Lowyat.NET: Latest topics by Genin

Pangsapuri and Condo ?

Genin — Sat, 24 Apr 2010 22:07:20 +0800

All these while, i was told of a project Name XXX Condo. When i was called for SPA signing, saw the name XXX Pangsapuri. Does this means i've been cheated? What are the difference between the name condo and pangsapuri?
Appreciate your opinion, pls enlighten me.

Property Renovation

Genin — Mon, 29 Mar 2010 18:43:40 +0800

I've recently sign Sales and Purchase Agreement for a property under construction. To my surprise, i noted a clause which stated when i'm doing renovation, I have to pay RM2000 as deposit, and only RM1500 will be refunded after completion of renovation.
When I ask where does the RM500 goes, they said it will be the professional cost as the management will give advice on where we can renovate??
I'm quite angered by their explanation, and was told verbally that it will be a one time charges only.

I've ask a friend of mine on the renovation for property they recently bought, there is deposit but full refund is given.

Would like to seek advice from readers, what can i do?
Can I change the clause? If i were to cancel the plan of buying the property due to this reason, it seems not worth it.

What are my rights? Is it normal for them to charge RM500 if i am doing simple renovation, e.g. just paint the wall?

-Dissatisfied-

The Great Depression 2010

Genin — Tue, 19 Jan 2010 18:57:14 +0800

As most of us has read about, the weakening of US dollar continues, and as long as their national debt keep increasing, US dollar will continues to fall.
Perhaps some may ask, what it has to do with Malaysia?

I'm not trying to create a panic environment but if you look back into history of The Great Depression in 1929, worldwide depression began with the collapse of US share market, currencies fail, and spreading to most countries in the world.

Generally, US is a country of consumers. Unlike China which export more, US people consumes and import more than they export. And being such, their credit limit kept on increasing to purchase until a rate that they are unable to repay the banks. This lead to the US Federal Reserve to print money out of thin air, yet announcing just a precaution and stored in their reserve. Just imagine what will happen if they release the amount just to repay their debt? Yes, US currency weakens and perhaps will turn valueless. If they did not release the amount, US national debt will keep on rising and that will not solve problems. What can Obama do against such situation? Recently I've heard news that Obama imposed some tax on US banks to recover but how far does it help? When US share market collapse, Malaysia will goes the same as international tradings worldwide are using US dollar as standard.

What will happen to Malaysia then? With the fall of stock market, even huge companies may face bankruptcy and rate of unemployment rise.

Perhaps this will give an insight on why our PM impose credit card tax of RM50 and yet disallowing banks to give a rebate on it.

Some questions to ponder.

1. Will Great Depression 2010 happens? Perhaps within 5 years time?
2. Knowing of such possibility of depression, What can we, as Malaysian citizen do to be more prepared for the worst?

Islamic property financing

Genin — Sun, 17 Jan 2010 00:09:13 +0800

I understand that in Islamic property financing, the bank actually buy the property and resell to us at a higher price depending on a contracted profit rate. This make early settlement an issue (since we're obliged to paying interest of whole tenure once the home financing accepted), however has been resolved by giving ibra (rebate), which is an important aspect to make it competitive to conventional home loan. But how high is the ibra(rebate)?

I'm referring to "flexi-type" of Islamic Financing.
There are two types of ibra i.e. (a) ibra for early settlement (b) ibra for monthly basis to correspond the current profit rate in the market.
As far as i know, the ibra for monthly basis will be given as ;
contracted profit rate - effective profit rate.
whereby effective profit rate refers to current profit rate, calculated on daily/monthly rest basis.

However, how do we calculate the ibra for early settlement? Any formula or example of formula for this? Is it recommended to take up Islamic financing if i plan to do early settlement in near future? What is your personal opinion?