Homeownership is a huge milestone, but the journey there certainly isn’t easy.
Having a home of your own means you can craft a space that’s truly yours – something that would otherwise be difficult to achieve with a rental property.
Of course, there are also the investment perks. Chosen and managed wisely, your property can be a flexible asset that keeps on giving, for generations to come.
Looking to get a property of your own in 2022? Let’s dive into some homeownership basics and insights from our PropertyGuru Consumer Sentiment Study H2 2021 to help you out.
Top Three Reasons Why Malaysians Prefer Brand-New Projects
Out of these, 66% are looking for a brand-new property, while 27% are looking for subsale, and the remaining 7% is for auctioned properties.
Below are the top three reasons that motivate Malaysians to buy newly launched developments, and why COVID-19 has significantly tipped the scale in favour of brand-new projects.
1) For the availability of better grants
48% of survey respondents cited the availability of better grants as the reason why they prefer a brand-new property.
In addition, there are currently a number of homeownership schemes targeted at helping primarily first-time and B40/M40 buyers. These include:
’B40′ stands for Bottom 40%, whereas ‘M40’ stands for Middle 40%. These two are referring to Malaysians who are classified into their respective income groups, according to median monthly income per household. So for B40, it includes anyone whose household brings in a monthly median income of below RM4,850; for M40 it is set at RM4,850 to RM10,959.
2) For the new fixtures and fittings
Normal wear and tear is to be expected when you’re buying a subsale property. With time however, fixtures and fittings are bound to deteriorate – which can be a bit of a hassle.
Plug sockets need changing, shelves get wonky, and plumbing fixtures leak. Hence, 39% of survey respondents prefer brand-new properties for the shiny new items that comes with the unit.
3) More progressive payment schemes
The massive down payment
that comes with buying a property has been a constant hurdle for Malaysians, even more so now.
35% of survey respondents are looking towards brand-new projects for their progressive payment schemes.
What do we mean by “progressive payment schemes”? When it comes to properties which are still under construction, payments are broken down into five different stages depending on their level of completion.
For homebuyers, this can help ease some of the upfront financial burden, as compared to a subsale property.
What Are The Important Factors To Consider When Choosing A Property?
1) Type of property
Choosing between a high-rise or landed property seems to be simple enough…except that it doesn’t stop there.
Say a high-rise is what you’re looking for. Do you want a condominium, apartment, serviced apartment, studio apartment, or duplex?
The same wide variety goes for landed properties, and not to mention SoHo/SoFo/SoVo type properties, which can be complicated due to their commercial land titles. Whew!
2) New or subsale unit?
In general, brand-new properties come with more rebates and discounts, making them easier to afford.
The 24-month defect liability period (DLP) is a huge plus too! Imagine having all the little issues you find in your home fixed for free, thanks to the DLP.
Unfortunately, developments which are brand new or still under construction also mean you don’t get to see what the property actually looks like in person, when you put down the money for it.
Subsale properties, on the other hand, are already well-established, both in terms of the build as well as the surrounding community and amenities available. The downside?
It can be tough to find one that fits all your criteria – not too run-down, ideal built-up, attractive price, etc. So, get ready for lots of hunting!
3) Location and nearby infrastructure
Location, location, location. It’s best to start off by deciding on the area you want to settle down in.
Do you plan on relocating any time in the future? If you’re moving somewhere closer to your workplace, how long do you foresee yourself working there?
Exciting Developments To Look Forward To In 2022
If you think that you’re both financially and mentally ready for one of the biggest commitments in your life, it’s time to check out some of the top projects that is due for completion in 2022!
- Property Type: 2-storey superlink
- Built-ups: 3,013 sq ft – 3,172 sq ft
- Price: From RM1.06 million
- Completion year: 2022
Owning a lakefront home is an idyllic dream for many. Enter Elemen Residences – the first lakeside phase in Tropicana Aman.
True to Tropicana Aman’s nature-centric theme, buyers of this project can choose from lakeside homes with dual frontage and a panoramic lake view, or garden homes with a gorgeous botanic view.
Residents here don’t just get to enjoy all the green perks that come with it, like a tree-lined 7km walking/biking trail and parklands galore though.
In terms of amenities, Tropicana Aman is more than well-equipped with commercial spaces, a recreational hub, schools like Tenby International School as well as an 85-acre central park.
- Property Type: Mixed development of serviced apartments with retail lots
- Built-ups: 764 sq ft – 1,747 sq ft / 3,232 sq ft
- Price: From RM894,800
- Completion year: Feb 2022 (estimated)
Think Megah Rise, think convenience. Not only does this development by PPB Group Bhd come situated atop a 4-storey retail centre, it also enjoys the mature address of bustling Taman Megah.
For locals who remember the former Ming Tien Food Court, Megah Rise is the project that stands in its place now.
Despite being a malltop high-rise property, Megah Rise offers low-density living for single executives and larger families alike.
From 1-bedroom units to impressive 4+1 bedroom duplex penthouses – there’s a built-up for everyone here.
- Property Type: Condominium and townhouses
- Condominium: 883 sq ft – 1,776 sq ft
- Townhouse: 2,799 sq ft – 3,035 sq ft
- Condominium: From RM837,000
- Townhouse: From RM2 million
- Completion year: 2022
Families who are looking for a sophisticated, sustainable living environment with plenty of greenery throughout will find Sunway GEOLake to be their match made in heaven.
Sunway GEOLake Residences is the final instalment in Sunway Geo, an integrated commercial centre in thriving Sunway City.
The lakeside development features an urban farming community garden, elevated canopy walkways, and extensive landscaping done by award-winning landscape architects.
The cherry on top? It’s a Sunway property in Sunway City, so you know the connectivity here is nothing short of excellent.
- Property Type: Apartment
- Tower A: 800 sq ft – 1,050 sq ft
- Tower B: 1,000 sq ft
- Tower C: 770 sq ft – 1,020 sq ft
- Tower A: From RM288,000
- Tower B: From RM450,000
- Tower C: From RM359,100
- Completion year: 2022
It’s pretty hard to beat Nexus when it comes to Transit-Oriented Developments (TOD) in that location.
This development is perched directly across from the Kajang MRT-KTM interchange station. To be more specific, it’s directly connected to the station via a covered link bridge – a mere one minute’s walk!
This isn’t MKH Bhd’s first foray into TODs either. Back in 2018, the developer also launched MKH Boulevard, Kajang’s first ever TOD.
- Property Type: Serviced Apartment
- Built-ups: 686 sq ft to 1,775 sq ft
- Price: RM 1.03 million to RM 2.73 million
- Completion year: 2022
Looking to make a statement? NOVO Reserve can definitely do that for you. Flushed with strips of colorful LED lighting, it stands out even in a prestigious area like Embassy Row, Jalan Ampang.
This luxurious development is Alfranko Group of Companies’ maiden foray into Malaysia. The group is a multi award-winning European investment and development conglomerate.
NOVO Reserve even bagged the Winner of Best Condo/Apartment Architectural Design in the PropertyGuru Asia Property Awards (Malaysia) 2020!
Not Sure If You Can Afford A Property? Use The 3-3-5 Rule!
First things first, familiarise yourself with all the associated costs involved in buying a property. Done?
Great! Now you can start doing some quick maths to calculate what property you can afford.
The 3-3-5 rule
is a popular guideline recommended by the Singaporean Central Provident Fund (CPF) board – their equivalent to our EPF – which helps make sure you’re not spending above your means on a property.
How the 3-3-5 rule works:
3: You should have a capital of at least 30% of the property’s asking price.
3: You should not spend more than ⅓ of your monthly wages on your monthly mortgage repayment.
5: The price tag of the property should not be more than 5 times your annual income.
Using this rule helps to ensure you’re not overspending for the upfront costs, monthly repayments, and overall price tag.
Whether it’s brand-new or subsale, there’s always more to learn so you can make better homebuying decisions.