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Avery’s Maiden Thought – Landed Property or Not?

Hello, Avery here – from your friendly neighborhood web design studio! I am going to talk to you today about the relative advantages and disadvantages of landed properties. These are the considerations I made when I started building up my web studio. I had wanted to rent a service apartment to be converted into my studio and then I had second thoughts…

Property Decisions…

Buying a property should never be a light decision. One of the main issues that a buyer will need to think about before buying one is whether he should look at condominiums or landed properties. Find out the advantages and disadvantages of landed properties here… in my humble opinion of course. ;)

The Advantages

  • Better Appreciation

Landed properties are known to appreciate better than condominiums in terms of value as more time goes by. In fact, this particular trend is seen in the majority of landed properties out there.

  • More Space

Landed properties are also a much better choice when you look at the living space itself.That was my main consideration when I was shopping around for a place for my web studio.

We used to be renting a place near the Sunway Pyramid shopping centre, but we have since moved on to Desa Parkcity

We used to be renting a place near the Sunway Pyramid shopping centre, but we have since moved on to Desa Parkcity

While condominium owners only own their units and have to share certain common areas with the rest of the residents in the condominium, landed property owners actually own the house and the land that the house is on. This means that they can do whatever that they want to with the land.

Some of the things that you could do with your land if you have a landed property is create a landscaped garden or simply use the extra space to rear your pets. These are some things that condominium owners cannot do. Some condominium owners aren’t even allowed to have pets in the building to begin with! This poses a problem as I am quite attached to Rover and Sammy, my two golden retrievers. :p

The Disadvantages

  • Higher Price

If the most important thing for you is to find a property with a low price, then you might not want to opt for a landed property. Generally speaking, condominiums are known to be much cheaper compared to landed properties, though this will also depend on the layout and size of the properties. In some cases, for example the condominiums in the Kuala Lumpur City Centre (KLCC) area, properties may have sky-high prices – indeed they can be more expensive than bungalows in the suburbs. For more information, check out http://klcccondominiums.com.my – a good resource on condos and apartments in KLCC.

  • Fewer Amenities

Some buyers might not be interested in buying landed properties because they do not have the extra amenities that condominiums tend to have in their pre-packaged sale prices. Upmarket condominiums usually have top-notch facilities that fit the top living standards of the people who live in them, for example, such as badminton and tennis courts, a swimming pool, a gymnasium and 24-hour CCTV security systems.

Condo

Think about it.. Luxury or practicality?

If you own a landed property and want the same conveniences as mentioned above, then you will have to join a gym or a sports center, as well as buy your own security system.

  • More Maintenance

Condominium owners do not need to worry about maintenance a lot of the time because the property’s upkeep will be dealt with by the condominium’s management company. This will cost a fixed monthly sum, though.

The Verdict

In the end, the choice to look at condominiums or landed properties will depend on why you want to buy one in the first place, though. If you want to invest in a property, then you might want to opt for a condominium since it will yield a higher return on investment. Plus, it costs less to maintain a condominium unit overall.

However, if you plan on living in the property that you buy, then it would be best to opt for a landed property due to its higher appreciation and bigger living space. In the end, it will simply boil down to your personal living style and preferences, though.

As for me, I finally settled at this place near my house called Desa ParkCity. It’s an awesome place, and I like it a lot. If you wanna come around, give me a call and coffee’s on me. :) Here’s a handy map -


View Larger Map

Much love,

-Avery

How to Get the Most Out of Your Mortgage

Avery says: You are going to carry your mortgage loan for more than half of your adult life. That much is true. That’s also exactly the reason why you should find means and ways to make the most out of it.

You may have gotten the best deal when you first signed up for it, but you have to be on the lookout to keep it that way or improve it. Plus, you have to keep yourself on your toes so it does not go mismanaged that may lead to you getting in trouble and at risk for repossession.

High Rise

This information is pretty much useful to anyone– whether a homeowner, or even a resident living in the most exclusive condo in KL! It’s for everyone, actually– as we all have our stories– good or bad– when it comes to mortgage.

Here are some tips so you get the most out of your mortgage:

1. Pay as much as you can. Instead of getting a home theater system on your credit card (just because you can currently afford it), put your money instead on your mortgage. The more you pay, the more you save up and you know how valuable this can be for your mortgage loan. Prioritize your mortgage over anything unnecessary. When you pay in larger sums and more frequently, your mortgage lender will love you and reward you for it in the form of payment incentives and discounts. That, and the fact that you will get out of the debt faster than what is on your loan contract.

2. Keep your house well-maintained. The last thing you need when you’re paying for your mortgage is another loan in the form of home improvement loan. A house that is well kept will last a few more years without repairs and thus save you the hassle and the expense of having to renovate your house. Invest on home inspections every few years and consider this preventive maintenance.

3. Put all your debts together. Put all your mortgage, credit card and other loans together in the same place. It will make payment easier and more convenient with having a single due date each and in some cases, you can save up on the interest rates if they come from the same lender. It’s also much easier to budget for one amount every month.

4. Get yourself an offset account. I should’ve included this in my previous article that discussed the basics of property investment and management. An offset is simply a bank account that is connected with your mortgage. You pay off part of your mortgage with the interest you earn from your account. That’s hitting two birds with one stone: you get to pay off parts of your mortgage loans (seems small in the monthly rates but believe me, this will be a huge help when you look at the bigger picture) and as well get a bank account that you can get anytime.

5. Be updated of the newest offers on mortgage loans. If the offer is good or beneficial for you, then by all means don’t hesitate to get a refinance. This is also beneficial for anyone planning on selling their houses themselves. Don’t be unaware, too, of whatever gains you’ve earned over the years of paying such as your equity. Knowing these things and how to use them to your advantage will surely slash a huge amount off your debt.

Avery’s Tips on: How to Sell Your House Yourself

I have always asked this question a couple of times now: Can I sell my house myself? A lot of times(make that ALL the time), I get the same answer: Yes. Of course you can ditch the services of a real estate agent and save yourself the costs of their commissions. After all, their commissions that may amount in 5 to 6-digits (depending on how well your house sells or how popular your agent is) could well go straight to your bank account and fund your move to your next house.

Agent

However, selling your own house is no easy task. You’ll have to take care of everything – and by everything, we mean preparing your home for marketing, actually marketing your home, and dealing with a mix of pleasant and not-so-pleasant potential buyers first hand. Agents are trained to deal with these people and you are not so you have to be prepared for that.

If you are selling a condo unit, do the necessary changes to make it more attractive to potential buyers. Not that we are telling you to turn it into a controversial condo by going the distance because of extravagance, but just make it– tasteful and elegant. You get the drift.

Along with that, here are other steps in getting your house sold sans the real estate agent:

1. Get your house ready for the market. There are several ways to do this, including getting a home inspection, repair, and appraisal. You should make sure that your house would be attractive enough to the buyers. If you want to sell your house at a higher price, make sure it is devoid of visible damages and common buyer turn-offs. Repair what needs repair, replace what needs replacement, and keep the house clean to the minutest detail. When your house is in perfect shape, hire an appraiser. Everyone who has been involved in real estate knows this is included in the basics of property investment. Now that it’s your turn to sell, let the professional appraiser determine the price of your own house – they are more aware of the current market trends as well as the value of your house based on internal and external factors like your neighborhood, state, etc. This may sound like additional expense but trust me, inspection, repair (depending on the amount of repairs needed), and appraisal fees  are still less than a real estate agent’s commission.

2.  Build your marketing strategy and network. Get yourself ready to network with potential market. Tell your friends about it, tell someone at work about it, give out flyers, and talk to the local school district. Make sure you give out details of your house and your location and any important buyer turn-on points. How’s the weather in your region? How is transportation and general public safety? And how many schools are around you and how far is your house from these schools? Put your house online too – everyone is online, remember that. Do not simply rely on your listing.

Big House

YES YOU CAN SELL YOUR HOUSE YOURSELF!

It would also be very helpful if you connect with a local mortgage lender. This will help you in the next step – selling. They almost always have a ready set of buyers and they can easily recommend your home; after all, that’s still money for them.

3. Negotiate. When buyers are starting to pour in, always be ready to entertain. Be a good host and take them on a tour around the house. Tell them all they need to know about the home – how old it is, what kind of repairs it’s undergone, etc. There will be less than friendly potential buyers – this calls for your inner Martha Stewart. We’ve all been tenants at one point in our life and tenants have their rights and responsibilities, too(click here to read what they are). Always be gracious. When you find someone who is willing to buy, lead them to your partner-mortgage lender. Help them with the paper works and other specific things.

- Avery :)

How to: Save Money in Building your Own Home

My mom is an engineer and I’ve seen her plan houses using a language that a web design major like myself will never come to understand in this lifetime or another. But building houses have always fascinated me, I think there’s a sense of immeasurable, incomparable satisfaction to watching the birth of your dream home. :)

So I’ve decided early on that I would want to build my house from scratch when I first got here in the busy district of Kuala Lumpur, after I heard how promising Malaysian real estate is. However, now that I’m older and practically more aware of how the world works (aka money makes the world go round and price tags are the wheels that make it move), I realized that it won’t be easy neither would it be cheap.

House

There are many pros and cons to building your own house. It’s also a process of asking yourself thousands of questions about property just to get started. But if you have fully decided that the pros are enough to outweigh the cons, but still would want to save up on money, here are some tips to save money doing so. I find these tips very helpful too, so let’s all just give it a try.

Ditch the contractor.

Settle for an independent builder a la Igor on Restaurant Makeover. I reckon you’ve already decided on the style and design of home you want to see built on your house so more or less you know what you would tell your builder. You can hire the services of a freelance engineer to help you.

Go out to your local DIY and Hardware stores.

Give yourself a good view of the prices of materials you’ll need. Buying them yourself will help you save more on your expenses on the house. Get a list from your builder of the materials with size and amount specifications so you’ll know what to look for when you’re there. Also, ask for a wholesale price whenever you can.

Arrange with your builder to do things that you can do yourself.Green

That does not include building the fences and posts and laying down the foundations, fixing the electric connections, and other more technical stuff. You can, however, opt to do the house painting yourself. If you want to save up on the fencing too, save yourself the expense of a custom made fencing and go to your DIY Fence makers and yes, exactly do that – DO IT YOURSELF.

Keep your house open for adjustments and extensions in the future.

I’ve seen our house get extended and extended time and again. My mom designed it in a way that we can add anything anytime we want and anytime our budget will allow. So our foundations were built for a two-story house even when before we added the second floor home. This will keep your house easier to extend when you have the money to do so. Don’t rush things.

Unless you’re a celebrity, you really do not need the help of a professional interior decorator. Watch home makeover shows, read Interior Design magazines, click on this interesting article, and read books for inspiration. Remember, you’ll never know what you’ll find in the thrift stores and yard sales! Good luck!

- Avery :)

The Rights and Responsibilities of the Tenant

Here’s a guest post written by one of my colleagues who has been living in Malaysia since God knows when. His name is Jake Carruthers, a brilliant web developer who is also keen on investing on several Malaysian properties or two. He currently resides at a posh KLCC 6-star apartment. Here are his tips on how to be a great tenant.

I’ve been a tenant for the last I-don’t-know-how-long. As I am not quite ready to have my own house, tenancy is the best way to (1) be independent, (2) be free to do as I please and (3) not be a burden in my own family’s house. Over the years of investing on property and meeting different landlords, (I move places every time I change jobs), I have memorized by heart what every landlord should and should do. I could easily represent a rights group for apartment tenants around the world!

But then again, I realized, just as much rights as I have as a tenant, I have responsibilities. I have every right to demand of my landlord just as he – after all, this is a mutual relationship. I have had tons of landlords ever since I got here in Malaysia, but my relationship with my current one has been the most fruitful. I stay at a serviced apartment in KLCC after I found about it online at klcccondominiums.com.my, and I’m pretty thankful that I did.

So in the name of fairness, and a wake-up call to all tenants around the world, here are my lists of Tenant Rights and Responsibilities:

Rights:

  • A tenant has the right to have a livable room or apartment unit that is fairly priced for its size
  • A tenant has the right to demand security for his/her unit and property and the whole unit; the landlord must provide for this
  • A tenant has the right to demand the landlord for the maintenance and/or repair of the utilities, furnishings that come with the room (i.e. lights, water pipes, bathroom furnishings, etc)
  • The tenant has the  right to demand from the landlord for damages not incurred by the tenant (i.e. flood, fire, storm, robbery)
  • The tenant has the right to a legal contract that states the duration of her stay in the apartment unit or room, the monthly rental, any down payments and other fees that the rental comes with, as well as the binding rules and regulations on rent
  • The tenant has the right to end contract with possibility of refund if the landlord violates any of the stipulations on the contract

Responsibilities:

  • It is a tenant’s responsibility, foremost of all, to pay his or her monthly rents on time and in the exact amount. It is also his/her obligation – both moral and legal – to inform the landlord if she or he cannot make the payment on time.
  • It is a tenant’s responsibility to take care of his/her rented unit. Keeping the premises clean and the furnishings in tiptop shape are part of these responsibilities.
  • A tenant is supposed to obey whatever the conditions on the rent contract say. The landlord has the right to kick a tenant out for violation of such contracts.
  • The tenant is also responsible for whatever or whoever lives with him/her in the unit, as well as for everything he decides to put in it. This includes keeping the pets off the common areas or where they cause disturbance as well as on people who live with the main occupant and the visitors we take in once in a while. Oh, and playing disturbing and extremely loud music is a violation of this.

Just because we pay rent does not mean we own the house or we have the right over our landlords. Remember, do your research online before doing property acquisition to make sure that you’re making the right choice. Again, mutual benefits should also mean mutual respect. Here’s from one tenant to another!

Email your thoughts and opinions on this piece by Jake at jkcarruthers@gmail.net.

George’s Five Questions On Property Acquisition In Malaysia

The Five Questions You Should Be Asking Yourself Before Making a Real Estate Purchase In Malaysia – by George & Avery, the “Partners In Crime”, AveryNiceDesignStudio.org

A reader of this blog has emailed about buying a piece of real estate in Malaysia for the first time, referencing the “state of the Malaysian property market” op-ed that I published earlier (click here to read it). Here’s my response. Benjamin Heong (benjiheong@yahoo.com.my), thank you for your question!

Buying things for the first time will always have that feeling of excitement and exhilaration that only another first-time purchase could match. Buying your first home in Malaysia doubles up that first-purchase excitement. But along with this excitement come a lot of other obligations – payment forms, papers, not to mention the pressure of complying with all the mortgage loan requirements!

A New Chapter

But buying your first home should be the wonderful experience it’s supposed to be. Especially for newlyweds, this is the home where you are to build your life and family together! This is the beginning of a new chapter in your life and this is the home that will witness all the ups and downs you are to encounter.

Most Malaysians rank “buying my first home” up in their priorities list according to research done by MetroSherpa, the property portal (you can find this at MetroSherpa.my).

Drama aside, your home is your personal space and finally getting your own home is perhaps one of the biggest, most memorable accomplishments that deserve half a lifetime of applause. :)

So before you lose yourself in the drama and pressures on your way to getting your home sweet home (in Klang Valley or elsewhere), here are some things you should ask yourself to keep the pressure at a minimum.

George’s Five Questions On Property Acquisition In Malaysia

  • Question #1: What am I looking for?

The size of the house, the type, and also the location of the property are some of the things you should consider. The cheapest price tag may not be efficient in location. Do you want a landed property or an apartment?

For many first-time home buyers, they usually consider places like Puchong, Cheras or Petaling Jaya. I have many friends who opted to buy units at Paragon 3 at Seri Kembangan as their first homes. Paragon 3 is developed by Paragon Promenade Sdn Bhd which has got a pretty good track record in Malaysia property development. If you have got a bit of spare change, you can probably consider an apartment like one at Dua Residency (KLCC), or at MK10 (also known popularly as 10 Mont Kiara). Very good choices for first time buyers!

  • Question 2: How much can I afford?

It does not take a genius to know that you should only spend on what you can afford, ‘live under your means’ so to speak. You don’t want to get a mortgage plan that is more than what you and your spouse earns (although, you will get advice on this matter from your lender/bank) and risk a repossession after some years.

  • Question 3: What payment plan should I get?

How long would you want to be paying for your home? And how often would you like to make payments for it?

  • Question 4: Where would you go for your mortgage loan?

Choosing the right financing partners is essential in getting through your mortgage plan smoothly and effortlessly.

On top of getting the right plan, it is with who you’re making business with that matters in making it a wonderful experience. I have had clients who successfully secured loans at very good interest rates at CIMB and Maybank. If you need help on this, contact me – my details are on the right. :)

  • Question 5: How can I improve the home?

Sometimes, we decide on buying a house that has had its share of wear and tear and the seller does not make any effort at getting it in tiptop shape.

Any home would look good with some renovation - and this applies to these homes found on Old Klang Road!

Any home would look good with some renovation – and this applies to these homes found on Old Klang Road!

These types of property are both good news and bad news. The good news is that it should not cost a lot. They are a whole lot cheaper than newly built ones. The bad news is, it would cost you to get the home improvements it needs. Make sure the improvements do not cost you more than when buying a house that is more than ready to live in.

I usually get some really good home improvement ideas from this blog. Remember that a nicely spruced up home would result in capital appreciation – this is especially true for houses in areas like Damansara Heights and Kenny Hills. Properties in Bangsar are also aging, and will do well with some renovation. But that’s just my opinion, of course!

The Bottom Line

So, evaluate your situation and your financial capacities. Buying your first home should be a wonderful, memorable milestone, a dream come true and not a horrific nightmare. Call us in for the housewarming if you’re in the Klang Valley!

-George

The Basics of Property Investment

I have always been driven to reach success by setting goals that will make me financially stable. Everyone wants a life of luxury, but not all are entitled to reach success because of unwise decisions and the occasional relapses towards procrastination and other distractions—believe me, I’ve been there. But struggling has always been part of the game. It’s just a matter of hard work, determination, discipline, and patience to get there. Of course, knowledge about the ins and outs are definitely essential—in life, growing up means not depending entirely on those thick textbooks you were required to read years ago—it takes a lot of guts, streetsmarts, and passion.

A Wise Choice

If you are just on the verge in building a bright future for yourself or for your family, making the right decisions are critical. There are a lot of opportunities presented to us daily, but success isn’t easy to find. Property investment and real estate are two great options that you may explore. Modern times have dictated how property management and dabbling in real estate can truly be a great addition to your investment portfolio. Forbes.com explained in detail how buying property in the United States at the moment can yield exceptional results.

Truth is—like in any investment, there will always be risks involved. However, real estate produces a high rate of investment, when done right. It’s not always an easy road, but it’s all worth it in the end. If you are planning to buy your second property as investment, make sure you have an idea on how it works. Here are some basics that may help you start planning for a successful future.

  • Find a credible real estate agent. It’s always a good idea to seek assistance from a real estate agent who knows his thing. Having a little help from someone who knows the ins and outs of property sure won’t hurt—it’s your hard-earned money we’re talking about here, and you will want to do anything to make sure that it will be put into good use. A good realtor knows where to start, which places and locations are in demand and have full potential, and also knows the right people to make things simpler and easier for you.
  • Research, research, research. Do you remember your most recent first date? Of course you do, no matter how horrible or awesome it went. I’m sure you did a little Googling(which is also a polite term for snooping) before so you may have an idea on what your date’s likes and dislikes are. In property investment, it’s important to have a background about the location you’re keen on—its neighbourhood, potential tenants, demographics, and site accessibility and convenience. Remember—knowledge is power!
  • Consider the location’s future. Sure, you see an inexpensive property for sale in the local newspaper—but have you considered the long-term benefits and location potential? Is the location fully-developed or still in the stages of development? My recent post about Malaysian real estate talks about the importance of a good location–the Marc Residences is a concrete example. Bottom-line is, you want to be future-oriented all the time if you want to become a successful real estate investor.

UnderConstruct

 

Closing Thoughts

Investing on property and dabbling in real estate is your step in becoming financially-stable, especially during these times, when the market is booming. The benefits definitely outweigh those little stumbles that you may face along the way. In time, and with enough experience, property investment will allow you to live that life of luxury that you have always deserved.

More on this Soon!
Avery

The State of Malaysian Real Estate

Many people emailed and asked me about my ideas and opinions about the Malaysia real estate market in 2013. The frank answer is that my crystal ball is broken, and for the first time in my many years as a real estate broker I have no clue how the Malaysia property market is going to perform this year.

BrickHouse The reason for this is simple enough, really. General election is coming soon, and as any seasoned real estate investor will tell you, the key to growth in any property market is political stability. Now there’s a general “wait and see” attitude among property buyers and sellers, and as a result, the property market is suffering.

But still, I remain bullish with the prospects of the Malaysian real estate market. Land is scarce, especially in places like Penang where prices of properties have jumped over the recent years. There are pockets of growth at places such as Mont Kiara, Subang Jaya (especially in SS15), Bangsar, Sentul and the famed KLCC (Kuala Lumpur City Centre). The key is to identify these hot areas, and carefully research these properties. With the availability of online tools (such as MetroSherpa.com which is a map search tool) and property reviews, it is a breeze to gather data about real estate developments and land properties.

There is also huge growth in terms of real estate agencies over the past few years, with huge agencies such as Reapfield and Hartamas dominating the mass market. There are also boutique property agencies which focuses on the higher end of the market. Correspondingly, commercial real estate is also growing despite a glut of office space for rent in the Klang Valley area, especially in Damansara Heights and KL Sentral.

If you are looking to invest in your very first property then my advice to you is to stay put – at least until the general election is over. With political stability property growth is a sure thing. Also, consider investing in foreign properties – markets such as the United Kingdom (i.e. London) and Singapore are hot with Malaysian real estate investors. If you have sufficient cashflow then consider going overseas to look for real estate investment opportunities.

Now looking at the domestic market, consider investing in places like Mont Kiara. This area was super hot a few years ago with some choice developments by reputable developers such as Sunrise Berhad, but is relatively quiet over the last two years or so with some slight overheating of the market. This area is popular with expatriates, and continues to fetch good rental prices. Commercial developments such as One Mont Kiara are popular, but older places such as Plaza Mont Kiara is already showing some fatigue. Still, Mont Kiara gets my vote of confidence given its strategic location near the center of Kuala Lumpur and also its position as the number one preference for expatriate families next to Kuala Lumpur City Centre. Some good Mont Kiara condominiums are MK10 and Lumina. Go check them out!

Apply

Hello, George Lee here, and I am Avery’s business partner. He has asked me to contribute and so here I am.

The Apply apartments in KLCC enclave, Malaysia is easily my favorite condominium development. :) I was a resident in Park Seven for about seven months, but I have always wondered about the nearly Apply units.

So what I did was that I Googled for Malaysia property reviews and then I found this site called PropertyReviews.my (the site URL is http://propertyreviews.my – go check it out!). It has got a compendium of reviews of real estate developments in Malaysia which I really like. It’s still a lot of work in progress, but the content is pretty awesome.

When I was moving out from my unit in Park Seven, I was considering of going to Marc Residence or the Binjai On The Park. Yes, I am completely in love with the KLCC area – it has got the unmissable view of the KLCC Park as well as the Petronas Twin Towers. Awesome!

Idaman Residence – My Choice

And so I finally settled down at the nearby Idaman Residence (click on that link for a review by the good folks at KLCCCondominiums). I managed to get a bargain because the prices have somewhat flattened over the past few years. Somebody told me that KLCC is not that prestigious anymore, but I begged to differ. I have always preferred apartments over landed properties anyhow. This could well change when I am hitched with children though…

The Malaysian government has launched a scheme for foreigners to own properties through the “Malaysia My Second Home” program. I am not sure if I am eligible for it, but my friends at local real estate agencies have advised me to do so. Since I am only renting a unit at Idaman Residence, I feel tempted to buy it outright because I like this place too much. My office is at one of the two towers, and so I walk to work every day and it’s really convenient. Also, Dua Residency (on Jalan Tun Razak) is nearby, and it houses a nice restaurant called “Delicious Cafe” which I like very much. Avery would come around and we would have a blast.

Till my next blog post…

GEORGE (georgelee2@ymail.com)