Choosing the right type of property can be a challenging task for those planning to purchase one. high-rise properties appeal to some, while others are more comfortable with landed properties and what they have to offer. An individual’s preference is an important aspect which will influence the decision, but other elements come into play when considering the best selection to make. We’re here to assist you in making the right decision, by reviewing various vital factors which are paramount for every property seeker to consider during the journey to property ownership.
What is a High-Rise Property?
A high-rise property is a residential housing which comprises multi-unit residences on the same land. It has become more popular over the years in the urban areas, due to the rising costs of land. High-rise properties are between 35 – 100 metres tall and have special requirements in their engineering design for the safety of their premises.
What is a Landed Property?
Landed property refers to a home that is situated on a piece of land. There are different types of landed properties, such as bungalows, semi-detached houses, terrace houses, etc. Unlike high-rise residences, landed houses are not made up of multi-unit residences.
Things to Know Before Choosing Property
Location of the Property
Before acquiring property, it is important to note and consider the location of the property. Location plays a big role in determining a property’s price. Therefore, before you choose any property, you have to make sure that you thoroughly review the area, its public transportation routes, crime rates, schools and commercial buildings. This will give you a better sense of stability and also avoid places that will be in conflict with your comfort.
Certificate of Statutory Completion
The Certificate of Statutory Completion (CSC) is a certificate that is provided when a building has met all the safety and legal requirements. In the event that the CSC has not been given yet, a Temporary Occupation Permit (TOP) can be obtained. Various things can lead to the delay of a CSC, such as incomplete facilities and slight deviations from the approved building plan. These are terms which every aspiring homeowner should be aware of, to prepare them for the property acquisition process.
Property with a leasehold title means that the property belongs to the government, and the individual is only allowed to obtain the land for a certain number of years (from 30 years to a maximum of 999 years at a time). When the time has been used up, the individual is required to renew the lease if he/she plans to pass it on to the next of kin.
A freehold title signifies that the property belongs completely to the owner and the government can exercise no control over it. Although, under the Land Acquisition Act of 1960, your property may still be reclaimed by the state for public purposes, such as the building of a railroad.
The strata title is a legal document given to signify that an individual is the legal owner of the property. It is used for properties in a multi-unit building (stratified properties). For a strata title, it means that you own your specific unit in the building and also take responsibility for the communal spaces known as the common areas. They include the fitness centre, elevators, and other areas which are shared by the other unit owners. A strata title aids in the creation of the management corporation (MC) by the apartment owners. Sadly, a high amount of new strata properties in Malaysia are still being managed by Joint Management Bodies (JMB), and only 10% have established a management corporation (MC) due to the delay in the supplying of strata titles.
The Master Title is a document proving the ownership of the entire enterprise. The agreement is made before the real estate developer begins construction on either a residential or commercial building. Usually, the builder, a developer, or a subsidiary’s name appears on the document.
Advantages of high-rise Properties
Rental payments for a typical high-rise property are less than a landed property, although upscale high-rise properties contain facilities that set their prices in the same range as landed properties, and their location and sizes also play a role. However, typical high-rise properties involve relatively lower cost, and this in turn aids with saving more money.
Provision of Facilities
High-rise properties offer various facilities that provide comfort to the residents, such as swimming pools, gymnasiums, proper security systems such as CCTV, playgrounds, etc. Also, they provide easy access to public transportation and even to your workplace.
Effective Security Systems
High-rise properties offer a sense of security and safety with the various measures set in place for the protection of the residents. Some of these measures include the installed smart door locks, the access cards which are used to enter the buildings, the CCTV cameras and the security guards which are always on watch.
Better Rental Yield
High-rise properties are now in high demand, considering that a typical high-rise property is less expensive than a landed property, and also provides a better location. This could potentially make them wise investments.
Disadvantages of High-Rise Properties
Due to the facilities present in high-rise properties, residents are usually required to pay maintenance fees, as well as budget money for building repairs and sinking funds.
Most high-rise properties have smaller sized rooms (although not always). This may be considered as inadequate by people with expanding families, although it may be optimal for singles and couples.
Living in a high-rise property entails that you will be in close proximity with your neighbours, and even share spaces such as the gym, swimming pool, elevators, hallways, trash areas, etc. This can serve as a problem when some residents decide not to take proper care of these spaces. Also, having shared spaces mean that you can easily be affected by noise disturbances.
High Utility Rates
Some high-rise residences have commercial titles, and this can entail greater utility costs. Also, for the services rendered by the management of the building, you may be liable to goods and service tax (GST).
high-rise properties have numerous floors, and because of this, elevators are installed for easier flow of movement. This usually leads to residents waiting for extended periods of time while the elevator goes down to their floor. In addition, it also takes some time to go to the parking area due to the distance. This takes more time and effort when transporting goods or supplies home.
We’ve highlighted the important aspects of high-rise properties and how they affect the residents. Now, we will provide a similar description of landed property and the various factorswhich may affect your decisions regarding its selection.
Advantages of Landed Properties
Unlike high-rise properties where the spaces are usually shared, a landed property offers you privacy and less noise disturbances, because there are no neighbours upstairs or downstairs.
More Living Space
Landed properties have more space and room sizes, therefore allowing you to have more flexibility and also not worry about cramped spaces. This makes it an ideal environment for growing families who need ample room to take care of all their needs adequately.
High Resale Value
Land is a valuable asset, which increases in value over time. However, the location and environmental conditions of the landed property are factors which affect its appreciation value.
Disadvantages of Landed Properties
Landed properties tend to be more expensive in city areas. Hence, if you plan to move to a landed residence in the city for work or business purposes, it can be quite costly. Although, opting to stay in a property further away would afford you more reasonable possibilities, you will need to factor in the expense of your commute.
Landed property will require you to pay repair and maintenance fees, and also pay for other servicing aspects of the premise. Moreover, if there are additional elements such as a garden and other instalments, this will require more maintenance fees.
Landed properties sometimes do not provide you with the amount of effective security systems which high-rise properties can offer. Some landed properties are gated, although most are not. Landed properties are still greatly exposed to outside threats. Because of this, there might be a higher risk of robbery for landed properties.
When making decisions about the best type of property to live in, it is best to assess your needs and desires, your requirements for your ideal living space and what will provide you with the most comfort. You need to find out what is the best for your living situations. For instance, if you have a growing family or enjoy entertaining guests, a landed property may be the best choice for you, to provide you with enough space and freedom. Last but not least, don’t forget to put the location of the property into consideration, and opt for something which is more economically feasible for you.
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