Hi! Welcome to my blog. I am Anne from Kota Kinabalu, Sabah, Malaysia. Read more about me here. Please note that ...
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Hi readers :)

Do you know that for a property with a lease period of 99 years or shorter, you do not really "own" that property as you are merely renting it from the government for a specified period.

Have you checked the unexpired lease period of your property?
Do you know that a property with a shorter unexpired lease period normally fetches a lower value as banks do not normally offer financing.

If it is expiring soon, have you calculated the premium payable to the Land Office? Do you know how to calculate the premium payable?
for Sabah I guess it is something like ...

0.5%  x  the Market Value of the property(ie. land)  x  the number of years you want to renew the lease

(if you happen to know the correct formula, do share, thanks)
eg. say the market value of the land is RM500K, and you want to renew the lease for another 60 years...so the premium payable is 0.5 % x RM500K x 60 years = RM150K. Quite expensive huh!

Please remember do not spend too much on a building that sits on a land with an expiring lease period (unless you are filthy rich and don't bother). Why? the property will be transferred to the Land office / government upon the lease period expires... so think about it

Do you know that Sarawak government fixes the premiums on renewal of leases effective 15 May 2010. So what is new over there ?

For residential properties. the new rates are RM1,000 for a terrace house, RM3,000 (semi-detached) and RM6,000 (detached).

For shophouses, the rates are RM40,000 per unit in Kuching, Sibu, Miri and Bintulu; RM20,000 for Sarikei, Sri Aman, Kapit, Limbang, Mukah, Betong and Samarahan, and for rural towns of Lundu, Asajaya, Niah, Marudi and the likes, RM10,000 per unit.

Note that the new policy will cover renewals for 60 years.

Read all about it here
Sarawak govt fixes premiums on renewal of leases


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