June 17, 2014

Why a housing bubble will always happens again and again. All over the world

If you read the news around the world, there are people keep saying a housing bubble is imminent in their county. Although it has just happened, like in the United States when the last housing bubbles brought down a few investment banks which had been hit by the sub-prime scandals, people who are smart enough say a housing bubble is in the making there. China is another country people is expecting to have its property bubble burst anytime soon. Why does this keep happening again and again?
It is due to the nature of housing. People keep on buying houses to live in it and to try to make a lot of money out of it by selling it at a higher margin. The question is, why don't people learn that they will drag down the economy due to their greed to make a profit? Why do they keep on doing the same thing again and again? Aren't the governments around the world doing anything about it?
Here's the thing about housing. There are genuine buyers who want to have a roof above their head and there are those who think houses as an investment. They are mixed together without any borders separating them in the same space. When you see a long line queuing up at a property launch, you cannot determine who are the genuine buyer and who are the speculators. The speculators who buy and want to make money out of the property want the same treatment the genuine house buyers are getting. It will make the profit higher as the housing developers will throw in so many things into the sale. Including cheaper housing loans.
Governments around the world have been trying to control speculative buying of property by imposing tax on the profit anyone makes when a property is sold. In Malaysia it is known as Real Property Gain Tax. The current tax regime impose tax on property sold within 5 years of the property being bought. The tax imposed is a withholding tax where the seller will have to pay the Internal Revenue Department and only get it back once it is checked out there was no profit made on the property transaction. The withholding tax for Malaysian property sellers is 2%.
Does this current withholding tax stop or reduce the property transactions or sales of houses? Does it stop the speculative buying of houses? No. It does not.
Here's why.
Any good property speculator will know you only have to factor in the cost of the Real Property Gain Tax into the margin that you will make from the sale of the property. This Real Property Gain Tax is not the only thing the property speculator has to contend with. The Malaysian government has imposed in 2010 a maximum margin of 70% on any third housing loan taken by any one buyer. That is already a deterrent factor there. Still people buys houses speculatively and try to make huge profits out of it.
Banks are also culprits in the making of housing bubbles. Why? Because they make so much money out of giving out housing loans to people who want to buy houses, whether they need it or not. A speculators adage has always been "If you can use other people money, do not use your own money." This has also been the adage that fueled a few of economic crisis in the world.
Another factor why housing bubble will visit the world every few years in this modern era is due to the property gurus that keep teaching people to buy and sell property to make a profit out of it. While these property gurus go running and laughing to the bank thanking the gullible students for paying them an arm and a leg trying to learn how to make money from property speculation, new property speculators are born and play the property speculation game all over again
So, as the sun keeps on shining and people keeps on needing a house, a housing bubble will keeps on visiting each property hot spot.
Again and again...

April 29, 2014

Blog ini sebagai manuskrip

Aku diminta menulis oleh Dubook Press, syarikat buku indie yang menerbitkan beberapa buku indie non-fiction. Sebenarnya aku tak at nak tulis apa sebab siri buku Ask the Lawyer! atau Tanyalah Peguam! yang aku terbitkan bawah True Wealth, syarikat Azizi Ali tu macam indie jugaklah. Cuma bahasa dalam buku-buku tu tak indie sangat. Dia proper sikit.

So, aku nak mulakan menulis buku untuk Dubook Press ni menggunakan blog ini. Mungkin taktik aku ni akan mengurangkan ke'laku'an buku tu nanti tapi aku rasa masih ada market. Kalau blog post aku yang aku nak gunakan sebagai manuskrip ni ramai yang baca, aku rasa aku boleh jual buku tu. Kalau tak ramai, Dubook masih nak publish, aku ok je.

Apa yang diorang mintak aku tulis adalah tentang pembelian rumah oleh remaja. Macam a ke cakap tadi, aku rasa buku 40 Soalan Yang Patut Anda Tanya Peguam Anda Sebelum Membeli Rumah di Malaysia tu dah cover mostly everything yang patut orang pertama kali beli rumah tahu.

Mungkin ada market untuk pembeli belia kut? Aku ingat nak tulis tentang benda yang lebih basic. Contohnya bagaimana nak kumpul deposit 10%. Trick-trick macamana nak mark-up. Tentang bagaimana nak mintak lawyer tolong buat SPA yang bagus. Benda-benda macam tu.

Nanti korang komen lah kalau nak tau lagi. Boleh aku baiki manuskrip aku sebelum publish.

Kala korang tak tau kenapa aku sekarang nak jadi 'indie' sikit kerana aku dah ada buku terbitan Fixi. Nama buku : PINJAM. Nama pena : Anuar Shah. Kenapa Anuar Shah? Nama penuh aku Khairul Anuar. Shah tu sebahagian nama bapak aku.

Make, entri selepas ini akan jadi entri buku aku yang belum ada title. Mungkin title dia 'Senangnya Beli Rumah' atau 'Baiti'. Tengoklah camne.

September 17, 2013

Lawyer Hartanah : 40 Lagi Soalan Yang Patut Anda Tanya Peguam Anda Sebelum Membeli Rumah di Malaysia

Buku eBook saya Lawyer Hartanah : 40 Lagi Soalan Yang Patut Anda Tanya Peguam Anda Sebelum Membeli Rumah di Malaysia mula dijual pada hari ini. Pemasaran affiliate boleh didapati di JomNiaga : http://www.jomniaga.com/affiliate/tools/17104/go. Pra-pelancaran untuk buku ini adalah dari 17hb September 2013 sehingga 29hb September 2013. Pelancaran penuh akan dilakukan pada 30hb September 2013.

eBook Bahasa Malaysia ini adalah terjemahan dari buku saya : 40 More Questions You Should Ask Your Lawyer Before Buying A Residential Property in Malaysia. Saya telah menterjemahkan buku ini sendiri untuk memastikan maksud yang saya cuba sampaikan tidak hilang. Dapatkannya sekarang di pasaran atau melalui web di www.bookplanet.com.my.

July 6, 2013

Nomad Offices : The office away from home office for lawyers

                                                Kompleks Mahkamah Kuala Lumpur

As a lawyer, when I was practicing as a litigation lawyer, speed is everything. You sometimes need to amend or use the facilities you have at your office as soon as possible but your office is just too far away. Even if your office is within Kalng Valley, when you have only a few hours to spend before you go back to court.

Of course you have the Bar Room which has nearly everything you need as a lawyer. However, wouldn't it be more convenient if you can drive just around the corner where you can have all the convenience of your own office at your fingertips?

                                         Kompleks Mahkamah Syariah Wilayah Persekutuan

                                                               MATRADE building

An office like Nomad Offices is the perfect alternative for an office away from home office for lawyers.

The new Nomad offices Is located at Soalris Mont Kiara within the area of MATRADE, Kompleks Mahkamah Kuala Lumpur and Mahkamah Syariah Wilayah Persekutuan.

With other Nomad offices in Pavilion KL, the Gardens and Menara Hap Seng, it is perfect for anyone to use it as a base. Nomad has hotel and residences. With branches in Manila, Jakarta, Bangkok, Ho Chin Minh, it is perfect as a satellite office.

Nomad offices has meeting rooms for 3 to 6 people, charging stations, waiting areas, hot desks, a big room for 5 people with a manager's room and even a Playstation to unwind.

Located at Level 7 of Block L, Solaris Mont Kiara, it is just perfect as an office away from your home office in Kuala Lumpur.

June 25, 2013

What is a housing loan and how many types of housing loans are there?

I am writing a new book. It is about Housing Loan and of course, in continuation of my Ask The Lawyer series, I have titled the book '40 Questions You Should Ask Your Lawyer Before Taking A Housing Loan in Malaysia'. I want to be as concise as possible so there will not be 40 More Questions You Should Ask Your Lawyer Before Taking A Housing Loan in Malaysia.

My two books tackled issues about buying residential property from housing developer and is skewed towards buying these residential property in cash. Why? Because I opined you need to understand the basic before involving purchasing property using a housing loan. A housing loan needs it's own book to be understood. Now that I have columns in New Straits Times' Real Estate and Decor and also in thestarproperty.my with occasional articles in various other publications, I will complement my published books and to-be published books with articles in them. 

As always, I use this blog to gauge responses from my readers or would-be readers. If you still have not got my book from bookstores like MPH, Times or Kinokuniya, you can order online through my publisher Book Planet. The link for my books is here : Ask the Lawyer series in Book Planet

While waiting for my book to finish, go through this first chapter. Consider it like reading an excerpt of the whole book as this first question is the whole template for the whole book. Comments and complains are welcome, as usual :

Question 1 

Housing loan is a financial instrument borne out of a need of the consumers, who are house buyers seeking to buy houses. In this day and age, everyone has some form of debts or another. Borrowing money has become a norm and it is recognised by financial institutions around the world as the best way to check the financial credibility of a potential customer. In short, the more debts you have with one financial institution, the potential for you to get any type of loan from another financial institution is higher. Of course, as a borrower, you must make sure you are capable to manage all the loans you have taken from all the financial institutions you have taken loans from before you are given another loan by another financial institution. One of the biggest amounts of money by borrowing one will take in his or her lifetime is the housing loan. House, even the smallest one, is expensive. The need for a house has never diminished as people need somewhere to live whether they can afford it or not. Hence, housing loan is needed to help people to buy a house according to their need and for those who buy house as investment, as one way to finance the investment.
   In the whole scheme of property purchase, there can only be two types of house buyers. There are those who buy a house to stay in it and those who buy a house as a form of investment. All the housing loans in Malaysia are tailored for those who buy houses in order to stay in it and not for those who buy a house for investment. With the current property climate in Malaysia where government has to intervene in order to fulfill the supply of affordable houses to the masses, I don’t think we will ever see financial institutions coming up with housing loans for the investors. That is why all borrowers of housing loans are asked to sign a letter of undertaking (which will be explained in this book) affirming that they will be living in the house they bought and taken a housing loan for. In order to answer the question “What is a housing loan?” the answer is - any type of loan taken from a licensed financial institution in Malaysia to finance the purchase of a residential property in Malaysia. In order to explain the concept of housing loan further is to dissect each type of the housing loan available and to see the mechanics of each type of housing loan. As questions relating to housing loan are answered one by one in this book, the enigma surrounding housing loan is unraveled one by one.
   There are so many types of housing loan available to finance the purchase of any type of property in Malaysia. These housing loans relate to all types of properties available for sale from either housing developers or individuals. There are so many ways to divide housing loans into basic categories. Types of properties are divided into property issued with title and property without title or property to be subdivided later. Housing loans available to finance the purchase these properties can be divided into the same category too. The documentations for housing loan given by financial institution for residential property with title is very much different from documentations for housing loan given by financial institution for residential property to be subdivided later. The difference between these documentations will determine the process and the cost to prepare the documentation for the housing loan. The documentation for the housing loan to finance purchase of property with title is more straightforward than the documentation for housing loan to finance property to be subdivided later. The nature of residential property to be subdivided later requires another round of documentations to be executed when the property is finally issued with a title.
   However, the more popular way to divide the types of housing loan on offer by financial institution is whether a housing loan is a conventional loan or an Islamic loan. As financial institutions streamlined the operation of their conventional banking and Islamic banking, when a bank officer attend to a customer’s enquiry about housing loans, the first question the loan officer will ask is whether the customer is applying for a conventional housing loan or an Islamic housing loan. Both housing loans are different from each other and the documentations for both types of housing loans are very much different. Both conventional housing loan and Islamic housing loan are different products. The terms used to explain how the conventional housing loan and Islamic housing loan is given and disbursed are different among financial institutions. Conventional banking term such as ‘interest’ is substituted with ‘profit’ when being referred in Islamic banking. This is just one of the terms which differ between a conventional housing loan and Islamic housing loan. An explanation on the difference in either the concept or the documentations of an Islamic housing loan can be found within this book.
   There is no right way to list the types of housing loans. Like all loan products offered by financial institutions, when you want to take a housing loan, the important question is to ask yourself why you are taking the loan. It is understandable if the housing loan is to finance the purchase of your dream home. If you have saved to pay the deposit on the house and able to pay the installments until the time the house is yours, there's an array of housing loans to choose from. However, there are many other types of housing loans which relates to houses but is not intended to be used for the purchase of a house. These types of loans include, as was mentioned above, taking housing loan for investment purpose, refinancing of existing house after a few years as value of the house rises and mortgaging a house free from any encumbrances to the bank for cash. Currently, housing loan for residential property is one of the cheapest loans around among a bank’s various products and is a favorite way to own a property under your own name.

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