8 Tips For Picking Apartment ? Condo?

After years of escalating, the residential market saw a slowdown this year.This is due to cooling measures such as increase in real property gains tax (RPGT), removal of developer's interest bearing schme (DIBS) implemented by goverment effective January, tightening of lending condition to get a mortgage loan from bank and the rising of Overnight Policy Rate (OPR) rate in July which cause correlation impacts to BLR rate. However, Many of us still looking to own your first house especially apartment or condo, because it seems to be more affordable to us.

How do you pick a High-Rise Unit?? Propery Consultants give some pointers.

EXAMINE TRACK RECORD OF DEVELOPER
If you are buying a property that will only be completed a few years later, a lot of trust hinges on the developer to deliver the products that is promised. Hence, it pays to check out the background and reputation of the developer. Aside from basic research on the online property and forums and website, talk to real estate agents, property valuers or even mortgage specialist in banks, who can access to more info.

LOOK AT THE QUALITY OF THE MATERIAL USED
Apart from good location, how well the building is constructed will determine its future capital appreciation and future demand from buyers. Datuk Seri Gavin Tee, a property consultant with Swhengtee International Sdn Bhd says it us important to look at the quality of the materials, not just the price. The quality of the building becomes more important than the location. Once it's completed, people will scrutinise it to determine its secondary market value. Developers in the luxury segment trend to be very specific about kind of products that is used and many even provide samples in their show units.

LOCATION
Location is a paramount when it comes to property. Getting a well-located property doesn't merely mean easy accessibility with ample amenities, but also other factors such as the security level of the development and its surrounding neighbourhood. There are mature and non-mature area. Properties in mature areas are mostly selling at a higher price, as buyers can immediately enjoy the conveniences such as workplace, educational institutions, shopping centers and entertainment outlets. Non-mature areas refers to the new townships, which are far from existing conveniences. However, these new townships plan and niche housing designs, spacious layouts, wider serviced roads, landscaping and a properly new set-ups could actual offset the premium property price that is paid in the mature area if the whole development is carried out well over the long run.

CHOOSE ACCORDING TO YOUR PURPOSE
There could be a difference when it comes to selecting high-rise properties for one's own occupation and as an investment. If you are buying for residential purposes, you may want to buy a development in which a majority of the owners are owner-occupiers. In this case it is recommended to look for development with more 50% owner-occupiers. For investors, look at the popularity of rental units in the area based on the supply and also the number of rental units.The availability of units in the are can provide an indicator of how good rental demand and rates. Certain area shave limited supply of rental units, with not many choices. This would therefore guarantee a higher occupancy rate. Investor would benefit from buying smaller-sized units and those catering to those catering to the student population. Investor might want to look out for smaller apartments with built-up areas of less than 1,000 sq ft. Student apartments located within one to two kilometres of colleges and universities are also ideal for rental.

PHYSICAL CHARACTERISTICS
The physical characteristics of the unit itself are just as important as location, especially if the property has been completed. The overall project and product features must be examined closely. The entrance , design of the building, floor layout, number of units per floor, specifications and number of car parks. In the unit itself, observe the quality and existence of fixtures and fittings such as wardrobes, shower screens, air-conditioners, hot water system, kitchen cabinets and appliances. Try to avoid a property that is in close proximity  to a quarry site ( dusty and noisy), transmission lines, a cemetery, factories and highways. While you may not mind it, it may still affect the price of the property when you sell it in the future. When you view the property, go during working hours because some negative features such as noise in a quarry site may only be observed during those times.

EXAMINE HOW WELL THE DEVELOPMENT IS MANAGED
A development that is well managed will sustain the property's current and future value. Prospective buyers should take a walk through the development to get a good look at and feel of the surroundings, the amenities and facilities, and how well maintained they are. The general rule is, the more facilities there are, the higher the monthly maintenance fee. For luxury to high-end projects, the price is usually 50 sen psf, while the mid-range condos, it is 25-30 sen psf. Besides that, buyer should check the ratio of owner occupiers versus investor as well as the general occupancy rate, as this may affect the collection of service charges. Usually, if these is a higher percentage of investors and speculators, the collection may may not be good.The same goes if there are a lot of vacancies. If there is big proportion of investors and if they don't take an active role in the management of the condo, some parties could run riot with the funds. To find out, you have to go there and talk to people. A well-run management committee not only ensures that the maintenance is carried out accordingly, but ensures that residents pay on time. Prospective buyers may try to obtain information on the management's outstanding balance of service charge and sinking fund accounts. The service charges are collected on monthly for general maintenance such as landscaping and pest control while the sinking fund account is reserved for capital expenditures such as repainting the wall once every five years and changing mechanical and electrical equipment. These accounts are sometimes displayed at the notice board in the common area, particularly by the better managed ones. Some management committees also put up a list of those yet to pay their outstanding service charges. For example, if they put up a 'shame list'of those who haven't paid their service charges, then you know why they are doing their job well. If there is a long list of people who have not paid and facilities are not well maintained, then you know whether that situation is acceptable to you or not. Prospective buyers should obtain a copy of the management's house rules if possible. Their house rules will list down the dos and don'ts of living in the property. If you have a good management corporation or a joint management committee, they would come up with very detailed house rules.

CHECK THE NUMBER OF CAR PARK BAYS
While most developments standard practice is to offer two bays per unit, there are others that may not. Hence, it is important that prospective buyers check their sales and purchase agreement if they are buying directly from the developer. When you sign the agreement, make sure it states that these two bays bear the lot parcel numbers are listed as accessory parcels with your unit. When you sell your unit, the two bays go with you. There are some developers who may sign one agreement for the unit and the sell the car park unit separately.

BE PREPARED TO FORK OUT MORE FOR RESIDENCES ON COMMERCIAL LAND
If your residence is built on commercial land, be prepared to pay more in bills compared with those built on residential land. For example, Serviced apartments are built on commercial land, so things such as quit rent, assessment rate and utilities will be higher. Besides that, considerations should be taken to see whether projects is governed by the Housing Developers Act 1966. Before signing the sale and purchase agreement, buyers should check whether the development comes under the HDA. This would affect the progress payments, as stated in Schedules G & H of HDA. This means that commercial property buyers could be charged earlier than expected and at a higher tiered rate than those who live on residential land. In addition, for those who are applying for loans on commercial properties may have to pay a higher down payment, as the loan margins offered by banks for this type of property is 80%.

source from : personal money magazine March 2014