The 5 keys to property description mastery

A property description is the meat of most promotional material. When buyers read a property description and are convinced of the information incorporated in it, they’ll set a viewing appointment with the private seller. Therefore, it’s necessary for private home sellers to know how to write convincing and credible property descriptions.

If you can’t persuade and convince potential buyers initially through this means, negotiating with them in person will be even more difficult. The inability of any private seller to create an effective property description is going to be unfavourable.

It’s vital that you are credible and assertive in your property description so people will know that you are good at what you are doing. The possibility of having appointments with potential buyers with great offers will become higher. Writing an outstanding and believable property description greatly affects your chances of having your property sold.

1. Know what attracted you to your property

First and foremost, you have to know what key features attracted you  to your property. As the owner, you have firsthand information in terms of the assets and features your property possess. In a property description, you ought to be able to showcase and inform the readers of these features.

For example, if your property is located close to a famous tourist destination, you could mention this in your description. Be specific in your description and avoid vague adjectives.

2. Translate property features into benefits

People must be made aware that your home is a good buy when they read your property description. In writing it, make sure that each detail you give serves a purpose. In addition, you must translate your property’s features into benefits.

For instance, a four bedroom house can be described as “plenty of space and suitable for a large family”. Doing such makes the feature more convenient and useful.

3. Avoid over describing your property

A lot of property descriptions published today are impressively well written. But a number of them are actually not factual and are just mere bluff to sell properties which do not really live up to what their descriptions say. Property descriptions are used to attract home buyers but not to the point of exaggeration.

As mentioned earlier, be specific with your descriptions and avoid over describing your property. Instead, stick with the facts and write about them in the most appealing manner.

Be credible and honest with the information you write in the property description because you don’t want to disappoint an interested buyer when he visits and can’t see the things you’ve written.

4. Describe how your property provides solutions

In a property description, it helps to mention details that would provide solutions to home buyers’ longstanding problems. For instance, you can mention the close proximity of your property to a health facility if you have in mind retired individuals as prospective buyers. As well, you can emphasize the accessibility of shopping malls and other recreational facilities for families with children.

5. Include a call to action

Lastly, you must tell your readers what to do after they read your property description. They must feel that they are an active participant in this interaction and that they need to do something.

In most cases, you should encourage your readers to pick up their phone and call you or visit you during your Open Home. This is a call to action. It needs to be incorporated into your property description since, as a home seller, it’s want you want to happen in the first place.

You should strive for excellence in every promotional activity you undertake as home sellers. Property descriptions must be taken seriously and written with skill. It not only serves to entice and attract potential buyers but also sets your reputation and credibility as a private seller.

Your property description, together with your headline and photos, go a long way in promoting your property and eventually getting it sold. Hence, make sure you do it right.

Understanding the sub-sale contract

Introduction: The first rule of conveyancing is ‘buyer and seller must engage own lawyer’. Consult a lawyer right from the start and not after you have paid the deposit. Reasons to use your own lawyer:
Under the law you are deemed to have read and understood every document you have signed.

Furthermore, promises made by the seller or someone else about the deal may not be enforceable if the promises are not in writing unless you are able to provide proof of the same.

A lawyer cannot represent both the Vendor and Purchaser - if you are using the Vendor‘s panel lawyer, often, when disputes happen, the lawyer is unlikely to represent you against their bigger client.

A lawyer in general practice will be able to complete your purchase; however, lawyers with a focused real estate/conveyancing practice may prove a better choice if you are unsure of what to do, or have complications in your purchase agreement or mortgage. While you may think that you cannot afford the services of your own lawyer, consider whether you can afford not to.

Check out the FAQ on the HBA website: www.hba.org.my

Typical Sub-Sale transaction: A sub-sale of a property (“Property”) occurs when a Purchaser purchases a Property from a Vendor who is not a developer. Many purchasers sign sale and purchase agreements (“SPA”) without understanding the legal implications of the terms and conditions of the SPA.

A Purchaser should not hesitate to seek explanation from his Solicitor at all times, especially prior to the signing of the SPA and whenever amendments are to be made to the SPA, so that he is informed of the terms and conditions of the SPA. The Solicitor should and is expected to explain the terms and conditions of the SPA to his client.

Purchase Price and completion date: Besides the name and particulars of the Vendor and Purchaser, the SPA sets out the Purchase Price. It is usual for a deposit of 10 per cent (less any earnest deposit paid earlier, if any) to be paid upon the signing of the SPA by the Purchaser. The SPA will set out the date of the payment (“Completion Date”) of the balance purchase price (“Balance Sum”), which is usually:

• three months from the date of signing; or
• three months from the date of receipt by the Purchaser’s Solicitors of the consent from the relevant authority if the Property is subject to a restriction in interest; or
• three months from the date of the receipt of the confirmation of the developer in the case where the individual or strata title to the Property is not issued yet.

The SPA will, in most cases, provide a time extension of one month or more for the Purchaser to settle the Balance Sum. When an extension of time is granted, interest at an agreed rate, for example eight per cent, will normally be charged by the Vendor on the unpaid Balance Sum. This interest is usually charged on a daily basis from the day after the Completion Date until the date of full payment of the unpaid Balance Sum.

In a case where the Property is subject to a restriction in interest, the time for obtaining the relevant consent is usually agreed at between three and six months, and the time for obtaining the relevant consent may be extended.

The Purchaser should be aware that if he fails for any reason to pay the Balance Sum on the Completion Date or the extended date, as the case may be, the Vendor has a right to forfeit the Deposit as liquidated damages. The SPA normally provides for the Vendor to refund any money paid by the Purchaser which is in excess of the Deposit. To avoid the forfeiture of his Deposit, a Purchaser has to monitor the progress of his payment of his Balance Sum closely in co-operation with his Solicitor.

Inventory of fixtures, fittings, etc: It is the responsibility of the Purchaser to give his Solicitor an Inventory of fixtures, fittings, furniture and other items which may be included in the purchase of the Property and such inventory should be attached to the SPA to avoid any misunderstanding on the completion of the transaction. Fixtures and fittings include lights, air conditioners, fans and other items that are affixed to the Property. It is common, however, for the Vendor not to charge extra for normal lightings and fans.

Inspection of Property: It is important to note that the sale of Property is sold on a ‘as is where is basis’ and that the purchaser must be aware of the present state and condition of the subject property.

In such an event, the Purchaser shall be deemed to have inspected the Property and have satisfied himself by examination and inspection of the Property in every respect and the Purchaser shall be deemed to have full knowledge of the nature and effect thereof.

Encumbrances and redemption sum: A Property sold by the Vendor may be encumbered, i.e. the Vendor may have charged the Property to a bank to secure a loan granted by the bank to the Vendor.
Where no individual title or strata title has been issued for the Property, the security will be in the form of an assignment of the rights, title and interest of the Vendor in the Property (Deed of Assignment) and the Vendor‘s agreement with the Developer.

It is the Purchaser’s Solicitor’s duty to ascertain the amount owing to the Vendor’s bank (“Redemption Sum”). Where the Redemption Sum exceeds the Purchase Price or the Balance Sum, additional provisions are required to be made for payment of the amount in excess by the Vendor.

Purchaser’s loan and Difference Sum: The SPA will normally provide that the Purchaser will require a loan (“Loan”) to assist in the payment of the Balance Sum. Once the Purchaser has obtained his Loan, his bank (“Purchaser’s Bank”) will appoint a solicitor to prepare and complete the loan documentation for the release of the Loan.

Sometimes the Purchaser’s Solicitor may be appointed by the Purchaser’s Bank to attend to the loan documentation. It should be borne in mind that when the Purchaser’s Bank appoints the solicitor, that solicitor is acting for the Purchaser‘s Bank in the Loan transaction, and that solicitor does not act for the Purchaser in the Loan transaction even though the Purchaser may have to pay the legal fees due to that solicitor.

Where there is a title to the Property, the loan documents to be signed by the Purchaser are usually the Loan or Facility Agreement, and a Charge to be registered over the Property in favour of the bank.

Where there is no individual or strata title to the Property, the loan documents to be signed by the Purchaser are usually the Loan or Facility Agreement and an Assignment of the Property from the Purchaser to the bank as security, together with the grant of a Power of Attorney to the bank.

If the Purchaser’s Loan is less than 90 per cent of the Purchase Price, there will be a difference between the balance purchase price and loan amount to be paid by the Purchaser. This is usually referred to as the “Difference Sum”.

Although most SPAs do not specify an exact date for payment of the Difference Sum, the Purchaser should not delay the payment of the Difference Sum as this will delay the release of his Loan. When in doubt as to when he should pay, the Purchaser should contact his Solicitor. The Difference Sum must be paid by the Purchaser before the Purchaser’s Bank will release his Loan.

Conclusion: The Purchaser should be well informed and advised of the terms and conditions of the SPA, with the assistance of his Solicitor, so that he is able to appreciate the process of purchasing a Property in his best interests.

Terms and conditions of a SPA may vary from case to case, and in a forthcoming Part 2 of this article, the writer will cover more terms and conditions
relevant to a typical sale and purchase transaction.

Read more: Understanding the sub-sale contract - RED - New Straits Times http://www.nst.com.my/red/understanding-the-sub-sale-contract-1.106532#ixzz28tnU2XIF

8 Tips for Real Estate Investing Success

As you prepare to become a successful real estate investor, I encourage you to take the following tips into consideration. They have helped me greatly as I have navigated my way through the world of real estate--and life in general. I hope these tips will make just as big of an impact on your life as they have had on mine.

Tip #1: Create a game plan.

Decide what you want to accomplish and outline the steps that you must take to get there. Who will be involved? How will you meet them and gain their cooperation? How much time will it take? Where will you find this time? How much will it cost, and where will you get this money? What's the risk? How will you handle it?

This plan will serve as your guide each day, so you need to get it right. That brings us to the next tip...

Tip #2: Have an expert review your plan.

The first real estate plan I created involved me single-handedly buying 100 houses in a year. And it listed several different marketing strategies that were completely cost ineffective. I had a friend of mine (who isn't even involved in real estate) review the plan, and he said it looked good. How silly of me!

About eight months into working this over-reaching and misguided plan, I had an expert investor review it. He tore it apart, and together we reconstructed a better plan with more realistic goals (buy 12 houses, not 100) and a more effective marketing plan.

Shortly thereafter, I bought 6 houses, and I actually felt good about my progress. Six out of twelve feels much better than six out of 100!

Tip #3: Don't give up.

The life of a new real estate investor is filled with countless highs and lows. You're on a high when you think you have a property all locked up to purchase, and then you hit a low when it suddenly falls though at closing.

Or you're on a high when you finally do close on that house, but you hit a low when you hit a 3-week dry spell and it feels like you couldn't get a seller to agree to your price--even if you paid double.

I hit a personal low when I was jobless and $5,500 in debt from fruitless marketing attempts. But I got up early each morning and worked toward my goal of financial freedom. Even though a voice in my head told me to give up, I never did.

That's probably the #1 key to success: Don't give up. Even someone who's as dumb as a box of rocks will eventually succeed if he doesn't give up.

Tip #4: Take baby steps.

When you break it all down, big goals, big dreams, and big plans are nothing more than a series of miniature action steps or "to do" items. When you dissect the daily life of a successful investor, you'll find that he or she does 8 to 12 things each day that are real estate related.

One item might be "Watch DVD #5 in the new investing course I bought." Another item might be "Call the title company about the name on the warranty deed" or "Meet the inspector at the house on Watson Street."

All of these little tasks each day add up to what is, or what eventually will be, a large and highly profitable real estate investing operation. So don't toss that "to do" list by the wayside, thinking that your small efforts today don't mean much. They mean everything.

Tip #5: Become comfortable with discomfort.

I was actually nervous at the first real estate investing meeting that I attended. I was wondering if I would say something stupid or if I wouldn't fit in. After all, most of the investors in the room were 40 or 50 years old, and I was 22.

But by the third meeting I attended, I became comfortable with the crowd. Had I quit after the first meeting, I would have missed out on the very information that enabled me to buy so many properties.

I've learned that one of the biggest keys to success is persisting though uncomfortable situations until they eventually become comfortable. This is where true growth occurs.

Tip #6: Do what you say you're going to do.

As a real estate investor, your reputation means everything. They say it's a small world, but the world of real estate investing is even smaller. So be honest, be courteous, and for heaven's sake, do what you say you're going to do. If you say you're going to buy another investor's house, by golly, you better move mountains--if that's what it takes--to buy it!

Otherwise, your name will eventually become mud, and you'll have a tough time buying from not only that investor, but just about every other investor in town. Believe me, I can count at least 10 local investors of the top of my head who I will NOT do business with because their word means nothing. And I know several other investors who won't deal with them either. You DO NOT want to be black listed.

Tip #7: Be on time.

Showing up late is just about one of the most disrespectful things you can do to another real estate investor, inspector, contractor, or anyone for that matter. It shows them that you don't value them or their time, and time is MUCH more valuable than money. Money can be replaced. Time cannot.

When someone shows up late for a meeting with me, they instantly lose credibility. And there are countless other investors who feel the same way I do. On the other hand, when an investor or business associate shows up on time or early, it makes me want to smile, reach out my hand, and strike a win-win deal.

So be on time. You're much more likely to create trusted allies who can help you along your path to success.

Tip #8: Eliminate certain activities.

I'll wrap up with one more tip that is closely linked to the first tip, "Create a Game Plan." That game plan will involve a series of goals and steps or "to do" items that you must follow to become successful. But what many people don't seem to realize is that for all of these things to happen, certain activities in your current schedule must be REMOVED.

For example, if you're going to attend two real estate meetings and make five offers per week, what must go? Possibly TV time. Possibly a friendship. Possibly your workout plan. Of course, what has to go is unique to each of us, but you must realize that if you're an extremely busy person, you'll have to make some TOUGH sacrifices.

But these sacrifices are only for the short run. If you have to quit your exercise program to have enough time for real estate, for example, then so be it. You can resume in two years after you've achieved financial freedom through real estate. And you'll have more time to exercise than ever.

Early on in real estate, I gave up friendships, exercise, sleep, vacations, and leisure time. How much you give up depends on how quickly you want to become financially independent.

It can be a tough to integrate all of these tips into your daily routine at once. So for now, I encourage you to focus on the one tip that you think can benefit your investing business the most. After you've turned that tip into a habit that's part of your daily routine, then move on to the next. Keep moving forward and never give up, and you'll be a successful and financially free investor in no time! 

Rental Properties: How to Cut Maintenance Costs by 25%

Current market conditions have made investing in long-term rental property more appealing than ever. If you buy a few rental properties and self-manage them, you'll have several duties (in addition to cashing checks). One of the biggest is trying to keep your maintenance costs as low as possible.

The best way to keep maintenance costs low, often over 25% lower, is to visit your rental properties on a regular basis to make sure your tenants are taking proper care of them. But what do you actually do when you visit? Well, lots of things!

Let's get started...

First, take a look at the air conditioning filter. If that is dirty, it is putting a strain on your heating and air conditioning equipment and will shorten its life. It will also reduce the comfort of the tenant and increase his steadily rising utility bills. You should mention that. It lets the tenant know that you are on his side.

Check the faucets for leaks and check for leaks under the sinks. It's easy to make a plumbing repair when the leak is new, but if you let it go, you have a plumbing repair and also a carpentry repair, and we don't need any of that.

Look for trees touching the roof or the sides of the house. They can abrade the roof and start leaks. You can take a little of your paint along and do the odd touch-upwhen you are there, telling the tenant to "let me just pretty this up for you." Yourconcern for them and for their having a nice place to live translates into goodwill that you just can't buy anywhere.

Check the smoke alarms. Do it for the safety of the tenants. Do it because you don't want to have the house burn down. Do it because you don't want to respond to a wrongful death suit. Just do it. Smoke alarm batteries are cheap. Bring a full set of fresh batteries--one for each smoke alarm in the house about once a year.

Check the garbage disposal if there is one. Some folks don't use the disposal, and lack of use can cause the blades to seize up, and the unit will need to be replaced.

Same with the dishwasher. Some folks who live by themselves or with one other person don't feel it's worth running the dishwasher for a few dishes. When you don't run the dishwasher, the seals dry out and leak when you do run it again. Ask your tenant to run the dishwasher once or twice a month to keep it operating properly.

Poke your head up in the attic. Make sure that the tenant is not stacking his "treasures" around the gas furnace creating a fire hazard. Look for anything broken or damaged that could progress into a major expense. An example would be a roof leak around a water heater vent. Catch it now, and it is cheap to fix. Wait until the water is coming through the roof and into the house, and that's a different story.

If you don't allow pets and you see a dog on the porch, say something like, "Is that the neighbor’s dog?" It is disarming and gets your point across without making them defensive. Then you revisit your lease agreement with them and remind them that violations of the agreement will not be allowed.

Treat them right and enlist their help

Treat them nicely when you make your visit. You are in their home. Act like you would like your guests to act and keep everything positive and respectful. It will go a long way in enlisting their help maintaining your property.

Consider a management company

And if you're not interested in spending the time or energy to take care of your rental properties on your own, here's one final tip that will make your life much easier:Network with other real estate investors to find the best property management company in your city. They'll never manage your properties as well as you would, but they can sure help you to save your sanity!

City&Country: The Edge/Rahim&Co Kota Kinabalu Housing Property Monitor (2Q2012)

By Wong Mei Kay of The Edge Malaysia
Monday, 08 October 2012 00:00



Prices continue to rise but at slower pace

Housing prices in the Kota Kinabalu property market, which has seen impressive growth in the last few quarters, continue to climb in tandem with the robust performance of the Sabah economy, albeit at a slower pace.

“Our sampling shows an average growth of 1.37% [between RM5,000 and RM15,000] in the prices of residential properties overall in 2Q2012 compared with 2.98% in the previous quarter.


Year-on-year growth was 8.05%, about 3.96% slower than in 2Q2011,” says Max Sylver Sintia, manager of business development and client service at Rahim & Co Sabah, when presenting The Edge-Rahim & Co Kota Kinabalu Housing Property Monitor 2Q2012.

Sintia attributes the more subdued market to Bank Negara Malaysia’s tighter lending policies and the rising number of upcoming developments. The prices of 2-storey houses on the city’s secondary market are also reaching their peak, he says.

Economic indicators
In 2011, Sabah recorded an export value of RM49.4 billion and a trade surplus of RM16.6 billion, up from RM37.2 billion and RM11.2 billion respectively in 2009.


Palm oil accounted for about 38.8% of total exports while crude petroleum comprised 32.9%. The unemployment rate, as reported by the Sabah Statistics Department, stood at 5.2% in 2011 while there were 1.64 million people in the labour force, marking an increase of 3.14% from the previous year.

Sabah was the biggest contributor to Malaysia’s agricultural output in 2011, delivering RM13.21 billion or 24.7% of the total RM53.45 billion. In the manufacturing sector, it contributed 4.1% to total output or RM34.1 billion while in the construction sector, it recorded an output of RM7.4 billion — the fifth highest in the country.

Sabah’s tourist arrivals surged to 1.134 million from January to May this year, an increase of 3.7% from the previous corresponding period.


“About 27.6% of the tourists are from Asia and we foresee the continuous positive growth benefiting the Malaysia My Second Home (MM2H) programme,” says Sintia, adding that based on Rahim & Co’s observations, South Koreans have been showing interest in the local property market. Tourist arrivals from the country rose 20.7% to around 30,137 between January and May this year compared with 24,974 previously. Sintia says the opening of the luxurious Gaya Island Resort by YTL Hotels will further boost the tourism industry. The resort was built at an estimated cost of RM75 million and boasts 120 villas.

Government initiatives
Recently, Sabah Chief Minister Datuk Seri Musa Aman announced the development of the first phase of a RM38 billion, 25.3km pedestrian walkway in Kota Kinabalu. The state government is hoping that the sheltered walkways will boost tourism and improve exposure to local commercial and retail businesses.

Developed as part of the Sabah Development Corridor (SDC), the project is one of the state government’s three tourism initiatives for Kota Kinabalu. The other two are the restoration of the Atkinson Clock Tower and the park recreational project of Sembulan River.

The government is also allocating RM4.5 million to develop the state’s infrastructure. Announced by the Sabah Ministry of Resource Development and Information Technology, the implementation of 74 public infrastructure maintenance and basic infrastructure projects will benefit the property market, particularly in Kota Kinabalu, as well as areas in its vicinity such as Inanam, Karambunai, Likas, Api-Api, Luyang and Tanjung Aru.

Sintia expects these projects to have a positive impact on nearby housing developments. “The high-end residential market in some of these areas, which has seen an encouraging trend in the past few quarters, is poised to expand further as both local and foreign interest is likely to remain strong.”

Trends
The prices of homes on the secondary market have been playing catch-up with newly launched properties in recent quarters.


“In Putatan, for instance, which is located in the southern part of Kota Kinabalu, a newly launched 2-storey terraced house with a land area of around 1,500 sq ft is priced at RM400,000. A similar type of property on the secondary market in the same area is now selling for RM390,000 compared with RM350,000 last year,” says Sintia.

He believes things are looking up for condominium projects because strata-type developments seem to be gaining acceptance, judging from the positive take-up of those unveiled recently.
“We expect further price growth for condominiums on the secondary market, especially for those located in the Kota Kinabalu city centre, Damai and Likas due to the spillover effects of newly launched projects there,” says Sintia.


While houses in more established areas such as Luyang Perdana, Golden Hill Garden and Taman Seri Borneo are attracting foreign buyers, the majority of purchasers are still locals with families buying for their own occupation or investment. Meanwhile, cash-rich oil palm estate owners are set to continue to be the biggest investors of the Kota Kinabalu property market.


Most of the 2-storey terraced houses sampled registered a 9% to 10% (RM5,000 to RM40,000) increase in prices from a year ago. The exceptions were houses in Taman Indah Permai, which saw an increase of 7.41%, and Golden Hill Garden, which recorded the lowest price rise of 0.91%.


Millennium Height, which is located in the mature residential area of Jalan Bundusan, led the price growth for 2-storey terraced houses in 2Q2012, posting a rise of 4.48% or RM15,000. The prices of similar properties in Taman Indah Permai and Luyang Perdana remained stable.


With the limited supply of 1-storey terraced houses on the primary market, the asking price of renovated units on the secondary market was as high as RM350,000, especially in the Kepayan and Putatan areas.


The prices of 1-storey terraced homes in Taman Sri Kepayan led the way, posting a y-o-y growth of 9%, followed by 5% in Taman Tuan Huat. Q-o-q, Taman Sri Kepayan registered 4% growth while both Taman Tuan Huat and Taman Nelly Ph 9 registered 2% growth.


Sintia says this house type is still highly favoured in the market, especially by low to middle-income buyers.

The condominiums sampled registered an overall average y-o-y growth of 9.82% while q-o-q, this was 2.15%, down 0.34% from 1Q2012.


Bayshore Condominium, Alam Damai and Radiant Tower lead y-o-y growth with an average capital appreciation of 13% each. The price of units in Alam Damai and Radiant Tower rose to RM400 psf in 2Q while in Bayshore Condominium, this was RM380 psf.


The Peak Condominium in the exclusive residential area of Signal Hill and Marina Court in the heart of the Kota Kinabalu city centre registered the highest quarterly growth of 4.35%, followed by Alam Damai in Damai with 3.9%.


1Borneo Condominium, The Peak Condominium and Likas Square recorded the highest gross yields among the condominiums sampled — 5.75% to 6.25% per annum. The overall average gross yield for 1-storey and 2-storey terraced houses was 4.9% and 4.17% respectively.


In terms of rent, 2-storey terraced houses posted an average 9.25% y-o-y growth, commanding RM900 to RM1,800. The 1-storey terraced houses fetched rents of RM900 to RM1,100 while the condos charged an impressive RM1,500 to RM3,000. High rents were observed in established locations with a good public transport system, for example Signal Hill, Kepayan and Penampang.

Notable developments
Sintia says The Bay Residences is set to add to the mushrooming of condominium developments in the Signal Hill and Likas areas. This high-end project is located in Jalan Tuaran and offers views of the South China Sea.


“Launched in the middle of 2Q2012, the development offers 82 modern condos with sizes ranging from 1,986 to 4,370 sq ft. The selling price is between RM450 psf and RM500 psf. The take-up rate is encouraging with an 83% take-up recorded within a month of its launch.”


Other notable residential developments in Kota Kinabalu include SCP Group’s gated and guarded Damaisari@Kolombong and Taman Rimba by Wah Mie Group.


Damaisari@Kolombong is now open for registration and the price of its 3-storey terraced houses is expected to start at RM800,000. Taman Rimba consists of 2-storey terraced houses in Bandar Sierra in Jalan Tuaran. A typical unit is around 1,357 sq ft and has a price tag of RM398,000 — a new benchmark for residential developments in Jalan Tuaran.



This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 927, Sep 10-16, 2012

Sunway REIT buys Sunway Medical Centre for RM310m

By Kamarul Anwar of theedgeproperty.com Tuesday, 09 October 2012 15:29

KUALA LUMPUR (Oct 9): CEO of Sunway REIT Datuk Jeffrey Ng on Tuesday announced the group is entering a sale and purchase agreement with Sunway Medical Centre Bhd to acquire the land and building of Sunway Medical Centre for RM310 million. The acquisition will boost Sunway REIT’s total appraised asset value to RM4.94 billion, the largest among Malaysian real estate investment trust (REIT) companies, he said. The Sunway Medical Centre’s acquisition process should be completed within the first quarter of 2013, Ng said at a press conference.

Amendments to strata management bill sparks confusion

By Wong Mei Kay of theedgeproperty.com
Tuesday, 09 October 2012 19:21

PETALING JAYA (Oct 9): Registered property managers are crying foul over the proposed definition of "property manager" in the Strata Management Bill 2012, which was only revealed during its third reading in Parliament on Sept 27.

They claim that stakeholders involved in drafting the Bill over the pass three years were not consulted over the latest changes.

"Should these new definition come into effect, it will deregulate the current system that has existed since 2007 causing an influx of unregistered property managers to swoop in and cash in on the situation," says Ishak Ismail, the president of the Malaysian Institute of Professional Property Managers (MIPPM) at a press conference on Tuesday.

Also present were those who were involved during the drafting of the original Bill — namely, Adzman Shah Mohd Ariffin, chairman of the Royal Istitution of Surveyors Malaysia (RISM); and Datuk Seri Mani Usilappan, past president of the Board of Valuers, Appraisers and Estate Agents Property Managers in the Private Sector of Malaysia (PEPS).

The proposed amendments to the Bill seeks to amend Section 2 to replace the previously agreed definition of "property manager" with the following definition:

(a) is appointed by a developer on the instruction of the Commissioner under Section 12(7)(b) or 52(6)(b);

(b) is employed or arranged and secured his or its services by a Joint Management Body under Section 21(2)(f);

(c) is employed or arranged and secured his or its services by a Management Corporation under Section 59(2)(f); and

(d) is employed by a management committee for and on behalf of a Management Corporation under Provision 6 of the Second Schedule.

"These changes are a step back for the industry, because these unlicenced property managers have not received any relevant qualifications in property management. Instead, they just view it as just another business opportunity," says Adzman, who added that should there be mismanagement of a building, it is hard to hold these parties accountable for their wrong doings mainly because they don't face the risk of having any licence revoked.

According to Mani, there are approximately 3,000 certified property managers in the market now. However, the panelists are unable to clearly identify the actual number of unlicenced property managers currently operating in the country, although they expect the figure to substantially balloon should the Bill be passed.

"The issue has been going on for the past ten years. We had previously opened our doors to the unlicensed parties who have had experience in the industry in 2002. They had turned down our offer mainly because they don't want to be regulated," said Wong.

Recently, the Building Management Association of Malaysia (BMAM) has been lobbying to the Housing and Local Government Minister to amend the term "property manager" to "building manager" in the Strata Management Bill.

The association claimed that property management would be monopolised by licensed valuers following the use of the term "property manager". Therefore, it came up with the proposal to use the term "building manager".

BMAM has proposed the definition for "building manager" to be "any person who has been deemed competent to undertake the normal functions of building management and who has been accredited to, or admitted as a member of, or duty certified by an appropriate professional or registered body".

Meanwhile, the National House Buyers Association said in a statement released at the press conference that only the Valuers, Appraisers and Estate Agents Act (VAEA Act) outlines the qualifications of a person who can manage stratified property.

"That being the case, the National House Buyers Association (HBA) feels this Act should be adhered to, and we support the stand of the Ministry of Finance's Board of Valuers, Appraisers and Estate Agents (BDAEA) that all 'property managers' — whether they be named managing agents, building or condo managers — should be regulated," read the press release.