Property Q&A

Publication: NST

Date of publication: Jul 19, 2013

Section heading: Real Estate & Decor

Page number: 011

Q/A1

Clarence S.@KL: Assuming a new home buyer opts for life insurance in lieu of MRTA for his loan, what is his/her obligation on the life insurance once the loan has been fully settled?

RED: If you were to settle your loan before your loan tenure ends, you can always continue with the policy. If you assign your policy to the bank, you can re-assign it back to yourself once your loan is fully settled. By Michael Yeoh, financing consultant.

Q/A2

Patrick L.@Subang: I am 51 and am earning a decent income. I plan to buy a few properties overseas in places like New Zealand and Australia. What is the maximum the banks there can lend mein terms of loan tenure, and do I really need to declare all my other properties in other countries e.g. Malaysia and Singapore, that are still under financing?

RED: The age of financing will depend on the banks - some will lend up to age 65 and some will lend up to 30 years regardless of your age. It's entirely up to you whether you want to declare all your assets and liabilities to the banks. To build a strong case for your application, you may have to. However, a consultant can advise you. You can sign up for a financing application even before you buy. By Alice Chow (www.firstleadinvestments.com)

Q/A3

Wai Kwan@Jelapang: How could the proposed GST (Goods & Services Tax) affect the property market, directly or indirectly? Although it might not affect actual property prices, could it have a significant impact on legal and agent fees, etc or other property related service charges?

RED: GST is a consumption tax based on the value-added concept. GST is imposed on goods and services at every production and distribution stage in the supply chain, including importation of goods and services. Although it is proposed that GST will not be imposed on the sale of residential properties, it appears that commercial properties would be subject to GST and unless the developers are willing to compromise on their profit margins, we should expect to see a slight increase in commercial property prices due to the imposition of GST on those properties.

It is proposed that only businesses with an annual sales turnover of RM500,000 and above are liable to register under GST. This would mean that you as a consumer, will still have a choice of engaging the services of smaller businesses under this sales turnover threshold, which do not charge the GST. By Richard Oon, tax consultant.

Ask the RED-expert: Please fax your questions to: 03-2283 1700 or email to nstred@mediaprima.com.my