Malaysia Property Market News and Guides

RENTING VS. BUYING PROPERTY IN MALAYSIA

08 Mar 2016

BUYING 

As an individual, the purchase of a home is the ultimate satisfaction. A place we go home to. A place our children will grow up in and a place that they will always have a roof over their heads. 

Affordability 
• Call your friendly real estate agent or banker to determine what range of properties you can afford. 
• Clarify deposits and also how much can you afford and how can your current or joint current incomes sustain a loan (Do not forget the small amount you would like for improvements and renovations). 
• Do a lot of research on housing loansas there are a variety of schemes that are available and you will have to choose one that fits your lifestyle and financial profile. 

Location 
• Determine the location you like(As I always advise my friends, buying a home is buying a lifestyle and always choose a location that fits your lifestyle). Make sure the location Offers leisure choices, and is close to amenities, schools and public transport. 

Type of Property 
• If you lead an active lifestyle, travel a fair bit, and require security, condominiums are an excellent choice with the security, facilities and, of course, the beautiful views some of them offer. But if you are like me and enjoy having pets and a big garden, I guess landed properties will be your preference. 

Sourcing for properties 
• Do not buy in rush.
• Call your friendly real estate agent or refer to the classifieds in the local newspapers or online. 

Important Questions to ask your friendly agent 
• Tenure i.e. Freehold or Leasehold (if leasehold, how many years left on the lease?)
• How old is the property?
• Land area
• Built up area
• Number of rooms and bathrooms
• Why is the owner selling?
• Who was the occupant?
• Condition of house
• What exactly does the sale price include?
• Is it with vacant possession?
• Are there built-ins and kitchen cabinets? 

Arrange for viewing 
• Make sure it is during the day or with a bit of natural lighting
• Look out for major renovations and inquire if approvals were obtained.
• Ask how recently were the changes done to the wiring and plumbing (for homes more than 15 years).
• Observe leaks and broken items,for termite infestation, how recent was the roof changed and quality of fittings.
• Observe what you would like to change to suit your lifestyle.
• Ask how long it's been in the market and is the price negotiable? 

After each viewing, determine whether the micro location suits you, whether you like the property and how much it will cost you to do it up to suit your liking. Also remember you might not be able to do all the renovations at one go, so focus on the main ones (i.e. wiring, plumbing, painting, built ins). Make sure the decision is based on what is your liking and compatibility with your lifestyle. The decision is yours and your partner's only. 

Choosing a home is definitely challenging. With this in mind, it is always good to back up your decisions with ample information, a structured decision making process and reliable advice. 

RENTING 
Homes can be rented with or without furniture. The latter usually comes with standard facilities such as ceiling fans, air conditioners, hobs, hoods, hot water reticulation, washing machine, dryers and a fridge.Newer condominiums in good areas boast excellent facilities such as pools, gyms, lifts, 24-hour securityservice, adequate parking, convenience stores and landscaped gardens. In line with recent global changes, security is very important, thus, the security in most condominiums is an utmost priority. How do you start? 

Location 
• Proper access to work,education and recreational facilities is important.
• Sought-after locations include Bukit Tunku (Kenny Hills), Damansara Height and the "Embassy Row" of Jalan Ampang where many embassies are located. Other popular areas include Mont Kiara, Ampang, Bangsar Baru (commanly known as Bangsar) and Taman Tun Dr.Ismail. These upmarket suburbs have long been established and are very well-equipped with plenty of amenities. Bukit Tunku's prestige lies in its low-density housing and lush natural landscapes. 

Facilities 
• Access to international school is paramount for school-going children so it is best to secure a school before looking for your housing. Your child could face a long journey each day because of bad traffic conditions. 

Type / Price of rentals 
• 2-3 Bedrooms below 1,500 sq. ft. : RM3,500 per month.
• 3 Bedroom about 2,000 sq. ft. : RM8,000 per month.
• 4 Bedroom Bungalow without pool : RM8,000 - RM18,000 per month.


Rental procedures 
• One month's rent as an Earnest Deposit (upon execution of Letter of Offer)
• Within 7 days:
- Two months rent as a Security Deposit.
- Half Month rent as a Utility Deposit (this could vary from property to property).
• The Tenancy Agreement needs to be stamped as a form of tax imposed by the Government of Malaysia. It is necessary for a tenancy agreeement to be stamped so that it can be used and tendered as evidence at any Court of Law in Malaysia. The agreement iss prepared by the landlord's lawyer.
• Calculation of stamp duty. Yearly rental minus RM2400 (as the first RM2400 is not taxable) divided by 250.The amount is then multiplied by the number of years. RM10 is added for the landlord's copy. The total amount is payable by the tenant. 

Utilities 
• The tenant is required to pay for the electricity consumption, telephone usage, internet subscription, satellite TV and water. Maintenance of the common areas for condos is already factored into the rental. (If there are changes in quit rent and assessment by the authorities, tenants are liable to top up their deposits). 

Termination of tenancy before agreed term 
• Essentially, the tenancy will require the injured party be compensated for the remainder of the tenancy, but depending on the landlord there might be an exit clause that will see the injured party compensated at least 3 month's rental, giving them enough time to find a new tenant/premises and covering losses. 

By regional and international standards, Malaysian rental rates are cheap.Leases are generally drawn up for yearly renewal. 

Source : http://www.propertyinmalaysia.com/articles-renting-vs-buying.php

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amandang
This guide is written by amandang. Send message to this author for further discussion on this article.

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