Guide
Buyer's Guide
Property Search The things to look into before inking a deal would differ, depending on whether one buys from the most common factor to consider for both property.
Propertyplus speaks to Raine & Horne International Zaki and Partners Sdn Bhd associate director James Tan, who says that those keen on investing in the primary market should not buy units without making a visit to the actual site.
He says that negative factor to be noted are proximity to rivers, graveyards, place to worship, hill slopes, power substations, highways, open space, hawker center and markets, as these places could affect the resale prices.
Investment properties in secondary locations generally do not fare well. It is better to have a prime spot. For example, shop houses in the front row facing the main road fetch far greater values than a similar unit at the back. The difference in value and rental can be between 20% to 40%, says Tan.
AIM Realty principal Amy Tey agrees, saying that many buyers today are unwilling to pay more for a unit with an unfavorable location as they know that for same price they could get a similar units in a more appealing spot. Accessibility is also vital.
Points to consider before sealing a deal :
Know The Developer A lot of Malaysian, according to Tey, still prefer to buy properties from the developer. The most important things is to first do some research on the background of the developer to aviod having deal with problems such as abondoned projects, she says.
Tan adds that a simple search with the Housebuyers "Association or the Real Estate Developers" Association would help identify a fly-by-night company.
Know The Category Of Housing The Sale & Purchase Agreement (S & P) for landed property must state completion within 24 months, e.g. bungalows, semi-detached and terrace houses. S & P agreement for subdivided buildings such as condominium, flats, town house must state completion within 36 months. Buyers are advised to obtain free brochures from the developer for full information on the project including particular of the license, permit, etc
Land Tenure Do look into the land tenure before a purchase as some leasehold properties may be sold with terms that are shorter than the 99 years, Although leasehold condominiums are a popular choice because developers sometimes price them lower than a similar freehold condo, many purchasers still perfer to own a freehold home as it gives them peace of mind and security knowing it is truly theirs, says Tey.
Land Title
Property Check When searching for a potential real etstae to buy, it is good to look beyond the exterior. Tan feels that no one should buy a property without first doing a through check of the whole house and keeping a lookout for things such as roof leakage, termite attack, flooding and so on.
Economic Enviroment Investing in real estate requires some basic knowledgw of the property cycle. Some are able to predict the boom time and make money for their investment, while others are unable to gather income from a rental property purchased at the peak cycle. Tey cited an example : AA client purchased office suites near the Taman Jaya LRT station in the early 1990s for a high price when the market was good, but when the recession hit, he was stuck with low rentals and was unable to sell the unit for a good price as the sencondary price were nowhere near the developer's price.
These are but some of the guidlines for property investment hunting but there are many other things to take note of, says Tan.
One is to check on the transerability of the property title; whether the property can be sold while it is under construction. The other, he warns, is to aviod buying property which doess not have necessary approvals from the authorities. "Buyers should not buy a property that do not have the approvals of the authorities as they can tear down illegal extensions and alterations," says Tan. At the end of the day, it takes a litte bit of luck as well to find your perfect home or investment property.
There are still few factors for New Home Buyers to look into
Rights and Interest of Buyers under Sale and Purchase Agreement The Sale & Purchase Agreement must acomply with the standard agreement as in Schedule G & H of the Housing Developers (Control & Liensing) Regulation 1989.
First Payment The buyer must sign the S & P Agreement at the time of the first payment of 10% of the purchase price to the developer. Ensure that the date of the 1st payment and the date of the S & P Agreement having been signed.
Architect's Certificate Every notice requesting for payment shall be supported by a certificate signed by the developer's architect of qualified engineer.
Interest On Late Payment If the buyer or end financier of the buyer fails to settle the installment within 14 days after receipt of the written notice, the buyer shall be liable to pay interest to the developer calculated from day to day at thee rate of 10% PA the unpaid installment.
Determination Of Agreement You are reminded that failure to pay any of the installments and interest due for any period exceeding 28 days, the developer may terminate the S & P Agreement. the developer shall send notice in writing by A.R Registered Post of his intention S & P Agreement.
Maintenance & Management Fee The buyer shall contribute towards maintenance chargers such as refuse removal, upkeep of public drains and grass-cutting on the road reserves as from the date of delivery of vacant possession for landed property and as from the date of issance of strata titles and he formation of the Management Corporation.
Payment Of Quit Rent, Assessment, Etc As from the date of S & P Agreement, the buyer shall be responsible for the payment of quit rent, rates, assessment and other chargers on the subject property. Vacant possession of the building with water and electricity ready for connection must be devliered within 24 calender months from the date of the agreement (for landed property) and 36 months (for subdivided buildings.)
Propertyplus speaks to Raine & Horne International Zaki and Partners Sdn Bhd associate director James Tan, who says that those keen on investing in the primary market should not buy units without making a visit to the actual site.
He says that negative factor to be noted are proximity to rivers, graveyards, place to worship, hill slopes, power substations, highways, open space, hawker center and markets, as these places could affect the resale prices.
Investment properties in secondary locations generally do not fare well. It is better to have a prime spot. For example, shop houses in the front row facing the main road fetch far greater values than a similar unit at the back. The difference in value and rental can be between 20% to 40%, says Tan.
AIM Realty principal Amy Tey agrees, saying that many buyers today are unwilling to pay more for a unit with an unfavorable location as they know that for same price they could get a similar units in a more appealing spot. Accessibility is also vital.
Points to consider before sealing a deal :
Know The Developer A lot of Malaysian, according to Tey, still prefer to buy properties from the developer. The most important things is to first do some research on the background of the developer to aviod having deal with problems such as abondoned projects, she says.
Tan adds that a simple search with the Housebuyers "Association or the Real Estate Developers" Association would help identify a fly-by-night company.
Know The Category Of Housing The Sale & Purchase Agreement (S & P) for landed property must state completion within 24 months, e.g. bungalows, semi-detached and terrace houses. S & P agreement for subdivided buildings such as condominium, flats, town house must state completion within 36 months. Buyers are advised to obtain free brochures from the developer for full information on the project including particular of the license, permit, etc
Land Tenure Do look into the land tenure before a purchase as some leasehold properties may be sold with terms that are shorter than the 99 years, Although leasehold condominiums are a popular choice because developers sometimes price them lower than a similar freehold condo, many purchasers still perfer to own a freehold home as it gives them peace of mind and security knowing it is truly theirs, says Tey.
Land Title
- Separate individual title
- Strata title
- Freehold
- 99 years lease
- Malay Reserve
- Free brochure on the housing project
- Note specifications on building materials
- Sample sale & purchase agreement
- Building area
- Location of house to be constructed
- Expected date of completion
- Note condition of site such as hilly, former mining land or swampy land
- Reference No. of approval of building plans by local authorities
Property Check When searching for a potential real etstae to buy, it is good to look beyond the exterior. Tan feels that no one should buy a property without first doing a through check of the whole house and keeping a lookout for things such as roof leakage, termite attack, flooding and so on.
Economic Enviroment Investing in real estate requires some basic knowledgw of the property cycle. Some are able to predict the boom time and make money for their investment, while others are unable to gather income from a rental property purchased at the peak cycle. Tey cited an example : AA client purchased office suites near the Taman Jaya LRT station in the early 1990s for a high price when the market was good, but when the recession hit, he was stuck with low rentals and was unable to sell the unit for a good price as the sencondary price were nowhere near the developer's price.
These are but some of the guidlines for property investment hunting but there are many other things to take note of, says Tan.
One is to check on the transerability of the property title; whether the property can be sold while it is under construction. The other, he warns, is to aviod buying property which doess not have necessary approvals from the authorities. "Buyers should not buy a property that do not have the approvals of the authorities as they can tear down illegal extensions and alterations," says Tan. At the end of the day, it takes a litte bit of luck as well to find your perfect home or investment property.
There are still few factors for New Home Buyers to look into
Rights and Interest of Buyers under Sale and Purchase Agreement The Sale & Purchase Agreement must acomply with the standard agreement as in Schedule G & H of the Housing Developers (Control & Liensing) Regulation 1989.
First Payment The buyer must sign the S & P Agreement at the time of the first payment of 10% of the purchase price to the developer. Ensure that the date of the 1st payment and the date of the S & P Agreement having been signed.
Architect's Certificate Every notice requesting for payment shall be supported by a certificate signed by the developer's architect of qualified engineer.
Interest On Late Payment If the buyer or end financier of the buyer fails to settle the installment within 14 days after receipt of the written notice, the buyer shall be liable to pay interest to the developer calculated from day to day at thee rate of 10% PA the unpaid installment.
Determination Of Agreement You are reminded that failure to pay any of the installments and interest due for any period exceeding 28 days, the developer may terminate the S & P Agreement. the developer shall send notice in writing by A.R Registered Post of his intention S & P Agreement.
Maintenance & Management Fee The buyer shall contribute towards maintenance chargers such as refuse removal, upkeep of public drains and grass-cutting on the road reserves as from the date of delivery of vacant possession for landed property and as from the date of issance of strata titles and he formation of the Management Corporation.
Payment Of Quit Rent, Assessment, Etc As from the date of S & P Agreement, the buyer shall be responsible for the payment of quit rent, rates, assessment and other chargers on the subject property. Vacant possession of the building with water and electricity ready for connection must be devliered within 24 calender months from the date of the agreement (for landed property) and 36 months (for subdivided buildings.)
