With so many available housing schemes in Malaysia, such as the Perumahan Penjawat Awam Scheme –PPA1M, buying a house is definitely an achievable dream. There are many types of properties available in Malaysia, such as condominiums, apartments, landed properties and so on. Many people are still confused with the difference between Strata Title and Individual Title. This article will guide you through the difference between Strata Title and Individual Title.
A. Strata Title
Properties in a multi storey building have strata titles. That means, the land belongs to the developers, also known as the owners of the said property. Strata Titles are separate Individual Titles issued to the units of apartments, condominiums or offices located in a development. These units will share common facilities such as the guarded and gated communities, car parks, securities and other facilities. A same owner will govern these facilities. As stated in the Strata Title Act 1985, the developers are responsible to apply for the Strata Titles for the purchasers. Obtaining a Strata Title will take a few years. Before the Strata Title is issued, the owner of the property is allowed to sell and the owner has rights over the property. Once the Strata Title is issued, the person that owns the property is allowed to use the property like the owner of an Individual Title property.
B. Individual Title
Landed properties such as semi detached houses, detached houses, bungalows, and terrace house will have an Individual Title. The Individual Title is issued when you are the only owner of the whole land. Before you sell your property, you will need to fill in the Form 14A in the Malaysian National Land Code. A Form 16A is needed for the legal charge between the owner and his or her financier. The charge and the transfer will involve the land office. All instruments will need to be presented to the land office for registration.
However, do note that there are also some landed properties that share common facilities, usually houses in gated and guarded communities. These properties will then be considered as Strata property and will hold a Strata Title. It is advisable to always check with the developers before you proceed with purchasing of the property.
To make it simple, owner of a unit in high rise building, such as condominium, apartment, office, townhouse or shoplot will have a Strata Title for the property. The owners will have the right of ownership of the unit they bought. Every owner will also share the land with other owners in the building, which has been stated as unit share in the Strata Title. As for owner of landed property such as terrace, bungalow, semi detached house or detached house will have an Individual Title
In conclusion, these titles will not affect you differently. The price of property will not be affected by these titles. Depending on your wants and needs, think carefully before you decide to buy a landed property or a condominium.
Many people has jump into the property investment bandwagon. Back then, buying a property for the purpose of selling in short term was definitely tempting and possible. As of today, buying a property and selling it in a short time is definitely harder as compared to decades ago. Before you jump onto the property investment bandwagon, it is essential to understand the Real Property Gains Tax on how it works. There are many articles on useful tips when it comes to property investment on the Internet. This article will guide you through 4 useful tips when it comes to property investment.
Is the property located at a location that is ideal to live in? Is the location convenient? Does the location have easy accessibility to public transport and amenities? Are there any public transportations such as train station nearby? Are there any education institutions within the vicinities? These are all the factors that will affect and determine the price of the property and the rental yield.
2. Real Estate Agent
Finding a right real estate agent is important as well. A good real estate agent will save you from hassles and stress as they will be the one to handle any property related matters on your behalf. After all, they are real estate agents with professional expertise that you do not have.
3. Choosing the best loan
As we know that properties belong to illiquid assets, it might not be a great idea to put all your money in properties. It is important to know that the process of selling a property is not easy. It might take approximate 6 months to a year, or more to sell off the property. Even so, the price that you are selling the property might not be the best price. Hence, it is advisable to opt for a mortgage loan to finance your investment. With so many loans available from different banks, it is essential for you to educate yourself on the loans available. Find out the difference in interest rates, prepayment penalties and settlement cost offered by different banks.
4. Types of property
There are many types of property available, such as condominiums, apartments and landed properties. It is important to choose the right type of property based on your needs. Landed properties are generally more expensive than condominium units or apartment units. However, landed properties appreciate more in value as compared to apartments. That being said, it is advisable to invest in landed property, even a single storey house will do, as it will give you more advantages ultimately.
In conclusion, property investment is not as difficult as it seems. It may seem daunting but the return is definitely worth the effort and money that you have out in, provided you did it the right way.