Hi everyone,
Wake up today is very hard, it’s seem so many bad news appear or coming soon.
You know what good people said when there is a black cloud? There always is a silver lining too.
We at malaysiahousingloan.net still waiting for the silver lining to appear soon. Or perhaps next month LOL :) (I mean budget time.)
You know, it’s hard to say this but so many things appear to be very pessimistic.
We hope we can changed it but we can’t. So, we might as well share this out with you guys.
The changes as following:
1) Refinancing with cash out
Some speculation had been going around that a memo had been issued to all the financial institution to start practising refinancing cash out with maximum 10 years tenure effective 1st September 2013.
Basically, it means if you’re going to refinance with additional cash out. Your additional cash portion will only entitle for 10 years. Previously, is follows the housing loan tenure which is 30 or 35 years.
Example:
You’re taking refinancing for RM300,000. Your outstanding with existing bank is RM100,000. The balance RM200,000 will be your cash out.
With this implementation, your RM200,000 will only be given 10 years tenure. Therefore, your instalment will be higher.
Not only the instalment will affect you but it will also affect the Debt Service Ratio (DSR).
This mean, getting approval now is harder.
We were told that some banks had started the move and some not yet.
So, if you are looking for refinancing with additional cash, please do it quick, apply the loan now.
Don’t wait.
2) Oil price go up RM0.20
We know is not related with home loan but anyway we need to speak about it.
It is difficult as a normal person not to be angry or upset with the increase of petrol price.
We think deep inside everyone, there will be a little corner that saying “I am not happy about this.”
However, some consolation will be when our Prime Minister said with the saving of RM1.1 billion ( for next few months) and annually RM3.30 billion annually will help to address the burden on low-income and vulnerable groups in the fuel subsidy rationalization, Najib said the quantum for the 1Malaysia People’s Aid (BR1M) will be increased in the upcoming national budget announcement.
Najib also promised that a comprehensive “social safety net” and further fiscal measures would be introduced in the 2014 Budget.
So, we only can hope for the best and pray hard the benefit will reach us.
3) Good Service Tax (GST) – Coming Soon
GST and any other Taxes will not be a popular singing “tune” by anyone of us.
If it is true that only 11% of Malaysian are paying taxes, and another 89% is not paying. Then, I think it is not fair for 11% of Malaysian to help generate our country’s income.
But, we do not think GST is the only one way out.
We do have mixed feeling on GST.
If Government use wisely the GST revenue to contribute for better living environment, like increase the efficiency of public transport and built more high ways and proper road and affordable houses for the poor. We might okay with it.
However, if after GST implementation and things never change, then Malaysian will be very unhappy about it. We hope this is not the case.
So, what you think about GST?
4) Increase in Real Property Gain Tax ( RPGT) – Propose Stage
While, rumours had it that RPGT will be increase in this coming budget.
How much increase?
The proposal :
– Property Sell within 2 years, goes up to 30%
– Property Sell within 3 years, goes up to 15%
– Property Sell within 4 years, , goes up to 15%
If you do not know what is RPGT, perhaps I can explain in layman terms.
RPGT is a tax incurred when you sell your property within certain period of times.
RPGT only calculated on the profit receive after all the deduction or miscellaneous fees incurred.
Normally, the implementation is to cool off property buy and sell transaction.
Current RPGT implementation:
– Property Sell within 2 years : 15%
– Property Sell within 5 years : 10%
5) 3rd Housing Loan Maximum Margin of Finance capped at 60% – Propose Stage
If you had read our previous Article, it’s stated the 3rd housing loan margin is 70%.
And the new propose measure to cap the maximum margin to 60% for 3rd housing loan.
6) Property Stamp Duty To Increase – Propose Stage
Basically this movement will affect anyone that purchased their 3rd house onwards.
Normal calculation of Stamp duty as follows:
Property Price :
First RM 100,000.00 = 1%
Next RM 100,000.01 – RM 500,000.00 = 2%
Next RM 500,000.01 – RM 2,0100,000.00 = 3%
Above RM 2,000,000.00 = 4%
The new propose measures as follow :
– 3rd property : 5% of Purchase Price
– 4th Property : 7.50% of Purchase Price
– 5th property and Beyond :10% of Purchase Price
We hope this information will help in making any coming decision.
Until next time, Good luck!
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