Category Archives for "Buying Tips"

Buy Or Rent? Which One Better For You Now?

Should I go for buying or go for renting? Which one is better for my current financial status? I believe this is the most annoying question that besides of “when you get marry” or “when you plan to have a baby” etc etc. But, do you ever ask yourself whether you’re suit for buying or renting a house?

Before you answer this question, here are the other questions you should ask yourself first.

My first house should go for investment or own stay

My first house should go for investment or own stay?

In this question, you may need to re-think about your future living arrangements. One home is not a guaranteed source of income. There are many factors that affect a home’s valuation such as location, neighborhood, management as well as its facilities. A great deal of planning is required to search for the house that perfect in investment such as easy to rent or sell out. When you plan for sell out the house after 5 years, all these factors will affect to the final selling price. (Do read our another article: Should I Buy A House For Myself Or Investment)

Are you comparing monthly rent to monthly loan repayment

Are you comparing monthly rent to monthly loan repayment?

The biggest mistake for many people who often compare the monthly rent to monthly home loan installment. Honestly, when you comes to buying a house, there are many existing additional costs that you need to think about only make a fair comparison which is property tax, property insurance, property maintenance and etc. Especially the property maintenance, in some cases, it is costly than other taxes or fees. For example, wiring goes wrong or pipe leaking, the you must find the specialist to fix those problems to you.

Are you able to control the stress

Are you able to control the stress?

Buying vs renting, this is the biggest decision to make for many people in the world! You can’t underestimate the stress when you comes to buying a house. Stress overload can caused missed payments, which can effect you personal credit or even losing the house. If you don’t think you are ready to buy a home, then rent first! Don’t push yourself so hard. (Do read our another article: Tips to Reduce Stress When Buying a House)

What is your current age

What is your current age?

Don’t laugh! This is an important question to ask yourself. If you are in 20s or early 30s, there are some arguments for not buying a house. It is about your responsibility. Once you own a house, you are required the financial flexibility which will affect your social life as you have to pay for your monthly loan installment. But if you have sufficient fund after pay for home loan, you still can use that money to take yourself to the interesting places.

Besides, kindly take note that if you’re buying a house after 35s, the bank most probably will reject your house loan application or narrow the period for loan repayment. When that happens, buying a house becomes much more difficult as you need to prepare a lot of money for monthly installment. (Do read our another article: Why You Should Buy House In Young age).

Last but not least, to buy or to rent? You should ask yourself all the above questions before make your decision. If you think you can afford for a house and still in a comfortable on financial status and stress free, then you should go ahead and proceed with the purchase. If any of the above questions strike you to shout “No Way”, then you should go for renting instead.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

How Much I Can Borrow From Bank?

Before you go for house hunting, you should check on what your maximum loan eligibility is. If you have list this process into your property purchase, you can avoid disappointment at the final stage of the process. So, first, you will need to find out whether you are eligible to borrow the full amount to make the purchase.

I need to tell you that, the loan amount that you’re able to borrow is not based on your salary only, but the bank would list out other several factors into consideration when they assessing your eligibility for borrowing the loan amount that you need to buy your house.

These are the factors besides of salary that determines your loan eligibility;

1. Your Debt Serving Ratio (DSR)

Debt Servicing Ratio is a percentage of the debts that you are servicing over the income that you earned (DSR= commitment/income). For your information, every each bank have different methods of determining your DSR in spite of its based on the same information that you provided.

10 Things Home Buyers Always Do Wrong

2. Risk Profile

Besides of your credit score, the bank will assess your creditworthiness based on job stability, spending habits and etc. The likelihood of defaulting which is your inability to pay-off your debts or service, it is an important factor when you apply for mortgage loan.

3. Property Valuation

Sometimes, a property could be overpriced compare to current market price. So the bank need a property valuator to confirm the property that you’re applying a loan for is worth the money that you are paying for.This is done as in the event of you default , the bank will still be able to compensate the loan amount that you borrowed by selling the property back into the market.

4. Maximum Loan-to-Value (LTV) Ration/ Margin Of Finance You Can Access

Usually, a 90% of LTV ration could be anticipated on a Malaysian mortgage loan. However, if you holding more than 2 housing loans then the LTV ration on the following housing loan is lower and is capped at a 70%. At the same time, LTV rations are even lower for foreigners as these are the restrictions to those that have less attachments to Malaysia.

What is your current age

5. Age

Usually, the period of loan repayments is up to 35 years from the first day of your loan or until you have reached 65 or 70 years old (different bank have different age limit), whichever occurs first. The youngsters who age between 21 to 25 may have a higher chance of getting the housing loan approved compared to somebody in their 60s.

6. Number Of Dependants

The number of dependants can affects your loan eligibility as they would be spending parts of your income. It would also affect your capabilities to pay-off your housing loans. Should you have a spouse and five children dependent solely on your wages it may raise a concern with banks.

7. Your Joint Applicant

The housing loan which is supposed to be borne by you and your joint applicant, hence, the bank would access them to judge your joint creditworthiness before getting your loan application approved. Your relationship with the co-applicant may be matter also, it is less likely for children or parents and or spouses to have disputes compared to other type of relationships such as friends or siblings.

IDEAL Investment

8. Employee or Employer

This information will help the bank to determine whether you have a stable income. A people with full time job, fixed monthly income are considered as more stable. Besides, to those who work for themselves is considered less stable as there is no job security and as their monthly income isn’t fixed.

9. Past Relationships With Bank

The applicants who are loyal customers of the bank they are applying to may have an added advantage. However, if you’re not, not fret, as long as you don’t have significant conflicts with any banks or being blacklisted from any banks.

In addition, when you’re planning for  buying a house, it is advisable to have enough money to pay the deposit, valuation fees, documentation fees, legal fees and stamp duties on the housing loan. For your information, some of the banks can provide up to 5% (for insurance) and 2% (for legal fees) additional margin of finance to finance your valuation and documentation costs.

Last but not least, before buying a house, you should find out what the maximum loan amount that you can borrow from bank.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Find Out How Much You Can Borrow Based On Your DSR

Before purchasing any properties, this is important to find out how much you can borrow from bank which based on your Debts Servicing Ratio (generally known as DSR). To get a quick answer of this, you may skip straight to online housing loan eligibility calculator. If you want to learn more about how its actually calculated, continue read on to get more detailed guidance.

4 Key Factors That Determine The Maximum Loan Amount You Can Borrow

You can borrow how much loan amount is depends on these 4 key factors;

  1. Your Debt Servicing Ratio (DSR)
  2. An individual’s risk profile
  3. Property valuation
  4. The max Loan-to-Value (LTV) ratio / Margin of Finance available to you

How Much I Can Borrow From Bank

This article is only covers the DSR factors, and we will first list out some common misconceptions;

⓵ You can only get the loan up to 1/3 of your gross income from bank

In fact, the bank will use more refined rules set during credit approval.

⓶ The differences of max borrowing amounts from each bank is not so much

In fact, the credit policies can differ greatly from one bank to another. Max borrowing amounts can even differ up to 3x between different banks.

⓷ Bank only approve up to 70% of your DSR 

This is only another rule of thumb and not particularly exact.

Debt Servicing Ratio (DSR)

Debt Servicing Ratio (DSR)

The DSR is shows how much of an individual income is used to pay debt installments and it represented as a % of income. It is derived from 2 main components as below

DSR = Commitment / Income

For your information, every each bank have different methods of determining your DSR in spite of its based on the same information that you provided. This is because every each bank has their own calculation methods for income and commitment recognition.

Example 1: Standard Chartered Bank may based on their calculations on Gross Income, while RHB and Maybank may based on on Net Income.

Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.

Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong Bank is considers 100% of it

It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.

Once your DSR has been determined, every each bank will have their own guidelines for mas allowable DSR threshold. It is usually determined by level of income, however, it may also be affect by net worth and even things as random as qualifications and ages. Some example bank guidelines:

Income Bank A Max allowable DSR Bank B Max allowable DSR
< RM3000 60% of Net Income 60% of Net Income (+10% if professional)
< RM6000 70% of Net Income 70% of Net Income (+10% if professional)
< RM10,000 75% of Net Income 80% of Net Income (+10% if professional)
> RM10,000 80% of Net Income 90% of Net Income (+10% if professional)

Source: Loanstreet

Know Your Max Borrowing Eligibility

Sometimes, it can be very difficult to determine what is the maximum of loan amounts that you can borrow from bank if you’re not often up-to-date with the credit guidelines of each bank in Malaysia.

So, once you’ve get the result of how much you can borrow, you can then search for the best loans available in Malaysia and proceed with house purchase.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

S&P Agreement: What It’s Process In Malaysia?

Every house buyers should understand what is the meaning of S&P Agreement, and how its so important during property purchase. If you don’t know it, do read our previous article: What Is S&P Agreement. Besides, if you never buy a house before or plan to buy a house in Malaysia, then this article you should not miss as we will telling you what its process during property purchase;


The first thing you need to do is Get A Solicitor, you can choose, either

  • Buyer and seller use the same solicitor
  • Buyer and seller hire different solicitor

Let’s talk about how if the buyer and seller use the same solicitor;

The buyer is being protected while the seller isn’t which means that the solicitor will focus on the buyer’s perspective and charge the sellers for basic processing fee. In such case, the processing fee will be very minimum, i.e.g ~ 80% which is lesser.

On the other hand, should the buyer and seller hire different solicitor, both parties will be protected by their own solicitor. That means the process will take a little bit longer as it will take a lot of back and forth official communication to make sure both parties interest are protected. For example, seller’s solicitor drafts the S&P Agreement and the buyer’s solicitor will check on it. If there is some terms are incorrect, the buyer’s solicitor will return its agreement to seller’s solicitor for amendment.

I believe that you’re wondering which one is better. However, it is more on the seller’s choice while the buyer is more or less the same. In brief, you can choose the first one should you trust the solicitor (the solicitor could be side with the seller and din’t explain the agreements to you clearly) or you want to save cost.


The Process of S&P Agreement

Ⓐ Letter Option to Purchase (prepare a 2% deposit )

This is a letter from seller to buyer. The buyer will need to pay a 2% deposit of the property purchase price (its decide by seller) upon signing this letter. You can either pay check or cash to the seller. Besides, should you have a property agent, the agent will drafts this letter for you. If you don’t, get a solicitor to drafts this letter for you.

After you have signed this letter, the S&P Agreement must be signed within 14 days. Within this period, the buyer usually will apply bank loan. Should the bank rejected buyer’s loan application, then the buyer can void this letter and get back the 2% deposit.

Ⓑ Signing S&P Agreement (prepare a 8% deposit)

After the letter option to purchase is signed, within 14 days, you will need to pay the remaining 8% to the seller;s solicitor upon signing this agreement. In some cases that the buyer reject to sign this agreement, the seller can take the deposit and looking for other buyer.

When the seller’s solicitor receive the remaining 8% deposit, they usually will withhold a 2% for Real Property Gains Tax (generally knows as RPGT) which is requirement by the law and pass the remaining 6% to the seller. From seller’s perspective, you will get a 8% (i.e. 2% + 6%) of the total property purchase price. The solicitor will in-charge the seller’s RPGT matters with the income tax office.

Ⓒ Completion of S&P Agreement (prepare remaining 90%)

After the the above 2 processes are completed, the buyer usually has 3 months period to pay the remaining 90% of the property purchase price to the seller. Should the seller has any loan, then the buyer must settle the loan on behalf of the seller within this 3 months, and these process will gone through the solicitor. But, should the buyer failed to pay the remaining 90% after 3 months, the seller have the rights to charge the buyer a 6% of interest.

In conclusion, should you have a property agent you will then need to pay for agent fee. It is depends on your agreement with your agent regarding how much you need to pay or follow the standard cost in the state (cost is different by state). In some cases, the agent would ask you to pay the agent fee upon signing the S&P Agreement. However, it is advisable to only pay them until whole process is completed which is after 3.5 months. You may negotiate this matter with your agent.

Last but not least, there is not compulsory to have an agent to in-charge over buy or sell matters, but you must hire a solicitor that you can trust on as well as able to protect your interest. Let us know should you have any questions. Good Luck.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

These Are The Things That You Should Consider When Choosing A House To Live With Your Family

There are a bunch of things you will need to concerns about before you buying a new home to settle down your family. You will need to make a hard decision when you have your own kids, and you will need a place with more convenience and less risk to make sure their safety.

Let’s take a look at the common factors that the parents should focus on when choosing a house to live with their family, especially their kids;

House Location

1. House Location

If you are single, you are probably only focus on location, “is this place near to my workplace?”. However, if you’ve had upgraded to be a parent, you have to consider the distance between the house and school, amenities, even babysitter or your parents and siblings.

In addition, you will need to consider that you want to raised up your kids in what type of ethnic culture of the location. Hence, this part is often took a little longer to do the planning and research. Do figure out the cost, time, distance and transportation convenience.

House Price

2. House Price

Whether you buy house to settle down your family or for yourself, price is always then main concern for choosing a house. Besides, the house price is depends on a location or whether it is a newly developed building or a sub-sale property. Do understand that what is your affordability would help you to narrow the options of choosing a house.

In order to minimize your repayment default risks, it is advisable to set only one out of third of your net salary (after taxes and dedections) for monthly loan repayments. Do remember to included all of your other commitments such as credit card, car loan or personal loan. By doing this, you will have a more realistic picture of what you can afford and what you can’t.

House Type

3. House Type

What type of house that you prefer the most? High-rise property or landed property? Will this house can cater all of my family members? Will it packed? This is the most common questions that you should be answered by yourself and do discuss with your spouse about this.

Besides, do focus on eliminating options with constructs that are not suitable for children. Do note that the common house hazards are include staircase, balcony, low ventilation, exposed pipes, and other things that might harm your little ones. Well, you can solve these issues by renovate the house, however, it is only an option if your budget allow you to do so.


4. Kids Education

What is the location you would like to live in? nearby a famous school? the place that easily accessed by highways or other transportation? These are the top priority concerns for the parents. Hence, you may choose the house that close to the education centres, and it would be a great choice for working parents who can’t catch up their kids after school.

Furthermore, having a top-notch schools in the vicinity of new developments may attract more young families to move in. But, this point may not often considered by some parents, but it is a quite interesting way to foster a community that grows together and make their children’s benefits as their priority.

Safety of Environment

5. Safety of Environment

This is also a main concern for parents when they chooosing a house to live in. However, the location comes with gates and guarded communities is tends to be pricier and it might not an option for all family.

In fact, you should no worry so much about if your house outside of guarded space, you can install a security system in your house such as sensors, CCTV and home alarms.


6. Living Lifestyle and Amenities

Imagine that you move in a newly developed township but far away from grocery stores, restaurants, hospital and clinics. Its very inconvenience for you and your family right?

Hence, you should be consider where available and affordable. In close proximity to a parks, playgrounds and shopping centres are healthy setting for family gathering during weekend. In addition, a place equipped with the facilities like swimming pools, jogging, cycling or other activities would make for livelier for your and your family.

Last but not least, choosing a house can be difficult sometimes. But if you choosing a house based on your family members, living style, financials, amenities and etc, you will easily to make the decision of which place is suitable for you and your family.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

What Are The Pros And Cons Of Purchase A Property From Developer

In Malaysia, there are basically 2 ways to purchase a property. You can either book a brand new unit that is still under construction (or even the building have yet start the construction) from developer or purchase the property from secondary or sub-sale market. It is depends on how a decision of property purchase is made, for example, from an advertisement, from property fair or from the auction market?

If you plan to purchase a property from developer directly, here is the pros and cons that you should aware of;


1⃣️ You can get some freebies

Some of the developers are often use this marketing strategy to attract the prospect property buyer. They may given out the freebies such as air-conditioner, fully furnished kitchen or toilets, bed room wardrobes and etc. Tell you a little secret, developers are able to give away such freebies to the property buyer is because they can get the discount from the supplier in buying those things in bulk. So, their costs are minimal.


2⃣️ You may have the opportunity to buy cheap

Normally, the developer offer the price is “the floor” at which the price of property is rarely ever go lower. In most cases, you are purchase the property at the bottom, and its price that offered by developer is quite reasonable and its location is excellent. Thus, you should compare the developer’s sales price to the other developers within the same area. It is advisable to compare the property price based on per square foot basis. i.e. Developer A: RM 350 per square foot; Developer B: RM 300 per square foot.

3⃣️ You can choose the units

If you’re early bird of property booking, the developer will allow you to choose the property unit that you prefer the most.  For example, a unit that facing a park, facing the morning sun, corner unit (as it far from lifts), or purchase a connecting unit. Let say, you plan to settle down your family, so you purchase 2 apartments side by side. You can make a request with the developer to tear down the side wall that between the 2 units in order to combine 2 apartments into 1 with 6 bedrooms and 4 bathrooms. So you will no need to worry about different houses in different floor level.

 choose the units

4⃣️ You can get a brand new property

You are able to purchase a brand new property with the latest designs and layouts. Compare to purchase a second-hand property which needs a lot of repairing and renovation work and its cost are often slightly higher than a brand new property, unless you buy in that property at very low price.

5⃣️ You can save on Stamp Duty for high rise property

You only need to pay for Stamp Duty once the Strata Titles are issued. But Strata Titles of high-rise property such as apartments or condominiums are usually to be issued after 7 or even 20 years. At the same time, the first buyer no need to pay for Stamp Duty except the stamping fee of RM 10 on each set of S&P Agreements. But, if the first buyer sell his/her property before the Strata Titles are issued, he/she can then totally avoid to paying any Stamp Duty for his/her first purchase from developer. This is a loophole that many wise property investors are exploiting to save lot of money.


1⃣️ You may need to take some risks of abandoned projects

If you plan to purchase a property from developer, you may need to think about how if the project is abandoned. Be aware that once you purchased the property that still under construction, and unfortunately its project is abandoned as its developer went bankruptcy, you will still need to pay for your housing loans although you have yet to stay in your new house. Think again before you buy!

abandoned projects

2⃣️ Difficult to sell out if still under construction

During the construction period, there is no way to sell the property to the others buyers. But, you can seek help with the developer to find the buyers, and of course you will need to pay them for sales commission and other miscellaneous costs. But, do note that the developers may refuse to grant their consent while in the construction period as it complicates the legal paperwork.

3⃣️ You would lost your money

As an investor, for example, let say you booked an apartment at about RM 200K and paid a 10% for down payment. Assuming that you’re cash tight, and you’re unable to get benefits from another investment opportunity if it comes along. And that is opportunity and lost of money. If there is a crisis investing opportunity in the stock market, you could have make up to 20% within a few months. And that is RM 4,000 in opportunity costs!

lost your money

4⃣️ Negative cash flow

During the construction period, you have to pay bank for the interest costs. Then that is negative cash flow or money out of your pockets as that property have not generate cash flow to you. On the other hand, if you buy in a ready-build property, you can then rent it out to the tenants directly and you will receive the rental income every month which may be more than your monthly loan repayments.

5⃣️ Competing against other sellers

At the moment that your property is completed and you have get the keys, there are hundreds of other property coming into the market at the same time. If you plan to sell off your property, you are then competing against other sellers. While, if you plan to rent it out, you are also be competing with other landlords. But if you purchase this property for your own stay, the this factor does not apply on you.

In conclusion, nothing is perfect and you will have to put all the above points into your consideration before deciding to purchase property from developer. If you’re purchase for your own stay, there is only 1 thing that you have to concerns about which is abandoned project. Do look for the developer that have good reputation in the market and the most importantly is you trust on them. Besides, if you’re purchase with the purpose of investment, then you should search for the solutions for the above disadvantages of purchase property from developer. Good luck!


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Step by Step Guide For First-Time Homebuyer

This article is to teach those youngsters or people who never purchased a house before. If you are one of them and wonder what is the process, how it works and how long it will takes? Continue read on and we’ll clear your doubts!

Step ➊

Search for the house that suit to you

house searching

Image credit: nola

The first thing you need to do is looking for the house that suit to you, meets all of your requirements as well as current financial status. While, the requirements may vary as it is depends on whether you’re buying a house for your own stay or investment purpose. If you are struggle with deciding between which type of house that suit to you, you can read our another article: 10 type of homes in Malaysia.

Step ➋

Reserve the house if you decided to buy it

reserve the house

Should you have found the house that you wanted and you decide to buy it, you’ll then required to pay  2%~3% for booking fee to developer/property agent and they will issue a booking receipt to you and you have to keep it in well condition. Within the 14 days, you will be asked to sign the S&P Agreement (also known as SPA and Sales and Purchase Agreement). You can read our another article: What is S&P Agreement. In addition, you will have to pay  the remaining amount of 7%~8% of deposit upon signing the S&P Agreement.

How much deposit that you’ll need to be paid is depends on the loan amount that you can borrow from bank. In some cases where the property valuation is lower than the property purchase price, Bank will only approve the loan of up to 90% which according to the property valuation amount. Thus, you are require to pay the balance between the loan amount and the property purchase price. Due to this circumstances, it is advisable to secure your financial flows within this 14 days because you have no idea how many loan amount that you can borrow from bank.

Step ➌

Getting Loan Approval 

Getting Loan Approval

This is the process that took the longest time to get your loan application approved by bank. It is advisable to search for the bank that offer the lowest interest or has an attractive product features. But, the most importantly is you have faith in that bank.

During this process, you are require to submit the mortgage loan application form along with all the supporting documents such as photocopy of ID, EPF statements, pay slips, booking receipt and etc. to the bank. Bank will decide whether reject or approve your application by assessing your credit profile. (Know your credit history before they do, click here to read How To Check Your Credit Score?) Should the bank approved your loan application, you will have to go over to sign the Offer Letter for acceptance.

Step ➍

Sealing the deal

Sealing the deal

You will have to hire a lawyer to execute the Loan Agreement and S&P Agreement. In some cases, you may need to execute your Loan Agreement and S&P Agreement with different lawyers. Once the necessary agreements are signed, the lawyer will take it and stamp the agreement and perform the transfer registration at the land office registry. This is the reason why you need to pay for Legal Fees and Stamp Duty. Sometimes, the transfer registration might take up to a year to complete. While, should there is no any problems, the normal period would be 3 months or less.

Once everything is completed, bank would disburse the loan amount to the seller and you will be informed to collect the house key. And congratulations, you’re officially the homeowner and you can started to decorate the house that you like.

Lastly, here is some tips and advice for you;

  1. Other than house deposit, do aware for the other entry costs of house purchasing such as legal fees, stamp duty, property valuation and etc. Do read our another article: How to calculate Stamp Duty and Legal Fees
  2. One good news is, according to Budget 2015, should your first home purchase is RM 500k and below, you are entitled to enjoy 50% discount on the stamp duty.
  3. Be cautious of the valuation of property as you might bought the house at certain price that doesn’t mean the bank will value the property at the same price. Normally, bank can only offer the loans up to 90% of purchase price or property valuation. Hence, if the property valuation is lower than your property purchase price, you will need to top up the difference in cash.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Buy House? You Must Understand What Is S&P Agreement

Besides of signing Letter of Acceptance and Letter of Offer while you buying a property, there is still have another agreement you would need to sign also which is Sales and Purchase Agreement (generally known as “S&P Agreement” or “SPA”). So, what is S&P Agreement?

Sales And Purchase Agreement

What is Sales And Purchase Agreement?

S&P Agreement is the major contract that governing both buyer and seller and lay out the details such as agreed purchase price between both parties, conditioning precedents to be fulfilled, mode of payment, the details of property itself, type of loan, mode of delivery of vacant property and other arrangement during buy-sell event. Thus, it is very important to understand every single details and rules and regulations in S&P Agreement before take up your pen and sign on it as you’ll need to take all the responsibilities once you have signed.

Besides, S&P Agreement plays a significant roles when the property buyer go over to view and check on the property. As every property buyer would expect that the showroom would be exactly the same with the property they purchased. However, a showroom is just a model room which is just giving the property buyer have a rough idea of what is the property look like and its structure and its selling point.

It’s no difference from the scale model of the entire development, which is not stipulated in the S&P Agreement and you may not be able to get the same at the end of the S&P Agreement transaction. Therefore, if the specifications such as height of ceiling, fixtures, parking lot, building material and etc. it is advisable to insert those details that you’re concern in S&P Agreement.

scale model

this is a example of scale model that usually display at the property fair

In conclusion, S&P Agreement is an agreement which is lay out the details and terms that mutually agreed by both buyer and seller. For the property purchase price, it is fixed once you have signed the Letter of Offer. Furthermore, the buyer and seller can still bargain with each other before signing any S&P Agreement. Once the S&P Agreement is signed, there is no any further bargain and both parties must follow and respect the S&P Agreement. So make sure the list items is correctly described in S&P Agreement and you are agree with that terms.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Residential Properties vs Commercial Properties

What do you know about residential property and commercial property. Ermm..I’m know what you thinking. You might said that residential property is a house for people to live in while commercial property is for businesses. Yes, that is correct. But how much do you really know about these both type of property? Let’s discuss together;

Residential property

Residential property

Residential property is a private house that letting people to live in. This private house can be named as apartment, condominium, terrace, semi-detached and bungalow. It’s usually located in a good and safe environment area which is peaceful and surrounded by neighborhoods. Some residential property such as apartment or condominium are usually have guards to safeguard the entrance/ lobby. (visitors need to register their ID with guards before enter).

Apart from that, the lower and medium ranges of residential properties such as flat and apartment are relatively resistant to the economy changes. While the high end residential properties such as bungalows and high-end condominiums are usually cost RM 1 million and above. On the other hand, the total loan amount that you can borrow from bank is higher should you buy a property is under residential.

Many people choose to investing in residential property  is because they can make profits from it by becoming landlords or house flippers. Landlords get profits by renting out their houses while house flippers are simply buy a house at low price and sell it at higher price.

Commercial property

Commercial property

Commercial property is a property that for business use and intended to generate profits. Generally, commercial properties are shop offices, industrial building and retail lots. Besides, this type of property is quite sensitive to economic changes. If there is high points of the economic cycle, the property owner will get the excellent return on commercial rental while the rental rate will goes down if the economy is low.

Besides, the loan amount that you can borrow from bank is lower for commercial property compared to residential property. Its usually not more than 80% of the purchase price or market value. While the cost of financing is also higher than residential property.

In commercial property, investors are likely to buy one/ few/many to generate revenue and get profits by leases out to long-term or short-term tenants. Normally, commercial property is much more higher costs than residential property as commercial property is pricier. And if the investors bought and manged well or sold out wisely, they can get the excellent revenue or sale profits.

Other than that, the utilities charges of these both properties are different too which is residential property is lower while commercial property is higher.


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Understand HDA And Differences Between Residential And Commercial Title

Before you plan to buying any property, there are 3 things you must understand which is Housing Development Act– also known as HDA and differences between residential and commercial title.

Buying a property is like you’re going to school for study. There are many stuffs and existing laws that you must follow, and you’ll need to study which type of property law that can protect a property buyer interests as well as property buyer legal rights.

Let’s start with Housing Development Act (HDA)

Housing Development Act (HDA)

Malaysia property

HDA plays a significant role in protecting the property buyers’ interests from the issues between developer and property purchaser or purchaser itself. The issues are include but not limited to, setting rules and regulations for if developers start to charging purchaser for a new property, helps residents if a property is abandoned as well as be a mediator if there are conflicts between developer and purchasers.

While, for the some of the properties which under commercial titled that do not get the protection by HDA. Thus, most of the purchaser who buy the commercial property have to fight with developer by themselves should the property is abandoned or there is a hidden clause on the contract which is may unfavorable to a purchaser but the developer can get the favors from it.

Furthermore, the developers of commercial properties are subject to the whims of the developers. Which mean if a project is regulated by HDA, then a purchaser need to pay the housing loan upon completion of earthworks. While if the project is not under HDA, the developer can ask for the payment with purchaser as soon as a building is starting to construct. A clause in the contract may be worded as, “… upon commencement of works”.

Differences Between Residential Title and Commercial Title

Residential Title

Residential Title

☑ You can do anything in your house such as partying, decorating and etc because it’s your house!
☑ You are not constraint by any law if you’re not install a water sprinkler or fire alarm in your house
☑ You can have your own kitchen and you can decorate it whatever you like
☑ Your utilities bills, quite rent and assessment fees are following the residential rates which is cheaper than commercial rates
❎ You are not allowed to transform your house into office, shop or any businesses. You’ll need to get special permits to do so

Commercial Title

Commercial Title

❎ You are not allowed to transform your property into a house or host a party, otherwise, you will face legal action.
❎ It is compulsory to install the water sprinklers for all commercial properties which follow the rules of Bomba department.
❎ Commercial properties can only have one pantry and not kitchen. Restaurants are exception and they need special approval.
❎ The utilities bills, quit rent and assessment fees are following the commercial rates which is higher than residential rates

In conclusion, before you buying a property, it is important to understand what is the meaning of HDA. Besides, if you buying a property for your own stay or investment purpose, you will need to check on whether this property is under residential or commercial as these both are holding different title which is contain different laws, rules and regulations as well.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

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