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Buying a home is a huge commitment, and without the right knowledge, it’s easy to make costly mistakes.
Hidden fees, unreliable developers, and choosing the wrong property type can turn your dream home into a financial headache.
Should you buy or keep renting? Is freehold really better than leasehold? Will a fully furnished unit save you money or limit your options?
We’re here to answer your questions with this guide to help you find the best option!
The Must-Knows When Buying a Home
1. Buying a Home Under the HDA
The Housing Development Act (HDA) is a law that protects the rights and interests of homebuyers in Malaysia, ensuring fairness between developers and buyers.
Why is an HDA home important?
- Sale and Purchase Agreement: HDA sets clear terms for the agreement between buyers and developers.
- Defects Liability Period (DLP): Developers are responsible for repairing defects during the warranty period.
- 24 months (for Individual Title properties, where owners have full ownership of both land and building)
- 36 months (for Strata Title properties, where owners own units in a multi-storey development)
- Construction and Handover Timeline: Developers must complete homes within the agreed timeframe and specifications.
- Compensation and Remedies: Buyers are entitled to compensation or repairs if there are significant delays or defects.
- EPF Account 2: Buyers can use their EPF savings (Account 2) for a down payment.
- Land Tax: Buyers pay a fixed tax rate based on their residential property.
2. Residential vs Commercial Properties
Choosing between residential and commercial properties depends on your purpose—whether for living or investment.
- Residential properties are designed for individual or family living.
- Commercial properties are used for businesses, such as offices, retail shops, or other commercial spaces.
Key Differences
| Residential Property (HDA) | Commercial Property (HDA) |
|---|---|
| Security & Privacy | Safer with better privacy for families |
| Utility Bills | Water, electricity, and land tax are based on household rates (more affordable) |
| Taxation | Lower land tax as it’s classified as a residential property |
3. Freehold vs Leasehold Land
There are two types of property ownership in Malaysia:
- Freehold: The land belongs to the owner permanently with no expiry date.
- Leasehold: The land is leased from the government and has an expiry period (usually between 30-99 years).
Key Differences
| Freehold | Leasehold |
|---|---|
| Lease Period | Permanent, no expiry |
| Ownership Stability | Secure as it’s fully owned |
| Resale Value | Higher resale value due to permanent ownership |
| Lease Renewal | Not required |
| Property Price | More expensive due to land permanence |
| Location | Usually in prime areas |
Many assume freehold is always the better choice due to permanent ownership and higher resale potential. However, under the Land Acquisition Act 1960, the government still has the power to reclaim freehold land if necessary.
On the other hand, leasehold properties have advantages, such as lower prices and better locations, making them a practical choice for many buyers.
4. Fully Furnished vs Semi-Furnished Homes
A fully furnished home offers immediate convenience, as buyers don’t need to purchase furniture separately.
However, a semi-furnished home provides more flexibility, allowing homeowners to decorate according to their personal taste and needs.
Additionally, semi-furnished homes let buyers invest in higher-quality furniture that suits their lifestyle and budget, creating a more comfortable and personalised space.
5. Choosing a Parking Spot Wisely
Selecting the right parking space is crucial for daily convenience.
- A side-by-side parking spot is more practical and user-friendly.
- A tandem parking spot can be inconvenient, as the front car must be moved to allow the rear car to exit—causing delays, especially in urgent situations.
6. Selecting a Trusted Developer
A reliable developer should have a proven track record of delivering high-quality projects on time.
For example, the FIABSI Award Developer is an internationally recognised honour for excellence in real estate development.
Before purchasing a home, always:
- Research the developer’s past projects
- Read customer reviews
- Ensure they have a history of delivering projects without delays or abandonment
7. The Advantages of Speed Ramps
One common inconvenience of living in an apartment is the hassle of reaching your parking spot, especially for those on the 5th floor and higher.
Without a speed ramp parking system, drivers have to circle up multiple levels, wasting both time and fuel, not to mention the added difficulty in emergencies.
To improve convenience, many new developments now include speed ramp parking, providing a direct access route to each parking level.
This means no more endless turns, but a quicker, smoother drive to your spot!
8. The Importance of a GreenRE Certification
GreenRE is Malaysia’s green building certification that promotes sustainable property development by improving energy and water efficiency.
Developers with GreenRE certification demonstrate commitment to eco-friendly practices, such as:
- Energy-efficient designs
- Natural ventilation systems
- Sustainable building materials
Homes with GreenRE certification can also help reduce utility bills, making them a smart long-term investment.
Whether you plan to buy, sell, or rent, understanding property ownership in Malaysia is crucial.
By considering factors such as location, price, and developer reputation, you can make an informed decision and avoid costly mistakes.
For a stress-free buying experience, always research, work with a trusted real estate agent, and ensure the property meets your lifestyle needs.
FAQ
How Much Money Should I Save to Buy a House?
Ideally, you should have a 10% down payment and RM500 per month for every RM1,200,000 in property value.
What is the Best Age to Buy a House?
The earlier the better, that said the “best” age to buy a home is between 30-35 years old.
Is it a Good Time to Buy a House Now in Malaysia?
Now is a great time to purchase real estate, if you are in the market for one and you can financially afford it.
Are you looking to find your dream home, but unsure where to begin? Let our trained professionals lead the way! Enquire below to start your journey now!
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