Good Job, Selangor! Selangor property discount applies to all

SHAH ALAM: Prices of affordable serviced apartments, soho (small office, home office) and sovo (small office, versatile office) units in Selangor

will now be lower for everyone following new guidelines on state property development, says state exco Datuk Teng Chang Khim (pic).

Prices of these three types of properties have been lowered for all buyers regardless of their racial background, he said.

“Under the existing practice, 10% discount is given to bumiputra buyers.

“Considering that the target group is all the same – they are all people in need – we decided to extend the discount to all by reducing the properties’ ceiling price.

“We offer these properties to the lower and medium-income groups. There is no reason that bumiputras are given the discount and not non-bumiputras,” he said when contacted.

He dispelled reports that the Selangor government would no longer provide a 10% discount for bumiputra buyers of such homes.

“There is no question about abolishing it (the 10% bumiputra discount) but we lowered the price and standardised it for all,” he said.

He gave an example where the ceiling price of a piece of property had been lowered from RM300,000 to RM270,000, which would be enjoyed by all buyers starting Sept 1.

”Under the new guidelines, bumiputra buyers are not affected because they still enjoy a lower price.

”The state has also to set the selling price of these properties between RM230,000 and RM270,000,” he said, adding that the maximum household income for eligible buyers would be revised from RM8,000 to RM15,000, allowing more people to qualify for the purchase of such homes.

Teng, who is state Industry and Commerce, Small and Medium Enterprises and Transportation executive chairman, said Selangor had received suggestions to lower the prices of affordable properties to benefit buyers from the lower and medium-income categories.

He also said that the 30% quota for bumiputra property ownership remains.

Selangor Mentri Besar Datuk Seri Mohamed Azmin Ali said that as far as affordable and low-cost homes were concerned, the need transcended race, religion, skin colour and background.

“Being less financially capable and poor cuts across races and religions. Selangor’s principle is to help those with lower income to own homes.

“We have agreed on some new guidelines and they will be announced in detail by Datuk Teng and (Housing Exco) Datuk Iskandar (Abdul Samad) later,” he said when met after an art programme here.

Source: Starproperty.my

Catch up the train! How to Get New Customers With Pokémon Go!

Unless you’ve been living under a rock over the past few weeks, you’ve probably heard about the latest viral craze to hit the United States: Pokémon Go. Nintendo’s latest invention, Pokémon Go, is a mobile app that features the lovable Pokémon characters from the 90s card games, bringing millions of users back to their childhood days. While this might sound a bit ridiculous, small businesses can use Pokémon Go to bring in foot traffic and get new customers. Pokémon Go can get more people to come into your small business than you know what to do with and help significantly boost sales.

How Does Pokémon Go Work?

Pokémon Go is a free mobile app where you can find Pokémon and “catch ‘em all” in virtual reality. Players capture Pokémon by flicking Pokéballs at them with their fingers on their mobile phones. The app uses the GPS tracking system on your mobile device to create a map for nearby Pokémon, Pokémon Gyms, and PokéStops in real life. When you find a Pokémon, Pokémon Go accesses your camera and places the Pokémon into your camera screen, where you can try to catch it.

Pokémon Go now has over 20 million active daily users, and that number is still rapidly growing. Just to give you some perspective, Pokémon Go has more active daily users than Twitter, and has a higher engagement than Facebook.

How Small Businesses Can Use Pokémon Go

Small businesses can leverage this outrageous amount of engagement on Pokémon Go and convert it into traffic for their businesses. Pokémon Go users find Pokémon by walking around busy areas such as cities and towns, and they even explore new places on their hunt to catch more Pokémon. If you are located in a busy urban area with lots of other stores and businesses, this influx of people coming into your store will increase the likelihood of them purchasing your services. Here are some ideas for getting customers for your small business with Pokémon Go.

Related: 5 Steps to Starting a Successful Small Business 

Create a Pokémon Go Account

Before you start gaining customers through Pokémon Go, you’re going to need to download the free mobile app and create an account if you haven’t already. To download Pokémon Go, open up the App Store on your mobile device and download the Pokémon Go app. It shouldn’t be too tough to find—it’s the #1 free app in the App Store. After you download the app, open the app and sign up using your Google account or create a Pokémon Trainer Club account. Once you’ve finished creating your account, customize your character and then click the check mark in the bottom right corner of the screen. Now, you can explore your area and start marketing with Pokémon Go.

Bringing Customers to Your Small Business with PokéStops and Gyms

PokéStops and Pokémon Gyms can help bring traffic into your business. PokéStops are locations in Pokémon Go where you can pick up Pokéballs for catching Pokémon, while Pokémon Gyms are places where Pokémon users can battle their Pokémon. PokéStops and Gyms are often buildings, landmarks, or monuments in your area. Both of these places can become hotspots for Pokémon players to gather at.

Pokémon Go has already created PokéStops and Gyms in your area. Check the area around your business to see if there’s already a stop or gym near you. PokéStops and Gyms look like 3D targets as shown in the image above. If your business is a PokéStop, Pokémon Gym, or near one, consider yourself lucky. If not, you can still gain traffic from these places, or you can request your business to become a Pokéstop or Gym on Pokémon’s support page.

Sponsored Locations on Pokémon Go

Pokémon Go is looking for more ways to profit from the Pokémon phenomenon, which is why they’re going to start offering sponsored locations. Businesses will be able to purchase PokéStops and Gyms from Niantic, the company that developed Pokémon Go.

Marketing Ideas for PokéStops and Gyms on Pokémon Go

Even if your request gets rejected, you can still use these locations for your business’s advantage. Your map on Pokémon Go will show you places that are PokéStops and Gyms, which means you can target your marketing towards these locations. If you are a mobile business such as a food truck, increase your business’s visibility by parking as close to a Pokémon Gym or PokéStop as possible.

Related: 6 Sample Marketing Plans for Small Businesses

Pokémon Go requires you to walk around in real life to find PokéStops and Gyms. This provides a great opportunity for gyms, after school providers, camps, and athletic facilities to direct Pokémon Go players to their locations and encourage them to get their daily exercise in.

Other marketing ideas for bringing foot traffic into your business are:

• Put up a sign outside your store if you’re a PokéStop or Gym
• Offer a discount to users who are “Level x” on Pokémon Go
• Give customers a small gift with their purchase if they have a specific Pokémon
• Hold a contest outside your business to see who can catch the most Pokémon in an hour and promote the event on Facebook
• Hand out coupons to players on a specific team (There are three teams: Team Mystic, Team Valor, and Team Instinct)
• Promote news about PokéStops, Pokémon Gyms, and lures near your business on your social media accounts
• Spruce up your store with Pokémon art and decorations

How to Get Your Business Found With Pokémon Go

Businesses can take advantage of Pokémon Go in order to get found by more potential customers.

• Yelp: Yelp recently created a filter for Pokémon players to use to find PokéStops nearby. People writing reviews of your business are now prompted to answer whether or not your business is close to a PokéStop. This is a simple way Pokémon Go can help your business increase its visibility online and get more business than you can handle from Yelp.
• Pokémon Go Maps: Another way you can gain visibility is by adding your location to Pokémon Go maps of your area. Google Pokémon Go maps in your business’s location and let people know what Pokémon you’ve found near your business to bring foot traffic into your area.
• Pokémon Go Events: Many small businesses are getting in on the fun by holding Pokémon-themed events. Restaurants are getting tons of customers by hosting bar crawls (known as PokéCrawls) and encouraging people to dress up as their favorite Pokémon.

Draw Customers in with Lures

Just like in fishing, lures are used in Pokémon Go to attract people to an area that has Pokémon. Lures increase the amount of Pokémon in your area for 30 minutes, and they can only be used at PokéStops. So, if you’re trying to catch ‘em all, lures are a great method to do so.

You can purchase lures with Pokécoins within the mobile app. Activating a lure at the PokéStop closest to your small business can bring users into your store. Getting users inside of your store brings them one step closer to becoming paying customers.

Lures can be an inexpensive way to bring more traffic into your store or business. Lures can be used for businesses that already get foot traffic, including restaurants, flower shops, fitness centers, ice cream stores, and retail stores like hardware or jewelry stores. Dozens of small businesses around the country have already caught on to this strategy and have successfully used lures to attract more customers.

How to Place Lures in your Business

There are creative ways you can use lures for your business if your business is near a PokéStop. For example, a car wash can put a lure inside of its car wash if it’s a PokéStop, forcing Pokémon Go players to buy a car wash if they want to capture Pokémon from the lure. Restaurants can use lures during off-peak times to bring users into their businesses and persuade them to buy food and drinks.

How Much Does a Lure Cost Your Small Business?

While this may sound like a great option for your small business, you’re probably asking yourself, “How much will this cost me?” The good news is that this won’t cost your small business very much. Lure modules are currently being sold in the app at 100 Pokécoins for 1 Lure, and 680 Pokécoins for 8 Lures. You can play Pokémon Go like millions of others to earn Pokécoins for lures, but it’s much quicker and easier to just buy Pokécoins.

If you want to test this marketing channel for gaining customers, start small. Buy 1 lure for $0.99 or 5 lures for $4.99 (550 Pokécoins) to see if you gain traffic from Pokémon Go. If you’re happy with the results and want to start buying lures for your business, you can go the most cost efficient route and buy Pokécoins and lure modules in bulk. 14,500 Pokécoins cost $99.99, and 8 lure modules cost 680 Pokécoins, which means that you get lures for your business for about $0.60 each. 30 minutes of increased traffic for only 60 cents yields a tremendous return on investment for your business.   

Examples of Pokémon Go Helping Small Businesses

Many small businesses have already used Pokémon Go to get more customers and boost sales.

An Animal Shelter in Indiana posted on their Facebook business page and asked Pokémon players to walk rescue dogs while they are trying to catch Pokémon. As a result, Pokémon players immediately started lining up to walk and play with these rescue dogs. This Facebook post was shared over 25,000 times, and the rescue dogs received plenty of exercise and attention, all thanks to Pokémon Go. Other animal shelters across the country have started using a similar strategy and gotten rescue dogs adopted in the process.

Many pizza and coffee shops have increased profits by using lures and posting signs outside their businesses saying that they’re PokéStops and Gyms. Real businesses are making real money from Pokémon Go, so why not give it a shot?          

The attention you can get from Pokémon Go can help you bring foot traffic into your business, and it can even become an important piece of your marketing plan. Have any other ideas for catching Pokémon players for your small business? Let us know by comment here.

Everything You Should Know Before Buying An Auctioned Property!

Auctioned properties can be a lucrative way to acquire an asset under your name. The prices are usually way lower below market value and can be a steal at times. However, nothing comes risk free and you should be aware of the pitfalls you could be stumbling onto when purchasing an auctioned property. Let’s take a look at some of the things involved.

1. Process

Eligibility

You must be at least 18 years of age to be eligible to bid at a property auction.

Process

You may register prior to the auction sale or on the auction day. You need a cashier’s order or bank draft  equivalent to 5% (Loan Agreement Cum Assignment-LACA) auction or 10% (Non-LACA auction) of the reserve price of the property that you wish to bid for. You should arrive 30 minutes before an auction if you intend to register on the auction day.

After registration you can bid for the property you wish to purchase. Don’t be rash and bid more than the initial limit you have set.

The successful bidder will have to sign a Sales Contract and pay the first 5% or 10% of the final bid price, and settle the remaining balance within a certain period of time (common time frame is 3 months).

In most cases the amount will be greater than the deposit based on the reserve price, so bring along your cheque book and be prepared to fork out more.

2. Advantages

The major factor that encourages buyers to purchase auctioned properties is that their values are somewhat lower than the market value. Buyers stand to make up to 20% of saving from the market price. There are cases where no reserve price were attached to the properties, and that the highest bid wins the bid. If the bidding has little or no competition, you will have a higher chance to win the bid.

The second advantage is owning a property quickly since most of the necessary procedures such as valuations are usually done beforehand. Besides that, once signed, the participants are legally bound to transaction so this prevents the seller from accepting a higher offer from another party in the future.

3. Disadvantages

Uncertainty

The bidders are usually not allowed to view the interior of the buildings. The new owner takes the risk of having to bear a large amount of money to repair damages left behind by the previous owner.

Outstanding Payments

Outstanding utilities bill, tax and maintenance fees will usually be borne by the new owners. This is why we don’t encourage buyers to bid more than their initial tolerance limit; to spare some reserves for damages.

Occupied Property

Since auction properties are not guaranteed with vacant possession, there is a chance that the property is occupied (by previous owner or tenant). Once the purchase is done, these problems belongs to you and yourself.

4. Tips

There are some basic tips which you can do to avoid or solve the problems if you are interested in buying auction property.

• Inspect the subject property beforehand to check on the external condition of the property and whether someone is occupying the property. If possible, ask the occupant (if any) to have a view of the interior of the property, or ask the neighbours to do you a favour to view their house with a similar layout (be prepared to receive hostile treatment). Try to dig up information from the neighbours about the nature of the previous owner.
• Visit the management office to find out the outstanding maintenance fees. It’s not difficult to get information disclosure as the management would likely welcome a potential owner to cover the balance amount.

Conclusion

On top of the hidden uncertainties faced, auction property buyers also share the same challenges as any home buyers like securing a housing loan, lower valuations and higher upfront cost. We highly encourage buyers to conduct a thorough research first and judge wisely whether the advantages outweighs the problems. Additionally, gaining and flipping from auctioned properties is usually the game for seasoned property investors and not for first time home buyers so think twice before taking the plunge.

- I Vision Properties -

13 points to consider when buying subsale high-rise units

What are some of the things you should look out for when hunting for a high-rise home on the subsale market? Kimfield Properties agent George Loh shares 13 tips below:

1. Look at the density or plot ratio.

2. What is the balance of the lease of the land (if it has a leasehold tenure)?

3. Are there enough parking lots? Are the lots in a covered car park?

4. What brand or model are the lifts? Are they reliable? How many lifts serve the building?

5. Type of community or occupants (low-, middle- or high-end ) in the building; and whether the community is cooperative and communicative (eg are there any abuses of the common fund; are there any good and reasonable house rules available to resolve disputes easily).

6. Easy accessibility and availability of amenities (such as schools and shopping complexes) as well as the surrounding environment — for example, are there parks?

7. Information on future developments in the area.

8. Is the property selling at a reasonable price?

9. Appearance of the building, functional layout and design, good physical structure (no water leakage and free from defects), referring to Conquas or Qlassic standards.

10. Is the entire building or project designed for easy maintenance with lower cost, so that there is no tremendous increase in service charges in the future?

11. Is the concept of the development achievable and sustainable?

12. Good coverage of telecommunications systems like high-speed Internet connection or mobile coverage.

13. Most importantly — safety and security!

- Racheal Lee -

Homes versus Hotels

Home-sharing services like Airbnb are becoming a hit among Malaysians. But hotels are urging the Government to regulate such services, claiming that rental of private apartments and studio units is illegal. Noting such calls, the Government is currently discussing how to address the matter.

LIVING rooms instead of hotel lobbies. Apartment units instead of hotel suites. This is the trend today.

More Malaysian holiday-makers are choosing to rent private properties as accommodation on their trips, instead of booking hotel rooms.

They do this using home-sharing services like Airbnb and Singapore-based HomeAway, which offer travellers the option to stay in a local host’s property.

Ranging from single rooms to entire apartment units, guests can book their accommodation from hosts, who list their property on such websites to be leased out for a fee.

Sometimes, the fees are even lower than the room rates offered by hotels.

This is one of the factors that drive the popularity of such services, with the San Francisco-based Airbnb having over two million property listings for rent from local hosts in about 191 countries around the world.

In Malaysia, home-sharing services are also gaining traction among travellers and homeowners, who want to earn some income from offering short-term rentals.

However, the hotel industry in the country is claiming that such services are eating into their business, with some estimating about 5% to 15% of their business being diverted.

Hoteliers are also saying that consumers are not fully protected under such arrangements.

Likening home-sharing services like Airbnb to Uber in the taxi business, hoteliers claim that the hosts are not subjected to the same regulations imposed on hotels and do not need to pay taxes or collect the Goods and Services Tax (GST).

As the industry calls on the Government to regulate such services, the Tourism and Culture Ministry says discussions are ongoing to address the matter while the Urban Wellbeing, Housing and Local Government Ministry is open to feedback on the issue.

Malaysian Association of Hotels president Sam Cheah sees the growing popularity of such home-sharing platforms like Airbnb as a threat to the hotel industry.

“It isn’t a level playing ground because the hosts who are offering their properties for rent are not subjected to the same requirements, including safety standards,” he says.

Cheah points out that the hosts can afford to offer lower rates because their operating costs to run their businesses are smaller.

“They pay domestic usage for quit rent and utility bills. They are not required to adhere to safety requirements such as installing proper fire protection,” he adds.

Cheah explains that hotels also have public liability insurance and protect consumers in the event of negligence or fire.

“We are obligated to protect our customers. But there is no such policy for home-sharing hosts,” he says, urging consumers to be aware of such risks.

Cheah also points out that it is illegal for homeowners to operate a business for tourists and travellers when the property is meant for domestic dwelling.

“It is unfair for residents who are neighbours of such hosts as they will have strangers walking in and out of the premises,” he says.

These tourists will also be using the swimming pool, gym and other facilities meant for residents.

However, Cheah says the association, which consists of 881 member hotels, cannot discount or prevent such a business model from being practised.

“But the Government should regulate such businesses to protect tourists and make it an even playing field for hotel operators,” he says.

If left unchecked and unregulated, Cheah foresees the Government will have a problem dealing with the projected 36 million tourist arrivals by 2020.

“If we do not regulate Airbnb and other home-sharing services, we wouldn’t be able to monitor the industry. We wouldn’t know if we have an oversupply or over-development and businesses may lose out.

“It is just like Uber and GrabCar in the taxi industry. You cannot stop them but you have to regulate them. Then it makes sense,” he says.

Echoing Cheah’s call to the Government to impose regulations, Malaysian Association of Hotel Owners secretary Anthony Wong calls such home-sharing services illegal as hosts are not licensed to provide lodging and insurance for guests.

“It is amounting to making private arrangements and guests who are hurt during their stay are unable to claim insurance for any mishaps.

“As legal entities, hotels have permits to comply with. Our operating costs are expensive and we pay taxes,” says Wong, adding that hotel rates are also competitively priced.

He claims that the emergence of such services and illegal homestays have caused hoteliers to lose about 5% in revenue.

Acknowledging the concerns by hotels, Tourism and Culture Ministry secretary-general Tan Sri Dr Ong Hong Peng says the ministry has received complaints from the industry on the emergence of home-sharing platforms.

“This issue has been acknowledged and discussed extensively by the Special Task Force on Service Delivery and its working group.

“This working group is represented by government agencies such as the ministry, Malaysia Productivity Corporation, the Urban Wellbeing, Housing and Local Government Ministry and the police,” he tells Sunday Star.

Dr Ong adds that the question of regulating home-sharing platforms and conducting enforcement on homeowners under such services comes under the purview of local councils.

In the meantime, the ministry has its Malaysian Homestay Programme, which offers a unique experience to tourists.

“The programme enables tourists to stay and interact with local families who act as hosts.

“Under this programme, families and their houses register with the ministry after completing the homestay training module and following the guidelines,” he explains.

But Dr Ong points out that this is different from merely offering accommodation as it is a community-based tourism programme which offers tourists a lifestyle experience of rural villages.

In 2015, Malaysia attracted 25.7 million tourist arrivals, a decline of 6.3% compared to 27.4 million tourist arrivals in 2014.

For the first quarter of 2016, Malaysia registered an increase of 2.8% in tourist arrivals, which Dr Ong perceives as a positive outlook.

“A strong growth in arrivals is expected for the remainder of this year,” he says.

Former Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan, who was just replaced in a Cabinet reshuffle on Monday, says it is still too early to decide whether to regulate homeowners involved in home-sharing services.

“This will require extensive discussion. The ministry welcomes feedback from stakeholders on this matter, including hoteliers, and will be more than happy to listen to their concerns,” he says.

The issue of regulating or even banning Airbnb and other home-sharing marketplaces is of growing concern.

Recently, it was reported that New York State in the United States may make it illegal to advertise apartments on Airbnb if a Bill is made into law by Governor Andrew Cuomo.

Meanwhile, the German capital of Berlin has stopped tourists from renting entire apartment units using Airbnb and other similar websites. The move bans homeowners from leasing their property to tourists without a city permit.

Japan released national guidelines for home-sharing services, making properties only available for rent if guests stay for a week or longer.

Other places are more receptive towards home-sharing platforms, including London, which amended housing legislation that makes it legal for locals to rent out their homes through websites like Airbnb.

- Yuen Mei Keng -

Greater KL/ Klang Valley Integrated Transit Map

Here is the comprehensive Greater KL/ Klang Valley Transit Map. You may need to take a consideration on the infrastructure and public transport nearby the area you would like to invest. Looking for the potential capital appreciation and high ROI area or property? Visit us at www.hiproperty.com.my.

- Hiproperty.com - 

Online shopping uptrend in Malaysia

KUALA LUMPUR: Online shopping in Malaysia is poised for significant growth, given its rising popularity and relatively new adoption rate among local customers.

According to PwC in its Total Retail Survey 2016 report, South-East Asian consumers are relatively new to the online marketplace, with nearly three-fifths of respondents in Malaysia reported buying online only within the last three years.

“Based on patterns we’ve seen in other countries, there is a good amount of room for growth,” said PwC senior executive director Scott Constance.

According to the report, higher proportions of Thailand and Singapore consumers are new to online buying as compared to the average of our global survey.

“More than 80% of China respondents have been buying online for more than three years,” it said.

The report, which surveyed 500 consumers per country, revealed that about half of Malaysian respondents buy online at least monthly and only 7% have never shopped online. The survey also said South-East Asia shoppers lead the world in mobile and social adoption.

“Nearly three quarters of Malaysian respondents use social media to access promotional offerings while shopping. Consumers in South-East Asia demonstrate a strong desire to use social media in forming associations with their preferred brands.”

In terms of online buying frequency, PwC said although a sizable percentage of consumers in South-East Asia report buying on a daily, weekly, or monthly basis, the percentage was still smaller compared to its overall global survey.

It said that 60% of all consumers its global survey reported buying online on a monthly basis or more frequently.

“Consumers in Singapore match this proportion, followed closely by Thailand at 58% and Malaysia at 48%.”

The report also said that South-East Asia consumers are among the world’s fastest and strongest adopters of mobile and social media usage in support of their online and in-store purchasing activities.

“Whatever the mobile or social media purchase usage, whether it is using a mobile phone to check product reviews or prices, or accessing coupons, or making purchases outright, it’s likely that consumers in South-East Asia are doing it more frequently than just about anyone else in the world.

“Two-thirds of consumers surveyed in Malaysia and Singapore, and nearly three-quarters of consumers surveyed in Thailand report using their phones directly to make purchases. Rates of mobile phone purchasing usage in all three South-East Asia countries surveyed exceed the global average of 54%,” said PwC.

- EUGENE MAHALINGAM -

The Transformation of South Western Kuala Lumpur

The South Western Kuala Lumpur area covers Bangsar, leading on to Bangsar South or formerly known as Kampung Kerinchi, including the Abdullah Hukum area, all the way up to the Bukit Kerinchi Hills.

Currently, these areas are individually undergoing massive transformation and redevelopment efforts by the established names in the property industry.

This locale is interesting as it holds a picturesque backdrop of contouring hills that merge with surrounding land masses, adding to the lure that many property purchasers are attracted to.

Bangsar South by UOA Development Bhd is today one of the more favoured townships within South Western Kuala Lumpur. This locale, initially named Kampung Kerinchi, has come a long way from its humble beginnings.

The 60-acre fully integrated residential and commercial enclave is centrally located and enjoys excellent Internet connection aside from being a transportation hub. The growing neighbourhood holds a variety of boutique malls, hotels and recreational facilities as well as an award-winning six-acre central park.

Since the revitalisation of Kampung Kerinchi, developers such as Suez Capital Sdn Bhd and EUPE Corporation Bhd have all taken part in the blossoming of the now vibrant location.

The releases by both these established property figures in the industry are currently being constructed along the Federal Highway and are dubbed KL Gateway and Novum respectively.

As one would venture deeper into Kampung Kerinchi, the hills of Bukit Kerinchi are clearly visible. Here, IJM Land Bhd has set a vision to carve through the forest, creating a forest community that would result in Kuala Lumpur’s one and only urban forest city.

This development by IJM Land is dubbed Pantai Sentral Park. The expanse is placed next to a 200-acre forest, designed to seamlessly blend into the forest providing its future residents as well as working community to get as close as possible to nature.

As of now, the developer has launched two phases within Pantai Sentral Park and these include Inwood Residences and Secoya Residences. This impressive mixed development by IJM Land is expected to be completed within the next 10 to 15 years.

As one would look down from the peak of Bukit Kerinchi, Mid Valley City can be seen. This shopping city is a thriving retail haven that calls the South Western Klang Valley region home. However, the attention grabber in the property industry with regards to this location is KL Eco City by SP Setia Bhd Group.

This cutting-edge development beholds a city of tomorrow exuding architectural boldness. The prestigious development will sit on a 25-acre prime plinth of land situated next to Mid Valley City. KL Eco City is the first integrated green luxury development that will be anchored by prime commercial offices, high-end retail outlets, world-class serviced apartments as well as luxury residential towers.

Aside from its stunning appearance, KL Eco City will also become a transportation hub as it is holds connectivity to the Abdullah Hukum station.

The Eco City station is a KTM Komuter proposed train station currently under construction.

The station primarily functions and is named after KL Eco City. The existing Abdullah Hukum LRT station is located beside the Eco City station and unified connectivity will be implemented in the near future despite the stations being named differently.

As one would move closer toward LRT Bangsar, within walking distance is where a revitalising development is being constructed a stone’s throw away from the popular Bangsar Village Mall.

Developed by Hap Seng Land Development (Bangsar) Sdn Bhd, Nadi Bangsar is a luxury freehold serviced apartment located off Jalan Maarof, near to the upscale area of Bangsar.

This serviced apartment is targeted for completion at the end of this year and comprises over 400 units of apartments in a single 38-storey block. Unit sizes offered range between 441 sq ft to larger 1,130 sq ft units.

 - Viknesh Ashley -

Going Green Makes Sense?

Should property developers jump onto the green building bandwagon? -REENA KAUR BHATT-

Most people think of green buildings as just a building that does not really have as bad of an impact on the environment as another ‘average’ building. Not many building owners and developers are fully aware of the benefits of investing in a green building as they fail to see beyond the additional spending costs at the initial stages.

Dr Herman Teo, GM of Green Building Index explains why developers can’t go wrong by going green.

Green is the new black

In 2009, the organisation developed and introduced the Green Building Index (GBI) – Malaysia’s first comprehensive rating system for evaluating the environmental design and performance of buildings, towns and factories.

The GBI rating tool provides an opportunity for developers and building owners to design and construct green, sustainable buildings that can provide energy savings, water savings, a healthier indoor environment, better connectivity to public transportation, the adoption of recycling and greenery for their projects and help reduce construction impact on the environment. Since its introduction in 2009, GBI has certified over 150 million square feet of green spaces in Malaysia.

Why going Green pays

While it may cost developers a bit more to get started when they go green and while green materials and products can be more costly, they really have to consider the type of savings that they will be able to reap in the long-run. Even though green buildings may typically cost up to 3-6% more, most developers will recoup their initial investment within seven years through energy savings.

If a building was designed to be green since the design stage, there may not even be any additional cost. When constructing a green building, focus is placed on increasing the efficiency of resource use, namely energy, water and materials. The GBI certification is based on 6 main criteria namely Energy Efficiency, Indoor Environment Quality, Sustainable Site Planning & Management, Materials & Resources, Water Efficiency and Innovation.

For instance, energy efficiency means that energy consumption in a building is improved by optimising the north-south orientation, harvesting natural lighting, commissioning and regular maintenance. Malaysians spend copious amounts of money on electricity bills, especially with the recent El Nino; many are cranking up their air-conditioning throughout the day.

The most appealing factor of a green building is that it require much lesser energy to cool. The tenants of a green residential building will benefit from lower electricity and water bills as well as lower maintenance charges because green buildings require significantly less maintenance.

Similarly, commercial buildings will benefit from lower operating and maintenance costs through the implementation of proper construction management, storm water management and reducing the strain on existing infrastructure capacity. This means that there will be savings in water and electricity usage as well. GBI recently certified a coffee plant, which implemented new energy saving features to its existing factory building. Post certification, the factory now saves an astounding RM80,000 in maintenance bills each month!

Towards a brighter and greener future

By building green we will also be reducing the building’s impact on human health and environment during the building’s lifecycle; through better siting, design, construction, operation, maintenance and removal.

One of the goals of green buildings is to reduce its environmental footprint. The United Nations Environment Programme (UNEP) estimates that buildings contribute to as much as a third of total global greenhouse gas emissions, mainly due to the use of fossil fuels for energy generation. The diagram below proves how green buildings contributes in terms of reduced carbon emissions:

Besides that, a green building achieves better indoor environmental quality through passive design strategies, improving acoustic, visual and thermal comfort. The cooler, brighter and healthier environment will bring forth an increase in the wellbeing of its occupants and improve staff’s productivity in commercial buildings.

Dr Herman revealed that a building with good design, positioning and which have a lot of windows actually help its occupants (staff) to work and think better and their mental memory can improve by 10% to 25%; this will increase the productivity of the building’s occupants.

Added benefits

The added perk of green building include incentives for developers once they obtain GBI certification for their projects.

Any qualifying expenditure to obtain GBI certification for a building used for his business qualifies for tax exemption on the statutory income which is equivalent to 100% of that expenditure. It should be noted that the GBI rating system is strictly regulated by an independent committee, the GBI Accreditation Panel (GBIAP). Consisting of senior building professionals; this body reviews and awards the GBI rating to qualified projects.

A win-win situation

A GBI certified building not only saves money and the environment in the long run but also enhances a developer’s reputation as well, as it showcases a form of corporate social responsibility. More importantly, as researched by the World Green Building Council, green building practises will increase building values by 7.5%. A discerning property buyer will realise that green buildings actually enjoy higher capital appreciation as compared to normal buildings.

“There is no downside to building green – If there is, why did some countries make it a requirement for all its buildings to have green building certification?” says Dr Herman.

Conclusion

Building owners should really look at a green building as more of an investment than anything else - an investment that not only saves money in the long-run but also helps the environment as well.

- Dr. Herman Teo-

GM of Green Building Index

Strata Management Bodies — how do they work?

AS a city grows, the development of high-rises becomes inevitable. So one can only expect more strata developments to be built in Malaysia in the future and strata living will become increasingly common. It is therefore imperative to understand the existence and function of the management bodies that ensure a comfortable and secure strata living environment.

Beyond the initial management period by the developer upon vacant possession, there are three bodies that a strata owner needs to know: the Joint Management Body (JMB), the Management Corp (MC) and the Subsidiary Management Corp (Sub-MC).

The members of the MC and Sub-MC are made up of solely strata owners while the JMB involves the joint participation of the developer and owners.

Both the JMB and MC have the same function — that is to manage the common properties of a strata development. The JMB is formed within one (1) year from when vacant possession is delivered to the strata owners pending the issuance of strata titles, while the MC is formed upon the issuance of strata titles. In other words, if a strata title is delivered together with the keys to the strata unit, the formation of the JMB is not applicable. If the JMB has been formed and strata titles are then issued thereafter, the JMB will cease to operate when the first AGM of the MC is convened.

The first AGM

According to the Strata Management Act 2013 (SMA 2013), the first AGM of the JMB must be convened no later than 12 months from the delivery of vacant possession. In cases where vacant possession was delivered before the SMA 2013 came into force, the first AGM must be convened within 12 months from the date the SMA 2013 was enforced. Take note that the date of commencement of the SMA 2013 in all states is on May 31, 2016 except for Penang which is on July 11, 2016. Sabah and Sarawak have no strata regime to date, unlike Peninsular Malaysia and Labuan.

On the other hand, the first AGM of the MC will be convened within one month when at least one-quarter of the aggregate share units are transferred from the original landowner to the unit owners.

The strata owners shall become proprietors once their interest in the parcels have been duly registered in their respective strata titles. Strata owners must be aware that they are eligible to vote and to become a member of the MC committee only when they have settled all dues and payable sums to the management body at least seven days before the first AGM.

The function of the management bodies is unquestionably to manage the development especially its maintenance, and to preserve the condition of its common property. Management bodies collect “Service Charges” and “Contributions to Sinking Fund”. They can also make additional by-laws. These are not exactly laws but more like house rules that apply to every parcel owner. They can also list defaulters on the general notice board.

The Sub-MC

Given the rise of mixed-use developments and their unique structure, where they share common infrastructure, the SMA 2013 introduced the Sub-MC to ease the management dilemmas that affect such developments. One common dilemma is whether the funds collected from the residential parcel should be used on the maintenance of the common property at the commercial parcel or vice versa.

The Sub-MC can also be formed for a wholly residential project when there is a need to have a separate management. An example would be penthouse unit owners who are entitled to an exclusive garden and infinity pool at the roof top, which are not accessible by other normal strata owners in the same development. Hence, a Sub-MC can be formed to maintain these exclusive facilities. The SMA 2013 allows a Sub-MC to manage the designated Limited Common Property in the development. A Limited Common Property refers to the common property designated for the exclusive benefit of certain strata owners but not all. The Sub-MC shall manage and maintain the Limited Common Property by separately collecting the “Contribution to Sinking Fund” and “Charges” from the entitled owners.

It is within the power of the MC to form a Sub-MC. However, it is not an easy task as it requires 2/3 of the aggregate share units of parcels of all the strata owners to agree with the proposition. Besides, there is also an issue of cost in engaging professionals in the submission as well as the legal compliances.

As you can see, the management bodies decide a series of matters, from managing funds to the recovery of damaged property. It works for the benefit, comfort and enjoyment of each strata owner. Hence, it is always wise to involve yourself in meetings called by the management bodies to have your say on matters that reflect your well-being in the development. Nonetheless, your presence will also act as a form of check and balance on the management body. Just like a public listed company, your unit would fetch better value if its management is well-run.

-Chris Tan-

 Managing Partner of Chur Associates

Demystifying The 3 Types of Rental Deposits

Right after that comes the complicating tenancy agreement. Tenancy contracts in Malaysia are usually set for a period of one year that requires several deposits to be paid along with it. But these can be negotiated with the landlords since the rent control has been lifted.

There are several types of deposits you’re required to pay when getting a rental house. You might be baffled for a little with the various kinds of deposits, but fear not, this article will answer your doubts!

1. Earnest deposit

This deposit is paid when the tenant is interested in a particular property but is not able to move-in at that time. This deposit is used to reserve the property and is more commonly paid when purchasing a property instead of renting. It is advisable to discuss the terms of this deposit with the landlord before making the payment, as sometimes the deposit is returned or used as the security deposit.

 

2. Security deposit

This deposit is supposed to cover all damages caused to the rented property by the tenant, as well as the furniture that are provided at the rented property. This security deposit is to help the landlord cover-up his rental in search of a new tenant. At times, this deposit may be forfeited if the contract comes to an end before the actual end-date. Usually, this deposit is returned fully to the tenant at the end of the tenancy agreement, given no damages are done to the unit with no pending rental payments.

Repairs are quite common in any household. Hence, if there are urgent and major repairs that need to be done, it is the landlord’s responsibility to get it fixed for the tenant. For those who opt to fix it by themselves, it is wise to take a picture of the repairs (before and after), as well as save the receipt of the repaired or changed items. Ensure that the landlord is informed of this so that you can get a refund on the repair works.

 

3. Utility deposit

The utilities such as electricity and water are calculated as part of the rental payment. Landlords usually collect this deposit or request the tenants to handle these payments by themselves. Landlords use this deposit to pay for the pending utility bills when tenants fail to do so. This deposit is usually returned in full at the end of the tenancy agreement given no pending payments on the utility fees.

 

How does the process work?

Upon agreeing to the terms and conditions of the rental, tenants are usually required to pay the Earnest deposit, which covers one month’s rental and also considered as a booking deposit. The landlord usually will not rent out the unit to other prospective tenants upon receiving this deposit.

Meanwhile, the tenant would be required to pay a security deposit upon signing the tenancy contract. This usually amounts to two months’ rent and a half a months’ utility deposit.

This tenancy agreement should be stamped by the Inland Revenue Department (IRD), whereby the tenant usually pays the stamp duty. The tenancy agreement should be signed within seven days, from the day the earnest deposit is paid.

The foreigners who live in Malaysia should pay attention to the diplomatic clause in their tenancy agreement. This clause will be helpful when the contract has to be terminated much earlier than the actual date. Foreign tenants are required to produce proof supporting their reasons for moving out of Malaysia. The landlord must be given a written notice of two to three months before the termination of the agreement.

Before vacating the rented property, it is also safer that you get your landlord to walk through the place with you, and get them to sign a simple agreement that you have left the place in a fair condition. Tenants mostly assume that nice landlords do not hold the deposits back. It's after all, your money, and you have the right to protect your deposit.

- RinggitProperty -