In my previous post, I have shared some property market knowledge on Landed Property below RM1mil in Penang Island. While today in this post, I would like to share some property information on the differences between investing/staying in condominium and apartment and landed property in Penang Island.
When you have the capital to allow you to choose whether to invest/purchase landed property or condominium/apartment, what would you choose and which one is better? It is a GOOD HEADACHE TO HAVE!!!
There is actually a few factors should be taken into consideration when making your decision such as investment, size, security, parking space, maintenance and facilities. Whatever it is, it depends on your investment portfolio, preferability and the purpose of owning it.
Investment
Generally in the Penang Island, the rental return for landed property (~2%) is much lower comparing to condominium/apartment (3~4%), however the capital appreciation for landed property is more superior. Secondly, condominium/apartment is easier to rent it out comparing to landed property due to various reason. In other words, if your investment portfolio is short term gain or flipping, landed property would be a better choice, while if your investment portfolio is for long term gain or buy to rent, apartment and condominium would be a better choice.
Eg. Greenlane
Double Storey Terrace House
Value: RM1.1mil to RM1.2mil
Rental Return : RM1.800 to RM 2,100 per month (1.8% to 2.3%)
Flamingo Series
Value: RM650k approx
Rental Return : RM1,500 per month (2.8%)
Size
Practically, landed property would have bigger size comparing to condominium/apartment due to extra car porch area, however it is not necessary the case.
Eg. Greenlane
Double Storey Terrace House
Value: RM1.2mil to RM1.3mil
Land Size: 1,600sf
Built Up: 2,000sf
Central Park
Value: RM1.2mil
Built Up: 2500sf
As you could see from the above comparison, at a similar investment amount, the built up size for the condominium are bigger than the landed property. In other words, landed property is not necesary bigger in interior size, however landed property do have a benefit of having car porch or extra land. People who love spending their time doing gardening and land scaping would prefer landed property.
Security & Privacy
Generally, condominium/apartment is more superior in term of security and privacy comparing to landed property. In today new condominium/apartment development, generally it would provide atleast 3-tier of security, guarded entrance with security guard, gated lobby with access card and own house lock. Nontheless, there are lots of new and upcoming condominium/apartment provides great privacy and security for house owner such as private lift lobby, access card to only your own floor, CCTV and etc. Moreover, condominium/apartment usually have 1 entrance only, making it more secure and harder to break in.
In the other hand, with the new concept of Gated & Guarded community for landed property, some might argue that it is equally secured comparing to condominium/apartment, however with landed property having more entrance and easily accessible windows, it would always be less secured comparing to condominium/apartment.
Parking Space
One of the most common issue face by house buyer in Penang when purchasing a condominium/apartment is parking space. At current trend, usually there will be atleast 2 cars in a household. For a standard terrace house, you would have no problem parking 2 or 3 cars in and in front of the property. However, for condominium/apartment, the property usually come with only 1 or 2 parking spaces and it would be very troublesome if you have 2 or 3 cars. Other than being not convenient to park the car outside the condominium/apartment compound, your car will be more vulnerable to theft too.
Maintenance
There is a quote by some of my elder client, "pay maintenance until die' as long as you stay in the same condominium/apartment. It is true that living in condominium/apartment, you have to pay a certain amount of maintenance fee and sinking fund. Maintenance fee is a very important fee that must be paid by house owner to upkeep their condominium/apartment. The amount of maintenance fee is depends on the services, facilities and the density provided by condominium/apartment. Aside from maintaining the condominium/apartment at a good condition, a well maintained condominium/apartment would sometime enhance the value the condominium/apartment itself. However, if there are too many defaulter within a certain condominium/apartment, the condominium/apartment might not be well maintained and it might decrease the value of the property. Hence, it is important for condominium/apartment owner to pay the maintenance fee.
While for non gated & gated landed property, it is true that maintenance fee is excluded, however some maintenance work also needed to take care of by the owner himself. Roofing, ceiling, gardening, car porch, external wall are some of the things should be maintained and checked frequently to keep it in good condition. A landed property needs more maintenance if it is left empty for sometime as it is more prone to termite and weather attack.
Facilities
In the upcoming trend, there many developers offer gated and guarded community when developing a landed properties and it many of those development comes with club house facilities which include gymansium, swimming pool, community hall, garden and landscaping. However in Penang Island, most of the landed properties are non gated & guarded community.
Condominium/apartment with facilities is key selling point when purchasing a property. If you are a person who does not use facilities much, you might opted to purchase a landed property or non or little facilities condominium/apartment. If you are the kind of owner with plenty of your families enjoying swimming, working out in gym, relaxing in sauna or jacuzzi and a sport enthusistic person, condominium/apartment with plenty facilities should be taken in consideration.
Always bear in mind, having more does not necessary mean it is better as maintenance fee might be higher.
~ Thanks for reading. If you have any disagreement or some point to add in, do feel free to drop me an email for better improvement.
Have a Nice Day & Happy Hunting!!!
Please do
contact me at +6016-494 4986 OR
drop me an email at ewejintung@gmail.com
