Buying Property in Malaysia: Apartment vs. Townhouse
This article discusses the pros and cons of buying an apartment versus a townhouse (also known as a "排屋" in Mandarin) in Malaysia, particularly in the Kuala Lumpur area. It provides insights for those considering relocating or investing in Malaysian property, especially for those new to the country.
Apartments vs. Villas
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Villas: While attractive, especially due to lower prices compared to other countries, they are expensive to maintain.
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Maintenance Costs: These include employing multiple maids (at least three for a large villa), regular upkeep due to acid rain corrosion, and maintenance of utilities like electrical and plumbing systems.
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Cash Flow: Owning a villa can be like "keeping a grandmother at home," consuming significant funds. It's important not to tie up all assets in the property and to consider ongoing expenses and business needs.
Townhouses (排屋) Considerations
Renovation Costs
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Older townhouses (40+ years) near Kuala Lumpur often require substantial renovation.
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Budget: A budget of RM 500,000 may be necessary for a complete overhaul, potentially involving structural changes.
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Caution: This is considered a middle of the road renovation cost and could increase depending on your design choices.
Trustworthy Contractors
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Risk: Newcomers to Malaysia may struggle to find reliable contractors and designers, leading to potential issues and financial losses. It's essential to be careful when choosing contractors and avoid paying large upfront sums.
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Payment Schedule: Payments should be structured in stages, tied to the completion of specific work phases.
Local Regulations
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Building Permits: Any construction, such as adding a third floor, requires government approval.
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Compliance: Be aware that illegal construction can lead to fines or demolition orders, even if contractors don't inform you of these regulations.
Differences Compared to Houses in China
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Houses in Chongqing are often avoided in favor of apartments due to humidity.
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Unlike smaller villas in Chongqing, Malaysian townhouses are often 2 stories tall.
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It is easy to spend 500,000 RM and not like the way your house is renovated.
Potential Issues
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Maintenance: Issues can include electrical faults, water leaks, and malfunctioning exhaust fans.
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Contractors: Contractors may take your money and leave.
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Local Opinion: Work that is done will require the blessing of the area's "大哥".
Benefits and Drawbacks
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Permanence: Many townhouses have permanent land deeds.
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Convenience: Direct access from car to home, easy to modify the structure.
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Privacy: neighbors are less likely to interfere with any renovations or construction.
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Drawbacks: Lower security, potential pest problems (cockroaches, rats).
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Rain Exposure: Uncovered parking areas can lead to vehicle exposure to rain and sun.
Apartments: An Alternative
Apartment Overview
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Prices: Apartments in Kuala Lumpur are relatively affordable.
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Location: In the KLCC area, prices start around RM 3 million.
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Size: Units are often spacious (200+ square meters).
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Facilities: Malaysian apartments often offer good facilities like gyms and pools.
Quality and Features
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Finish: Most apartments are sold with basic finishes like flooring, painted walls, lighting, and air conditioning.
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Layout: It is important to inspect the unit and make sure that the layout suits you.
Important Considerations
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Community Amenities: Consider the availability of gyms, pools, reading rooms, studios, shared kitchens, and BBQ areas.
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Developer Reputation: Do research on the developer.
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Unit Orientation: Ensure good lighting and ventilation. Avoid cramped spaces and poorly designed balconies.
Recommended Areas
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Mont Kiara (满家乐): Popular with expats.
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Desa ParkCity (Desapark): Known for its Chinese community and dog-friendly environment.
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KLCC Area: For those seeking a vibrant city center experience and more international areas.
Advantages of Apartments
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Convenience: Sheltered parking, ease of access.
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Security: Higher security compared to townhouses.
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Services: Property management handles maintenance issues.
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Views: Apartments typically offer better views.
Disadvantages of Apartments
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Leasehold: Most apartments are leasehold (99 years) rather than freehold.
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Rules: Renovations and construction can be restricted by management and neighbors.
Recommendation
For newcomers to Malaysia, especially those unfamiliar with local contractors and regulations, buying an apartment is generally recommended. It provides a more convenient and secure option while adjusting to a new environment. Once established and familiar with local resources, considering a townhouse may become more feasible.
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