Should I buy or rent?

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 S. K. Brothers Realty Sdn Bhd general manager Chan Ai Cheng explores the upside and downside of both renting and buying.

 WHY RENT?

• When time is of the essence
Rent is the ideal option when you need a place in a hurry or on a speedy basis. This is because the process of renting a property is way faster than the process of buying one. A rental transaction can be done in just a day or two! Besides that, you have the  choice of the length of stay that suits your needs. You can opt for a year or two, or on a month-by-month basis.

 What's even more attractive to those who are in a hurry is that you have the option to rent a place that comes   fully furnished – just carry your bags in! Of course, there is a slight premium to pay for a fully furnished place. Having said that, in situations where time is of the essence, you may not have the luxury of time nor the upfront resources or necessary contacts to furnish a place to a move-in condition that quickly.

Encouraging pre-launch sales for Taman Raintree condos

By Melody Song of theedgeproperty.com
Friday, 08 January 2010 15:50

KUALA LUMPUR: The two condominiums under the Taman Raintree Batu Caves development in Selayang, namely Semarak Condominium and Penaga Condominium have received encouraging sales prior to their officially launch this weekend on Jan 9 and 10, 2010.

According to developer Ratus Bayan Sdn Bhd, some 85% of the Semarak Condominium units were sold within 30 days after its preview on Nov 14, 2009. Penaga Condominium units on the other hand are 40% sold out despite there not being a preview.

According to assistant manager for the project Jennifer Lee, the development sits on nine acres of land and comprises 684 units with built-up sizes of 926 sq ft, 1098sq ft and 1206 sq ft.

Lee said unit prices were between RM168,980 to RM299,980 with special “low downpayment” schemes and 7% Bumiputera discount. Owners also enjoy two complimentary car park bays per unit and developer-borne legal fees and disbursement fees on the sales and purchase agreement.

Facilities include a clubhouse with a 46,000 sq ft “interactive area”, a multi-purpose hall, 24-hour security, card access system, gymnasium, sauna and steam bath, as well as a launderette and convenience store.

Taman Raintree is easily accessible via the Middle Ring Road 2 (MRR2), DUKE Highway, KL-Karak Highway and Jalan Kuching. It is also situated in close proximity to supermarkets, the Selayang Hospital and other commercial areas.

Prasarana is upgrading Gombak LRT

This is a good news for Gombak folks!!!

Syarikat Prasarana Negara Bhd (Prasarana) is spending RM51mil to upgrade three LRT stations in the city to provide a comprehensive integrated transportation system with better connectivity, accessibility and convenience for its passengers. The move will include building a six-storey carpark at the Gombak LRT station with 1,260 bays and one level specifically dedicated to women.

For the multi-storey car park in Gombak which is now at the piling stage, new facilities include bays specially for women and the disabled at the ground level.

Other safety features include a parking guidance system, CCTV cameras and panic button system.

“Once the carpark is ready we will implement a system where only LRT users will be charged a fixed rate of RM3 a day to park,’’ he said.

“A temporary carpark with 300 bays near the station is now available for people to park and ride during the construction period.”

[Extract from TheStar, 25 August 2010]

Rent No More

By Willy Wilson | Aug 28, 2009 | Star Property

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Has the global financial crisis served as a forceful drive for young Malaysian professionals? It could very well have been.

Despite the global recession that has hit the property industry in many countries, the property market in Malaysia still remains a favourite investment option. Prices for most of the residential properties have held out quite well throughout the crisis period, as proven by the strong sales registered by developers in 2009.

Yes, there is a significant price drop in the premium condominium market. But if developers were to target the country’s younger population between 25 and 44 years old, which makes up to a third of Malaysia’s population of 26 million, then they are making the right move. Combined with the prevailing low interest rates and slew incentives offered by developers, this year seems to be the year for young professionals to own properties.

StarProperty chats with three young professionals who have managed to buy apartments for themselves and finds out why you, too, can afford to own property.

Lavinne Yap, 30, Brand Manager

What got you into property investment?
It started four years ago when my cousin and I were looking around for a place to rent. After visiting a few places, it occurred to us that the rent in KL costs just as much as buying. Consider this: a studio in Bangsar, Mont’ Kiara and Hartamas costs at least RM1,200. At the end of the day, the place is still not yours.

When did you buy your first property?
Three years ago. I decided to buy a 1,190 sq ft, two-bedroom apartment in Wangsa Maju for RM273,700. It was an ongoing project that would take three years to complete. This October, I will have the key to move in, which also means I have to start paying a monthly installment of RM1,400 per month.

So far, how many properties do you own now?
I own two properties. I bought my first condominium unit in Riana Green East (Wangsa Maju) three years ago, and have recently purchased another unit in Regalia Service Apartment (Jalan Sultan Ismail).

Landlords and bills

Articles of Law by BHAG SINGH | June 29, 2010 | Star Property

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Should the landlord be held responsible if his tenant defaults in the payment of utility bills?

A landlord may be envied for being a property owner who generates income for himself by letting out his premises. Apart from the fact that to be a landlord, one needs to have financial resources or at least access to them, the role is not without its problems.

Tenants who are in breach of their obligations are sometimes threatened with having their supply of water and electricity disconnected. In the absence of express and specific provisions, this approach is not advisable.
Whilst the landlord may be perceived to be in a better position because he can choose his tenants, he is more exposed to risks. The landlord’s obligation is only in the form of handing over possession of premises when the tenancy commences.

Ask Azizi: Rental rate dilemma

Feb 1, 2010,  Star Property

Dear Azizi Ali,

I am a little overwhelmed after reading some of your books including Millionaire Landlord. However, I’m now really interested to venture into the property business and have done my homework. I still have one question, though.

I'm living in Penang and want to purchase an apartment that is more than 10 years old. I intend to rent it out but am not sure how much I should charge the tenant. Let’s say the monthly rent 10 years ago is RM500 and the current rate is around RM900. How much should I charge knowing that the other landlords are probably charging the old rate?

Your advice is much appreciated. Thank you.

Willi Thae
Pulau Pinang
Dear Willi,

First, it is normal to feel overwhelmed when you learn something new. There appears to be so many new things to learn and master. However, if you keep at it, you should be able to handle most, if not all, of the new knowledge. In time, everything will fall into place.

Seeing that you are new to this, I must add that you need to educate yourself further. Apart from referring to the books you have read, you should also attend talks and seminars or talk to people who are already successful property investors. The more knowledge you gain, the higher your chances are of making it big.

In answer to your question, I understand that there are tenants still paying RM500 despite the current rental rate of RM900. This could be because they have been there for many years and the landlord did not raise the rent.

All properties should reflect their current rental rate. This usually means a higher rate as the years go by. If the rate doesn’t increase, something is not right with (a) the property, (b) the landlord or (c) both!

So you should charge the current rental rate of RM900 per month. In fact, the other landlords should also charge the current rate (plus or minus a few ringgit). It makes no economic sense for a landlord to charge a rate that is 10 or 20 years old. How is he going to make money? And if he is losing money, why did he buy the property in the first place?

If you think it will be difficult to get RM900 for the unit, my advice is to not buy the apartment! Look for another one that will enable you to charge its current rental rate. There are plenty of properties in Malaysia. Surely you can find one that will help you build wealth.

Renting Guide For Landlords

How To Rent Your Property

The most usual way to rent a property is through estate agents. Some landlords choose to market their properties privately to save on the estate agents’ commission but this solution has the following disadvantages:

• it can be very time-consuming as you will have to do all the work yourself, including advertising and showing the property to prospective tenants
• it may take longer to rent your house as you are likely to get fewer viewings than by letting professionals market your property
• you may end up getting a lower rent as you are likely to get fewer viewings and therefore less interest in your property.