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asked on Aug 2, 2012 at 21:46
edited on Aug 12, 2017 at 06:55
Buying your first home

21 June 2013

THE local property market offers some of the best in real estate – competitive rates, attractive prices, avant-garde architecture and design – in and around the region. With that, it's not rare to find long queues and only odd lots left if you're not one of the first in line at prime property development launches.

What more with the government's initiative of My First Home Scheme providing 100 per cent financing, and the construction of more affordable homes. These make it easier for young professionals under 35 to own or invest in a property.

According to FIABCI president Ir Yeow Thit Sang, "Ten years ago, property prices were still very affordable and property buyers between the ages of 28 to 38 could put a down payment with the help of their parents. Today, prices are two to three times more than what it was in 2003, and the percentage of young buyers has dipped some 20 per cent as salaries don't commensurate with property costs. These young buyers are also going for new developments. They're price conscious, particular about location, and purchase within their means. Affordability is THE priority in the young buyer's minds."


Breakdown of My First Home Scheme

Why is it perfect for first-time home buyers?
• A loan tailored for first-time home buyers, it provides 100% financing so no need for 10% down payment. Plus, home buyers pay normal interest rates of the respective banks.

Who Is Eligible?
• Malaysian citizens
• First time home-buyers
• Individuals or couples (husband & wife or siblings) up to age 35 years
• Private sector employees only (including couples)
• Income not exceeding RM5,000/month for individuals or combined income of RM10,000/month for couples (based on gross maximum income of RM5,000/month per individual)
• Individuals/couples with minimum employment of over 6 months with same employer
• Repayment of total financial obligation must not be more than 60% of the net monthly income or maximum financing limit of the participating bank, whichever is lower

Eligible Property
• Residential properties in Malaysia
• Minimum property value of RM100,000 and maximum of RM400,000
• Completed properties or those under development
• The home must be occupied by buyer and not for investment purposes
• For leasehold properties, with a minimum of 60 years remaining

Financing Requirements
• Tenure for repayment not exceeding 40 years, subject to borrower's age not exceeding 65 years at the end of financing tenure
• Amortizing facility only (no redraw features)
• Installments payable via monthly salary deduction of standing instruction
• Compulsory Fire Insurance/Takaful

Participating Banks
Affin Bank
Alliance Bank
Alliance Islamic Bank
AmIslamic Bank
Bank Islam
Bank Muamalat
CIMB Islamic
Hong Leong Bank
Hong Leong Islamic Bank
Maybank Islamic
OCBC Al-Amin
Public Bank
Public Islamic Bank
RHB Bank
RHB Islamic Bank
Standard Chartered
Standard Chartered Saadiq
UOB Bank

(Information taken from Skim Rumah Pertamaku website-

* Good To Know
First-time buyers should take note that they need to pay for a booking fee or deposit out of their pockets initially, pending disbursement of the home financing by the bank, based on the requirements of the seller.

EPF Withdrawal For First-Time Home Buyers

How exactly does EPF help with buying your first home?
It allows members to withdraw their savings in Account II to finance the purchase of a home. Typically the funds are put as a down payment, to pay monthly loan instalments, reduce/redeem housing loan, or if one is going for My First Home Scheme which doesn't require down payment, the money from EPF will help cover other charges like strata titles, legal fees, etc.

Who is eligible?
• Malaysian citizen
• A Malaysian citizen who have withdrawn your savings under Leaving The Country Withdrawal before 1 August 1995 and then choose to re-EPF
• Non-Malaysian citizens who became a member before August 1, 1998 or getting a Permanent Resident (PR)
• Member has not attained 55 years of age on the date the application is received by EPF
• Members have at least 500.00 in Account II

What are the conditions?
• Buying a house (bungalow / terrace / detached / apartment / condo / studio apartment / service apartment / townhouse / SOHO or shop with residential units.

• Home purchase financing through:

(i) Housing loan from any institution as follows: -
- Financial institutions licensed under the Banking and Financial Institutions
Act 1989 (BAFIA)
- Central Government/State or other government financial agencies
- Employer members
- Co-operation / collaboration company licensed (approved by the
Co-operative Commission of Malaysia).
- Licensed insurance company approved by Bank Negara Malaysia
- Lenders approved by the Board;

(ii) Cash

• Members who have signed a Sale and Purchase Agreement shall not exceed three (3) years from the date the application is received by the EPF.
• Members who have not made withdrawals or those who have withdrawn to buy a first home and have to sell or dispose of ownership, and then buy a second home. Proof of sale / disposal of first home ownership is required.
• Members who want to buy a house that has been acquired on hire purchase from the parties approved by the Board.
• Members who buy land to build a home on it as a package (the date of the land purchase and the date of the start of the construction must be within 6 months)

How much can an individual home buyer withdraw?
• The amount difference between the price of the home and total loan plus 10% of the home price
• The full amount of Account II
• The amount to be withdrawn must not be less than RM500.00

How much can a home buyer couple withdraw?
• The amount difference between the price of the home and total loan plus 10% of the home price
• The full amount of Account II from both accounts but based on the maximum amount that is allowed to be withdrawn
• The amount to be withdrawn must not be less than RM500.00

How much can a home buyer withdraw if applying for 100% loan?
• 10% of the home price
• The full amount of Account II (if amount is not less than RM500.00)

How much can a home buyer withdraw with no home loan?
• Amount of the home price plus 10% of the home price
• The full amount of Account II (not less than RM500.00)

(Information retrieved from KWSP website. For more information such as the required documents, please visit

Fruit for thought before making that substantial property purchase:
• Take your time to look around at the properties available
• Shop around for the best mortgage loans and packages
• Pre-check your credit, income and assets to know what's your credit score (amount of loan that you can take)
• Set a realistic budget on your monthly instalments according to what you can afford that's comfortable
• Make sure you have a long term plan on settling your home loan instalments
• Read and understand the fine print before you sign the dotted line

Best home loan packages

Since banks adjust their home loan rates and packages every quarter, savvy investors intending to purchase property should scan through the various bank websites. Or get the latest and most comprehensive rates via Malaysia's home loan comparison website portal Smartloans at

Informative websites that can assist when making that property purchase
• – Malaysia's first home loan comparison platform
• – laws, regulations and guidelines pertaining to Malaysian housing property
• – legal guidelines when buying property in Malaysia
• – My First Home Scheme
• – Ministry of Housing and Local Government
• – Malaysia My Second Home (MM2H)
• – S. BS. Surendran - Accredited Master Fengshui Consultant, Bioenergetician and Traditional Vaastu Practitioner
• – Valuation and Property Services Department

A Step-by-Step Guide when Buying a Home
1. Find your dream home
2. Negotiate the purchase price
3. Sign offer of purchase and place deposit/booking fee
4. Get sale and purchase agreement (S&P) prepared and signed
5. Apply to EPF to withdraw from Account II
6. Pay balance of deposit
7. Apply for a bank financing
8. Appoint valuation company
9. Sign facility agreement
10. Pay balance of purchase price
11. Get the keys
12. Renovate
13. Move In

(Information from CIMB Bank's Home Buyers Guide –

What to Look Out For When Viewing Property

• Get a feel of the area and check the quality of the construction work and buildings
• Check out the surroundings and anticipate the changes likely to happen
• A simple checklist of what you should look out for: roof, ceiling and walls – watch out for leaks, water marks. Floor – check for damages caused by water, etc. Doors and windows – check for rotten wood and cracks in glass surfaces. Pests-keep an eye out for termites and other pests especially in wooden areas. Electrical and wiring system – test electrical outlets. Existing renovated areas – renovations normally need approval from the local town council so request for a copy of such approvals from the seller.

(Information from CIMB Bank's Home Buyers Guide –

Insurance for Residential Property

Fire – covers loss/damage to property building and contents caused by fire, lightning and domestic gas explosions
Houseowner – can only be taken by the house owner and covers the building including its fixtures and fittings, garages, walls, gates and fences, against several specified risks
Householder – recommended especially for those renting residential properties as well as house owners, and covers 'loose' household goods within the property, against specified risks

** Good to Know – Those who wish for comprehensive coverage of their property and its contents are recommended to purchase both houseowner and householder policies.
[More analysis on home insurance will be provided in our future columns.]

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answered on Sep 11, 2017 at 21:08
Ministry begins enforcing Strata Act with condo raids, seizure over unpaid maintenance fees

September 5, 2017

KUALA LUMPUR, Sept 5 ― The government has started raiding and seizing household items from apartment and condominium units whose owners have not paid the maintenance fees.

The Urban Wellbeing, Housing and Local Government Ministry has this year conducted six such raids in the first-ever enforcement action under the Strata Management Act 2013 ― which kicked in last July.

Mohd Syaifulrizal Mohd Bakar, the ministry's urban service division senior principal assistant secretary, said there was no minimum amount of unpaid fees that would trigger the ministry's joint raids carried out with the Commissioner of Buildings of local councils.

“As long as the joint management body (JMB) or management corporation (MC) of a condo or apartment has served a written notice to demand payment from the unit owner, and it is unpaid after 14 days, enforcement can take place.

“The JMB or MC can serve a warrant to the defaulters with the help of the COB and ministry,” he was quoted telling local daily The Star.

Beyond carrying out seizures, the JMB and MC can also file a summons in court against unit owners who fail to pay maintenance and file a claim with the Strata Management Tribunal, The Star said.

The first of the six raids this year was in May where items were seized from five units of a Bangi apartment over unpaid maintenance fees worth thousands of ringgit.

In the joint raid by the ministry, Kajang Municipal Council's COB and the apartment's own management body, the seized items were either auctioned to clear the unsettled fees or were taken back by unit owners who subsequently paid up.

The items seized included flat-screen televisions, rice cookers, gas tanks and smartphones, The Star said.

“Similar enforcement efforts, including seizures, will be extended to various locations nationwide,” Mohd Syaifulrizal said.

In another report by The Star, Building Managers Association of Malaysia committee member Richard Chan noted that there may be no seizable items at vacant units which are unoccupied by their owners, suggesting that it may be better to empower the authorities to seize the property unit and auction it off instead.

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answered on Sep 11, 2017 at 21:11
Builders must pay for late delivery: Court

February 28, 2017

PETALING JAYA: In a major win for house buyers at the Appellate Court, housing developers must now honour liquidated and ascertained damages (LAD) or late delivery compensation to house buyers.

During the judicial review hearing, the presiding judge Datuk Hanipah Farikullah granted 104 house buyers an Order of Certiorari, quashing the Urban Wellbeing, Housing and Local Government Minister's decision to amend the time period for vacant possession of Sri Istana condominium in Kuala Lumpur.

The Appellate Court also ruled that Regulation 11(3) is "ultra vires" the Housing Development (Control & Licensing) Act, 1966 amended 2015, which means that the extension of time (EOT) granted by the Controller of Housing to developers is irregular.

"It literally means that the Controller does not have the power to grant EOT or waive or modify the standard terms and conditions in the statutory sale and purchase agreement (SPA) under the law," National House Buyers Association (HBA) Secretary-General Chang Kim Loong said in a statement Monday.

"The Minister has no power under Section 24 of the Act to make regulations that allegedly empowers the Controller to waive or change any of the terms and conditions of the prescribed statutory agreement.

In short, Parliament does not empower the Minister to do so," he added.

With this decision, the EOTs issued by the Controller is now void and affected house buyers are entitled to claim for LAD from the developers who had sought EOT.

"Compensation for LAD is payable for late deliveries. The rights and entitlement to LAD cannot be taken away by the Controller or Minister with a stroke of a pen. The general principles of contract still apply," said Chang.

He said the granting of the EOT to defaulting developers defeats the intent and objective of the Act, which is to protect house buyers.

Recall that the Minister had, in a letter dated Nov 17, 2015, extended the time period for vacant possession of Sri Istana from 36 months to 48 months, which allows BHL Construction Sdn Bhd to avoid paying LAD charges to the affected house buyers.

Under the SPA, developers must complete construction and hand over the housing project within 24 months for landed properties and 36 months for stratified homes, failing which it must pay LAD charges of 10pc per annum times purchase price.

Similarly, house buyers who are late in installment payments of the purchase price, must compensate the developer for the delay at 10pc per annum.

When contacted by SunBiz, Chang said that the defendants can file for an appeal at the Court of Appeal within 30 days from the receipt of grounds of decision.

"I want them to go higher to a superior court (Federal Court) so that it would be a case precedent for all to adhere," he said.

He said HBA has knowledge of at least 10 similar cases and has documentary evidence for eight cases including Sri Istana and The Mark @ Cheras.

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answered on Jan 4, 2019 at 02:26
Court awards housewife RM825,000 over fraudulent land deal

January 2, 2019 2:28 PM

PETALING JAYA: The High Court today awarded RM825,000 to a housewife whose personal particulars and fake signatures were used in a fraudulent land deal.

The court found seven defendants liable for negligence, the tort of conspiracy and malicious prosecution.

High Court Judicial Commissioner Faizah Jamaludin said Chow Cho Tai, 62, had proved her counterclaim on the balance of probabilities against the defendants.

Faizah also ordered the defendants – WT Development Sdn Bhd, Loh Kok Choy, Te Chong @ Tee Kang Swee, Jiwa Rakyat Sdn Bhd, Chan Yong Sin, Lim Ah Lim and legal firm Messrs Abdul Aziz Rahim & Co – to pay Chow another RM50,000 in costs.

Chow’s predicament began when her name and personal particulars were used to appoint her as a director of Rimau Indah, a property development company.

Later, someone had apparently used her particulars in two sale and purchase agreements and trust deeds to enable the transfer of a land from Rimau Indah to Jiwa Rakyat Sdn Bhd.

In 2017, WT Development, a property development company with the same business address as Rimau Indah filed a lawsuit against Rimau Indah’s liquidators, Chow and the Companies Commission of Malaysia (SSM).

WT Development’s main allegation was that the said liquidators and Chow worked hand in hand to regain ownership of the land located in Shah Alam, Selangor.

Chow, who was represented by lawyers Sunil Lopez and Karen Chin, then filed a counterclaim against WT Development and six other defendants.

Faizah in 2017 had struck out WT Development’s suit and proceeded to conduct a trial on Chow’s counterclaim.

Lopez said sometime in 2015, Chow received a letter from the liquidators that she was a director of Rimau Indah and asked for the company’s statement of affairs, failing which she would be liable for criminal prosecution.

A company search with SSM revealed that she was a company director of Rimau Indah and appointed to that position since 2008.

Further, the liquidators also showed Chow that she had “signed” a statutory declaration as consent to be director of the company.

Lopez said a handwriting expert concluded the signatures in the documents were not genuine but the SSM refused to amend their records on grounds they had no powers to do so.

The High Court then granted Chow a declaration that she was not a director and ordered SSM to amend their records.

Chow’s problem did not end there. The liquidators sued her, another director Chin Nyuk Tin and Jiwa Rakyat over the land transfer valued at about RM8 million.

Later, the liquidators withdrew their suit against Chow after the findings of the handwriting expert were made known, and the subsequent court order to SSM.

WT Development, a previous shareholder in Rimau Indah, then filed a suit to stop the liquidators from obtaining the land.

Chow then filed the counterclaim against WT Development and the six defendants.

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