Professional Documents
Culture Documents
ECONOMIC
LEGAL
OTHERS
1. IMMOBILITY
2. SIZE
3. HETEROGENEOUS
4. DURABILITY OR
PERPERTUALITY
5. LONG
DEVELOPMENT
OR COMPLETION
TIME
6. PROPERTY
MANAGEMENT
1. INTEREST AND
RIGHTS
2. DECENTRALISED
MARKET
3. HEDGE AGAINST
INFLATION
4. LARGE
TRANSACTION
COSTS OR
INVISIBLE
5. SUPPLY LAG
6. CYCLICAL VALUES
1. VARYING
LEGISLATIONS
AND LAW
2. COMPLICATED
TRANSACTION
PROCEDURES
3. STATUTORIAL
CHARGES
LACK OF PUBLIC
INFORMATION ON
THE PRICE
INFORMATION
ONLY AVAILABLE
AT THE AUTHORITY
AND
HARDLY
ACCESSIBLE
BY
PUBLIC
BROUCHER PRICE
MAY BE DIFFERENT
FROM REAL PRICE
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IMMOVEABLE
NO PHYSICAL
MARKET
PLACE
SPATIAL FIXTY
SIZE
HETEROGENEOUS
COULD BE
VERY HUGE
INDIVIDUALLY
UNIQUE
SURFACE OF
THE EARTH
VARIOUS FACTOR
AFFECT THE PRICE
DURABILITY OR
PERPERTUALITY
LONG LASTING
FOR YEARS/
CENTURIES
INDESTRUCTABLE
SUITABLE FOR
HABITAT
LONG
DEVELOPMENT
OR
COMPLETION
TIME
PROPERTY
MANAGEMENT
LAND
AQUISATION
VARIOUS
MATTERS
RELATED TO
PROPERTY :
TAXES, LEGAL
FEES,
MAINTENANCE
DEVELOPMENT
CERTIFICATE OF
FITNESS FOR
OCCUPANCY
24 36
MONTHS
NEED
PROPERTY
MANAGERS
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OWNERSHIP
PROVED IN
TITLE DEEDS
REGISTERED
AND
BENEFICIAL
INTEREST
CREATE
INCOME AND
SAVE MONEY
DECENTRALISED
MARKET
HEDGE AGAINST
INFLATION
TRANSACTION
THROUGH
PROPERTY
AGENT
BETTER THAN
STOCKS AND
SHARES
NO
CENTRALISED
MARKET
ONLY HAVE
EXPOS
EG: MAPEX
DIFFERENT
PROPERTY
TYPES, HAVE
DIFFERENT
HEDGE
CHARACTERISTIC
LARGE
TRANSACTION
COSTS OR
INVISIBLE
INVOLVES
LARGE COST I.E
FEES FOR
LAWYERS,
AGENT, LAND
OFFICE,
RENOVATION
AQUIRING
PROPERTY
THORUGH
BONDS, SUKUK,
SHARES, RIETS
TOO EXPENSIVE
- OCCUPANCY
SUPPLY LAG
CYCLICAL
VALUES
AFFECTED BY -
DISEQUILIBRIUM
IN THE SHORT
RUN
OPEN TO
SPECULATION
(a) GLOBAL
AND LOCAL
ECONOMY
(b) GOV.
POLICIES
RELATIVELY LESS
LIQUID
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COMPLICATED TRANSACTION
PROCEDURES
INVOLVES SO MANY PROCESS
THAT REQUIRE A STRICT LEGAL
COMPLIANCE FOR AQUIRING
PROPERTY SUCH
DISCHARGE OF CHARGE
REGISTRATION OF OWNERSHIP
CONSENT FROM STATE
AUTHORITY
STATUTORIAL CHARGES
SUBJECT TO VARIOUS
STATUTORIAL CHARGES SUCH AS
QUIT RENT, ASSESSMENT,
BUILDING MANAGEMENT FEES
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What is land
Real property is most often thought of as a
piece of land on the surface of the earth,
including or excluding building and other
structures permanently attached to the
surface, above the surface or below the
surface.
Land is a valuable resource for mankind as life
depends on having land in which to live and
work
What is land
Land as the surface of the earth, the
materials beneath, the air above and all things
fixed to the soil. Land in modern
administration also includes resources like
marine environment, buildings, and all things
attached to it and under the surface.
Freehold land:
You can enjoy ownership in perpetuity. Perpetuity
means that there is no time limit for the owner and the
freehold land lies with the title holder until he transfers
it to someone else. The owner of the land owns the
land, the building and anything that is on the
land. After which the land owner (which could be the
state government or another enterprise) will take legal
possession of it. Freehold is more preferable and
fetches a higher price.
Leasehold Land:
Leasehold is a form of property tenure where
one party buys the right to occupy land or a
building for a given length of time. This type of
land also belongs to the government and the
least last up to 99 years. At the expiry of the
term, the land reverts back to the
government. The lesser the number of years
left on the lease, the less valuable the land
becomes.
Freehold vs Leasehold
Leasehold land belongs to the state and is leased out to an
owner for a number of years. Towards the end of a lease,
owners are required to pay a fee to extend the duration of
the lease. Freehold land on the other hand belongs to the
owner (the purchaser) indefinitely.
Additionally, during a sale and purchase process, consent is
required from state authorities (Land Office) before the
transfer can proceed. The state can withhold approval for
any number of reasons. Due to this additional step, it can
take much longer to buy / sell a leasehold property.
For these reasons, freehold properties are usually more
expensive than similar spec leasehold properties.
Without a title
Properties with only individual titles (not logged
in the Registry) can be transferred with the use of
a DOA (Deed of Assignment) document.
This DOA assigns the sellers title and rights to the
buyer, and once the DOA is officially stamped the
buyer has legal rights to the title and property.
This title will not be a part of the Land
Office/Registry until it is officially registered.
PRICE DETERMINATION
TYPES OF REAL ESTATE MARKET
OPEN MARKET
(SUPPLY AND DEMAND)
1.
2.
3.
4.
5.
ECONOMIC FACTORS
GEOGRAPHICAL
POPULATION
PHYSICAL ASPECT
TECHNOLOGICAL OR
BUILDING METHOD
6. FASHIONS AND TRENDS
7. OCCUPANCY STATUS
8. DEVELOPMENT APPROVAL
9. TENURE AND TITLE
10. CONDITIONS OR
RESTRICTIONS
11. PARTIES INVOLVED
CONTROLLED MARKET
(SUBJECT TO INFLUENCE &
DEMAND AND SUPPLY)
1. GOVERNMENT POLICIES
2. NEW ECONOMIC PLAN :
QUOTA ON ETHNIC GROUP
PURCHASERS
3. PR1MA
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