Many high-rise residential projects have mushroomed across the urban landscape in Malaysia since the late 1990s. They include apartments and condominiums featuring a wide variety of facilities. These properties have risen in popularity especially among the younger generation. However, the demand for landed properties such as terraced houses, semi-detached and bungalows is still high. The following factors may influence your decision to buy a landed or high-rise property:
Budget
Buying a house is a long term commitment and should be done with careful planning. Consider the amount of loan you can obtain from the bank and monthly instalments you can afford to work out the pricing range of your ideal house. Based on this budget, you can start house hunting.
Generally, landed properties are priced higher because you are paying for the house and land. If you are leaning towards high-rise residences, you must also take into account the monthly maintenance fee which would add on to the cost of owning the unit.
Location
The address of a house, whether landed or high-rise, is a major factor affecting the decision to purchase. Some locations are deemed more desirable than others due to the surrounding amenities and development in the neighbourhood.
However, the suitability of each location will also depend on your lifestyle and needs. A single working adult may want a house in the heart of the city where it is hip and happening. A family with children would prefer a quieter neighbourhood which is near schools and supermarkets.
Long-term stay/Upgrade
For those who plan to stay for a short period of less than five years, high-rise residences such as service apartments would be an ideal choice. These residences provide the convenience in terms of maintenance and facilities which are not available in landed properties. They are also generally cheaper than landed properties.
Young families with children would prefer to upgrade to a landed property which would provide more space and privacy for the kids to grow. If you want to buy a house for long-term stay, a landed property might be a good choice as you can control your space and maintenance of your house.
Resale Value
Landed properties usually appreciate more than high-rise properties over the years. This is because as land becomes increasing scarce from rapid development, the plot of land which comes with a landed property will also increase in value, adding to the resale value of the house.
Moreover, the maintenance of a high-rise property is a joint responsibility of all its residents. It is much harder to upkeep a high-rise building over the years if many residents default on their maintenance fees. On the contrary, the owner of a landed property controls the property’s maintenance. Hence, a well-maintained terraced house may fetch a higher selling price even though it may be over 10 years old. Therefore, landed property would be a better bet for those who are buying for investment.
Rental
If you are looking for a residential property to serve as a rental unit, high-rise property is the way to go. Since most high-rise properties are cheaper than landed properties, you can lower your initial cost of investment.
In addition, high-rise residences are easier to rent out as the demand for them is higher especially for those who want to stay for short term or those who cannot afford a landed property. You will definitely get a better rate of return for rental business with a high-rise property.
Conclusion
Each buyer may have their own reasons other than those discussed for choosing a certain property type. However, with the above outline, you have a great starting point to decide which property is best suited to your unique needs and lifestyle. For more advice, you can post your questions at https://www.propertyempire.com.my/blog/forum.