Common property interests
Common property interests are :
A) Freehold interests
. The owner holds absolutely and in perpetuity
. Absolute ownership unencumbered by any other interests.
. Possesses all the rights and benefits of the property
. Subject only to taxation, compulsory purchase, police power etc.
. However there is a limit on the extend of physical ownership:
- air right;
- minerals underground;
- planning control;
- treasures underground.
B) Leasehold interests
A leasehold owner has :
. the right to occupy the property for the unexpired term;
. the right to claim a new lease;
. the right to receive profit rent;
. restricted in the dealings
e.g. under express covenants such as to keep premises in good repair.
Leasehold interests revert back to the State Government at the end of the leasehold term. Owner need to pay premium to obtain a new leasehold title.
C) Life interests
. Interests created whereby the property is settled on a person for life and after his death passes to the heirs of his body.
. The interest may pass from generation to generation unless there are no heirs.
Example: ” … to my wife for her life and then to my son, John ….”
D) Ground Lease
. For building operations or for the use of land only.
. is secured because the rent is a percentage of rack rent (full rental value).
. Lease duration up to 99 years
. Does not provide a hedge against inflation
. Periodic rent reviews are provided for within the lease term
Peppercorn rent is the minimal rent paid for the duration of the construction period for a building during the initial ground lease period.
Types of interests in real estate
Types of interests in real estate :
-Temporary occupation interest (TOL)
-Easement: an interest that conveys use but not ownership of a portion of a real property
Property, Real Estate and Real Property
To the layman, property often refers to the ‘land’ or ‘land and building’. Property is also often known as real estate.
Real estate refers to immovable property which includes land and improvements to the land such as buildings.
Specifically, real estate can be defined as the physical land and those man-made items attached to the land be it on, above or below the ground.
Real estate/property sometimes may refer to the legal rights and interests in land and buildings. In this context, real property is the more appropriate term.
Real property is a legal term used to describe ownership rights over real estate. Real property refer to all interests, benefits and rights inherent in the ownership of physical real estate. An interest or interests in real property is normally demonstrated by some evidence of ownership e.g. a title deed.
Malaysia Property Market News
Malaysia´s economy likely to grow in January-March 2020
5 December, PUTRAJAYA – The Malaysian economy is expected to grow from January to March 2020 based on the September 2019 Leading Index which indicates that the country is in a recovery phase, said Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin.
He said the Leading Index is a yardstick to measure the expected course of the overall economic movements in the future, which is capable of predicting the direction of the economy in the next four to six months.
The Leading Index was visualised through the Malaysia Business Cycle Clock (MBCC) — a new innovation by the Department of Statistics to provide consumers with a clearer and more friendly understanding of the economic cycle visually than time series data, he added
The MBCC is a cycle visualisation divided into four quadrants, namely expansion, slowdown, recession and recovery, he said at the launch of the Malaysian Import-Export Statistics by States and the MBCC here today.
Mohd Uzir said the MBCC also visualised the Coincident Index, which is used as a comprehensive measure of the current state of the economy, as well as the trend of the monthly Gross Domestic Product.
“The September 2019 Coincident Index is in a slowdown phase, which is indicative of a slowing economy in September 2019,” he said.
Mohd Uzir said the development of the MBCC put Malaysia on par with the initiative of the National Statistical Office, which was only released in some developed countries such as the Netherlands, South Korea and the Organisation for Economic Cooperation and Development.
Besides, he said based on Malaysia’s Import-Export Statistics by States, four states that dominated exports for the January-September period this year were Penang (28.4 per cent), Johor (20.2 per cent), Selangor (19.8 per cent), and Sarawak (8.3 per cent).
For imports, he said Selangor was the largest contributor at 27.5 per cent followed by Penang (21.1 per cent), Johor (20.4 per cent) and Kuala Lumpur (8.7 per cent).
He said Malaysia’s exports decreased 1.1 per cent to RM728.5 billion for the January-September 2019 period from RM736.8 billion in the same period in 2018, while imports declined 3.3 per cent to RM627.7 billion compared to RM649.3 billion previously.
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