packages from developers for first-hand developments is expected to spur activity from first-time homebuyers who had previously put purchase plans on hold due to a previously unfavorable financing environment.

On October 29, 2021, the government announced that the Real Estate Gains Tax (RPGT) will be abolished in 2022, increasing investors’ appetite for investment. (Currently only applicable to local Malaysians) In the 2022 Budget, the government announced that it will invest 2 billion in bank guarantees through the Guaranteed Credit Housing Scheme in 2022 to help consumers more easily obtain home loans, which will further stimulate the real estate market. 

Five-year policy address outlines Malaysia’s development blueprint

In addition, the main good news for the Malaysian government in its 12th Malaysia Plan, a 5-year plan to transform the country into a high-income country by 2025, it plans to continue with large-scale infrastructure projects, which are expected to be completed in 2022. – RM400 billion (nearly HK$750 billion) will be invested, a significant increase of 53% in spending compared to the 11th Malaysia Plan.

Malaysia will develop an infrastructure network linking urban areas with industrial centers, upgrade the national broadband network infrastructure, and improve its healthcare and education systems.

Conclusion

Under the recovery from COVID-19, property prices in Malaysia will grow steadily in 2022, so investors can consider these investment opportunities. If you want to know more about overseas investment and buying property, remember to follow Denzity to learn more.


Property investment is a long-term game and planning is the key. Watch more videos for a better decision! 

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