Everything You Should Know About A Townhouse Project In Malaysia

The development of residential properties in Malaysia has increased in recent years to meet the demands of enthusiastic property investors and interested homebuyers.

Various kinds of residential properties can be found in Malaysia that are developed to meet the different needs and lifestyles of the growing population.

One type of residential property, in particular, such as the townhouse in Malaysia, though less popular than the condo or apartment, is slowly gaining recognition as a property to look out for.

Today, many people are thinking of buying a townhouse in Malaysia because of its uniqueness as a residential property.

What is a Townhouse Property?

You are probably here because you want to know more about townhouses in Malaysia. So, let’s get started.

Townhouses go way back to Europe’s 17th century and were mostly found in city and town areas at that time, as its name suggests and are resided by aristocrats and wealthy families.

They were widely popular back in those days to accommodate the high density and growing population of citizens in the area.

Today, a townhouse in Malaysia is a terraced residential property with a small footprint and multiple floors that are at least two storeys but can also go up to three or four storeys and is usually built in rows of four or more.

A townhouse shares a wall or two with another adjacent property and each will have its own separate entrances and may even have a front lawn and backyard.

What’s the Difference Between a Condo, an Apartment and a Townhouse in Malaysia?

A condo and an apartment are high-rise residential properties but what usually sets them apart is the ownership. Whilst a condominium is where different individuals own each unit, an apartment building, on the other hand, is owned by a corporation or a single person.

Besides that, the difference can also be seen in terms of facilities whereby condos are known to have more variety of facilities and are considered more luxurious compared to apartments.

Unlike a condominium and an apartment, a townhouse in Malaysia is a hybrid and somewhere in between being a high-rise property and a terrace house. However, they also come with strata titles of ownership just like condominiums and apartments.

This means that living in a townhouse in Malaysia requires specific maintenance and upkeep to be shared amongst its residents.

The Benefits of Buying a Townhouse in Malaysia

If you are interested in buying a townhouse in Malaysia, you should know the pros and cons of owning one beforehand.

So, here is what you need to know:

A Townhouse Offers More Privacy

Compared to living in a condo or apartment where you are sharing a common entrance with other residents, a townhouse in Malaysia offers the same kind of privacy that a landed house would, even in a shared development environment.

The Price Of A Townhouse Can Be More Affordable Than A Landed Property In Malaysia

Today, you can find a townhouse for sale in Malaysia that is more affordable than a landed house. So, if you would like to enjoy a few of the perks that a landed house has to offer, a townhouse might be another option to look at.

Living in a Townhouse Means You Get to Share the Costs

As mentioned, a townhouse in Malaysia is a stratified property where facilities are shared, including repair and maintenance costs.

This means that you won’t need to shoulder the burden of costs on your own or worry about doing the maintenance and upkeep yourself.

The Drawbacks of Buying a Townhouse in Malaysia

Though buying a townhouse in Malaysia has its wins, there is also some compromise that comes with it.

Some of these drawbacks include:

Owning a Townhouse Comes with Some Restrictions

Sometimes, one of the things we enjoy in life is freedom, and this includes having the freedom to renovate your home however we like.

Unfortunately, having a shared development agreement, there is a limitation in terms of how you would like to renovate your townhouse in Malaysia.

Your Privacy is Limited if You Live in a Townhouse

Though living in a townhouse in Malaysia does offer some privacy, it is not the absolute kind of privacy that a landed property offers as a townhouse is a ‘shared’ building between residents.

Living in a Townhouse Might Be Inconvenient For Some People

This is because a townhouse has multiple floors of two or more storeys, which you may not find convenient, especially if you have elderly family members living with you.

Then again, these are all just minor considerations to take note of if you still desire to buy or live in a townhouse in Malaysia.

There is definitely a novelty about townhouses that capture the heart, and if your dream home has always been a chic London-style inspired home, then a townhouse will be perfect for it.

Where Can I Find A Brand New Townhouses For Sale Near Me?

If you are thinking of buying a townhouse in Malaysia, we suggest you check out the current LBS townhouse projects that are available.

LBS is one of Malaysia’s top property developers, building not only high-quality homes but also creating thriving communities through our projects.

To find out more about townhouse projects in Malaysia, visit our website today.

The Five Benefits Of Buying A New Apartment For Sale In Malaysia

Are you on the hunt for your first home or thinking of relocating and getting a new place?

Between an apartment in Malaysia and a landed house, you might wonder which is the best choice for you.

Though living in a landed house has its advantages, such as being spacious in size, there are also numerous perks that apartment living offers.

As a result, more and more people today are constantly seeking out apartments for sale. From new apartment developments to low-cost apartments in Malaysia, apartments are regarded as a good investment opportunity.

So, if you are indecisive about buying an apartment in Malaysia, here are five benefits of staying in a Malaysia Apartment that you should know about:

Living in an Apartment Buildings Enhances Community Connection

Human connection is such an essential part of being human, especially for our well-being, and the pandemic has really taught us to never take it for granted.

This is why living in an apartment or service apartment in Malaysia today is a good choice as they are designed for creating a more social lifestyle and building a connection with neighbours.

Besides that, living close to your neighbours in a Malaysia apartment residence also allows the opportunity to foster friendships.

Facilities available at a service apartment or apartment in Malaysia, such as the pool, gym, garden, and playground, give you a chance to socialise with neighbours while you have fun and relax.

New Apartment Project For Sale Today Offers Great Convenience

Another great thing about staying in a Malaysia apartment today is that most new apartment project developments in recent years offer incredible conveniences to its residents.

Apartments and service apartments are developed in thriving townships and are within proximity to the city and various hot spots.

This allows you to have easy access to many conveniences and essential amenities such as grocery stores, shopping malls, restaurants, hospitals, schools and others.

Worry Less About Maintenance in Malaysia’s Apartment

Compared to living in a landed house, you do not have to worry about the maintenance of your residences when you stay in an apartment.

This is another reason why many people are seeking out apartments and service apartments for sale in Malaysia.

The maintenance of apartments and service apartments is often the responsibility of the management.

This includes the maintenance of the facilities, cleanliness of the complex, leaky roof repairment and others.

Today, the top apartment development in Malaysia also features a 24-hour support line for residents to report any issues regarding the maintenance and upkeep of their residences.

New Apartment Project & Development with Enhanced Security Features

Many apartments in Malaysia today, especially new apartment projects and developments feature enhanced security and safety measures.

Apart from having CCTVs placed in public areas including high-risk areas within and around the apartment complex as well as having security guards on duty around the clock, most apartments in Malaysia today are equipped with multi-tier and smart security systems.

Such security measures put in place will allow you to have peace of mind about theft issues, and other unwanted and petty crimes at your residences.

Enjoy Time In The Garden At Your Service Apartment In Malaysia

Many apartments and service apartments in Malaysia today are designed with beautiful and lush gardens where its residents can go and unwind.

The best part? You do not need a green thumb or ever have to worry about the garden’s upkeep.

So, enjoy a bit of nature close to home at your Malaysia apartment and relish in some peace and quiet there as much as you like!

The Best Freehold Apartments For Sale Nearest To You!

Hunting for an apartment for sale in Malaysia to make your dream home a reality?

Check out LBS Bina for exciting new apartment projects today!

Five Biggest Reasons Why New Condo Projects In Malaysia Are Growing Popular

As one of the most prominent property developers in Malaysia since 1960, LBS Bina has evolved to become more than just that. Apart from developing affordable quality homes, we are also building thriving townships with flourishing communities in the country.

Recently, we have seen a growing trend in the popularity of condominiums in Malaysia for homebuyers for several relevant reasons. According to findings, the demand for new condominium developments has increased by 5.2 per cent and 11.7 per cent, respectively since 2021.

Here are five main reasons why a condo in Malaysia has been sustaining a high demand in the country:

Condominium Price Is Usually More Affordable Than Landed Property In Malaysia

Landed properties are significantly more expensive because of their size, which is why many homebuyers today are seeking out more affordable properties like new condos for sale.

However, a condominium in Malaysia is a popular choice not just because it is reasonably priced but also because it is less expensive when it comes to maintenance.

Though it offers substantially lower square footage, a condo in Malaysia still provides the comforts of home but without the hassle of several residential maintenance for that peace of mind.

This is because your property developer’s Homeowners Association (HOA)  or condo board is in charge of the roof, landscaping, and maintenance of the building’s exterior.

The New Condo Development For Sale Today Have Better Accessibility

One of the great things about new condo projects today, is that they are being developed in highly accessible locations such as the city.

This is because many homebuyers are on the lookout for upcoming condominium projects in Malaysia for this very reason.

Condos in Malaysia are becoming especially popular among young adults and those who wish to dwell in the city. Location-wise, it offers better opportunities for jobs and career development, daily conveniences as well as better connectivity with public transportation and accessible roads.

Overall, living in a condominium in Malaysia allows better access to nearby conveniences, amenities and hot spots to meet your everyday needs.

Facilities and Maintenance In Condo Projects in Malaysia

One of the perks of residing in a condominium in Malaysia is that residents have access to a range of facilities just outside their homes.

Most condos in Malaysia today come with a swimming pool, gym, garden, playground, convenience store and other facilities. These facilities offer maximum convenience for its residents whilst enhancing their quality of life without the need for carrying out the maintenance themselves.

This also makes investing in a condominium a wise choice because the value of a condominium in Malaysia is always rising.

New Condo Projects For Sale Today Is Often Highly Secured And Safe

Some of the best condominiums in Malaysia today, especially new condo developments are known to have high security and safety standards.

Besides having experienced and professional security guards on duty 24/7, many condos in Malaysia today are also equipped with surveillance cameras on every floor, in the elevators as well as public areas.

Other than that, condominiums in Malaysia today are also equipped with controlled access at the entrances to avoid outsiders from freely entering as well as multi-tier security for that extra peace of mind.

Condominiums in Malaysia Are Great Investment Opportunities

If you are looking to invest in property, then look out for condos for sale which profits you can reap from in the long run.

Like other properties in the market, the value of condominiums in Malaysia rises from time to time, and depending on the location, some condos may even fetch a pretty price.

On top of that, unlike other types of properties, a condo in Malaysia will require less maintenance and make simple-to-maintain investments for property investors in the country, which allows you to sell it at a more significant profit in the future.

So, why not check out LBS Bina’s upcoming condominium projects in Malaysia and condos for sale?

Discover more at LBS Bina today!

The Blind Spots (Or Hidden Costs) When Buying A Home In Malaysia

The Blind Spots (Or Hidden Costs) When Buying A Home In Malaysia

Is one of your new year resolutions for 2023 purchasing a house of your own? Pretty confident that you’ve done the math? We hate to be your party-pooper, but as much as we are proud of you making that leap in life, we believe that you need to be made aware of homeownership costs that may have fallen under your radar. So, we have listed down different hidden costs that we wish we knew when purchasing our first property:

1. Upfront costs & legal fees

By now, you should be made known that our banks can provide financial assistance of up to 90% of the property’s price for your first two residential properties. For those purchasing your first one, the Rumah IDAMAN should be in your list! With the 90% covered for, we will still need to set aside a 10% down payment to cover the remaining property’s price. For instance, the Rumah IDAMAN has a starting price of RM250,000, and so, the down payment in this case will be RM25,000.

The following are the items you need to find out the cost of and are dependent on your property price:

Sale & Purchase Agreement (SPA)

This consists of legal fees, stamp duty and legal disbursement fees.

Loan agreement

This comprises of legal fees, stamp duty and legal disbursement fees.

Transfer of ownership better known as memorandum of transfer (MOT)

Tax on legal agreements

These are expenditures that need to be paid there and then, so it is an absolute must to have the said sum at hand upon making the decision to purchase a home.

 

2. Home Insurance

To be fair, home insurance is a topic that deserves its very own article no thanks to the sheer amount of information that you need to get your hands on, so we will only be covering on this topic very briefly here.

Similar to having insurance for your health is equally important as getting a health insurance to protect yourself against unforeseeable events. Buying a home is also a form of investment and just like any other investments, you will want to have proper protection in place to cover your property.

Here are some common home insurance policies that you should know about;

Basic fire insurance: Loss or damage of the house and/or its contents due to fire, lightning, and/or explosion.

Houseowner insurance: Similar to Basic Fire Policy, with extended coverage such as floods, burst pipes, natural disasters, and theft for residential properties.

Householder insurance: Similar to Houseowner Policy, with extended coverage on fatal injuries caused by the insured items.

3. Utility charges

To ensure that your future home is ready-to-stay you will need certain basic utilities and services, such as:

  • Electricity – Tenaga Nasional Berhad (TNB)
  • Water
  • Indah Water – Sewerage
  • Internet connection

 

4. Maintenance fee and sinking funds

If the home that you are eyeing for holds a strata title, such as high-rise units where you share common public facilities like the swimming pool and the gym, you have to set aside some cash for monthly maintenance fees, which will be used for regular upkeeping of the shared facilities and services, including security and garbage disposal.

You will also need to set aside money for sinking funds. The fee is collected by your residential Joint Management Body (JMB) and will be used for expenses such as building repair works. We’ve covered this topic more extensively on our previous topic here. 

 

5. Makeover, Renovation, & Aftercare

Regardless the condition of the property you intend to purchase, you need to consider both the immediate costs for personalizing it to your liking and the maintenance of it.

Of course, with a larger property, comes a larger price tag for furnishings. So, perhaps, bigger may or may not be necessarily better, it all boils down to your needs.

Do allocate certain amount for renovation, but for LBS Bina homebuyers and homeowners, you are in luck, as LBS has officially launched the LBS Bina Home Makeover with Goodnitecampaign. In this campaign lucky LBS homeowners will win themselves a home makeover for a part of your home that you desire, from the Living to Bedroom area worth a total of RM25,000 each!

Should you be buying a subsale property that also includes furniture as part of the package, make sure you are okay with everything that comes with it, because should that particular piece of furniture happen to become an eyesore down the road, it will cost you some cash to hire someone to move it away later on.

All these lingos might be overwhelming, but what’s most important is not to be afraid from these expenditures but to be aware that they exist. Treat all of the above more as a checklist and tick it off every time you’ve gotten a proper understanding of each expenditure.

With every item checked off your list, your finances will definitely be more well-structured. A very important element of a dream home is to have a homeownership experience that is free from expenses that will take you off guard and we hope for those of you who’ve read till this point, you will achieve just that and we wish you the very best on your homeownership journey!

New Year, New Goals

NEW YEAR, NEW GOALS!

LBS IS SET TO ACHIEVE GREATER POSSIBILITIES AND BEYOND IN 2023

According to Johnson, (2022), there is no cut-off date for when you should officially stop wishing people a Happy New Year. However, as January rolls around and you bump into people you didn’t see over the new year, you may find yourself wishing them a Happy New Year.  Although this frequently happens, you’ll probably find that you stop naturally saying it as the first month of the new year comes to an end.

LBS Bina Group Berhad kick-started the new year 2023 with a successful annual media briefing spearheaded by Corporate Communication, Media & Digital Department. It was announced that in the year 2023, LBS is planning to launch 12 new projects which will cover the Klang Valley, Johor, Pahang, and Perak states, with a total GDV of RM2.09 billion and 4,021 cumulative units.

The Group is looking forward to achieving greater possibilities and beyond amidst global challenges as they welcomed 2023 with their annual town hall held at the LBS headquarters to share the company’s objectives and direction for the year 2023.

The theme for this year’s Town Hall meeting is (Tu) Possibilities & Beyond!, which depicts the eagerness to embrace growth and look out for new strategies in expanding LBS. The Group believes there are boundless possibilities and opportunities that will be achievable if one works harder and smarter. The Chinese word “兔” sounds alike to “To” and the Rabbit zodiac represents smart, clever an agile, aligned with the year of rabbit.

In line with the theme, LBS plans to continue embracing digitalisation as they have continued seeing great success and growth in this aspect, particularly prior to the pandemic outbreak and is one of the elements which aid LBS to pull through during the most difficult national outbreak. Today, the Group is set out to spearhead digitalisation in the property developer market.

The management of LBS, led by our beloved Executive Chairman, Tan Sri Lim Hock San, is confident that with the staff’s continuous support and by consistently offering exciting projects to customers, the Group will be able to achieve the sales target of RM2 billion they have set for this year.

Meanwhile, our LBS Iron Lady, Dato’ Cynthia Lim, highlighted that LBS will continue to improve on company culture in 2023. She understands that an organisation that is multi-generations looks great on paper but is bound to have inevitable communication barriers. Company culture is a vital aspect for LBS and they have made it a point to understand all generations of employees. The Group look forward to keep on progressing and growing beyond their imagination as LBS continues to embrace the differences between generations and learn to cohesively work together.

“Write in your heart that every day is the best day in the year.”  (Emerson)

Happy New Year 2023!

– End –

Huffing A Breath Of Newness Into Brinchang, Cameron Highlands

Planning a weekend getaway with your loved ones? Or just to relax while sipping on your favourite cup of latte, simply enjoying the cold breeze on the top of the hillside, with a twist of modernity? Start your engine and let’s go!

Located at approximately 5,000 feet above sea level, Cameron Highlands, Pahang is a highly-visited holiday spot where tourists from all around the world come to experience a serene and peaceful get-away from the hustle and bustle of the city. Over the years, famous tourist attractions include tea plantations, fresh fruits and vegetables farmlands, gardens and nurseries, and of course hotels and resorts. Cameron Highlands is easily accessible by car via two routes – Simpang Pulai and the original road through Tapah. The Tapah road is great for travellers who want to enjoy the great view of scenery where you can take a quick stop at the Lata Iskandar Waterfall for a picture or two. 

To give Cameron Highlands a breath of newness, the latest attraction, Cameron Centrum is brought here to offer a whole new commercial experience to the locals as well as tourists. The new English Tudor-style development suited to the cool climate in Cameron Highlands of 22 to 25 degree Celsius during the day and 15 to 22 degree Celsius at night is also very promising to give its customers a feeling of being abroad. Cameron Centrum is located close to many famous tourist sites and attractions in Cameron Highlands, making it very accessible and convenient for its tourists. It is an establishment that currently consists of shoplots, with hotels and residential buildings in the near future. This is definitely a haven for shopping and sightseeing with breathtaking views of the natural surroundings. Another most recent tourist attraction in Cameron Highlands is a new floral park that has recently opened in November. Located in Kea Farm, Cameron Flora Park, is a visual treat for the eyes, and is definitely a picturesque spot that is perfect for those who love to take pictures for their Instagram. Walking into the Cameron Flora Park is like walking into a paradise of all kinds of colourful flowers featured in every corner of the garden. This is also a great spot for picnics – an all-girls’ picnic trip, family and friends’ picnic – you’ll find yourselves surrounded by the beauty of the floral garden, not to mention the floral scent that you’ll be sniffing throughout! Be sure to stop by Cameron Flora Park the next time you make a trip to Cameron Highlands.

In the past, tourists came to Cameron Highlands for a more laid-back environment with mostly natural surroundings, but recently, since the inception of Cameron Centrum, tourists can now enjoy nature with a modern twist. Major brand names can now be found at the property, such as Family Mart, MarryBrown, McDonald’s, Starbucks, Billion Shopping Centre, The Coffee Bean & Tea Leaf and Baskin-Robbins, just to name a few. A giant clock tower is located in the center of the shoplots, kind of giving the Big Ben feels for its visitors. If Big Ben sounds unfamiliar to you guys, Google up okay? For those who love taking photos for Instagram, Cameron Centrum is definitely voted for being Instagrammable! The Centrum is developed in a way that much of its Highlands’ character remains unchanged, where most of the English charms from its colonial past are still seen in the buildings. This is made so to preserve the historical value of the town, where it is almost like bringing their visitors to the nostalgic olden colonial days in a more modern setting. The vibrant lights, cool weather and English architecture of the building will give local tourists the little European atmosphere with a touch of magic right here at Cameron Centrum. 

Visitors and locals can now enjoy an upgrade in nightlife actions at Cameron Centrum. On its own, Cameron Highlands is not a hotspot for tourists if they are looking for a wild nightlife, though there are spots that cater to night drinking like pubs and bars. More business establishments are coming to the Centrum, and this is a new opportunity opening up for locals, visitors, as well as business operators. Really, what can beat a night of sipping a cup of hot chocolate with your loved ones with the cold breeze slightly blowing in your face, with your hands against the cup to find warmth, while you savour each sip of your favourite drink? After all, life is to be celebrated!

Cameron Centrum is going to be very hard to miss in the town of Brinchang. With an open boulevard concept, Cameron Centrum is set to be a benchmark for style, elegance and urban modernity in the town. The development is created to cater to these modern-day requirements, master-planned to attract both local and foreign tourists for a contemporary, modern and trendy destination for work, play, food and drinks, retail and more. It will be an all-in-one establishment – trendy stays at hotels and residential areas, shops, while open spaces and nature complement the other, carefully and mindfully built to attract and retain tourists. For a weekend getaway with friends and family, Cameron Centrum is the perfect place and it does not matter if you are in Cameron Highlands for a breath of nature or for an Insta-worthy holiday treat.

As the year 2022 is coming to an end with the Christmas season near, a short holiday trip to Cameron Highlands sounds like the perfect plan for a family and friends gathering. The year end season also means that sales are in full swing, so now is the time for all of you to splurge and pamper yourselves with a little of something good this year (Everyone deserves a treat for themselves every now and then!) Taking a holiday in Cameron Highlands is actually quite affordable compared to other holiday spots in the country. Cheap and good food is easily accessible in Brinchang Town, and in an end-of-the-year rainy season, hot pot steamboat dinner is highly sought after by tourists. If you do go to Cameron Highlands, please remember to treat yourselves to a hot pot steamboat dinner to mark your holiday. If you’re feeling a bit expensive and are looking for something grander and more exquisite, go to Cameron Centrum for a fancy treat. 

Lego On Steroids?

Just like the headline, that was my first impression on Industrialised Building System (IBS) or more often known as precast. As much it sounds like the future of housing, IBS has actually been in the Malaysian market for the past four decades! So why exactly is it now that IBS is beginning to be the in thing and becoming prevalent? Aside from the ever-growing need for a home and price of housing materials, one key factor would be our dire need for manpower. From laying bricks to spreading the cement, these are all manual labour that requires precision both in execution and quality control. Simple economics tells us that with a decrease in supply comes an increase in demand, and with that up goes the price of manpower. The pandemic is basically a wake-up call for the property industry, with the lockdown, the shortage of manpower was the major issues. 

Affordable housing whilst maintaining an efficient and sustainable construction progress is among the reasons that made LBS Bina Group Berhad, the household name that it is today. This is also possible thanks to its construction-arm, MGB Berhad, that specializes in our very topic today, IBS. Among the projects that utilizes our precast systems are:

  • Rumah Idaman MBI
  • SkyLake Residence
  • Prestige Residence
  • Residence Bintang Bukit Jalil
  • KITA Impian

We’ve talked about some benefits of IBS, namely reduced manpower and reduced cost. The many other benefits of it are increased quality, efficiency, sustainability and a more streamlined process. This means that with IBS, houses can be built faster without compromising in built quality and affordability, which all translates to a house that is reliable and of a longer lifespan.

Well, if it is so great, why isn’t every developer using this high-end system? Instead of having materials being sent to the construction site, the precast are pre-constructed parts that are designed, measured, tested and produced in sections within a designated measurement and specification, in a factory. This can include parts such as walls, ceilings, staircases and with more advanced technology, even a whole unit can be pre-casted!

So, the benefits are clear, every piece of wall or staircase churned out can be QC-ed right away by batches, defects are reduced and thus, there will be less labour needed to fix the defects, should there be any. Here comes the big ‘but’, setting up a precast factory is no small feat and is a costly facility to set up in the beginning. IBS is only truly feasible for buildings with several identical components which when combined forms a large structure, for example a high-rise building like a condo or serviced apartment. Keen to put in heavy renovating or extension works in your new home? Unfortunately, IBS homes may be limited with renovation potentials no thanks to the way the homes are built. Above all, albeit it being a rather stable piece of innovation in the property industry, it is still very important to opt for a reputable developer that is not only renowned for building homes but also homes with IBS to ensure that peace of mind years after you collect your keys.

Here’s a little extra bonus on benefits of IBS beyond its nature of construction. The Construction Industry Development Board (CIDB) has been encouraging implementation of IBS by giving exemption that incorporates more than 50% of IBS components, in short, with IBS there will be more savings channeled down to us future homebuyers. The future of homebuilding is an interesting one and while IBS sounds like the new kid in town, it is definitely one that has been tried and tested. Love what you have been reading? There is no better time than now to shop with us virtually for your future home!

Property Maintenance Fee in Malaysia

Owners of strata property in Malaysia are required to pay a monthly property maintenance fee. These funds are utilised for the upkeep of common areas in the property. We will also find out why owners have to pay maintenance fees and how it is calculated.

When the term ‘strata’ was first introduced in Malaysia via the Strata Title Act 1985, strata property consisted of mostly high-rise residential and commercial units – including flats, apartments, condominiums, serviced apartments, Small Office Home Office (SOHO), Small Office Flexible Office (SOFO) and Small office Versatile Office (SOVO). The Act was later modified to include some landed properties where the development has shared facilities and amenities, such as gated and guarded communities.

In an effort to provide clearer and more stringent provisions on the management of stratified properties in Malaysia, the government implemented the Strata Management Act (SMA) 2013 in 2015. 

What is maintenance fee in Malaysia?

Facilities and common areas within a strata property such as a condominium block are jointly owned by all unit owners. Therefore, owners have to collectively pay a maintenance fee, also known as a service charge, to manage and maintain the property and its facilities.

In Malaysia, homeowners are required by law under SMA 2013 to pay these monthly fees. These fees are collected and managed by the Joint Management Body or JMB before the issuance of strata titles and by the Management Corporation or MC after strata titles have been issued.

What do maintenance fees cover?

The maintenance fee is mainly used to cover recurring costs of managing and maintaining the property including:

  • The hiring of security guards
  • Property management and administration staff
  • Electricity and water for common areas such as lifts, car parks, swimming pools and gyms
  • Cleaning services
  • Landscaping services
  • Servicing of lifts and escalators
  • Minor repair works on common property

Imagine a high-rise condominium with many units – if the owners do not pay their condo maintenance fees on time, how would these bills get paid and who will manage and guard their property?

Besides maintenance fees, owners also need to pay a monthly sinking fund. Calculated at 10% of the maintenance fees, these monies will be put into a reserve fund for emergencies such as damage caused by flood and major works such as painting the building exterior.

How are condo maintenance fees calculated?

The main factor that determines a property’s maintenance fees is the total expenditure for running and maintaining the property. Prior to the SMA 2013, contributions to the sinking fund and monthly maintenance service charges payable by strata owners were calculated based on the built-up size or per square feet (PSF). SMA now calls for share unit to be used instead as a basis for calculating these two charges – rather than simply the floor size of the unit owned.

The formula for calculating Maintenance fee to be paid: Operating expenditure ÷ Total share units in condo development 

So what is a share unit? Under SMA 2013, a property developer is required to file a Schedule of Parcels with the Commissioner of Building (COB) before selling any parcel in a development.

Schedule of Parcels is essentially a ‘floor plan’ that shows the overview and floor measurements of the parcels in a development. In the case of a phased development, the schedule must showcase the proposed allocation of the provisional share units among the new parcels in the provisional block. It will include all the parcels with dimensions, areas, share units, all accessory parcels and common properties.

Share units are the numbers assigned to each parcel by the developer’s licensed land surveyor that will determine maintenance charges, sinking fund and voting rights of each owner. Share units are calculated based on area, usage, size and location of the accessory parcel using the formula prescribed under the relevant strata title rules of each state.

In the calculation of share units, a different weightage is assigned based on the facilities that are enjoyed by the parcel. For example, a parcel with walk-up stairs will have a different weightage than a parcel with air-conditioned lifts.

What is the range of typical property maintenance fees in Malaysia?

The expenditure for managing and maintaining a property varies depending on the following factors:

  • Level of services: Owners, JMB and MC of a building need to decide on an “acceptable” level of service. For example, the number of guards on each shift or the number of times the corridors is swept.
  • Type of facilities: The more sophisticated the facilities, the higher the maintenance fees
  • Size and type of common area: A swimming pool with elaborate landscaping will cost more to maintain than a small park with a walking path
  • The density of the development: The cost is divided among units so owners in a high-density property will end up paying less. For example, Condo A has 100 units and Condo B has 50 units with similar facilities and built on similar land sizes. Both condos will have similar expenditures. However, owners of Condo A will end up paying less because the cost is shared between 100 owners while Condo B shares the cost between only 50 owners.

According to Henry Butcher Malaysia Managing Director Low Hon Keong, the rate of maintenance fees mostly depends on the type of facilities and the density of the development.

The average rate of maintenance fees in the Klang Valley is between 25 to 50 cents per square foot. Properties in prime areas like KLCC or Bukit Bintang incur higher fees because of its location.

“Most of the properties in these areas are high-end projects with sophisticated features like high-speed or personal lifts, advanced security and nice landscaping. These advanced facilities cost more to maintain., hence why the maintenance fees are higher. They could be paying an average of 50 cents per square foot,” said Low.

He said that maintenance fees were not necessarily lower in smaller cities or towns.

A property in Melaka might in fact have a higher maintenance fee than a similar unit in Kuala Lumpur because there are fewer units in total, so the cost is shared between fewer owners.

Security accounts for a big portion of incurred costs in managing high-rise residential buildings while in landed strata properties, the cost of landscaping is quite significant. Unlike regular landed properties, the local council is only responsible for waste collection in landed strata properties – cleaning, landscaping and maintenance of common areas are taken care of by the property management of strata schemes.

The average maintenance fees of landed strata property in Malaysia are:

  • RM1,000 to RM1,500 for bungalows
  • RM600 to RM1,000 for semi-detached houses
  • Below RM500 for terrace houses

Can you negotiate your maintenance fees?

Technically, you can’t negotiate the maintenance fees. The management fees are decided by the JMB or MC during their Annual General Meetings (AGM). The only way for the rates to change is to raise this issue during an AGM and get the majority of owners to agree and vote for it. Therefore, it is important for homeowners to attend their AGMs so that they won’t be surprised by any changes in rates.

However, if you find that the services provided are not reflective of the maintenance fees charged, you can question the management. Unit owners have the right to view the statement of accounts and can make a request to the JMB to do so for a fee not exceeding RM50. To find out if the people elected to represent owners in your strata property are responsible, read Is your strata property being managed by the right JMB or MC?

Who pays the maintenance fees for rental properties?

By law, it is the landlord (homeowner) who pays the maintenance fees. Any special arrangement for payment of maintenance fees, where the tenant pays it on behalf of the landlord as part of the rental fees, needs to be reflected in the tenancy agreement. If the landlord fails to pay the maintenance fees, the tenant can take legal action or decide to terminate the rental agreement.

Strata residents must be aware of their responsibilities and obligations as well as strive to take charge in order to protect the very investment that they live in. Find out what happens when you don’t pay your outstanding condominium fees.

Bigger Is Better?

‘Bigger is better.’ Well, that’s not always the case, no pun intended. A small area need not mean that it can’t stand out among the rest, it’s more of how you make the most out of the landscape that you have your hands on, be it the living room, yard or even the entrance to your home sweet home.  We always imagine the home of our dreams to be mansion-ish or built like a huge castle but how can smaller homes be the more ideal option for you and me?

‘With great power comes great responsibility.’ Same goes with a large home, it will be more expensive to buy and/or rent and most definitely significantly less cost-effective to maintain. Just imagine all the monthly expenses that you get to cut down on when you have lesser square feet in your house. Water, electricity and even maintenance and utilities fee, you will use much less of all these when you have a compact home! Same goes with mortgages, a smaller house will be more affordable and you will definitely see the savings in the long run.

Massive homes mean an abundance of space but sometimes one will hardly ever require all that space, and the most used area is really just a tiny portion as compared to the whole area available. So, when you buy a house with spaces that you are certain that you will definitely use and no more extra space to store up unnecessary materials, it will set you on a pathway to start decluttering. Minimalism brings about multiple benefits, there’s less to maintain, things are easier to find and everything you need is at your fingertip. All these are made better when you have a smaller home.

LBS is all about sustainability today, from the houses that we build to the offices that we work in. Reducing carbon footprints has been a mission that we have been on for a while now, and we spend most of our time in our very own homes. Living in a huge house equates to consuming more resources. A smaller home needs less water and electricity to keep it clean and during a hot day when we turn on our AC, a smaller home will be easier to cool down! All of these will not only help you save some ringgits but also save our earth!

Big spaces mean more space to renovate. Love revamping the place you live once in a while? With a smaller home the desire to renovate or execute a huge project can be made possible without burning a hole in your pocket. The downtime for your house is also shorter as projects for small homes are generally faster to complete as compared to larger homes. Cleaning after is also a breeze too.

Don’t get us wrong, we have just the same love for big homes but small homes will always have that special place in our hearts thanks to its convenience and affordability! Many people will even make the move from large houses to a much smaller one after their retirement and the reason is clear! From double storey to single storey, from Semi-Ds to condos, smaller homes give you that flexibility in life especially when you are an individual that is always out and about. Find the right home for you today with us and you may even drive home an Axia, how so? 

Learn more here: https://virtualfair.lbs.com.my/ 

Housing loan checklist: Non-standard documents you need to know

Applying for a housing loan is a lengthier process for a self-employed or freelancer in Malaysia. However, it doesn’t necessarily mean it’s difficult, especially when you have all the non-standard documents ready!

When it comes to personal finance, most freelancers in Malaysia might begrudge their civil servant friends and families. We all know how easy it is for them to get a loan. For those of us without regular employment, filling our taxes, getting insurance, and applying for a home loan is a much lengthier process. However, being a lengthier process doesn’t necessarily mean it’s difficult. If you are well-prepared and have all the non-standard documents ready, you are well on your way to owning your first home.

Can I Get A Home Loan Without Property Documents

It is impossible to get a housing loan without proof of income as your income stability and repayment capability isn’t guaranteed. If you are a civil servant, regular-employed, or salaried person, preparing the documents required for a home loan application is fairly easy. However, someone who is self-employed may not have the same basic documents.

Here are a few examples of jobs that fall under the self-employed category:

  • Hawkers, daily wage workers, online traders
  • Gig economy workers (Grab, Foodpanda, Lalamove)
  • Personal tutors
  • Event organisers
  • Freelancers (photographers, designers, writers, fitness trainers, etc.)
  • Authors
  • Musicians
  • Small entrepreneurs

When you fall under the category above, you can still get a home loan. However, the self-employed documents for a home loan are slightly different.

What documents are required for home loan approval

Below are the standard documents a person needs to submit to ensure a smooth housing loan application process:

  • Payslips
    One of the most important documents in proving a person’s home loan.
  • Employees’ Provident Fund (EPF) statements
    A great way to prove the level and stability of your income.
  • Bank statements
    Proof that you are indeed being paid your salary.
  • Copy of MyKad
    Required for almost any housing loan application as a Malaysian citizen.

As you might see, a self-employed person might have problems providing the first two documents on the list above. This is why a housing loan for the self-employed in Malaysia requires some non-standard documents for approval.

Housing Loan Documents Checklist Malaysia: 7 Non-Standard Documents Required For Home Loan Application

Unlike salaried people, self-employed do not have a regular payslip. Banks will review your financial stability before approving your housing loan application. As a self-employed person, banks may perceive your income as ‘unpredictable’ when it to comes to committing to the monthly repayments. However, here are 7 non-standard documents you can provide to prove your income and financial health:

1. Business registration

This is an important document to have, even if your business is small or you are a one-person freelancer. Having a registered business boosts your client’s confidence in dealing with you, and it appears more professional too. Furthermore, the date of registration will be considered very important to the bank. It will justify the sustainability of the business.

2. Business profile

This is important so that banks can identify the nature of your business. Even a simple website or official Facebook, Instagram, or LinkedIn page will be sufficient.

3. Financial records of past years’ income, tax return statement, balance sheet

You have a higher chance of getting your housing loan application approved if you can provide an organised financial record of previous years’ income, tax return, profit and loss statement, and balance sheet.

Here’s a simple checklist of what you can do:

  • Make sure that your business is registered with the Companies Commission Of Malaysia/ Suruhanjaya Syarikat Malaysia (SSM)
  • Keep all statements, documents, and licenses related to your business
  • Label all folders according to the latest dates or assessment year. This will make it easier for you to provide your proof of income when asked by the bank.
4. Income tax statements

A lot of the self-employed or freelancers in Malaysia may not declare their earnings to the Inland Revenue Board of Malaysia (IRBM) or LHDN. However, having the last three years of your income tax statements on record goes a long way in helping you get your home loan approved.

If you are required to pay income tax, it normally means your annual earning exceeds RM34,000 (after EPF deduction) or you earn income from a business (through gains or business profits). This is the sort of income stability that banks prefer to see.

5. Bank statements

For regular-employed applicants, bank statements serve as proof that they are indeed being paid their salary. For those who are self-employed or are freelancers in Malaysia, bank statements show that actual business income and profit are generated.

6. Savings

From the banks’ perspective, savings are the best way to justify and show your steady stream of income, which leads to your accumulated savings. If you aren’t able to show your savings record, it’ll be hard to justify the stability of your business.

7. Credit score report

Banks or financial institutions in Malaysia have their method of evaluating your credit score. As credit score indicates a consumer’s credit risk, banks will refer to two popular credit reports, CCRIS and CTOS to assist their evaluation. A good credit score will make you a more attractive candidate for a loan. With a good credit score, you can even get better home loan interest rates and even quicker loan approval.

Other Tricks That Can Help You Get A Home Loan 

The following can also help you get housing loan approval:

1. Get a guarantor

A credible guarantor must be someone who has a strong financial background. It can be anyone; your family members, relatives, and even close friends. This person will be evaluated based on his or her income stability, employment background, as well as a credit score to minimise your risks and liabilities as a self-employed person.

2. Apply for a home loan with banks that lend to self-employed borrowers

Banks are very ‘picky’ when approving an application. Before applying for a housing loan, take your time to research banks that approve loans for self-employed individuals and find out the interest rate on house loans for each bank. Here are some of the banks that offer home financing for self-employed applicants:

  • CIMB Property Financing
  • Bank Rakyat Home Financing-I
  • HSBC Ideal Home Plan
3. Housing Credit Guarantee Scheme (HCGC)

During the tabling of Budget 2022, the Government has allocated RM2 billion under the Housing Credit Guarantee Scheme (HCGC). This was to help those without proof of fixed income. The Government is cognisant of the challenges facing gig workers, small business owners, and farmers in getting a housing loan.

In reality, many of these individuals have the capacity of repaying their loans but without documents proving of fixed income, the process of applying for a home loan is difficult. This initiative will not only benefit potential house buyers but also accelerate the growth of the local property market. So far, BSN MyHome (Program Perumahan Rakyat) 2021 is one of the housing schemes.