Double Storey Semi Detached Tropical English – North Kiara, Bukit Segambut.

RM2.3 Mil đź’° (Negotiable) – Previously RM2.38 Mil.
with only the regular fixtures & fittings, build-ins wardrobes, kitchen cabinets n cooker hoods n hobs, microwave & oven.

Location is at North Kiara, Bukit Segambut

Furnishings and Fittings:-

➡Exquisitely and extensively renovated Tropical English with modern Bali inspired wooden theme.

➡Double-storey semi-detached on 3,600 sq.ft of land with high quality furnishings n fittings mostly imported materials & items.

➡8 units of aircons, and many fans.

➡Jacuzzi & complete bathroom wares in 5 rooms.

➡Plaster ceiling on both floors with 2 lighting systems.

➡High quality & special safety locks & key for entire house.

➡Built-in dry Signature Kitchen with built-in oven, microwave, kitchen sink, cooker hob & hood.

➡Wet Signature Kitchen with built-in stove & cooker hob, kitchen sink, incinerator (excl Hitachi Twin Door Fridge).

➡Built-in wardrobe in 5 rooms with walk-in master wardrobe.

➡15’x4’x4′ fish pond with water features underneath side patio ( excluding fishes)

➡13’x25′ fully tiled balcony from master bedroom.

➡Extended wooden pergola car-porch for 3 cars.

➡Beautiful Italian styled aluminium windows all-round & solid designers wooden doors for all rooms

➡2 unit of complete folding solid wooden doors front and at the side with heavy duty hinged n support system from UK

đźš©Ground floor fully tiled with 3’x3′ tiles & 1’x1′ tiles.

đźš©Upper floors complete wooden flooring.

đźš©2 layer curtains all round.

đźš©Alarm, CCTV and beautifully designed iron grilles

đźš©Entire roofing completely replaced with clay tile and redesigned.

đźš©Water solar system and water pumps with 2 water tanks.

If you are interested, kindly contact me, Roger at 016-2874950 for viewing arrangement. Thanks.

Demand for high-end properties still strong, says UEM Sunrise

Datuk Roslan Ibrahim

KUALA LUMPUR (Dec 8): Demand for high-end properties is still strong, particularly in the Klang Valley, said UEM Sunrise Bhd chief operating officer Datuk Roslan Ibrahim.

He said this was based on the high take-up rate of its latest residential project, Residensi Solaris Parq in Dutamas here, which stood at 80% as at end-November.

“We achieved the take-up rate in less than two months, surpassing our initial target which was lower than 80%,” he told reporters after hosting a media tour of the project’s show unit here yesterday.

Roslan said the oversupply of high-end residential units was not an issue, despite the slow property market condition in the country.

“Location plays an important role, apart from your target market. For Residensi Solaris Parq, we are looking at foreign buyers, youths and also retirees seeking to downgrade to a smaller house after their kids have moved out,” he said.

This article first appeared in The Edge Financial Daily, on Dec 8, 2017. Click HERE for the original article.

The Responsibilities of a Tenant and a Landlord – the Dos and Don’ts

Image result for tenant and landlord


The Responsibilities of a Tenant

Being an exemplary tenant is always important as it not only gives the renter a good image, but also because even though the renter is renting the property, it does not belong to them – hence taking care of someone else’s property while utilizing it is only the right thing to do. Here are among some of the things a tenant should pay attention to.


Look after the Property

This does not mean that the tenant will have to clean the unit (unless stated in the contract) nor do they have to perform any necessary repairs (again unless stated in the contract). But they should be mindful of trashing the unit, and if there are toddlers around, parents and caretakers should be mindful of the children scribbling on the walls and such.


Keep the Unit Clean and Take Care of Provided Appliances

This goes hand-in-hand with taking care of the unit. While it is not necessary to give the unit a good spring cleaning every now and again, the basics such as cleaning the windows, washing the bathrooms and taking out the trash should be a given.

If the unit comes with electrical appliances and furniture, the furnishings should be taken care of and should be in the same condition as they were the day that the tenant moved in.


Do Not Make Changes to the Unit without Permission

While a tenant may think that they are doing the landlord a favor by renovating the unit or repainting it, the landlord may not be as appreciative. Always consult with your landlord or your agent first before making any changes to the unit, especially if it involves hacking or knocking nails into the wall. Renovating the house, repainting it to a color that you prefer or changing the furniture is also not a good idea, unless your landlord has approved of it.


Contact Your Landlord in Case of Spoiled Appliances

In the event that any of the provided furniture or electrical appliances start malfunctioning, do not attempt to repair it yourself. Contact your landlord to arrange for repairs, and if they do request you to perform the repairs yourself, do discuss remuneration of the costs before performing the repairs. Always fix the broken items as they break down, otherwise they may pose a risk to the your security deposit when it is time to move out.


Familiarize Yourselves with the Appliances

As technology advances, simple things occasionally become more complicated. For example, a washing machine may have more buttons than seems necessary, while the refrigerator may have added safety features such as being unable to open for a few seconds immediately after closing the doors.

So in order to avoid spoiling anything unintentionally, familiarize yourself with the appliances before using them. If you are not sure how to operate an electronic appliance, contact your agent or landlord for guidance.


Know Thy Neighbors and Be Considerate

Being considerate is especially important for renters who are sharing the unit with others, or for those staying within a quiet neighborhood. After all, nobody likes sudden loud noises in the middle of the night, or late night partying next door when they are trying to sleep.

Getting to know your neighbors is also a good thing to do, as they will be able to alert you if there are any unusual activities in your unit when you are not around – and it will also make living in the community that much more comfortable.


The Responsibilities of a Landlord

As the owner of the property, the Landlord’s job does not just entail collecting the rent – it also includes responsibilities to their tenant. A good landlord is precious, and will likely never run short of tenants.


Maintain Structure and Exterior of the Property

While the tenants are expected to keep the unit clean, landlords are expected to ensure that the structure and the exterior of the property is decent. The walls shouldn’t be moldy with peeling paint, and the structure should be sound without leaking roofs and ceilings or cracking walls. The unit is after all, home to the tenants now, and they should feel comfortable coming back to their home after a long day at work.


Insure the Building against Fire and Floods

Insuring the building against floods may not be as necessary if the property is situated on high grounds, but insuring the building against fires is a must. This does not just protect the landlord against unexpected natural disasters, but it will also protect the tenant in case they lose all their belongings. Smoke alarms should be installed in strategic areas of the building for early warnings of fire disasters.


Deal with Issues Related to Water, Electricity and Gas Supplies

Whether or not the tenant is expected to pay the utility bills, the landlord should deal with any problem that arises from these facilities as they will be registered to the owner’s name, not the renter’s name. The issues will become complicated if the tenant tries to fix the problem, as most of the bodies dealing with these facilities requires the owner themselves to be present when making the complaint.


Maintain the Appliances and Furniture

In the event that any of the appliances break down or the furniture requires care, the landlord should be responsible for it – unless the items were blatantly spoiled by the tenant. Repairs should be carried out on malfunctioning appliances fast, as to not inconvenience the tenant.

The landlord should provide a minimum of 24 hours notice when visiting for repair works or maintenance services, so that the tenant can be present if they so wish to be.


Annual Gas Safety Check

In units that utilize gas systems for cooking, the landlord should get officials to carry out inspections annually. This not only protects the landlord against unforeseen disasters, but will also protect the tenant against gas explosions and other gas related accidents.


This article was taken from which posted on Jun 28, 2017. Click HERE to go to the original article.

Renting a Property – Deposits, Recurring Costs, Tenancy Agreements and Responsibilities

Image result for looking for rental apartments


Renting a property, whether for own stay or running a business is common in today’s world where many are not ready to purchase their own property yet. While renting is much easier than buying a property, there are still many factors to look out for.

This complete guide to renting both residential and commercial properties will cover the deposits and recurring costs of renting a property, how to identify a potential rental property, the signing of the Tenancy Agreement, and the responsibilities of the tenant and the landlord.


Deposits and Recurring Costs

Deposits and Recurring costs are the two main things that a renter has to be concerned about. Below are some of the biggest costs of renting a property.


Upfront costs / Earnest deposit

Upon deciding on a property, a renter will need to pay an upfront amount of money to “book” the property. This is called an earnest deposit.


Security deposit

A security deposit is to protect the unit’s owner against any damage caused by a renter. In case there is any damage to a property, the unit owner has the right to deduct the cost of repairs from the security deposit when the tenant moves out.

The security deposit also protects unit owners from tenants who move out without notice. The grace period is usually 2 months, but if the tenant moves out without giving notice, the tenant has the right to deduct the 2 months rental from the security deposit.


Utility deposit

A utility deposit is usually collected when the tenant is in charge of paying the utility bills. In case the tenant defaults on the utility bill payments, the landlord has the right to deduct the cost of the utility bill deposit. The utility bill deposit is usually 1 month of the unit’s rental.


Purchase of furniture

Depending on whether the unit comes unfurnished, partially furnished or fully furnished, a renter may have to set aside funds for furniture. Unfurnished units are usually cheaper than fully furnished units, so if staying for the long term, it may be more cost effective for a renter to purchase their own furniture rather than rent a fully furnished unit.


Recurring Costs

The above are the upfront payments that need to be made. Recurring costs on the other hand, are the costs that need to be borne periodically – mostly monthly.


Monthly rental payments

The most obvious recurring cost is the monthly rental, hence renters need to make sure that the rental fits their monthly budget.


Utility bills

Utility bills are another given should the tenant be in charge of paying the utility bills themselves. The cost of this will not be known until the tenant moves in, but they can inquire the approximate cost from the landlord.


Parking fee

Parking fees are usually only applicable in multiunit or multi-storey buildings. If the unit does not come with its own parking lot, the tenant will need to come up with extra funds for it.


Unit’s Premises

The location of the unit will play an important role. If renting for own use, the unit should be close to the tenant’s place of work and perhaps places of education if there is school going children.

If the unit is for a business, then the renter should look into the area’s accessibility via highways and maybe public transportation.


Tenancy Agreement fees

These fees are usually applicable only to the rental of commercial properties as they require more formal rental documents. The Tenancy Agreement is usually drafted by the landlord’s lawyers, and stated in the agreement will be the below items among others:

  • Who pays for the utility bills?
  • What can the premises be used for?
  • What are the penalties for damage to the property?
  • How long will the contract last?
  • The landlord’s rights to inspecting the property


The Tenancy Agreement usually costs approximately 20% to 25% of the rental fees.


Stamp Duty

Once the Tenancy Agreement is drafted, it will need to be submitted to the government office. This will require Stamp Duty costs, which is usually borne by the landlord.


Guarantor fee

A guarantor is occasionally required, especially if the renter has a lack of credit history.


Read more about what do all these terms mean and learn more about Earnest Deposits, Tenancy Agreement fees and utility bills in this comprehensive guide of Deposits and Recurring Costs of Renting a Property.


Identify Potential Properties

Now that you understand the initial setup costs and recurring costs, the next step is to identify potential properties for rent. If you already know exactly what you want, using a property website, such as PropertyGuru to search for residential properties for rent or commercial properties for rent shorten the property hunt. With these two pages, property hunters will be able to enter the exact requirements of their property such as by built-up area, the number of bedrooms or bathrooms, tenure, furnishing and age of the listing.

The factors that should be taken into consideration during the search are:



The location of a property is very important, whether for own stay or for business. Those looking for a home to stay in will want a premise that is close to their place of work, or their spouse’s place of work. They should also be comfortable with the neighborhood, and preferably familiar with it.

Commercial property renters should on the other hand know whether their business depends on high traffic or is a light industrial company that requires much transportation of goods. The former should be in an area with high traffic, while the latter in a spot which has easy access to land, air and sea transport.



The size of a unit is also important. For example, renters with families will need bigger homes to accommodate all the members of the family.

A commercial property on the other hand will need to know how much storage space they will need. Would they need just a small office sufficient for 4 people to run their business from? Or would they require a large store room to store their goods?



The facilities of a development are just an important. For example, a family with children may want to rent a property that has the convenience of a childcare center and perhaps a swimming pool for their toddlers to learn swimming in.

A commercial property renter may on the other hand want to look at the facilities of the garbage disposal system and perhaps the security of the area.



The safety of an area is non-negotiable when renting a property, as an unsafe area is not conducive for either work or own stay.



Depending on the tenant, the prestige of the area may or may not be of importance. A business that wishes to give a good impression to their clients may want to search for a more prestigious address, while higher ranking personnels looking for a home for rent may want a unit in a more prestigious area.


Lease term

A lease term is the period that a renter is bound to rent the property. After the lease ends, the landlord may choose not to extend the lease which the renter will need to move out then, or the landlord may choose to raise the rent.


Call up the agents

After compiling a list of potential properties for rent, a renter should begin making appointments to view the units. When visiting the units, property renters should probe the history of the unit for additional information. Among some of the things to ask are:

  • How long has the unit been in the market
  • If it has been long, why can’t it been rented out yet?
  • Are there any issues with the unit?


Learn more about how to identify great properties for rental income by location, size, facilities, accessibility, safety and lease terms with Features of a Good and Profitable Rental Property You Need to Know.


Arrange for Viewing Appointments

In order to not lose track of the essentials, property renters should bring a list of their criteria with them when visiting a property. This will help them to keep track of what they truly need – a view that may get skewed after they visit too many units.

Below are a few questions that should be asked by the property agent:

  • What does the rent include?
  • Are there additional bills? If yes, approximately how much will they cost. If you are sharing a unit, how will the bill be split?
  • How much deposit is required, and how will the deposit be secured?
  • What is the duration of the contract?
  • Are pets allowed?
  • Is there any parking lot included in the rental?


If you are renting a commercial property, below are some additional questions to ask:

  • Will I need to pay any fees to set up the Tenancy Agreement?
  • Is it a fixed term tenancy or a periodic tenancy?
  • Will the unit be furnished? If yes, will it be partially or fully furnished?


If the unit comes with electrical appliances, make sure to check that all of them are in working order. This is to ensure that the landlord does not later put the blame on the renter for spoiling the appliances. All the taps and showers should also be checked to ensure that they have a good flow of water.


Signing the Agreement

Once you have found your ideal property, the next step would be to sign pay the deposits. As mentioned above, the deposits that need to be paid is the earnest deposit, security deposit and utility deposit.

The earnest deposit is usually 1 month’s rental, and the security deposit another month’s rental. The utility deposit is usually also 1 month’s rental, hence a renter will in total need to come up with 3 months of deposit when they first rent a property.


Signing the Tenancy Agreement

The signing of the Tenancy Agreement is usually not applicable to residential unit renters, as the documents that they need to sign are not so formal if at all. Commercial unit renters will on the other hand need to sign the Tenancy Agreement.

To a commercial unit renter, a Tenancy Agreement is akin to a Sales & Purchase (S&P) agreement. It is the document that will state all the terms and conditions for renting the properties, the responsibilities of the tenant to the landlord and vice versa. Among some of the things noted in the Tenancy Agreement will be the:


Names of the landlord and tenant(s)

This is a very important section to get right in the Tenancy Agreement, as getting the name wrong will mean that the contract is void. Also, if the name is wrong, it will be hard to fight the case in court if there is any dispute.


The address of the property which is being let

This is also a very crucial part of the contract to get right, as getting the address of the property wrong may mean a long battle in court as there will be a dispute to the property being rented out.


Date of the Tenancy’s Beginning

In the Tenancy Agreement, it will state the beginning date of the contract. At the end of the tenancy agreement, all terms will be void and an extension of the contract should be carried out, or a new contract should be drawn up.


Parts of Property Tenant are allowed to Use

In some cases, not the entire unit is being rented out, only a small part of it. If this is the case, then the Tenancy Agreement should state precisely which part of the property can be used by the renter.


Duration of Tenancy

As mentioned under the Date of Tenancy, the duration of the tenancy is just as important – as this is the period that the tenant will be bound by the terms and conditions of the contract. At the end of the tenancy agreement, the landlord can choose to either extend the contract or draw up a new one.


Rental and Bill Payments

The rental amount will be stated in the contract, as will the utility bills that the tenant will need to bear.


Services Provided

Should there be electrical appliances in the unit, they will also be listed down in the contract as well as the tenant’s responsibility over them.


Length of Notice

In the case that the renter decides to terminate the contract early, the penalty fees if any will be stated in the Tenancy Agreement. All other terms of early termination of the contract will also be stated in this section. Ending the Tenancy Agreement early is also known as Break Clause.

Learn more about what are the important clauses that should be stated in the Tenancy Agreement when renting a property and what Renters should note with Signing Your Tenancy Agreement – What You Should Check before Signing.

After ensuring that both parties agree to all the terms in the contract, both landlord and tenancy will need to sign the contract. The document will then be sent to the Malaysian Inland Revenue Authority, which the cost of the Stamp Duty is usually borne by the tenant unless otherwise agreed.


Responsibilities of the Landlord and Tenant (iv)

The relationship between a landlord and tenant only just begins when they sign the documents. Thereafter, each party is responsible for the other in different ways.


The Responsibilities of a Tenant

A tenant should always honor the Tenancy Agreement. They should be responsible for the property they are renting, and treat it as their own. Below are some of the things that they should look out for.


Look after the Property

Looking after the property is an integral part of the contract. For residential properties, this means taking care to keep the unit clean and tidy, and not trashing it; and for a commercial property, it would also mean taking care of the cleanliness of the property.


Take Care of Provided Appliances

There are usually some form of appliances included in a rented unit, whether they are air-conditioners or perhaps a refrigerator. Whatever the electoral appliances put in the unit for the tenant’s usage, they should be used with care.


Do Not Make Changes to the Unit without Permission

This is something that is usually stated in the contract, whether for residential or commercial units for rent. For residential units, the landlords usually doesn’t allow any permanent changes in the unit such as repainting a room or perhaps nailing things to the wall. For commercial units, the landlord doesn’t usually allow for renovations.

In the even that renovations are necessary, the landlord should be informed and all renovations should be carried out with the landlord’s consent.


Contact Your Landlord in Case of Spoiled Appliances

The appliances that are provided to the tenants may sometimes malfunction or spoil. In these cases, the landlord should be informed and the repairs should be carried out by the landlord. In the event that the tenant feels that the time frame that the landlord requires to fix the machinery is too long, she has to inform the landlord and ask if she is able to hire her own repairman and charge the bill to the landlord.


Familiarize Yourselves with the Appliances

Oft times, the appliances provided may be complicated to use. If this is the case, always ask the landlord how to operate the machinery if you are unsure about it. This is to avoid spoiling the machinery.


Know Thy Neighbors and Be Considerate

Your neighbors can be your best friend or worse enemy. As a friend, they will be able to tell you if there is a break-in at your unit, or whether there might be an electrical or water shortage in the area. As an enemy, however, a bad neighbor can make life exceedingly and pettily miserable.

To keep your neighbors happy, be considerate. Keep your noise level to the minimum at night, do not hog space on their land and so on.


The Responsibilities of a Landlord

As the tenant is responsible to the landlord, the landlord is also responsible for its tenants. The landlord’s job is not just to collect rent, but to ensure that the everything in the unit is working in tip top condition at all times.


Maintain Structure and Exterior of the Property

While the tenants are expected to take care of the cleanliness and tidiness of the unit, it is the job of the landlord to ensure that the structure and the exterior are in great condition at all times. This includes fixing leaking ceilings, cracking walls, paint and moldy walls.


Insure the Building against Fire and Floods

If the property is located on the lower ground, whether a commercial or residential property, the landlord should always buy insurance to cover the possibility of a flood. The other insurance that should be obtained by a landlord for his property is the fire insurance. This will protect both tenant and landlord should an emergency occurs,.


Deal with Issues Related to Water, Electricity and Gas Supplies

Should any issue arise in terms of utility bills, such as an internet that doesn’t run smoothly or the electrical box’s meter reading, going wrong, the landlord should always deal with the problem. This is because the utility bills are ultimately tied to the landlord’s name, hence it would be easier for the landlord to settle any dispute


Maintain the Appliances and Furniture

When a tenant informs the landlord about broken appliances, the landlord should get the appliances repaired as soon as possible. This is to avoid inconveniencing the tenants, especially if it is a particularly essential piece of appliance such as a washing machine or refrigerator.

When sending a repairman over, the tenants should be given a minimum of 24 hours notice.


Annual Gas Safety Check

If applicable, the gas supply in the unit should be checked periodically to avoid any accidents. This will ensure the safety of the tenant, and the safety of the landlord’s unit.


Read more about the Responsibilities of a Tenant and a Landlord and find out about the do’s and dont’s of tenants and landlords.


This article was taken from which was posted on Jun 29, 2017. Click HERE to go to the original article.

About RM35.5b In Unsold, Unutilised Properties In Malaysia


PETALING JAYA: Malaysia has unsold and unutilised properties with an estimated value of RM35.5bil and every effort must be made to absorb this, said the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).

The government’s freeze on housing, mall and office space is “a wake-up call to the developers not to overbuild” and to buyers, to be “more discerning and selective” in their choice of purchase, PEPS said in response to Bank Negara’s statement last week that the country has a decade-high of unsold residential properties.

However, the freeze should not be country-wide. Instead, it should take into consideration the sector, location and effective demand and supply.

The statement said the estimated value of residential overhang of 130,690 units is RM20bil.

“This RM20bil is the average value of the 130,690 units,” PEPS said.

The residential overhang comprises unsold units in completed projects. It also includes serviced apartments built on commercial titles.

In the purpose-built office space in the Klang Valley, the estimated value of the 20 million sq ft vacancy is RM10bil. This 20 million sq ft is already built but vacant, PEPS said (see table).

In the retail space in Klang Valley, up to 7 million sq ft is vacant with an estimated value of RM5.5bil.

Despite this huge overhang, there is an incoming supply of 13 million sq ft in the office sector over the next two years and another 44 mil sq ft in retail space starting from 2017 onwards, PEPS said.

The costs have already been “sunk in” and every effort must be made to absorb this incoming supply before the freeze is lifted, the statement said.

PEPS said the high unsold and unutilised space was due to the following factors:

  • Indiscriminate building by developers

  • Lack of market studies and financial feasibility studies

  • No coordination on planning among local authorities,

  • Indiscriminate approvals by the various local authorities,

  • Delay in gazetting of local plans, which lead to uncontrolled development,

  • Higher cost,

  • and artificial demand.

There was this public fear of losing out on choice properties several years ago. Hence, the demand was “artificial”.

“We concur with Bank Negara that severe property market imbalances can pose risk to macro economics and financial stability.

“The property industry has linkages to more than 120 industries and collectively account for 10% of GDP. Any severe property market imbalances and overbuilding will affect the stability of the financial system,” the statement said.

This article was taken from, which posted on 

Cabinet Orders DBKL To Halt Approvals For Four Types Of Developments

DBKL was instructed to cease considering and approving the development of shopping complexes, offices, serviced apartments and luxury condominiums priced over RM1 million in Kuala Lumpur, effective Nov 1. (Photo by Haris Hassan/The Edge)

PETALING JAYA (Nov 18): The Cabinet has directed Dewan Bandaraya Kuala Lumpur (DBKL) to freeze approvals for four types of developments following a study by Bank Negara Malaysia (BNM) that raised the alarm on a glut in these buildings.

In a document sighted by, DBKL was instructed to cease considering and approving the development of shopping complexes, offices, serviced apartments and luxury condominiums priced over RM1 million in Kuala Lumpur, effective Nov 1.

* Rehda to issue a press statement tomorrow on DBKL approval freeze

Existing applications — including variations made to building plans that have received development orders — must receive planning permission by January 2018.

In a report by The Edge, Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor — who confirmed the contents of the document — said the freeze may continue for one to even three years, depending on the state of the market.

In a briefing on Friday, the central bank highlighted the decade-high level of unsold residential properties (130,690 units as at 1Q17), with 63% of them priced above RM250,000 and 61% of them being high-rise apartments.

The latest unsold properties figure is almost double the historical average of 72,729 units per year between 2004 and 2016.

Johor led with the highest proportion of unsold units in Malaysia at 27%, followed by Selangor (21%), Kuala Lumpur (14%), and Penang (8%).

Meanwhile, BNM predicts that one in three offices will be vacant by 2021 and 140 new malls will enter the market across the Klang Valley, Penang and Johor.

The central bank, citing National Property Information Centre, Jones Lang Wootton, Jones Lang LaSalle and Bank Negara Malaysia estimates, said office vacancy rates in the Klang Valley have hit 23.6% in 1Q17 and could reach 32% by 2021.

On the other hand, BNM governor Tan Sri Muhammad Ibrahim pointed out that there were far too many malls for a population of 32 million.

The original article was taken from which posted on Mon, 20 Nov 2017, 5:10 pm by LAM JIAN WYN. Click HERE to go to the original article.

Base Rate vs BLR in Malaysia: How Does BR Work?

Early this year, the Base Lending Rate (BLR) structure was replaced with a new Base Rate (BR) system. Under BR, which will now serve as the main reference rate for new retail floating rate loans, banks in Malaysia can determine their interest rate based on a formula set by the central bank.
Under the previous BLR, the rate was set by Bank Negara Malaysia (BNM) based on how much it costs to lend money to other financial institutions. Meanwhile, the cost to borrow money was determined by the Overnight Policy Rate (OPR) set by central bank.

With the new BR, which came into effect on January 2, 2015, interest rates are determined by the banks’ benchmark cost of funds and Statutory Reserve Requirement (SRR). Other components of loan pricing such as borrower credit risk, liquidity risk premium, operating costs and profit margin will be reflected in a spread in the new BR framework.

Why the change?

Instead of a fixed rate under BLR, BR are determined by banks without intervention by the central bank, and should differ from bank to bank depending on their own efficiencies in lending. Banks with a strong niche in consumer financing such as Maybank and Public Bank will have the initial edge of being able to offer more attractive and competitive BR and effective lending rates (ELR) for their customers.

The new framework encourages greater transparency from banks and will enable customers to make better financial decisions. Previously, calculations of BLR lacked transparency and some banks were lending below the BLR to attract customers and boost loan growth. Under the new system, customers cannot borrow below the base rate.

Base Rate
Effective Lending Rate
Affin Bank
Alliance Bank
Hong Leong Bank
Public Bank
RHB Bank
Standard Chartered Bank
United Overseas Bank

Rates as of April 2017

How does it affect you?

The change towards the new framework should have minimum impact on borrowers. Take the rates offered by Maybank for example. Based on the previous BLR rate of 6.85%, the “BLR -2.40%” offer means that the customer pays 4.45% on the mortgage.

With the BR system, the bank will have to reveal its base rate and also disclose its margin, which will determine the ELR. Maybank has set its Base Rate (BR) at 3.20%. Here, interest is presented as “base rate +1.35%”, which means that the effective rate that the customer will have to pay on the mortgage is 4.55%.

Ultimately, it’s the ELR that will determine how much you will have to pay for your mortgage. Here is a comparison of how much you will be paying for your home loan under BLR and under BR.

Comparison of how much home loan borrower will be paying for their loan under BLR and under BR.

With the new framework, a home loan borrower of Maybank may have to pay an additional RM34 a month, which amounts to RM12,240 more by the end of the loan tenure.

Though certain banks may be setting a higher BR compared to others, they can sometimes offer lower ELR to customers in order to remain competitive. For example, CIMB Bank has a BR of 3.90% while Hong Leong Bank’s is 3.69%. However, CIMB Bank offers a lower ELR at 4.65%, while Hong Leong’s ELR is 4.75%. This essentially means that CIMB is willing to take a smaller profit margin in order to be more competitive.

Loans that are already approved and extended prior to January 2, 2015 will still follow the old BLR until the end of the loan tenure.

For new loan applicants and refinancing applicants, the new BR framework will have a direct impact on interest rates with effect from the date. Banks are still required to display both BLR and BR on their branches and websites.

How has BR affected banks so far?

So far, it has been business as usual for banks and mortgage providers because the change from BLR to BR has not altered the effective lending rates significantly. So when it comes to actual interest rates, consumers are still paying pretty much the same thing on the BR as they did with the BLR.

Some experts predicted that the switch from BLR to BR will create better transparency and consequently, greater competition among banks to provide a wider range of options for loan applicants.

According to BNM, the new reference rate will also better reflect changes in cost arising from monetary policy and market funding conditions, while encouraging greater discipline and efficiency among financial institutions in the pricing of retail financing products.

Also, because the base rates are managed by individual banks, this will compel banks to come up with more cost-efficient rates in order to compete with each other and create a much more competitive market.

However, given the flexibility to determine their respective benchmark rates, smaller institutions may risk losing out on the race of getting more borrowers for loans.

Bigger establishments will have more room to maneuver when determining the reference rates, whereas smaller institutions may not have as much leeway to offer competitive rates. However, loan rates will still depend on the management’s risk appetite at the end of the day.

However, just like BLR, the BR can fluctuate and that can make it difficult for consumers to set a budget in the long term.

The previous BLR changes according to the overnight policy rate (OPR), which is being determined by the central bank from time to time. The current BR on the other hand, is dependent on the banks’ benchmark cost of funds and liquidity, and can be reviewed by banks anytime even if there are no changes in OPR.

The borrower’s credit risk also determines the amount of interest he or she will have to pay. If the bank categorises the loan borrower as high risk (from having a bad credit rating), he or she will likely have to pay a higher interest rate, so it is important to plan ahead and set your finances straight before applying for a mortgage.

Has BR affected consumer demand for property?

The switch from BLR to BR is unlikely to have had any direct effect on property demand.

Demand for property has generally been sluggish in recent years due primarily to the cooling measures introduced in 2013. Anticipated higher mortgage rates due to the implementation of the 6% Goods and Services Tax (GST) in April has further contributed to the slowdown.

The BR system may actually benefit customers as a more transparent reference rate will enable them to make better money choices when it comes to navigating an array of loan products offered by various financial institutions.

Customers with a higher risk profile such as those with bad credit, low income or poor employment histories will enable the bank to set the ELR higher and make a more profitable net interest margin (NIM). However, this could result in potentially higher default rates in the future.

Home buyers can keep ahead with the rates (new and old) by comparing all the best home loan rates from the banks before making a decision on which loan to apply for. By doing thorough and adequate research, you can remove some of the intimidation factor from the home-buying process.

The original article was taken from, written by Fiona Ho and posted on June 28, 2017. Click HERE to go to the original article.

Facts About Property Market Now

  1. Unsold residential unit increases 40%.
  2. The unsold residential unit is a total of 20,867 units worth RM12.26 billion.
  3. The unsold residential unit comprises condominiums and apartments priced between RM500,000 and RM1,000,000.
  4. House price growth in Malaysia has moderated to 5.6% in the second quarter of 2017 (2Q17) compared with 7.1% a year ago.
  5. The property market has softened in 1H17, with more than 153,000 transactions recorded worth RM67.82 billion, a decline of 6% in volume as compared with 12.3% in 1H2016.
  6. Transaction value increased by 5% compared to 1H2016 as compared to a decrease of 12% from a year ago.

My Thought:

  1. The best property to buy is within RM300,000 – RM400,000.
  2. If you’re buying RM300,000 – RM500,000 property, first-time house buyer can get maximum Stamp Duty exemption for property transfer and loan stamp duty.
  3. Starting small is good because of lower deposit and lower house installment. Less risk and less burden too.
  4. If you have enough deposit, try to survey sub-sale and completed house. If not, why not save some money for two years before buying any property.
  5. Stay away from the property above RM500,000 if you don’t have enough cash flow. Investment in this type of property can be risky and need time to be profitable.

The original article was taken from which posted on November 15th, 2017 by Melissa Lee. Click HERE to go to the original article.

Challenges For Landlord And Tenant


Importance of Tenancy Agreement

To procure the interest of the landlord and the tenant, a tenancy agreement will be signed between the two parties. A tenancy agreement is a contract which lays down all the mutually agreed terms and conditions of rent of the property. The tenure for a tenancy is less than three (3) years. There are only some common clauses stated in the agreement in the market or those prepared by the agents, but there is NO standard tenancy agreement.

Each deal is subjected to the mutually agreed terms and conditions, and this agreement will be the basis of the cause of action if there is any dispute in the tenancy agreement.

Landlord’s Common Challenges

      1. Recovery of Outstanding Rental

The landlord shall give notice of remedy to the tenant to pay the outstanding rental within the time frame as per the tenancy agreement before the landlord proceeds with the legal proceeding to recover the outstanding rent in court as a breach of the terms and conditions of the tenancy agreement.

  1. Recovery of Vacant Possession of the Property

Landlords may face challenges to recover the vacant possession of the property upon the expiry or the termination of the tenancy agreement. In such circumstance, the landlord shall serve a notice of termination with a specific time frame to deliver the vacant possession of the property to the tenant.

If the tenant fails to redeliver the vacant possession of the property within the particular time frame, the landlord is entitled to claim for DOUBLE rental for the holding period of the property by Civil Law Act 1956 until the possession is given up by the tenant to the landlord. Other than that, the landlord can apply and obtain an eviction order from the Court vide Specific Relief Act 1950.

Some of the “self-help” methods of changing or breaking the padlocks of the property is not a good idea as the landlord may be slapped with a civil suit to claim for the loss of personal belonging.

In this situation, it is advisable to lodge a police report and break in with the presence of the police. The photo should be taken of the interior of the property with the deed of breaking in to avoid further complication.

  1. Sub-letting the property to the third party

Usually, there is a clause of non-sub-letting or non-assignment to the third party without the consent from the landlord in the tenancy agreement.

However, some tenants may quietly sub-let the property to other people without the permission of the landlord.

All the parties who stay in the property vide sub-letting shall be deemed as joint trespassers, and thus the landlord is entitled to sue them, and they are jointly and severally liable with the tenant in mesne profits even though the landlord has no formal landlord and tenant relationship with the trespassers.

  1. Joint inspection

It is strongly advisable to have a joint inspection upon the expiry or termination of the tenancy agreement. This is to ensure that there is no loss or destruction of the property before the landlord refund the security deposit to the tenant, especially for those that rent the property with fittings and fixtures.

There is one real-life example; the tenant returned the keys to the landlord without a proper written notice of termination and joint inspection. The next morning, the landlord was shocked to receive a letter of demand from the tenant that they have lost their cash and jewelry.

Therefore, the landlord should be more diligent and conduct a joint inspection upon the expiry or the termination of the agreement.

Tenant’s Common Challenges

     1. Sale of the Property during the Tenancy

It is advisable for the tenant to include a clause in the Tenancy Agreement that if the Landlord intends to dispose or sell the property, the disposal or the sale of the property shall be bound by the existing tenancy agreement.

  1. The landlord becomes bankrupt

If the landlord becomes bankrupt, the property will be auctioned off by the financial institution. Once there is a successful bidder to bid the property, the successful bidder shall serve you a notice of termination to enable you to redeliver the vacant possession of the property.

If the tenant does not comply with the notice, the successful bidder may obtain an eviction order vide court proceeding.


The original article was taken from which posted on , Contributed by Messrs & Partners founder Eunice Tan Mui Lee. Click HERE to go to the original article.