People should be careful in buying apartments and condominiums in Klang Valley, because many are suffering from neglect as a large number of owners and residents are not paying their maintenance fees, an expert told Free Malaysia Today.
“I think this problem will become worse because many people bought properties on a speculative basis between 2012 to 2014,” said Ernest Cheong, a chartered surveyor with over 40 years of experience.
“Now it is a renter’s market and I foresee that many speculative buyers will have trouble selling the units they thought they could flip for a quick buck or renting them out due to the oversupply of such properties.”
As such, some landlords are having a hard time paying the maintenance fees, while repaying a property loan at the same time.
“People who bought the units on a speculative basis without the intention of living there may not feel the urgency to honour their commitment to paying their maintenance fees,” he explained.
“As a rule of thumb, if even 30 percent of owners in an apartment or condominium complex don’t pay their management fees, the building’s joint management body (JMB) or joint management committee (JMC) may not have enough money to properly maintain the property.
For instance, the JMC of the Flora Damansara apartment are fighting a losing battle to collect maintenance fees to take care of the high-rise blocks, as only 48 percent of the over 2,500 units regularly pay their dues.
The situation is so bad that the management don’t even have enough funds to repair their swimming pool, and its debt has ballooned to more than RM2 million.
To ensure that you don’t end up buying a flat in a poorly-maintained condo, Cheong advises potential buyers to look out for certain warning signs before committing on their purchase.
“It’s best for those interested in buying an apartment or condo to visit the place a number of times, over a month or two, to get a feel of the place.”
“Usually, the lift will be among the most neglected facility if there aren’t enough people to pay the maintenance fees. The lift’s journey should be smooth and not jerky or noisy. The doors must also close properly.”
The corridors should also be free of personal items like bicycles or shoe racks. A cluttered hallway means lax enforcement by the management body, Cheong said.
“Also look for water marks on the facade of the building as well as on the ceilings of the units. Be sure to ask the management how often the swimming pools are cleaned and, if possible, go and see for yourself if the pools are cleaned as scheduled.”
For developments with green spaces and water features like ponds or fountains, people should watch out for moss, weeds and dirty stagnant water.
Other red flags include loan shark stickers, derelict playgrounds, foreclosure notices on doors and notices on maintenance-fee arrears, added Cheong.
Among high-rise developments looming in Malaysia are:
1. The Greens @ Subang West, Subang
Image sourced from FMT
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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