September is Life Insurance Awareness Month. You’ll probably see TV commercials and magazine articles talking about why this coverage is so important. And you probably already know it’s important. But that doesn’t mean that you’ve got your policy set up yet!
The Life Foundation says that only 62% of people who believe they need life insurance, actually have it. And even those that have it only carry enough to replace their income for 3.6 years. If you have young children to support, that is simply not enough time. If you're skipping life coverage all together, then you are putting your family's well being at risk.
So why do people wait too long to purchase life insurance? The Life Foundation also says that 86% of Americans say they haven't purchased it because it's "too expensive”, yet overestimate the cost by more than 2 times!
Life Insurance rates are based on a number of factors, including age, health conditions, and smoking status. By not smoking and purchasing when you're younger, you can save substantial money. In fact, many term life policies are less than $50 per month!
Don't delay! Call the office at 888-867-2866 and set up an appointment with our life insurance specialist. Bring information on your annual income, as well as any debts (like your mortgage). We’ll give an accurate picture of how much coverage you need as well as different ways to make it affordable.
Now Get Life Insurance Online!
For those who want a quick, online method of getting life insurance, SAV-ON is proud to announce a new partnership with EQUOTE to provide an easy-to-use online platform that requires no medical exam. It's the simplest and quickest process in the industry!
Go to www.sav-on.com to find out more about EQUOTE, or call us at 888-867-2866 to set up an appointment.
Rabu, 18 September 2013
Selasa, 17 September 2013
The Rise and Rise of Malaysia Property Prices
According to statistics from the National Property Information
Centre (Napic), approximately 1,170 units of residential property
costing RM1 million and above exchanged hands in the first quarter of
2010. This is a significant increase of more than 50 per cent compared
to the 750 units sold during the same period last year. Excluding
residential housing transacted between RM50,000 to RM100,000, all the
other six price categories between RM100,001 to RM1 million witnessed an
increase in transaction numbers.
This situation is not entirely surprising though, and according to Malaysia property consultants polled, it has a lot to do with consumer confidence. Although the world has yet to completely come out of the financial rut started by U.S. sub-prime problems, the matter of the fact is that Malaysians have become richer - whether it is because of the stronger Ringgit or the red-hot local stock market. Personal incomes have also increased and hence, people are willing to put down more money on big ticket items.
The increased confidence and stronger purchasing power are motivating first-time home buyers to snap up entry-level properties, existing home buyers to upgrade to bigger homes and the higher-income group to purchase for investment. Naturally, the easy financing arranged by property developers with the banks and record-low interest rates of up to Base Lending Rate (BLR) minus 2.5 per cent are supporting factors as well.
Although the average price of houses in Malaysia have creeped up a mere 37 per cent in the last 10 years based on the national Housing Index, this number does not apply to major cities like Kuala Lumpur, Johor Bahru and Penang.
In fact, it was only in June this year that a local corporate figure made headlines for paying a whopping RM38 million for a triplex penthouse unit at The Binjai On The Park in Kuala Lumpur City Center. Located on the 42nd-storey of Tower B, the buyer was said to be attracted by the 360-degree unobstructed view of the beautiful KLCC skyline, similar to London's One Hyde Park, according to newspaper reports. At RM38 million, the price for the 14,300 square feet private apartment works out to almost RM2,700 per square foot.
Will Malaysia property prices continue rising at its current blistering pace or will the prices collapse, is anybody's guess. While countries like China and Singapore have already begun implementing new housing policies like higher down-payments and property gains tax, and also increased interest rates to rein in property prices, the Malaysian government has not shown any signs of concern. Instead, Prime Minister Najib Razak announced stamp duty exemptions for first-time home buyers and zero down-payment for residential property costing up to RM220,000 during the recent Budget 2011 in October.
This situation is not entirely surprising though, and according to Malaysia property consultants polled, it has a lot to do with consumer confidence. Although the world has yet to completely come out of the financial rut started by U.S. sub-prime problems, the matter of the fact is that Malaysians have become richer - whether it is because of the stronger Ringgit or the red-hot local stock market. Personal incomes have also increased and hence, people are willing to put down more money on big ticket items.
The increased confidence and stronger purchasing power are motivating first-time home buyers to snap up entry-level properties, existing home buyers to upgrade to bigger homes and the higher-income group to purchase for investment. Naturally, the easy financing arranged by property developers with the banks and record-low interest rates of up to Base Lending Rate (BLR) minus 2.5 per cent are supporting factors as well.
Although the average price of houses in Malaysia have creeped up a mere 37 per cent in the last 10 years based on the national Housing Index, this number does not apply to major cities like Kuala Lumpur, Johor Bahru and Penang.
In fact, it was only in June this year that a local corporate figure made headlines for paying a whopping RM38 million for a triplex penthouse unit at The Binjai On The Park in Kuala Lumpur City Center. Located on the 42nd-storey of Tower B, the buyer was said to be attracted by the 360-degree unobstructed view of the beautiful KLCC skyline, similar to London's One Hyde Park, according to newspaper reports. At RM38 million, the price for the 14,300 square feet private apartment works out to almost RM2,700 per square foot.
Will Malaysia property prices continue rising at its current blistering pace or will the prices collapse, is anybody's guess. While countries like China and Singapore have already begun implementing new housing policies like higher down-payments and property gains tax, and also increased interest rates to rein in property prices, the Malaysian government has not shown any signs of concern. Instead, Prime Minister Najib Razak announced stamp duty exemptions for first-time home buyers and zero down-payment for residential property costing up to RM220,000 during the recent Budget 2011 in October.
Minggu, 08 September 2013
GST Implementation in Malaysia - The Argument
There were many responses when the Malaysian government first
announced the Financial Budget for Malaysia, year 2010, both good and
bad. But when they were undecided about GST, it sparked more
conversation on whether it'll benefit the Rakyat, or further threaten
poorer communities in Malaysia.
What goods GST covers
As proposed by our dear government, GST covers all types of goods & services sold to Malaysian & non-Malaysian residents (therefore consumers) except for a common commodities such as rice, flour & sugar.
This goes to mean: Whenever you walk into your favorite hypermarket with the family to get some groceries in the future, you will be charged additional ~% (the proposed additional 4%) on top of your bill except for certain controlled items.
Further, Malaysia's main revenue shouldn't just live off petroleum. In other words, we shouldn't put all eggs in one basket because petroleum revenues have risks of its own, seeing that it's a natural resource.
What reason did they give? More funds for development and expenses.
How much would they probably get? RM1 billion (RM1,000,000,000) per annum in estimated rounded-up revenue.
Will it hurt the poor & middle class?
To a certain extent, it will somehow affect pockets of middle and lower income group Malaysians.
The arguments:
Other side of the GST story
GST has been said to promise a few things:
Of course, there are many pros and cons of the new GST system - And the implementers should look more intricately into all income groups, balance their sheets and understand what are the effects first. While we can only propose so much, there's only so much we can do.
Here are some of the 'preparation techniques' the tablers of the GST Bill can adopt:
What goods GST covers
As proposed by our dear government, GST covers all types of goods & services sold to Malaysian & non-Malaysian residents (therefore consumers) except for a common commodities such as rice, flour & sugar.
This goes to mean: Whenever you walk into your favorite hypermarket with the family to get some groceries in the future, you will be charged additional ~% (the proposed additional 4%) on top of your bill except for certain controlled items.
Further, Malaysia's main revenue shouldn't just live off petroleum. In other words, we shouldn't put all eggs in one basket because petroleum revenues have risks of its own, seeing that it's a natural resource.
What reason did they give? More funds for development and expenses.
How much would they probably get? RM1 billion (RM1,000,000,000) per annum in estimated rounded-up revenue.
Will it hurt the poor & middle class?
To a certain extent, it will somehow affect pockets of middle and lower income group Malaysians.
The arguments:
- Recent price hike in petrol, prices of commodities have increased drastically. And now another one called GST?
- Income tax brackets for high earners aren't as 'expensive' as middle-to-low income groups.
- The Malaysian government has saved approximately RM2 billion (RM2,000,000,000) by lowering fuel subsidies - What's the take on GST now for lower income groups?
- GST is tax on SPENDING. Basically, everything from parking fees to purchasing mattress. Even with GST-exempted items, this would still hit lower income groups in Malaysia.
- Private sectors aren't paying much to Malaysians - Other more developed countries such as Singapore could take this hit because wages & salaries are much higher.
- Other countries such as Britain, India, Hong Kong, Japan and Singapore has GST - Doesn't mean GST has to be implemented in Malaysia. Their economic status and way of gaining revenue varies from Malaysia. (GST is also called VAT - Value Added Tax in other countries)
- Inflation may happen. Prime Minister Mr. Najib has guaranteed no inflation - But with the introduction of GST, the chain of 'passing the cost' will end up usually at the hands of consumers.
- Corruption isn't a rare thing in Malaysia - So businesses has already included 'corruption prices' in goods & services. How does that not reflect additional costs to consumers?
- Out of inflation pressures, higher prices for goods & services are sought.
Other side of the GST story
GST has been said to promise a few things:
- Implementation will not be abrupt. It will be a slow & steady tax preparation so that individuals and small businesses will not be adversely affected.
- It will replace the 10+5% services and goods tax. This means taxes are lower now - Consumers need not pay more for one area, but it's divided into many other source of 'tax' payments.
- GST rates are promised at 4%, out of the normal 10% or 5% charged in restaurants.
- Implementation will not occur until middle to late 2011 or 2012. Planning time is essential to not put 'inflation pressure' on small businesses.
- Government's coffers will increase. This will enable further development and budget control to the country, other than relying just on petroleum or income tax revenues.
- Tax when consumed, not when earned is much better. It allows better control. Spending influences will be "Careful" and "More controlled" when purchasing on higher prices are made rather than "taxable incomes" generated from work.
- It's a broad-based tax system. Some items may be slightly more expensive & cheaper. It's not a overall standardized taxation method.
Of course, there are many pros and cons of the new GST system - And the implementers should look more intricately into all income groups, balance their sheets and understand what are the effects first. While we can only propose so much, there's only so much we can do.
Here are some of the 'preparation techniques' the tablers of the GST Bill can adopt:
- Be intricate with details: Tax is a complicated subject, like a science of its own. If you make the subject complicated, it may lead to more misunderstandings and later, more arguments.
- Introduce 'layman terms' for further understanding. Giving examples always help. Examples on implementations always help. Tell a story to the public - And make it make sense to them.
- Use other form of publicity media: Tabling the GST Bill on national newspapers and mass media isn't going to cut it. Find other means such as introduction campaigns Malaysia-wide.
- Engage community understanding: Allow certain private and public (individual or company) figures to table talks and debates on GST Malaysia-wide. This encourages engagement and allows more problems & solutions to be seen.
Senin, 02 September 2013
Tips for Foreigners Buying Properties in Malaysia
Tips on Investing Properties In Malaysia
If you are foreigner and plan to invest in a property in Malaysia, here are some tips that you will find useful.
Financing your property
As a foreigner, you are allowed to borrow up to 70%. In most case, the banks are more than willing to finance your purchase of 50% of your property price.
Restriction in Disposing of your property
You are not allowed to sell your property less than 3 years from the date of your purchase.
Number of units you can own in Malaysia
As a foreigner, you are only allowed to own not more than 2 properties. Should you intend to purchase a third property, you will have to appeal to the Foreign Investment Committee and provide a valid reason for the third purchase. There is no guarantee that your appeal will be granted.
Remitting money into Malaysia
If you intend to purchase or have purchased a property in Malaysia, you are allowed to open a bank account to remit your funds from your domicile country for purpose of paying for the property.
Taxation of your property
Should you intend to dispose your property within the 5 years after the date of your acquisition, you will be taxed 30% of the gains only. If you dispose your property after the 6th year of your purchase, you will be taxed on 5%of your gains.
Minimum purchase price allowed to purchase
As a foreigner, you are allowed to purchase a property costing more than Ringgit 150,000. In some states such as Johor, Melaka and Penang, the purchase price of the property must be more than Ringgit 250,000.
Types of properties you are allowed to purchase
You are allowed to purchase residential apartments, condominiums, service apartments and landed properties such as terrace, semi-detached and bungalows.
Fees involved in purchasing a property
You are required to pay legal fees and disbursements for the preparation of the sale and purchase agreement whichis a percentage of the value of the property. Should you plan to take up financing from a bank, you will have to pay legal fees and disbursements for the preparation of the loan documents.
If you are foreigner and plan to invest in a property in Malaysia, here are some tips that you will find useful.
Financing your property
As a foreigner, you are allowed to borrow up to 70%. In most case, the banks are more than willing to finance your purchase of 50% of your property price.
Restriction in Disposing of your property
You are not allowed to sell your property less than 3 years from the date of your purchase.
Number of units you can own in Malaysia
As a foreigner, you are only allowed to own not more than 2 properties. Should you intend to purchase a third property, you will have to appeal to the Foreign Investment Committee and provide a valid reason for the third purchase. There is no guarantee that your appeal will be granted.
Remitting money into Malaysia
If you intend to purchase or have purchased a property in Malaysia, you are allowed to open a bank account to remit your funds from your domicile country for purpose of paying for the property.
Taxation of your property
Should you intend to dispose your property within the 5 years after the date of your acquisition, you will be taxed 30% of the gains only. If you dispose your property after the 6th year of your purchase, you will be taxed on 5%of your gains.
Minimum purchase price allowed to purchase
As a foreigner, you are allowed to purchase a property costing more than Ringgit 150,000. In some states such as Johor, Melaka and Penang, the purchase price of the property must be more than Ringgit 250,000.
Types of properties you are allowed to purchase
You are allowed to purchase residential apartments, condominiums, service apartments and landed properties such as terrace, semi-detached and bungalows.
Fees involved in purchasing a property
You are required to pay legal fees and disbursements for the preparation of the sale and purchase agreement whichis a percentage of the value of the property. Should you plan to take up financing from a bank, you will have to pay legal fees and disbursements for the preparation of the loan documents.
Financing A Property Investment In Malaysia
Not many of us have spare funds that we can use to pay for the
purchase of a property in one lump sum. Moreover, even if we did have
those funds, we may want to put it into other uses such as playing the
stock market or expanding our businesses in order to gain other
financial benefits. Hence to purchase a property, we have to depend on
loans or overdrafts. This fact is well recognised as you will see
temporary offices of banks and finance companies set up in property
developers' sale offices to facilitate such services.
What are the sources to finance a property investment in Malaysia? This article will seeks to provide you with the answers. However, what is stated in this article should be taken as a guide only. It is advisable for you to check with your financial institution for the specific terms and conditions prevailing at the time of taking the loan.
The sources of financing of property purchase in Malaysia are:
1) Commercial banks and licenced finance companies. One of the most common source of mortgage finance is from either local or foreign banks in Malaysia. However, there has been a growing trend of other financial institution such as insurance companies jumping into the mortgage bandwagon.
2) Bank Simpanan Nasional (National Savings Bank). This bank provides housing loans but it is selective as to whom it gives those loans to. It provides loans for property costing RM100,000 or less. The applicant should be a Malaysian citizen, aged between 18 years and not more than 55 years upon date of the loan maturity.
3) Malaysian Building Society Bhd (MBSB). This is the only building society in Peninsular Malaysia which gives out housing loans. It has been doing so for many years. Only Malaysian above age of 18 years are eligible for the loans but the loan must be for houses in Peninsular Malaysia only.
The following are only a few sources to finance a property investment in Malaysia. Different sources will have their own terms and conditions. Check with the respective institution for detail before signing the agreement.
What are the sources to finance a property investment in Malaysia? This article will seeks to provide you with the answers. However, what is stated in this article should be taken as a guide only. It is advisable for you to check with your financial institution for the specific terms and conditions prevailing at the time of taking the loan.
The sources of financing of property purchase in Malaysia are:
1) Commercial banks and licenced finance companies. One of the most common source of mortgage finance is from either local or foreign banks in Malaysia. However, there has been a growing trend of other financial institution such as insurance companies jumping into the mortgage bandwagon.
2) Bank Simpanan Nasional (National Savings Bank). This bank provides housing loans but it is selective as to whom it gives those loans to. It provides loans for property costing RM100,000 or less. The applicant should be a Malaysian citizen, aged between 18 years and not more than 55 years upon date of the loan maturity.
3) Malaysian Building Society Bhd (MBSB). This is the only building society in Peninsular Malaysia which gives out housing loans. It has been doing so for many years. Only Malaysian above age of 18 years are eligible for the loans but the loan must be for houses in Peninsular Malaysia only.
The following are only a few sources to finance a property investment in Malaysia. Different sources will have their own terms and conditions. Check with the respective institution for detail before signing the agreement.
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