Who we are

MQ companies focus on assisting our clients since 1998 to excel in their wealth management. Our unique model has helped many entrepreneurs to embark on a strong footing in their line of business and life. It has successfully assisted many existing clients or affiliates to witness breakthrough improvement in terms of wealth management and life.  

What we do

You will find this one stop money quotient hub here in MQ with our areas of services to assist you.

Personal Financial Planning
Insurance planning
Retirement planning
Estate planning
Business Financial Planning
Business Funding
Guarantor Indemnity Plan
Keyman Compensation Plan
Business Succession Plan
Professional Value Plan
Group Employee Benefit Scheme
General Insurance
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clients

Your reliable partner

MQ is committed to providing excellent service in wealth management of our clients and strive to be the central hub of financial services excellence with extreme passion to serve and share in personal or corporate level.

We love making positive impacts.

Thank you for taking great care of us on our insurance. You and your team at MQ Consultancy Sdn Bhd have been wonderful to work with. Just list out one of the friendly customer service that given, MQ’s staff is stationed in Ee-Lian café every Friday and ready to give professional insurance advice to our employees without extra charges. Jason has always been tried his best to provide the better coverage than the prior and save us in term of premium charges at the same time. I would recommend Jason to anyone without hesitation or reservation.

Dr Teoh Han Chuan
Group Managing Director
SWS Capital Berhad

Good,Affordable,Fast ; Products following market trend and demand; Feel personalized services provided by the MQ Team

10 years ago, MQ did my wife medical claim and handed the pay cheque to my house on my hand within 3 working days! Truly appreciated MQ founder Mr Jason Koeh efficiency in helping me to go thru my life most difficulties period. Mr Jason Koeh even think of the best on how to made claim for chemo therapy treatment on my wife using the medical card ( very lucky Mr Jason Koeh proposed the Medical Card to my wife as her first Insurance Policy). After all those sour and painful story we become very good friend and we treasure each other until today. Life is Great. I love u bro.

Ng Cheng Hoe
Director
Inno PDA Sdn Bhd

Friendly, reliable and efficient

MQ provides excellent service in many aspects since the beginning till now and the people in MQ has always been there for me like a family when needed. Hence, this is very important for me and as a customer as I felt MQ is reliable and efficient in providing their service.

Geoffrey Teoh
Manager
Financial Institution

Informative, latest update and financial newsletter

Dr Chong Yen Nee
Chief Executive Officer
Yayasan Penjaja dan Peniaga Kecil 1Malaysia

Quick response, competitive quote and comprehensive product info

Sheley Teoh
General Manager - Sales
Blu Inc Media Sdn Bhd

FAST,

EFFICIENT, 

HELPFUL!
Aster Lim
Group Managing Editor
Blu Inc Media Sdn Bhd

Professional advice on insurance, Effecient and effectiveness MQ team

I will recommend MQ due to the professionalism of the team. Look forward to see this organisation grow!

Eric Gan
Regional Sales Manager
MBNS (ASTRO)

Consult, Advise, Reference. Train all staff to implement same character.

Dr. Samsudin Wahab
Lecturer
UiTM

Service is professional and personalized. 

Efficient, competitive and attentive. Thank you for taking care of us and we look forward to many more years with you.

Aanear You Chee Chien
Executive Director
Yee Loong Engineering Sdn Bhd

Always updated service, knowledgeable consultation,

None of the financial company can provide such great service like they do!

Dr Shirley
Doctor
AOKlinik
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Need professional advice on financial management?

Let our team assist you!

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Our Corporate Social Responsibility

The most important objective of our company is to obtain profitability in the long term. Guided by its mission and values we seek to achieve profits without prejudice to society and the environment.

Latest Updates

Five Rules to Improve Your Financial Health

The term “personal finance” refers to how you manage your money and how you plan for your future. All of your financial decisions and activities have an effect on your financial health now and in the future. We are often guided by specific rules of thumb – such as “don’t buy a house that costs more than 2.5 years’ worth of income” or “you should always save at least 10% of your income towards retirement.” While many of these adages are time tested and truly helpful, it’s important to consider what we should be doing – in general – to help improve our financial habits and health. Here, we discuss five broad personal finance rules that can help get you on track to achieving specific financial goals

1. Do the Math – Net Worth and Personal Budgets

Money comes in, money goes out. For many people, this is about as deep as their understanding gets when it comes to personal finances. Rather than ignoring your finances and leaving them to chance, a bit of number crunching can help you evaluate your current financial health and determine how to reach your short- and long-term financial goals

As a starting point, it is important to calculate your net worth – the difference between what you own and what you owe. To calculate your net worth, start by making a list of your assets (what you own) and your liabilities (what you owe). Then subtract the liabilities from the assets to arrive at your net-worth figure. Your net worth represents where you are financially at that moment, and it is normal for the figure to fluctuate over time. Calculating your net worth one time can be helpful, but the real value comes from making this calculation on a regular basis (at least yearly). Tracking your net worth over time allows you to evaluate your progress, highlight your successes and identify areas requiring improvement.

Equally important is developing a personal budget or spending plan. Created on a monthly or annual basis, a personal budget is an important financial tool because it can help you:

-Plan for expenses.
-Reduce or eliminate expenses.
-Save for future goals.
-Spend wisely.
-Plan for emergencies.
-Prioritize spending and saving.

There are numerous approaches to creating a personal budget, but all involve making projections for income and expenses. The income and expense categories you include in your budget will depend on your situation and can change over time. Common income categories include:

-alimony
-bonuses
-child support
-disability benefits
-interest and dividends
-rents and royalties
-retirement income
-salaries/wages
-Social Security
-Tips

General expense categories include:
-childcare/eldercare
-debt payments – car loan, student loan, credit card
-education – tuition, day-care, books, supplies
-entertainment and recreation – sports, hobbies, movies, DVDs, concerts, Netflix
-food – groceries, dining out
-giving – birthdays, holidays, charitable contributions
-housing – mortgage or rent, maintenance
-insurance – health, home/renters, auto, life
-medical/healthcare – doctors, dentist, prescription medications, other known expenses
-personal – clothing, hair care, gym, professional dues
-savings – retirement, education, emergency fund, specific goals (i.e. vacation)
-special occasions – weddings, anniversaries, graduation
-transportation – gas, taxis, subway, tolls, parking
-utilities – phone, electric, water, gas, cell, cable, Internet

Once you’ve made the appropriate projections, subtract your expenses from your income. If you have money left over, you have a surplus and you can decide how to spend, save or invest the money. If your expenses exceed your income, however, you will have to adjust your budget by increasing your income (adding more hours at work or picking up a second job) or by reducing your expenses.

To really understand where you are financially, and to figure out how to get where you want to be, do the math: Calculate both your net worth and a personal budget on a regular basis. This may seem abundantly obvious to some, but people’s failure to lay out and stick to a detailed budget is the root cause of excessive spending and overwhelming debt.

2. Recognize and Manage Lifestyle Inflation

Most individuals will spend more money if they have more money to spend. As people advance in their careers and earn higher salaries, there tends to be a corresponding increase in spending, a phenomenon known as lifestyle inflation. Even though you might be able to pay your bills, lifestyle inflation can be damaging in the long run because it limits your ability to build wealth: Every extra dollar you spend now means less money later and during retirement.

One of the main reasons people allow lifestyle inflation to sabotage their finances is their desire to keep up with the Joneses. It’s not uncommon for people to feel the need to match their friends’ and co-workers’ spending habits. If your peers drive BMWs, vacation at exclusive resorts and dine at expensive restaurants, you might feel pressured to do the same. What is easy to overlook is that in many cases the Joneses are actually servicing a lot of debt – over a period of decades – to maintain their wealthy appearance. Despite their wealthy “glow” – the boat, the fancy cars, the expensive vacations, the private schools for the kids – the Joneses might be living pay check to pay check and not saving a dime for retirement.

As your professional and personal situation evolves over time, some increases in spending are natural. You might need to upgrade your wardrobe to dress appropriately for a new position, or, as your family grows, you might need a house with more bedrooms. And with more responsibilities at work, you might find that it makes sense to hire someone to mow the lawn or clean the house, freeing up time to spend with family and friends and improving your quality of life.

3. Recognize Needs vs. Wants – and Spend Mindfully

Unless you have an unlimited amount of money, it’s in your best interest to be mindful of the difference between needs and wants so you can make better spending choices. “Needs” are things you have to have in order to survive: food, shelter, healthcare, transportation, a reasonable amount of clothing (many people include savings as a need, whether that’s a set 10% of their income or whatever they can afford to set aside each month). Conversely, “wants” are things you would like to have, but that you don’t need for survival.

It can be challenging to accurately label expenses as either needs or wants, and for many, the line gets blurred between the two. When this happens, it can be easy to rationalize away an unnecessary or extravagant purchase by calling it a need. A car is a good example. You need a car to get to work and take the kids to school. You want the luxury edition SUV that costs twice as much as a more practical car (and costs you more in gas). You could try and call the SUV a “need” because you do, in fact, need a car, but it’s still a want. Any difference in price between a more economical vehicle and the luxury SUV is money that you didn’t have to spend.

Your needs should get top priority in your personal budget. Only after your needs have been met should you allocate any discretionary income toward wants. And again, if you do have money left over each week or each month after paying for the things you really need, you don’t have to spend it all.

4. Start Saving Early

It’s often said that it’s never too late to start saving for retirement. That may be true (technically), but the sooner you start, the better off you’ll likely be during your retirement years. This is because of the power of compounding – what Albert Einstein called the “eighth wonder of the world.”

Compounding involves the reinvestment of earnings, and it is most successful over time: The longer earnings are reinvested, the greater the value of the investment, and the larger the earnings will (hypothetically) be.

To illustrate the importance of starting early, assume you want to save $1,000,000 by the time you turn 60. If you start saving when you are 20 years old, you would have to contribute $655.30 a month – a total of $314,544 over 40 years – to be a millionaire by the time you hit 60. If you waited until you were 40, your monthly contribution would bump up to $2,432.89 – a total of $583,894 over 20 years. Wait until 50 and you’d have to come up with $6,439.88 each month – equal to $772,786 over the 10 years. (These figures are based on an investment rate of 5% and no initial investment. Please keep in mind, they are for illustrative purposes only and do not take into consideration actual returns, taxes or other factors). The sooner you start, the easier it is to reach your long-term financial goals. You will need to save less each month, and contribute less overall, to reach the same goal in the future.

5. Build and Maintain an Emergency Fund

An emergency fund is just what the name implies: money that has been set aside for emergency purposes. The fund is intended to help you pay for things that wouldn’t normally be included in your personal budget: unexpected expenses such as car repairs or an emergency trip to the dentist. It can also help you pay your regular expenses if your income is interrupted; for example, if an illness or injury prevents you from working or if you lose your job.

Although the traditional guideline is to save three to six months’ worth of living expenses in an emergency fund, the unfortunate reality is that this amount would fall short of what many people would need to cover a big expense or weather a loss in income. In today’s uncertain economic environment, most people should aim for saving at least six months’ worth of living expenses – more if possible. Putting this as a regular expense item in your personal budget is the best way to ensure that you are saving for emergencies and not spending that money frivolously.

Keep in mind that establishing an emergency backup is an ongoing mission. Odds are, as soon as it is funded you will need it for something. Instead of being dejected about this, be glad that you were financially prepared and start the process of building the fund again.

The Bottom Line

Personal finance rules-of-thumb can be excellent tools for achieving financial success. But It’s important to consider the big picture and build habits that help you make better financial choices, leading to better financial health. Without good overall habits, it will be difficult to obey detailed adages like “never withdraw more than 4% a year to make sure your retirement lasts” or “save 20 times your gross income for a comfortable retirement.”

Source: Investopedia

www.mqbusinesswealth.com
... Read moreHide

1 week ago

Five Rules to Improve Your Financial Health

The term “personal finance” refers to how you manage your money and how you plan for your future. All of your financial decisions and activities have an effect on your financial health now and in the future. We are often guided by specific rules of thumb – such as “don’t buy a house that costs more than 2.5 years’ worth of income” or “you should always save at least 10% of your income towards retirement.” While many of these adages are time tested and truly helpful, it’s important to consider what we should be doing – in general – to help improve our financial habits and health. Here, we discuss five broad personal finance rules that can help get you on track to achieving specific financial goals

1. Do the Math – Net Worth and Personal Budgets

Money comes in, money goes out. For many people, this is about as deep as their understanding gets when it comes to personal finances. Rather than ignoring your finances and leaving them to chance, a bit of number crunching can help you evaluate your current financial health and determine how to reach your short- and long-term financial goals
 
As a starting point, it is important to calculate your net worth – the difference between what you own and what you owe. To calculate your net worth, start by making a list of your assets (what you own) and your liabilities (what you owe). Then subtract the liabilities from the assets to arrive at your net-worth figure. Your net worth represents where you are financially at that moment, and it is normal for the figure to fluctuate over time. Calculating your net worth one time can be helpful, but the real value comes from making this calculation on a regular basis (at least yearly). Tracking your net worth over time allows you to evaluate your progress, highlight your successes and identify areas requiring improvement.

Equally important is developing a personal budget or spending plan. Created on a monthly or annual basis, a personal budget is an important financial tool because it can help you:

-Plan for expenses.
-Reduce or eliminate expenses.
-Save for future goals.
-Spend wisely.
-Plan for emergencies.
-Prioritize spending and saving.

There are numerous approaches to creating a personal budget, but all involve making projections for income and expenses. The income and expense categories you include in your budget will depend on your situation and can change over time. Common income categories include:

-alimony
-bonuses
-child support
-disability benefits
-interest and dividends
-rents and royalties
-retirement income
-salaries/wages
-Social Security
-Tips

General expense categories include:
-childcare/eldercare
-debt payments – car loan, student loan, credit card
-education – tuition, day-care, books, supplies
-entertainment and recreation – sports, hobbies, movies, DVDs, concerts, Netflix
-food – groceries, dining out
-giving – birthdays, holidays, charitable contributions
-housing – mortgage or rent, maintenance
-insurance – health, home/renters, auto, life
-medical/healthcare – doctors, dentist, prescription medications, other known expenses
-personal – clothing, hair care, gym, professional dues
-savings – retirement, education, emergency fund, specific goals (i.e. vacation)
-special occasions – weddings, anniversaries, graduation
-transportation – gas, taxis, subway, tolls, parking
-utilities – phone, electric, water, gas, cell, cable, Internet

Once you’ve made the appropriate projections, subtract your expenses from your income. If you have money left over, you have a surplus and you can decide how to spend, save or invest the money. If your expenses exceed your income, however, you will have to adjust your budget by increasing your income (adding more hours at work or picking up a second job) or by reducing your expenses.

To really understand where you are financially, and to figure out how to get where you want to be, do the math: Calculate both your net worth and a personal budget on a regular basis. This may seem abundantly obvious to some, but people’s failure to lay out and stick to a detailed budget is the root cause of excessive spending and overwhelming debt.

2. Recognize and Manage Lifestyle Inflation

Most individuals will spend more money if they have more money to spend. As people advance in their careers and earn higher salaries, there tends to be a corresponding increase in spending, a phenomenon known as lifestyle inflation. Even though you might be able to pay your bills, lifestyle inflation can be damaging in the long run because it limits your ability to build wealth: Every extra dollar you spend now means less money later and during retirement.

One of the main reasons people allow lifestyle inflation to sabotage their finances is their desire to keep up with the Joneses. It’s not uncommon for people to feel the need to match their friends’ and co-workers’ spending habits. If your peers drive BMWs, vacation at exclusive resorts and dine at expensive restaurants, you might feel pressured to do the same. What is easy to overlook is that in many cases the Joneses are actually servicing a lot of debt – over a period of decades – to maintain their wealthy appearance. Despite their wealthy “glow” – the boat, the fancy cars, the expensive vacations, the private schools for the kids – the Joneses might be living pay check to pay check and not saving a dime for retirement.

As your professional and personal situation evolves over time, some increases in spending are natural. You might need to upgrade your wardrobe to dress appropriately for a new position, or, as your family grows, you might need a house with more bedrooms. And with more responsibilities at work, you might find that it makes sense to hire someone to mow the lawn or clean the house, freeing up time to spend with family and friends and improving your quality of life.

3. Recognize Needs vs. Wants – and Spend Mindfully

Unless you have an unlimited amount of money, it’s in your best interest to be mindful of the difference between needs and wants so you can make better spending choices. “Needs” are things you have to have in order to survive: food, shelter, healthcare, transportation, a reasonable amount of clothing (many people include savings as a need, whether that’s a set 10% of their income or whatever they can afford to set aside each month). Conversely, “wants” are things you would like to have, but that you don’t need for survival.

It can be challenging to accurately label expenses as either needs or wants, and for many, the line gets blurred between the two. When this happens, it can be easy to rationalize away an unnecessary or extravagant purchase by calling it a need. A car is a good example. You need a car to get to work and take the kids to school. You want the luxury edition SUV that costs twice as much as a more practical car (and costs you more in gas). You could try and call the SUV a “need” because you do, in fact, need a car, but it’s still a want. Any difference in price between a more economical vehicle and the luxury SUV is money that you didn’t have to spend.

Your needs should get top priority in your personal budget. Only after your needs have been met should you allocate any discretionary income toward wants. And again, if you do have money left over each week or each month after paying for the things you really need, you don’t have to spend it all.

4. Start Saving Early

It’s often said that it’s never too late to start saving for retirement. That may be true (technically), but the sooner you start, the better off you’ll likely be during your retirement years. This is because of the power of compounding – what Albert Einstein called the “eighth wonder of the world.”

Compounding involves the reinvestment of earnings, and it is most successful over time: The longer earnings are reinvested, the greater the value of the investment, and the larger the earnings will (hypothetically) be.  

To illustrate the importance of starting early, assume you want to save $1,000,000 by the time you turn 60. If you start saving when you are 20 years old, you would have to contribute $655.30 a month – a total of $314,544 over 40 years – to be a millionaire by the time you hit 60. If you waited until you were 40, your monthly contribution would bump up to $2,432.89 – a total of $583,894 over 20 years. Wait until 50 and you’d have to come up with $6,439.88 each month – equal to $772,786 over the 10 years. (These figures are based on an investment rate of 5% and no initial investment. Please keep in mind, they are for illustrative purposes only and do not take into consideration actual returns, taxes or other factors). The sooner you start, the easier it is to reach your long-term financial goals. You will need to save less each month, and contribute less overall, to reach the same goal in the future.

5. Build and Maintain an Emergency Fund

An emergency fund is just what the name implies: money that has been set aside for emergency purposes. The fund is intended to help you pay for things that wouldn’t normally be included in your personal budget: unexpected expenses such as car repairs or an emergency trip to the dentist. It can also help you pay your regular expenses if your income is interrupted; for example, if an illness or injury prevents you from working or if you lose your job.

Although the traditional guideline is to save three to six months’ worth of living expenses in an emergency fund, the unfortunate reality is that this amount would fall short of what many people would need to cover a big expense or weather a loss in income. In today’s uncertain economic environment, most people should aim for saving at least six months’ worth of living expenses – more if possible. Putting this as a regular expense item in your personal budget is the best way to ensure that you are saving for emergencies and not spending that money frivolously.

Keep in mind that establishing an emergency backup is an ongoing mission. Odds are, as soon as it is funded you will need it for something. Instead of being dejected about this, be glad that you were financially prepared and start the process of building the fund again.

The Bottom Line

Personal finance rules-of-thumb can be excellent tools for achieving financial success. But It’s important to consider the big picture and build habits that help you make better financial choices, leading to better financial health. Without good overall habits, it will be difficult to obey detailed adages like “never withdraw more than 4% a year to make sure your retirement lasts” or “save 20 times your gross income for a comfortable retirement.”

Source: Investopedia

www.mqbusinesswealth.com

Happy Father's Day 🎉💖🌻 ... Read moreHide

1 week ago

Happy Fathers Day 🎉💖🌻

Quit Rent & Parcel Rent: Here's What You Need to Know Before Buying a House

Are you a Malaysian who's planning to purchase property for the very first time (Congratulations!), but haven't heard of 'quit rent' or 'parcel rent' before?

If you're nodding in response to this question, you might want to pause your property-buying process and calm your 'Just buy lah!' spirit down a little.

Why? Because recently, there's a sudden hike of land tax under the conversion from quit rent to parcel rent. The change from quit to parcel shocked a lot of people and we know you might be just one of them. According to The Star, the drastic increase that residents are seeing is between 500% to *800% from the previous amount. The change was made last year on June 2018 to help unit owners who want to sell or transfer ownership of the property. Before this, any owner who wants to sell or transfer ownership has a hard time to do if records at land office showed the other property owners still haven't paid their rent. With the new rent system, the said process should be easier.

So, have some teh tarik and give this article a read, because what follows is a brief guide to quit rent and parcel rent: two very important concepts that you should know before buying any type of property in Malaysia!


What is quit rent?

It may seem like a rather unusual term at first, but quit rent is actually one of the most common and fundamental systems in Malaysia's property scene.

Referred to as 'cukai tanah' in Malay, quit rent is the payment that owners of local properties make to the Malaysian government through the Land Office — or Pejabat Tanah Dan Galian (PTG).

This payment is calculated by multiplying the size of an owned property in square-feet or square-metres by a specified rental rate. For instance, if your property covers an area of 3000 square feet, and the specified rate is RM0.040 per-square-foot, your quit rent would be RM120.

The quit rent for properties that are of the exact same size may not necessarily be the same across Malaysia, though. This is because the specified rate differs from one state to another, so a 2500 square-foot home in Penang can be cheaper or more expensive than an identical unit in Kedah.

Additionally, and ironically, you can't quit paying this rent either. It is charged annually, so you will need to pay your quit rent every year until you transfer the ownership of your property to someone else.

And what is parcel rent?

Here's a fun fact! The relationship between parcel rent and quit rent is just like the one between Neslo and Mocha. They are essentially the same drink but are still different due to small variations.

In the case of parcel rent and quit rent, those small variations would refer to one main thing: strata.

To put it simply, parcel rent is actually a type of quit rent that is specifically meant for strata properties which are governed by the Strata Management Act (SMA) 2013 and the Strata Titles Act (STA) 1985.

What are the strata properties? These are properties or developments that are organised by splitting a piece of land or a building into parcels or boxes.

Popular forms of this class of properties include apartments, townhouses and gated housing communities. Ever been to Desa Park City? That's an example of a massive strata development!

Each parcel is owned by the party that purchases it from the developer, while common areas like parks or a swimming pool are recognised as general parcels which belong to the developer.

Here's why parcel rent is more expensive than quit rent

"Eh? Not so different what. No need to stress lah!"

If that's what you're thinking, you might want to think again — because there's definitely more than meets the eye when it comes to these concepts, especially when you're dealing with high-rise and multilevel buildings like apartments and condominiums.

With quit-rent, the payment for an apartment building is divided between all the owners of parcels or units in that building. For example, if apartment Block A consists of 10 vertically-arranged parcels and covers an area of 4000 square feet, the quit-rent of RM200 for that building — given a rate of RM0.05 per-square-foot — would be split amongst these parcels and each parcel owner would pay RM20 a year as quit-rent.

In the context of a parcel rent system, however, each parcel owner would have to pay for that 4000 square-feet and would be required to make individual payments of RM200 annually.

This would mean that each owner has to pay a higher amount than in a quit-rent environment, but it also allows the Land Office to keep tabs on individual parcel owners and prevent them from defaulting on their rent payments, which is a very severe problem in high-rise buildings.

So why should I care?

Duh, of course lah you need to care, not paying your rent payments could lead you being chased out of your own house. Can you imagine that? Spending years paying your house loan just to be kicked out because of a tax. Refusing to pay your rent payments after two notices will result in the unit being taken back by the state government and can be sell/auction to another buyer.

So, please take note, especially for starters, when purchasing property, it is always important to know and understand the kind of rent you'll have to pay — particularly when you have to make these payments repeatedly for years, which would affect your finances.

It's also good to know how this rent is calculated, as Land Offices across Malaysia have begun implementing parcel rent systems throughout the country, and the lines between strata and non-strata properties continue to grow unclear. As such, you wouldn't want to be confused by a sudden change in your rent payment amount!

Last but not least? Regardless of whether it's a simple quit rent system or a parcel rent system, you can't avoid these payments. So why not prepare yourself for them instead?

Source: loanstreet

www.mqbusinesswealth.com
... Read moreHide

2 weeks ago

Quit Rent & Parcel Rent: Heres What You Need to Know Before Buying a House

Are you a Malaysian whos planning to purchase property for the very first time (Congratulations!), but havent heard of quit rent or parcel rent before?

If youre nodding in response to this question, you might want to pause your property-buying process and calm your Just buy lah! spirit down a little.

Why? Because recently, theres a sudden hike of land tax under the conversion from quit rent to parcel rent. The change from quit to parcel shocked a lot of people and we know you might be just one of them. According to The Star, the drastic increase that residents are seeing is between 500% to *800% from the previous amount. The change was made last year on June 2018 to help unit owners who want to sell or transfer ownership of the property. Before this, any owner who wants to sell or transfer ownership has a hard time to do if records at land office showed the other property owners still havent paid their rent. With the new rent system, the said process should be easier. 

So, have some teh tarik and give this article a read, because what follows is a brief guide to quit rent and parcel rent: two very important concepts that you should know before buying any type of property in Malaysia!
 

What is quit rent?

It may seem like a rather unusual term at first, but quit rent is actually one of the most common and fundamental systems in Malaysias property scene.

Referred to as cukai tanah in Malay, quit rent is the payment that owners of local properties make to the Malaysian government through the Land Office — or Pejabat Tanah Dan Galian (PTG).

This payment is calculated by multiplying the size of an owned property in square-feet or square-metres by a specified rental rate. For instance, if your property covers an area of 3000 square feet, and the specified rate is RM0.040 per-square-foot, your quit rent would be RM120.

The quit rent for properties that are of the exact same size may not necessarily be the same across Malaysia, though. This is because the specified rate differs from one state to another, so a 2500 square-foot home in Penang can be cheaper or more expensive than an identical unit in Kedah.

Additionally, and ironically, you cant quit paying this rent either. It is charged annually, so you will need to pay your quit rent every year until you transfer the ownership of your property to someone else.

And what is parcel rent?

Heres a fun fact! The relationship between parcel rent and quit rent is just like the one between Neslo and Mocha. They are essentially the same drink but are still different due to small variations.

In the case of parcel rent and quit rent, those small variations would refer to one main thing: strata.

To put it simply, parcel rent is actually a type of quit rent that is specifically meant for strata properties which are governed by the Strata Management Act (SMA) 2013 and the Strata Titles Act (STA) 1985.

What are the strata properties? These are properties or developments that are organised by splitting a piece of land or a building into parcels or boxes. 

Popular forms of this class of properties include apartments, townhouses and gated housing communities. Ever been to Desa Park City? Thats an example of a massive strata development!

Each parcel is owned by the party that purchases it from the developer, while common areas like parks or a swimming pool are recognised as general parcels which belong to the developer. 
 
Heres why parcel rent is more expensive than quit rent

Eh? Not so different what. No need to stress lah!

If thats what youre thinking, you might want to think again — because theres definitely more than meets the eye when it comes to these concepts, especially when youre dealing with high-rise and multilevel buildings like apartments and condominiums.

With quit-rent, the payment for an apartment building is divided between all the owners of parcels or units in that building. For example, if apartment Block A consists of 10 vertically-arranged parcels and covers an area of 4000 square feet, the quit-rent of RM200 for that building — given a rate of RM0.05 per-square-foot — would be split amongst these parcels and each parcel owner would pay RM20 a year as quit-rent.

In the context of a parcel rent system, however, each parcel owner would have to pay for that 4000 square-feet and would be required to make individual payments of RM200 annually. 

This would mean that each owner has to pay a higher amount than in a quit-rent environment, but it also allows the Land Office to keep tabs on individual parcel owners and prevent them from defaulting on their rent payments, which is a very severe problem in high-rise buildings.

So why should I care?

Duh, of course lah you need to care, not paying your rent payments could lead you being chased out of your own house. Can you imagine that? Spending years paying your house loan just to be kicked out because of a tax. Refusing to pay your rent payments after two notices will result in the unit being taken back by the state government and can be sell/auction to another buyer. 

So, please take note, especially for starters, when purchasing property, it is always important to know and understand the kind of rent youll have to pay — particularly when you have to make these payments repeatedly for years, which would affect your finances.

Its also good to know how this rent is calculated, as Land Offices across Malaysia have begun implementing parcel rent systems throughout the country, and the lines between strata and non-strata properties continue to grow unclear. As such, you wouldnt want to be confused by a sudden change in your rent payment amount!

Last but not least? Regardless of whether its a simple quit rent system or a parcel rent system, you cant avoid these payments. So why not prepare yourself for them instead?

Source: loanstreet

www.mqbusinesswealth.com

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