Tips for consumers

October 25th, 2014 No comments

Oon presenting his talk on ‘GST: How does it Affect the Public and Property Investor?’ during the StarProperty.my Fair 2014 at Queensbay Mall, Penang.

Experts provide property fair visitors with useful knowledge

The fear that all products and services will be imposed with the goods and services tax (GST) by April 2015 is not justified, as not all businesses are eligible to collect GST.

TY Teoh International national tax director Richard Oon said only businesses with a turnover of more than RM500,000 per year would be able to charge GST.

“Businesses will have to display their GST licence in order to collect the tax. A receipt will also need to bear the GST identification number.

“Consumers can easily checked the authenticity of the receipt’s GST identification number by visiting http://gst.customs.gov.my.

“This means that consumers have a choice of buying products and services from a GST-registered company or a non-GST-registered company,” he said in Penang.

Oon was speaking at a talk on ‘GST: How Does it Affect the Public and Property Investor?’ at the StarProperty.my Fair 2014, organised by Star Publications (M) Bhd, with Zeon Properties as the event partner.

Oon added that there were six types of business that were not eligible to charge GST namely residential property developers, medical care companies, financial institutions, toll operators, transportation firms and insurance companies.

In a separate talk on Real Property Gains Tax (RPGT), Aljeffri Dean managing partner Neoh Chin Wah said the quantum of tax one would need to pay the Government depended on the category which the gain from the disposal of a property fell under.

“Make sure that you know which category you fall under before submitting the return to the Government.

“If the gain fell under the RPGT, depending on the period of disposal, it could be 0% if the property was disposed in the sixth year of purchase by an individual.

“If the seller is a company, and the property is dispose in the sixth year of purchase, the RPGT is 5%. But if the gain from the disposal of a property comes under income tax, the seller, if an individual, could be taxed up to 26%,” he said.

Prior to Jan 2014, the RPGT was 10%, if the property was disposed within the third to fifth year, and zero, if disposed after the sixth year.

Meanwhile, in a talk on ‘Dispel the Mystical Part of Feng Shui’, Malaysian Institute of Geomancy Sciences founder David Koh said any occurrence is mysterious if one does not know the scientific reason behind it.

“Feng shui is mysterious as it cannot be measured by any scientific instrument.

“Following more than 50 years of personal research, I conclude that everything which happens can be explained by science,” he said.

Source: StarProperty.my



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Affordable Housing Roadshow – Sunway Carnival (25 & 26 Oct)

October 23rd, 2014 No comments

In conjunction with Northern Corridor’s Property & Investment Expo this weekend,  officers from the state housing department together with PDC will be going to Sunway Carnival Convention Centre in Seberang Jaya for the ‘Mission: Home-Possible’ road-show. It will showcase affordable housing projects, as well as assisting potential buyer to submit their completed application forms.

This is a two-days roadshow, open to public on 25 & 26 Oct (Saturday).

>> Full list of Affordable Housing in Penang <<



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Rehda: GST will push up home prices by 2.6%

October 22nd, 2014 3 comments

Real Estate and Housing Developers' Association of Malaysia (Rehda) says the GST is likely to raise property prices.

Home prices will rise by about 2.6% once the goods and services tax (GST) comes into play, said the Real Estate and Housing Developers’ Association Malaysia (Rehda).

The chairman of the association’s task force on accounting and taxation, Datuk Ng Seing Liong, said that the calculation was based on its consultations with industry experts and member developers.

Rehda’s 2.6% estimate differs from that of the Customs Department, which expects the GST to have an impact of between 0.5% and 2% on house prices, assuming there’s no change in supply and demand conditions.

Ng said the association was in full support of the GST and concurred with Customs GST director Datuk Subromaniam Tholasy, who had said that land did not incur the 6% GST rate.

However, he said land was by no means the largest cost component in property development.

“As our calculation clearly spells out, the construction cost, which constitutes 46% of the total development, is not only the largest component but also the component which will attract the GST of 6%,” he said in a letter to StarBiz.

He said the GST on this component would inevitably lead to an increase in house prices.

Appending calculations for a housing unit originally priced at RM400,000, Ng said the price post-GST would be around RM410,560.

Under the 46% construction component, costs were broken down into non-service taxable and service taxable segments, representing 44%, or RM176,000, and 2%, or RM8,000, respectively.

Under the non-service taxable segment comes items such as cement/concrete, steel, bricks and sand, while the service taxable segment includes tiles and fittings/sanitary. Under the existing sales and service tax, no tax is imposed on the non-service taxable category, while the service taxable category has a tax of up to 10% imposed on it.

Post-GST, Rehda’s calculations showed that the non-service taxable cost had gone up to RM186,560, while the service taxable cost remained at RM8,000.

It maintained the same cost estimates for other items, including land (15% or RM60,000), infrastructure and pre-development works (10% or RM40,000), professional fees and marketing costs (6% or RM24,000), finance costs (6% or RM24,000) and profit (17% or RM68,000).

Ng said Rehda also disagreed with Subromaniam, who had said that developers could easily absorb cost increases as their margins were around 30%.

He said it was currently impossible for developers to earn up to a 30% profit, as most development costs were on the rise, along with various capital contributions and charges imposed on developers.

“On average, as tabulated in the calculation, developers, most of which are public-listed companies, are only making around 17% at best,” he said.

However, Ng said it was still too early to determine the actual house price increases post-GST, as Rehda was still in discussions with the Government and there appeared to be many more issues to be ironed out.

Source: StarProperty.my



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Smooth ride for road users

October 22nd, 2014 9 comments

After a more than four-year delay, the third and final phase of the Tun Dr Lim Chong Eu Expressway will finally be opened to the public on Nov 1.

Jelutong MP Jeff Ooi said construction work on the project, known as the Jalan Tan Sri Teh Ewe Lim Extension, was already 95% complete.

“The 800m road costing RM70mil is borne by the developer, IJM. It will be open to traffic from midnight onwards on Nov 1.

Initially, it was scheduled to be opened in August, but there were several factors which delayed it.

“Firstly, it was Indah Water Konsortium in relocating the sewage pipes. Then the Mutiara Idaman apartment residents insisted on having an entrance and exit next to the road, despite it being objected by the Public Works Department.

“We settled the issue with the residents by retaining the entrance and exit. The developer will also install safety measures such as guard rails,” he told reporters before a walkabout to inspect the progress along the road in George Town yesterday.

Ooi said the large amount of utility lines at the squatter area along the road’s intersection with Jalan Jelutong also caused the project to be delayed.

“Work could only be carried out at night to move the utility lines due to busy Jalan Jelutong.”

He said the state government would also announce a new name for the road.

The extension is expected to help alleviate traffic congestion in Jalan Perak and Jalan Jelutong.

Source: StarProperty.my



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Upcoming Mixed Development in Bayan Lepas

October 20th, 2014 14 comments

An upcoming mixed development by Koperasi Tunas Muda Sungai Ara Bhd., along Jalan Sultan Azlan Shah in Bayan Lepas, Penang. This development is strategically located next to Ideal Vision Park, along with the approved Heng Ee primary and secondary school.

The development consists of the following:

  • 36 units of 2-storey bungalow houses
  • 66 units of 2-storey semi-detached houses
  • 1 block of 17-storey condominium (480 units) with 68 units of 3-storey shop offices
  • 2 blocks of 20-storey condominium (1665 units)
  • 1 block of 20-storey low cost apartment (675 units)
  • 59 units of 3 & 4-storey shop offices
  • 19 units of light industrial

The launch date is yet to be fixed. I think this project is potentially a jointly development with Ideal Property Group.

Project Name : (Pending approval)
Location : Bayan Lepas, Penang
Property Type : Mixed Development
Tenure : Freehold
Developer : Koperasi Tunas Muda Sungai Ara Berhad


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