Which is better, freehold or leasehold real estate? How do you convert a leasehold into a freehold property? This article will explain the freehold property application methods, fees and successful cases for you.

Why are freehold properties so popular?

• The sense of security that comes with owning a piece of land and real estate in perpetuity
• Higher rents, faster appreciation, higher resale value
• Before the end of the lease term, you must apply for an extension of the lease term, otherwise the property will be returned to the government
• Lease term up to 999 years

How can I turn a Leasehold into a Freehold?

Before applying to convert your leasehold property to freehold, you need to take into account factors such as the relevant real estate laws in your state/territory, the application process, fees, legal documents and attorneys’ fees, etc.

Taking Penang as an example, according to the National Land Act and the Federal Constitution, the Penang state government must first obtain permission from the National Land Council before allowing owners to convert leasehold properties into Freehold.

Procedurally, the owner must submit an application and pay a processing fee to the state government’s land office. The owner then needs to pay a premium and pay off taxes such as quit rent.

How long does it take to apply to turn a Leasehold into a Freehold and how much does it cost?

It has been observed that the process of applying for conversion to a freehold can take anywhere from several months to several years, depending on the speed of state and federal government approvals.

Therefore, if you want to apply, it is best to do so before the end of your tenancy.

In terms of fees, real estate title conversion fees and premium fees vary from state to state, but premium fees are usually calculated in the same way. The real estate appraisal department under the state government will calculate the premium that the owner needs to pay based on the difference between the current market price of the leasehold real estate and the freehold real estate.

In some cases, these premium fees can be waived, but on a case-by-case basis. For example, there was a case in Penang where 20,000 owners of low- and medium-priced housing units only had to bear the relevant application processing fees when converting their leasehold properties, and other fees were waived.

Conclusion 

While turning a leasehold property into a freehold can be an expensive and time-consuming process, buyers should do their own due diligence beforehand and make the best-informed decisions with an expert on local state land laws. If you continue to want to know more about buying property and immigration in Malaysia, remember to follow Denzity.

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

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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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# Disclaimer

In 2022, Malaysia’s property market has all the indicators of positive growth and recovery! So welcome back to part 2 of our real estate ranking series of Malaysia’s top eight regions worth investing in. Remember to check out part 1 before diving in!

Once again, we will use the accurate compound annual growth rate (CAGR) in median price to evaluate the investment potential of each region.

It’s important to remember that CAGR  does not measure risks. As we rank these places, we will also evaluate their economic performances, while touching on local developments and things to watch out for!

Region 4 – Perak (CAGR – 27.3%)

As the second largest state in Peninsular Malaysia, Perak has a pretty diverse property profile.

Defining Factors

• Terraced houses, flats, apartments and condominiums
• Easily travel between capital Ipoh and Kuala Lumpur using North-South Highway and ETS

Real Estate Outlook

• Second highest transaction volume by state (2021)
• Residential sector to experience gradual growth (2022)
• Government policies stimulate market

An ongoing development is the Silver Valley Technology Park, which is a part of Perak’s effort to join the Fourth Industrial Revolution. It is expected to increase job and investment opportunities, and contribute to improvements in the residential sector!

Important Note

Beware of areas that are often impacted by natural disasters, such as Ipoh where hundreds of homes were destroyed due to a recent freak storm.

Region 3 – Sarawak (CAGR – 33%)

Sarawak is home to 27 ethnic groups, diverse wildlife and rainforest music festivals.

Real Estate Outlook

• Transaction volume of 22, 828 in 2021 (5th in Malaysia)
• 2022 is a year of stability
• Potential growth in landed residential and agricultural vacant lands

Sarawak MM2H Programme

The most important upcoming factor for investors and homebuyers is the state’s immigration programme.

Due to the tightening of requirements of the West Malaysian MM2H, the much friendlier S-MM2H has garnered some interest, with its lower property purchase and fixed deposit requirements, amongst other things.

The Sarawak government has also singled out China as a potential partner for cooperation, which would be beneficial for Chinese investors and S-MM2H participants.

Number 2 – Penang (CAGR – 51.4%)

Penang is known as “The Silicon Valley of the East.” As Malaysia’s second largest city, it is home to many expats and retirees alike!

Real Estate Outlook

• Slightly impacted by the Movement Control Order
• Mainland properties ranked top in volume of transactions in 2021
• Third highest GDP per capita in Malaysia in 2020

Recent major developments include Intel’s 30 billion ringgit investment into a new production facility in Bayan. Projects like these attract more foreign direct investments (FDI), increasing job opportunities and thereby demand for real estate.

Overall, there’s been a surge in demand for Penang real estate, and with limited supply, property prices will steadily rise.

Added Bonus

Penang seems to be the cultural hotspot for Chinese investors, as they resonate with the island’s locality, 59% of whom are also ethnically Chinese!

Number 1 – Sabah (CAGR – 95.8%)

With a CAGR 40% higher than Penang’s, Sabah is heaven for nature lovers. Many people look into its properties for holiday homes, which also hold good rental potential.

Real Estate Outlook

• Rapid development has attracted many property developers
• In first 9 months of 2021, transaction volume rose by 8.4% compared to previous year;
• Transaction value rose by 25.6%

While demand has been low due to the pandemic, experts say that property prices in Sabah will still increase by at least 20% by the end of this year due to higher wages, building material expenses and financing costs. As developers continue selling existing stock, this could be a good opportunity for foreign investors before prices surge.

Important Note

Sabah is highly susceptible to natural disasters. Landslides caused by heavy rain and the increased frequency of flooding can impact its housing market.

Keep an Eye Out!

This completes our individual breakdown of Malaysia’s states & cities! In future videos, we’ll be revisiting MM2H options and alternatives while the West Malaysian MM2H applications continue to drop. 

Stay tuned by signing up to our newsletter and following our social media pages!

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

Previously, Denzity provided some information on refinancing in Malaysia earlier. If you want to invest in Malaysia, you can read the article to learn more.When buying a property in Malaysia, you need to pay a deposit, but under what circumstances will there be a refund? This article will explain the common situations of how to refund first-hand and second-hand houses and how to apply for a refund.

2 common situation for first-hand home refunds

When buying a new house from the developer, the homebuyer will sign a booking form, which will generally list the refund conditions for the deposit. If the buyer meets the following two conditions, the developer will allow the homebuyer to refund:

1. Homebuyer’s loan application has been rejected by at least 2 banks
2. Home buyers cannot apply for a sufficient margin of finance from the bank. For example, home buyers want to borrow 90% of the house price, but the bank is only willing to lend 80%

4 steps to request a refund from the developer

1. Inform the real estate agent or developer’s sales representative of your desire for a refund and attach documents such as a loan rejection letter as proof
2. The developer will arrange for the buyer to sign the relevant documents to cancel the sale
3. The developer will process the refund, which usually takes 3 to 4 weeks to complete
4. After the refund cheque is issued, the developer will usually notify the buyer to collect the cheque. The buyer can also request the developer to transfer the money on his behalf.

4 Common situation for refunds on Used Homes

1) Home loan application rejected by bank

The buyer must ensure that the letter of intent to purchase indicates that they can get refunded in the event that the mortgage application is rejected. In this scenario, the buyer will be able to refund his deposit.

At the same time, if the letter of intent to purchase will not be able to apply for enough Margin of Finance as a reasonable refund condition, then the buyer can also ask for a refund.

2) Misled by false or incomplete information

Before the buyer signs the letter of intent to purchase, the real estate agent and the home owner are responsible for informing the buyer of all the details of the house and sale, such as whether the house’s name relinquishment procedure requires the approval of the Land Bureau, etc.

If the real estate agent esd not informed in advance, the letter of intent to purchase is not stated, and then the buyer signs the letter of intent to purchase only to discover that the information previously obtained is incorrect or incomplete, the home buyer has the right to suspend the sale and request a refund.

3) The sale and purchase of the house cannot meet the prerequisites

In the case that both parties have signed the sale and purchase agreement and the buyer has paid the down payment, whether the buyer can successfully refund the money depends on the condition precedent in the sale and purchase agreement.

If the preconditions of the sale and purchase contract cannot be fulfilled, it means that the sale and purchase of both parties cannot be carried out, so one party has the right to cancel the sale.

4) The seller is unable to perform their contractual obligations

If the seller is unable to meet the obligations of the sale and purchase contract, such as if the seller suddenly does not want to sell the property, the buyer can ask for a full refund.

4 Steps to Request a Deposit Refund on a Second-hand Home

The buyer can inform the lawyer to arrange for a refund of the deposit as long as the terms of the refund in the letter of intent to purchase and the contract of sale are met.

1. It’s worth noting that even if the sale of the home has been canceled and is refundable, the buyer still needs to pay their attorney’s fees, which are usually deducted directly from the refund amount.
2. Inform the real estate agent or lawyer of your willingness to refund your money and attach documents such as a loan rejection letter as proof
3. The Law Society will arrange for the buyer and seller to sign the relevant documents to cancel the sale
4. A lawyer will handle the process of canceling the sale and refunding

Conclusion 

Before buying a first-hand or second-hand house, buyers should read carefully the sale and purchase agreement, payment terms, refund terms and conditions of suspension of sales, etc. to see if there are any missing terms, so as to protect your rights. If you continue to want to know more about buying property and immigration in Malaysia, remember to follow Denzity.

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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 Malaysia, 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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# Disclaimer

Since the early days of the coronavirus pandemic, all corners of the GTA real estate markets have benefited from households leaving Toronto’s downtown core, in favour
of greener, cheaper pastures within a short drive to North America’s fourth-largest city. The York Region real estate market, from Markham to Richmond Hill to Vaughan,
has seen prospective and first-time homebuyers flocking to destinations like these, just outside the urban core. This has prompted plenty of new trends in the region over the last two years. Will this lead to even more price acceleration?

Whatever the case may be, York Region kicked into high gear in 2020, sizzled in 2021, and could maintain its strength in 2022.

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Before you refinance your home loan, it’s important to know all the costs that will be involved (such as moving costs etc.). After reading our previous post (Malaysia｜5 Benefits of refinance home mortgage loans in Malaysia), you’ll have understood the pros and cons of refinancing. Today, we’ll briefly delve into the basic costs of refinancing in Malaysia.

Cost for Refinancing

1) Moving Cost

Moving cost refers to the cost of applying for a new loan, including property valuation fees, lawyer fees and stamp duty on the separation of the name.

Therefore, before you apply to refinance, you should weigh the cost of refinancing and the loan interest you can save before deciding whether it is worthwhile to go ahead with the refinancing.

2) Penalty for home loan lock-in period

Some mortgages come with a lock-in period, which is usually 2 to 5 years, calculated from the day the bank makes the first loan payment.

If the borrower pays off the home loan in full within these two to five years, including selling or refinancing, he must pay a penalty equal to 2% to 5% of the original loan amount. Therefore, you should check beforehand whether your loan is subject to a lock-in period and assess whether it is worth refinancing after including the penalty amount of this lock-up period.

However, there is actually a little trick you can employ in this situation. You can start preparing your refinancing plan 1 year before the end of the lock-up period. Because the process of refinancing takes 3 to 6 months, or longer, you can time it in a way that falls right out of your lock-in period, especially if you conduct a full payment with the assistance of a lawyer. This way, you can avoid the lock-up penalty while also securing a new loan as quickly as possible.

Conclusion 

In today’s piece, Denzity briefly explained the costs involved when refinancing your loan. Denzity highly recommends that you must do enough research and seek professional advice when refinancing your mortgage to protect yourself from any losses. If you want to know more about buying property and immigration in Malaysia, remember to follow Denzity.

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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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# Disclaimer

The new condo projects taking shape along Toronto’s fifth subway line aren’t shy about promoting their proximity to the 25-station route. Some, like the 60-acre Crosstown community at Don Mills Road and the two Line 5 towers at Yonge Street, have even been named after the long-awaited Eglinton Crosstown LRT.

The attention is understandable. According to Metrolinx, the 19-kilometre line will get transit riders across the city as…

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Recently, we posted some key points about Malaysian Bumi Lots on our social media page, discussing the differences between non-bumiputera units, indigenous units and Malay reservations lands. If you have not read it yet, we recommend you to do so before continuing with this article.. Today, we will share with you 4 key points to pay attention to when buying non-bumiputera Bumi Lots as a non-Bumiputera buyer.

4 key points you need to pay attention to when buying Non-Bumiputera Bumi Lots

1) Seek professional help and services

The process of buying a Bumiputera unit is obviously more complex than the process of buying a non-Bumiputera unit, so buyers should seek advice from professional real estate agents and lawyers to understand the procedures required and to protect their rights.

2) Pay attention to the refund terms of the booking form or Offer To Purchase

Remember to state in the booking form and Offer To Purchase that if you are unable to apply for state approval within a specific period, the buyer has the right to cancel the sale and receive a 100% refund.

3) Buyers, sellers and lawyers on both sides need to work closely together

Usually, it is difficult for non-bumiputeras to buy a bumiputera unit, and the waiting time is also very long. Therefore, the buyer, the seller and the lawyers of both parties must cooperate well and dedicate sufficient time for the deal to progress.

If approval from the state government cannot be obtained, the seller’s lawyer can appeal. He can strengthen the appeal by asking the seller to provide some supporting evidence, such as proof that he is facing financial problems and urgently needs to sell the house for cash.

4) If the transaction fails, the buyer still has to pay the lawyer’s fee

While the buyer can get a refund in case the deal falls through, he or she would still need to pay the associated legal fees, so buyers should weigh whether the costs are worth the risk.

Conclusion 

When buying a non-bumiputera Bumi Lot in Malaysia, non-Bumiputera buyers should read the contract content clearly to reduce unnecessary risks. If you want to know more about buying property and immigration in Malaysia, remember to follow Denzity.

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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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# Disclaimer

As Toronto is the biggest city in Canada, there are plenty of great neighborhoods to choose from. The problem is, choosing the perfect one can be challenging. Toronto is such a diverse city with many different cultures, religions, personalities, and more. The neighborhoods in the city thus match that diversity.

Best neighborhood for families: The Beaches

The Beaches is well-known for having tons of families and older people because of how peaceful the neighborhood is. The Beaches is aptly named as the lakefront in the neighborhood is split into four different beaches…

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Malaysia’s property market in 2022 is defined by low interest rates, low unemployment and the reopening of borders, as well as other factors that indicate a positive outlook ahead. So we’ll be narrowing down the top eight regions that we think are worth considering! This is part 1 of the series.

We will rank these locations based on their compound annual growth rate (CAGR) in median price, since it’s one of the most accurate tools to evaluate investment. It’s a number that represents the returns of an investment.

It’s important to remember that CAGR  does not measure risks, and while Malaysia’s economy is steadily recovering, the world is still under the influence of Covid-19. As we rank these places, we will also evaluate their economic performances, while touching on local developments and things to watch out for!

Region 8 – Johor Bahru (CAGR – 2.1%)

Known for its mouth-watering street food and traditional dances, Johor Bahru lies across a narrow strait from Singapore.

Defining Factors

• Pro-business government: welcomes many foreign and Chinese investors
• Malaysia–Singapore Second Link: recent resumption signals an increase in cross-border real estate investment. 
• Rapid Transit System: ongoing mega project connecting Johor and Singapore that will ease Causeway congestion and generate shared economic benefits

Real Estate Outlook

• Overall outlook is generally quite positive
• Persistence of an oversupply problem

Johor developers have struggled to rent out or sell properties recently due to Covid-19, the Movement Control Order (MCO) imposed by the government in March and the prolonged hiatus of MM2H.

Furthermore, the widening supply & demand gap has left some worried about owning a depreciating asset. Another concerning factor is the increasing crime rate as empty homes are susceptible to break-ins, which could add to homebuyers’ concerns. 

Nonetheless, Johor’s close proximity to China, India, and Japan means there’s much potential for growth. It’s a great location to look into for those who plan to conduct business in the region.

Region 7 – Selangor (CAGE – 7.9%)

If you’re looking for a place with convenient access to both the city and suburbs, then consider Selangor. With the LRT and KTM rail system, you can easily travel between the capital Kuala Lumpur and Selangor. 

Defining Factors

• highest GDP in Malaysia
• Home to many company headquarters due to cheaper property prices
• Petaling Jaya: popular city for residents seeking a prosperous yet relaxing environment

Real Estate Outlook

In both 2020 and 2021, Selangor had the largest transaction volume by state, with an amount almost double that of second-placed Perak! Although the mismatch between demand and supply in the residential market remains to be a challenge for Selangor, the state has been experiencing an on-going increase in property investment, and more infrastructures like international schools are developing to accommodate and attract newcomers. 

Overall, Selangor’s growth seems pretty promising. We are looking at quick urbanization, comprehensive infrastructures, and a very business-friendly environment that are all indicative of prosperous economic growth.

Number 6 – Kuala Lumpur (CAGR – 9.0%)

While Malaysia’s capital Kuala Lumpur is not a state, it remains to be the first choice for home buyers because of the abundant housing supply and work opportunities, convenient public transportation, healthcare system, and comfortable weather. 

Defining Factors

• Emergence of new infrastructure contribute to its positive outlook in 2022
• Switzerland-based IWG announced two new luxury flexible workspace locations in Kuala Lumpur, attracting more business opportunities

Real Estate Outlook

• Expected increase in cheaper housing as more affordable residence projects have been launched
• Mah Sing launched “M Arisa”; the project has a healthy take-up rate of 80%! 
• Oversupply Problem; overhang units worth RM7.94 Billion

The longer overhang units stay empty, the less appealing they are for property buyers. Moreover, although KL is the most financially successful region in Malaysia, buying property there will be quite expensive for investors and there is no guarantee of significant returns soon. Therefore, we suggest you to be more cautiously optimistic about investing in Kuala Lumpur due to the possible uncertainties ahead. 

Number 5 – Melaka (CAGR – 10.9%)

Congratulations to Melaka for placing in the top 5 with a CAGR of 10.9%! 

Defining Factors

Known as the historic state of Malaysia, it’s a famous tourist destination, rich with traditional cultural art. It offers a much more relaxing environment and low cost living than Kuala Lumpur or Johor. 

Real Estate Outlook

• Property market shows positive trends as businesses begin to operate again
• 12.2% rise in volume of transactions respectively in 2021
• 19.7% rise in value of transactions in 2021
• Ongoing Mega Projects: Sail, The Rise, Taman Botani Parkland

An important point to note is that the recent third wave of covid-19 has made the general public sentiment in Melaka rather skeptical about the property market. At the moment, they will more likely hoard money than take risks. Thus, we suggest waiting until things are more settled and keeping an eye on consumer confidence before making any investment decisions.

What are the Top 4 Regions?

That was just part one of our individual breakdown of Malaysia’s states & cities! Next week we will cover the top 4 Malaysian regions that showcase great investment potential in 2022. 

Also stay tuned by signing up to our newsletter and following our social media pages!

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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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# Disclaimer

For years it was the thunderdome of Canadian real estate. Vancouver’s price surges and subsequent social issues were seen as the premier example of what happens when unattainable housing expenses hit a Canadian city.

No matter how hot the Toronto housing market got — and home prices rose 300 per cent in three decades, adjusted for inflation — it enjoyed one cold comfort. It was not the most expensive city in the country…

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