Hey guys, Welcome back to the Malaysia Housing Loan channel. My name is Melissa.
Today I’m going to share with you three types of property that I usually avoid buying.
I know that buying a property can be stressful; it takes a lot of research; it takes a lot of energy and time from looking and viewing all these houses.
So, I hope this video will give you some guidance on what property to avoid buying so that you can write off on your list.
Tip 1: Property with Master Title more than 10 Years
Tip 1, I will avoid buying a house that is still master title status for more than 10 years.
The reason is simple.
The developer has 10 years to apply for an individual or strata title of the property. It actually takes a shorter period now.
But, if after 10 years, they are still incapable of getting the title out, the developer might not have the resources like money or time to get it done.
And as a new house buyer, I don’t want to be caught in a situation like a developer goes bankrupt, and we are stuck with the master title situation. And we have to deal with liquidator and stuff.
Because I tell you it can be complicated in the future when you want to sell or refinance your house.
Also, most banks do not finance the property with a master title for more than 10 years.
So, if you want to sell your property, even if you have a buyer, who will provide the financing to your buyer when no bank wants to give financing?
Tip 2: Property with Master Title and the developer has gone bankrupt
Tip 2 is totally a nono to me.
I will avoid buying a Master title property that their existing property developer has gone bankrupt.
As per tip 1, you know how I’m not too fond of master title property for more than 10 years, but if the existing property developer has gone bankrupt, it is now taking over by a liquidator that will be a NO to me.
It is a complicated situation where there are so many extra processes involved; it will drain my resources like more money, time, energy, and stress.
I’m really not a fan of it. So, it is a BIG nono.
Besides, most banks are also not fans to finance such property, and the property value of such property tends to drop.
Tips 3: Leasehold Property with Less than 60 balance years
Tips 3, I will avoid buying a leasehold property. Oops.. no.
What I mean is I will avoid buying a Leasehold property with less than 60 balance years.
Just so you know, the Leasehold property has an expiry date. Just like our Gardenia bread la.. it has 4 days expiry date. Leasehold property got 99 years.
Gardenia bread expired already cannot extend anymore unless you extend yourself la…
But for Leasehold property after 99 years expiry date, it still can extend but subject to the state government office. So, every year the balance year will be reducing.
If the balance years are less than 60 years, most banks are also not keen to finance. If I buy such a house, I must prepare to get an extension from the state government on the leasehold extension. And this process is not FREE.
I heard the extension of the premium would involve substantial money. So, I will rather avoid such property.
Bonus tips: Avoid buying a house near a big drain or river.
I know I have given you guys 3 tips, but I feel to give you guys one more.
I will avoid buying a house near a big drain or longkang besar or near a river.
And I tell you why.
Years ago, I was staying somewhere in Rawang, Selangor. At that time, we are looking for a bigger house to rent. So, we rented a double-story house.
And it was facing a field which I love, and I would go for a jog on the weekend when I have time.
And the air in Rawang is so nice and fresh, every morning we will get this incredible mist, it feels like Genting highland or Cameron highland sort of weather.
So, behind my house, there is another row of double-story. And the opposite of the double-story is a big drain connected to a river.
When there is a heavy downpour of rain, the drain tends to overflow with all this fast-flowing river water.
And when the drain is full, it will over-flows, and we end up have all these waters come into the house. The water level will rise to 1-2 feet.
That happens twice or thrice a year. One year we got fed-up, and we moved.
But, we do love the house. If not because of the flood we might buy the house.
In conclusion, even though the house, the environment is fantastic, but a house near a big drain is sucks!
So, I hope you guys enjoy this video and maybe learn something from this.
I would appreciate if you can give some likes and share this video with your friends and family.
And before you go, don’t forget to subscribe, and I see you in my next video!
Thanks for watching. Bye!