Currently, in the market there are two most widely known Property Financing. There are Term Loan and Flexi Loan. But for many of people, they have no idea what are the different between them & which one to choose when buying a property. Actually, in addition to Term Loan and Flexi Loan, there is a hybrid product called Semi-flexi Term Loan. This will make the confusion even worse.
In terms of interest calculation between Term Loan, Flexi Loan or semi-flexi Term Loan, actually no different between them. All of them use the same principal where interest is calculated base on principal balance. Nowdays, most of the Property Financing or Mortgage loan are based on “daily rest” calculations. In simple word interest is calculated daily based on the outstanding balance.
In Malaysia, real property gains tax (RPGT) is imposed with the intention to curb property speculations. It is imposed on the gains on disposal of Malaysian landed properties and the rate varies from 5% to 30% depends on the holding period.
With effect from April 1, 2007, the Government decided to exempt RPGT in view of the economic slowdown and it was aimed at assisting property developers in disposing of their houses, and spearheading the economic progress.
Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister, on Oct 23, however, reintroduced RPGT to put in place a fair administration of taxes.
Following from the budget announcement form Prime Minister last week, a lot of confusion regarding the Real Property Gain Tax. Is it 5% flat or depending on the year of selling?
Malaysian Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah clarified that the Real Property Gains Tax, effective January 1 next year, is fixed at 5 per cent, irrespective of the property disposal year.
This rate of 5 per cent will be implemented through the Real Property Gains Tax (Exemption) Order 2009. This Order will be gazetted as soon as possible and is effective January 1, 2010.
On 23rd October 2009, Prime Minister Datuk Seri Najib Tun Razak has tabled Budget 2010 with the theme “1Malaysia, Together We Prosper”.
These are the main highlights that interest me in the area of Personal Finance
- 5% property gain tax will be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild.
- A service charge of RM50 a year to be imposed on each principal credit card and charge card and RM25 a year on each supplementary card including those with free for life effective from Jan 1, 2010.
MortgageKLIBOR Home Financing From Standard Chartered Bank Standard Chartered Bank revolutionises consumer lending with a new concept of Home Loan or Financing called MortgageKLIBOR.
MortgageKLIBOR is the FIRST conventional home loan that is pegged to KLIBOR which is consistently lower than Base Lending Rate (BLR) from past history. With lower financing rate consumer would potentially enjoy greater savings.