Why Buying Completed Properties From Developers Gives You More Value For Your Money
Investing in property is a common Malaysian dream. Many people purchase property as an upgrade from their current homes or as an investment vehicle to collect rental income, and perhaps to sell it off for profit at a later date.
As popular as new property launches may be, the bulk of the property market in Malaysia actually comprises the buying and selling of completed homes in the secondary / sub-sale market.
When buying a completed property, a dilemma that usually presents itself is whether to buy from a developer or to buy from the resale market.
The sale of a completed unit direct
by a developer
The sale of a unit by a subsequent
purchaser from an owner
If you are looking to purchase a completed, ready to move-in home, here are a few reasons why it makes better sense to buy it from a reputable developer.
Developer incentives and freebies
Many people prefer to buy properties for developers mainly due to the various incentives, freebies and add-ons that developers provide free of charge when you purchase a new property.
In Malaysia, it is not uncommon for developers to offer incentives such as free sale and purchase agreement (SPA) and loan legal fees, rebates and others. There are also developments where the developer offers low booking fees or even zero down payment plans.
One such developer is Mah Sing Group Berhad. Under its newly unveiled Desire campaign, Mah Sing is offering free SPA and loan legal fees for a number of its completed projects, together with a whole host of attractive incentives and packages to make ownership as easy and affordable as possible. These packages range from zero down-payment schemes to instalment plans & furnishing packages. The projects under this campaign, all ready for move-in, are as listed below:
|ICON RESIDENCE||Mont Kiara, Kuala Lumpur|
|LAKEVILLE RESIDENCE||Jalan Kuching, Kuala Lumpur|
|M CITY||Jalan Ampang, Kuala Lumpur|
|D'SARA SENTRAL||Sungai Buloh, Selangor|
|GARDEN BOULEVARD||Cyberjaya, Selangor|
|ICON CITY||Petaling Jaya, Selangor|
|M RESIDENCE 2||Rawang, Selangor|
|SAVANNA||Southville City, Selangor|
|AUSTIN V SQUARE||Taman Mount Austin, Johor|
|I-PARC||Tanjung Pelepas, Johor|
|MERIDIN BAYVUE||Sierra Perdana, Johor|
|MERIDIN EAST||Pasir Gudang, Johor|
|MERIDIN MEDINI & MERIDIN MEDINI 2||Iskandar Malaysia, Johor|
|FERRINGHI RESIDENCE & FERRINGHI RESIDENCE 2||Batu Ferringhi, Penang|
|LEGENDA||Batu Maung, Penang|
|THE LOFT||Batu Maung, Penang|
|SUTERA AVENUE||Kota Kinabalu, Sabah|
All these incentives do add up to quite a bit. For instance, if you’ve decided to snap up a unit at Lakeville Residence –which starts at RM668,000 – you stand to save roughly RM6,344 on SPA and loan legal fees.
These innovative financial schemes ensure easier entry costs for property buyers, who will face less significant disruptions to their cash flow, as they do not need to come up with as much cash upfront.
Lower move-in costs
Some developers grant freebies in the form of interior furnishing and household items such as kitchen cabinets, water heaters and even washing machines and dryers. Some properties also come with partial furnishing, which allows investors to save on furnishing and moving-in costs.
Currently, under its Desire campaign, Mah Sing is offering furnishing packages ranging from partially furnished units, to fully-fitted out interior design packages. For example, buyers of Caspia@M Residence 2 in Rawang will receive a “MyHomeMyStyle” furnishing package worth up to RM150,000, while buyers of M City will receive a fully furnished package worth RM80,000.
The other part of the appeal of buying a completed property from a developer is that owners do not have to fork out unnecessarily for renovation and repair costs. Like it or not, older resale properties may come with issues such as choked plumbing, yellowing walls, damp ceilings (usually from air-conditioning leaks) or failing water heaters.
Complete renovation works can include carpentry, electrical wiring, plastering, painting and wet works that can add up to anywhere between RM40,000 and RM150,000 for a condo unit, and between RM60,000 and RM250,000 for a terrace house.
Remember, these costs are not included in your home loan and you will have to fork out of your own pocket.
To add a cherry on the cake, the Desire campaign also offers free move-in services and free consultation for interior design and contractor services, so your evenings and weekends can be spent doing the things that you enjoy rather than being tied up with the kind of DIY projects that an older property would inevitably need.
Greater upside of appreciation
If your long-term objective is investment, purchasing a completed or an under construction property from the developer may be a better option and you stand to benefit from the latest facilities and design. Investors would also likely see a greater upside of appreciation due to higher demand for newer properties.
In Malaysia, one way to assess if a property will see strong capital appreciation in the future is to pay attention to government planning, as well as plans for public transport links.
Traditionally, properties located near public transport links such as the LRT and MRT stations tend to see better capital appreciation in the long term. Newer properties are also more likely to attract a larger tenant pool, hence maximising your home’s rental potential.
For instance, residents of Mah Sing’s D’sara Sentral, which expected its first vacant possession in May 2018, is situated right opposite Kampung Selamat MRT station and is directly linked via a covered walkway. This easy accessibility to public transport will no doubt be one of the key points that potential tenants will look at when considering the development.
Another plus point is that MRT stations often see a number of amenities pop up around them, from the ubiquitous McDonald’s outlet to convenience stores, to suburban retail malls, which all provide a host of conveniences to those living nearby.
It is, however, important to note that infrastructure development is a process that can span for years, if not decades, and buyers will need to ensure that they have sufficient holding power and a healthy dose of patience before making a purchase.
But look before you leap into a new property deal
Unfortunately, not all property developers are made equal and this can be bad news for buyers. For instance, some property developers may be allowed to start selling projects before they are completed, with the hopes that the sales will make up for capital shortfall and allow them to continue the project.
This is where it can get messy, for should the developer fail to sell enough units to carry on construction, they will pull the plug and leave investors counting losses.
Potential buyers would do well then, to perform adequate research to avoid potential pitfalls. Investors who are keen to buy property can mitigate this risk by first looking at established property developers with a good track record.
One such example is Mah Sing, who has risen in status and now holds a proud track record of 47 projects since it entered the property market in 1994. These properties are located in various development hotspots across Malaysia, including the Greater Kuala Lumpur, Selangor, Penang, Johor, and Sabah.
Further, properties by Mah Sing are subject to stringent quality checks before they are being issued a certificate of Vacant Possession (VP). All Mah Sing projects will undergo inspections through QLASSIC audits, multiple pre-delivery inspections by a highly trained quality team and external assessments by the Construction Development Board (CIDB).
Working with a financially-secure real estate developer is paramount to your property investment because firstly, you can rest assure that your project will get delivered on time. Further, buyers do not have to worry that a developer will resort to using cheap or low-quality materials, or charging them with hidden or sudden costs, to compensate for the lack of funds.
Find more projects by Mah Sing here!
Buying a home is a lifelong investment and being a homeowner comes with a fair share of financial responsibilities (read: it could put a serious dent in your wallet).
So, it always pays to take the time to first consider your lifestyle and finances before committing to one. In this case, buying a new property from the developer could help cushion some of the blow to your finances, especially as developers sweeten up your housing deal with goodies like stamp duty absorption, zero down payment plans, furniture packages, and shopping vouchers.
Finally, there is also the feel-good factor of knowing that your new home will come ready in all the latest designs, fittings and fixtures.
Find your dream home with Mah Sing today!
*Information is correct at time of publishing