09| Bumi Lot Unveiled: A Magical Journey into Property Ownership

Bumi Lot property, my friend, is a splendid gift bestowed upon us by the government. Prepare to be enlightened about all things Bumi Lot, as we embark on a journey to uncover its mysteries. We shall commence with the definition of this enigmatic entity, who has the privilege to acquire these treasures, and what wonders and perils await those who dare to venture into the realm of Bumi Lots. Oh, and let us not forget the burning question: Can a non-bumi obtain the coveted Bumi status property? Fear not, for all shall be revealed in due course.

Let us begin our quest by unraveling the secrets of Bumi Lot, or as some may call it, Bumi status property. In simpler terms, dear reader, it refers to properties that can only be owned and purchased by our beloved Bumiputeras. It is a decree that demands all property developments allocate a certain quota, no less than 30% of the total units, to the Bumiputeras. Lo and behold, with this noble status comes a bountiful discount ranging from 5% to 15% off the developers' selling price. The state government, my friend, sets this generous Bumi discount, and each state may have its own unique percentage. For instance, in the land of Selangor, the Bumi discount stands at a delightful 7% of the selling price, while in Johor, it soars to a magnificent 15%.

But hold your horses, my inquisitive companion! Pray heed this important tidbit: the Bumi discount applies solely to new purchases directly from the developers, and not to those purchased through sub-sales. Alas, every rose has its thorns.

Let us now revel in the wonders of buying a Bumi status property, for it brings forth a multitude of benefits, my dear fellow!

First and foremost, purchasing such a property bestows upon you the gift of a lower price, allowing you to pay less for a similar abode compared to your non-bumi counterparts. Picture this: while others may fork out RM 500,000 for a property, you, my fortunate friend, can call it your own for a mere RM 475,000 after a delightful 5% bumi discount.

But wait, there's more! It means you'll pay less in subsequent costs such as stamp duty fees, sale purchase agreements, and loan agreement fees. These charges, you see, are based on a percentage of the purchase price and vary according to tiered price brackets. The lower your purchase price, the lighter your financial burden.

And that's not all, my astute friend! Owning a Bumi status property allows you to relish in higher rental yield compared to others. The rental rate remains the same for all, but since your purchase price and monthly installments are lower than your peers, you shall bask in a more delightful return on your investment. After all, tenants care not whether a property is a Bumi Lot or not; what they seek is a comfortable abode to call their own.

But wait just a tick! Could it be too good to be true, you ask? Well, in my humble opinion, dear reader, if you're buying for your own abode, there's nary a drawback to be found. You get to revel in the same property as others, but at a lower price and reduced costs. Simply marvelous, isn't it? However, should you have grand aspirations of making a Bumi status property your investment gem, I must caution you to exercise due diligence before finalizing your decision.

"Why, you ask?" I hear you inquire. Well, let me enlighten you, my discerning friend. You see, when it comes to a Bumi status property, you can only sell it to a Bumi buyer in the future. Thus, you must discern the identity of your prospective buyer. Should the likelihood of your future buyer being a non-bumi prove high, it would behoove you to factor this into your decision-making process. Conversely, if the odds of selling your Bumi status property to a non-bumi are slim, then you may cast your worries aside.

Allow me to elaborate on another reason why a Bumi property may not be the ideal investment choice: its sluggish capital appreciation. The demand for such properties remains low, as most investors prefer to dabble in properties without pesky restrictions like the Bumi Lot. Therefore, your return on investment may find itself constrained.

Of course, selling a Bumi status property to a non-bumi is not an endeavor for the faint of heart. Let us imagine, my curious companion, that you possess a Bumi status property and yearn to sell it to a non-bumi. Pray pay heed to the steps you must undertake:

Firstly, ensure that your property is not a Malay Reserve property but indeed a Bumi Lot. You see, dear friend, Malay Reserve properties are off-limits to non-bumis. If you find yourself uncertain, I implore you to seek guidance from real estate negotiators or lawyers.

Next, you must present a compelling reason for selling your property to a non-bumi. Whether it be to settle familial or medical bills, fund your children's education, or embark on a journey to foreign lands, you must substantiate your cause with supporting documents that would sway the discerning minds at the Land Office.

Following this, you must prove that no Bumi buyer possesses the slightest interest in acquiring your cherished property. This, my friend, is where real estate negotiators can lend their expertise in finding a buyer. You, or said negotiators, must advertise your property for sale in newspapers and online property portals like iProperty.com and PropertyGuru. The advertisement must run at least thrice, with each period spanning 14 days. The purpose, you see, is to demonstrate your valiant efforts to attract Bumi buyers, to no avail.

Once that hurdle is cleared, you may leave it to the real estate negotiators to carry out their mission of finding a buyer.

Thereafter, you shall summon a lawyer to guide you through the intricacies of your property transaction. The lawyer shall diligently submit your application to the Land Office. Beware, my friend, for this process may take a substantial 6 to 9 months, contingent upon the authorities' approval or rejection of your petition.

In the grand tapestry of life, my friend, we reside in a wondrous land where anything is possible. Selling a Bumi Lot to a non-bumi is indeed achievable, if one simply follows the prescribed procedures and presents a compelling case. A whimsical thought, wouldn't you agree?

Yet, let us shift our gaze to a different perspective: Why would a non-bumi choose to purchase a Bumi Lot, you ask? (Please note, dear reader, that my answer is highly subjective, intended solely for your reference.)

"Is it cheaper, perchance? Are the selling prices at least 30% below market value?"

"Is this property the sole beacon of hope in its vicinity?"

"Does it possess unique qualities that set it apart from its peers?"

"Do I have a compelling reason to purchase a Bumi Lot?"

"Is it truly worth my while to endure the waiting game for Land Office approval, or should I seek out a similar property during the interim?"

Allow me to impart my humble opinion, dear reader. If no extraordinary reason beckons you, I daresay considering a Bumi Lot may not be worthwhile. What say you?

In conclusion, I fervently hope that this article has provided you with a cursory understanding of the enigmatic world of Bumi Lots. Nonetheless, it would be prudent to consult both a lawyer and a real estate agent when contemplating the purchase or sale of a Bumi Lot. Remember, dear friend, to exercise due diligence before embarking upon any momentous decision. After all, acquiring a home for your loved ones is one of life's grandest financial endeavors.