Category Archives for "Investment Tips"

5 Simple Tips For New Property Investor

When you have additional money for yourself can do anything else. The best option to spend those money is to invest in property as it always have high returns over times. Although the price of property is not cheap and even go up and down sometimes, but they appreciate substantially in the long run.

Investing in property is something that you can rely on because the value of property itself will increase with the development of the areas nearby property. In fact, there is still have existing risks that cannot be ignored. But if you invest in the right ways, right timing and right property, you can then decrease the risks.

If you’re new to property investment, you may seem daunting at first. But,no fret! Here are 5 simple tips to help you out to make the right investment choice;

Residential Properties vs Commercial Properties

1. What type of property you would like to invest in

You would need to choose whether you want to invest in commercial property or residential property. There are many options to invest in such as SOHO, serviced apartment, landed house or condos. So, you need to take some times to study which is better for you, the most importantly is stay within your budget.

2. Why investing in property

Do you want to be a property flipper or landlord? You can make significant profits by make the property flip a flop which is where you buy a property, renovate or decorate it, and sell it at higher price, but its quite risky and its require the certain skills and experiences. Alternatively, you can buy a property and rent it out to earn passive income. Besides, if you plan to invest in commercial property, you can then hold it until the price of property itself has increase and sell or you can leases to long-term tenants to make a good profits.

property location

3. Where to invest

Its all about location, location and location, while you invest in any properties. The price of the property is likely to be decided by where its located. Before buying any property for investment, do make sure you have do the research on price trends which according to different locations. You can read this article to decide where to invest. (3 Tips For Deciding A Property Location)

4. Who are the person you need on buying a investment property

You can make your job easier on searching the type of property that you wanted by network with a property agent. It is because they can help you toward investment property that fit to your requirements, plans, and budget. Besides, a property broker can handle over legal matters that is involved with the sale and purchase of the property for you.

Do engage with a licensed agent who is able to give you the proper guidance on any legal procedures and paperwork submission.

buy within limits

5. It’s time to arrange your financial

Once you have decide to buy an investment property, you would need to get the mortgage loan from bank. And do remember to keep all the receipts and documents in well condition for in case.

In conclusion, the most important thing you need to do is do your research! Don’t urge yourself to getting in property investment as it may make yourself lose money. So, wish you good luck and success in property investment field.


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

How To Protect Yourself If You’re Property Investor

Nowadays, most of the people are jump into the property investment field because it’s appreciated can help to create massive wealth for themselves. Well, if you’re invest in the right timing, right places and in the right ways, you will earn lot of money from either commercial property or residential property and you can also retire early with massive retirement funds.

In order to be success in this field, the first thing you should do is put your shield on to avoid any legal issues coming to you. Besides, there are many existing risks are waiting for you to step in. In today, we will talk about how to protect yourself in property investment field. Here are the protection you should have as follows;

Public Liability

Ⓐ Protect Yourself From Public Liability

If you investing in high-risk property, you should be taken up the public liability insurance to protect yourself against third party claims or liability due to failure to take proper care in your property. For example, you investing in 5-storey shop office and has a lift which your tenant should take responsibilities as he/she is using it for his/her business. However, if your tenant failed to take good care of the lift or it caused someone get injured, and you will get sued for third party liability as you are the one who own the lift as well as the property.

Legal Issues

Ⓑ Protect Yourself From Legal Issues

This is for those property investors who are the only main person to get sued in the event of negligent professional activity or malpractice. Hence, instead of buying the property under your name, you should consider to buying it under your spouse’s name, your children’s name (over 18 years old), family’s property holding company and etc. Do aware of the legal and tax implications before doing it.

protect family

Ⓒ Protect Your Own Earning Ability

You must have sufficient coverage for your own house, and buy the insurance that cover of hospitalization, critical illness, death, permanent and temporary disability. The bank usually encourage the borrowers to take Mortgage Reducing Term Assurance (MRTA) to assure their outstanding loans are paid-off if there is any unforeseen happens to them. And the bank is likely to take away your house. Alternatively, you can use your existing insurance policies to protect your beneficiaries in the event of something unforeseen happens to you, and your outstanding loan will be paid-off automatically.

As a property investor, you should aware of the above 3 crisis. You might be able to control over first and second crisis while you can’t predict the 3 crisis happen. Whoever you are, property investor or homeowner, you should plan early for in case of 3 crisis happen to you as your family is innocent, they can’t do much of the property as you are the only one who in-charge for this. You may consult the bank or insurance company to get more details.


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

6 Valuable Tips When You’re Planning To Upsizing Your Home

In order to able to save yourself from the pitfalls of financial burden, you should read on this article to get the most valuable tips when you’re planning to upsizing your home, especially for the people who new on property investment field;

1️⃣️ Never making an impulse decision on property purchase

Since you have a property and plan to sell it off in the future, it is best to make a right and well-thought-of decision before moving out. Normally, upsizing your property is done with the purpose of living there for a period of time and so you should think about something long-term. Is this house suit to your living style or your family? For example, you should not choose to live in the area just because its nearby your kids primary school as your kids will graduated from their primary school after 6 years.

Upsizing Your Home 1

2️⃣️ Think about something long-term

If you have got promoted or got increased of your salary so you decide to upsize your home? But, we need to tell you that this can be a huge matter since you will take on more debts as you need to pay for a bigger mortgage loan.

Most of the people like to upsize their home or a big budget renovation as soon as they got financially comfortable. In fact, you just make yourself become financially uncomfortable again as you are taking on more debts as well as affect your retirement funds.

3️⃣️ Do check on your housing loan eligibility

Before you go for house hunting, the first thing you need to do is check on your housing loan eligibility. Besides, you should also check your credit report to see whether you have any debts that you aren’t aware about and check whether there is any incorrect information or recorded.

Upsizing Your Home 2

4️⃣️ ️Never forget your financial status

Different banks will approve your loan at different rates after assessing your financial status. The main thing they will look at is your Debt Services Ratio (DSR), some of the banks will letting you to borrow a large amount of loan and some of the banks just borrow you a little. This is depends on their determined DSR threshold. So, it is advisable to get a pre-approved mortgage loan before your go for house hunting as you will estimate how much loan you can borrow from bank.

5️⃣️ Mind of the entry costs and the miscellaneous

Apply a mortgage loan is consist of entry costs such as stamp duty, legal fees, agent fees, deposit & etc and miscellaneous cost such as renovation, furniture and other existing costs. Before apply a loan with the bank or even decide to buy a house, you should consider whether you have enough savings or cash to pay all of the costs during the process of house purchase.

6️⃣ Never forget to settle your current house first

Once you think your current financial is much more comfortable than before, you will consider to move to a new or bigger house. But firstly, you should settle your current house, sell it or rent it, either one. No matter what decision you have made, you should keep your current house in good condition. It is matter as it will affect the sale value and rental income.

Lastly, remember, once you have decide to upsizing your home, you will need to think something long-term, well-thought-of decision making, check your eligibility and affordability, the entry costs, and settle your current house before it becomes your burden.


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

What Is Investment-Grade? What Is The Feature Of Investment-Grade Property?

In property investment field, you might heard about investment-grade property. What does it means? Let us short explain to you.


Investment-grade is a credit rating that show that a company/ corporate’s ability to repay its obligations. It use the different designations composed of upper and lower case letters, for example, “A” and “B” to identify a corporate’s credit quality rating. Normally, investment-grade of “AAA” and “AA” are stand at a high credit quality rating while “A” and “BBB” are stand at a medium credit quality rating. Typically, only the larger and national companies could be able to maintain these stronger credit quality ratings.

Ok now, we come back to the property investment topic. How does investment-grade can affect a property? Well, a good investment-grade property can gives us higher rental income as well as gives us high potential capital gains. Let us continue to discuss about what are the features of the property that can be considered as an investment-grade property;

Ready-built Property

➊ Ready-built Property

It is a completed property from the second-hand or sub-sale market. Purchase a ready-build property can reduce the risks of developer such as abandoned projects. You may hire an inspector to check on the ready-build property conditions and estimate its repairing cost.

In addition, you will need to check what type of businesses of your neighbor shops do. Do avoid the neighbor shop that selling coffins or any funeral services as it is really “Pantang”, unless your business is related to these. Besides that, try to avoid the shops that will produce lot of noise and pollution such as car or motorbike repair shops. It is advisable to search for the neighbor shops are supermarkets, franchise retail outlets and restaurants. For your information, there are no any holding costs and interest cost for a ready-build property which mean you can use it or rent it out straightaway.

Ready Tenant

➋ Property with Ready Tenant

Purchase a property with ready tenant because they often come with a rental income. Tenants are able to help you to pay part/ full of your monthly loan repayments. Every property investor always take good care of their tenants and treat them as their customers because without tenants, they’re unable to earn profits from rental business.

Property with High Occupancy Rate

➌ Property with High Occupancy Rate

Purchase a property that located in an area with high occupancy which mean 9 out of 10 properties are have been occupied. This is because the demand for property in this area is very high and you can rent/ sold out easily with no any worries even during economy fall. (Commercial property is quite sensitive to economic market compare to residential property)

Purchase The Property at Below Market Price

➍ Purchase The Property at Below Market Price

Purchase the property at below market price can help yourself to save or earn lot of money.

Here we show you an example;

Current market price: RM 800K

Final purchase price: RM 600K (after bargain with the seller)

Save/ Earn: RM 200K


Re-sell the property: RM 800K (current market price)

Final selling price: RM 780K (included all the transaction costs)

Save/ Earn: RM 150K

Be a wise property investor, do always negotiate the property price with the seller or buyer and only buy in the property at below market price at below market price and sell it off at higher price.

Maximum Loan Amount

➎ Apply For A Maximum Loan Amount or Longest Loan Tenure

Do remember, investment is a business that use as little of your own money as possible. Borrow the maximum loan amount from bank and stretching the loan tenure as long as possible. The longer the loan tenure is, the lower monthly repayment you need to pay to the bank and increase the cash flow from your property.

Besides, the younger you are, the longer that you can extend your loan tenure. By doing so, make sure you’re taking the loan with fixed interest rate so that you are able to predict the monthly loan repayment and easier for you to do the financial planning.

Cash Flow

➏ Positive Cash Flow From The Property

The main key of survival in property investment field is monthly positive cash flow from the property. You may putting up a higher down payment for a property or extend the loan tenure, you can then reduce the monthly repayment to generate positive cash flow from rental yield.

A positive cash flow property is one with remainder income after deducting all the related costs. Let’s take a 2-storey office as an example;

Rental Income: RM 3,000/ month

Loan Repayment: RM 2,300/ month

Maintenance & Miscellaneous Costs: RM 200/ month

Total Cash Flow: RM 500/ month (RM 3,000 – RM 2,300 – RM 200)

Return on Investment

➐ High Return on Investment (ROI)

In order to get the good return from property investment, it should be at least a double from the borrowing amount. For example, if the borrowing amount is 6%, the return on investment should be at least 12%.

Let’s take a 3-storey office as an example;

Purchase Price: RM 900,000

Total Borrowing Amount: RM 700,000

Down Payment: RM 200,000

Positive Cash Flow: RM 2,000 /month

Return of Investment (ROI): 12% (RM 2,000 x 12 (one year) / RM 200,000 x 100%

A Property with High Potential Capital Gains

➑ A Property with High Potential Capital Gains

A property nearby or in the big city has higher potential capital gains. Especially landed property such as terrace house, semi-detached bungalow and shop office can appreciate faster than high-rise property such as apartments and condos. While, high-rise property can generate higher rental income than landed property.

Increase the Value of Property

➒ Increase the Value of Property

Purchase a property and do a proper renovation/ repairing work can increase the value of property itself. For example, simple landscaping, painting and repairs costing @ RM 5,000 may increase the property value by more than RM 50,000.

Property with Good Neighborhood

➓ Property with Good Neighborhood

Purchase a property with good neighborhood can often appreciates faster. Good neighborhood could be defined as clean, peaceful, safe and secure environment. Good environment included greenery places, water features and beautiful views such as city, sea or mountain view.

The above 10 features of property are considered as good investment-grade property as these features can increase a property valuation so it can appreciates faster and get higher return.


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

4 Useful Ways To Make Money From Commercial Property

Although investing in commercial property is risky compare to residential property, but commercial property do generate a significant profits from capital gains and rental income.

In today, we will share you the 4 useful ways of make money from commercial properties.

capital gain

① Initial capital gain

You have to make initial capital gain when you buy a commercial property at below market price.

Equity gain

② Equity gain

Since the tenants help you to pay part (full) of your monthly loan instalment, the equity of commercial property itself will increase. The equity gain will becomes obvious over the time.

Capital gain

③ Capital gain

As you known the commercial property is for business uses, the rental and property price will increase in tandem with the profitability of business activities.

Cosmetic repair

④ Cosmetic repair

In order to making money from commercial property, the maintenance work is absolutely essential. Be sure the electrical wires and plumbing are proper flow of electricity and water. Besides, doing cosmetic repairs such as painting and landscaping can also help to increase the value of your commercial property.

Many of property investors choose to invest in commercial property field is the rental yield is higher compare to residential property as well as longer leases. It is because a residential tenancy could turn over every 6 -12 months while a commercial tenancy could be between 3 and 10 years. In addition, the tenants also tend to stay longer when they have invested some capital customizing the premises.

Besides, nothing is perfect and commercial property cannot be an exception. The negativity of commercial property is quite sensitive to economy conditions which means when the economy is strong, the businesses flourish and the demand of commercial property will definitely go up. However, demand for commercial premises will falls when the economy is weak.

Hence, always up-to-date the economy conditions while investing in commercial property. Besides, there is a most steady way to make money from commercial property, is lease it out to long-term tenants as it can help to generate positive cash flow from rental yield.


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

How To Find The Right Commercial Property

You are not only get rental income from commercial property, but you also get potential capital gains. The entry level for commercial property is quite high compare to residential property. This is because the bank normally offer the loan that less than 80% while up to 90% for residential property. A wise property investor is always purchase the commercial property at below market prices to enjoy the significant benefits from rental income and potential capital gains.

Here we show you an example;

Current market price: RM 800K

Final purchase price: RM 600K (after bargain with the seller)

Save/ Earn: RM 200K


Re-sell the property: RM 800K (current market price)

Final selling price: RM 780K (included all the transaction costs)

Save/ Earn: RM 150K

Right Commercial Property

The real value of a commercial property is based on rental income and useful value of itself. The yield of commercial property is preferably at least twice the fixed deposit rate. Which means the yield is (monthly rental x 12 (one year)) / (purchase price) x 100%.

Here we show you an example;

Purchase price: RM 80K

Rental: RM 5K/ month

Hence, the rental yield would be,

(RM 5,000 x 12/ RM 800,000) x 100%

= 7.5%

A commercial property would be considered as a good value for money if its fixed deposit rate is 3%. Cash flow is originate from rental income while the rental income is depends on the occupancy rate of the commercial property itself. Hence, do remember to only buy the property with occupancy rate at least 90% which mean there is at least 9 out of 10 units of similar property in the same area is occupied. Furthermore, a property will generate a positive cash flow if the monthly rental income is more than the monthly loan instalment.

Here a simple tips for you if you want to rent out your commercial property fast. First, you may need to consider giving a lower rental for the first year and increase gradually in the following year (be sure the rental is follow the market rate).

The main key of survival in commercial property investment is monthly positive cash flow from the property. You may putting up a higher down payment for a commercial property or extend the loan tenure, you can then reduce the monthly repayment to generate positive cash flow from rental yield.

Here we show you an example;

Let say Jinny has bought 2 commercial property and its portfolio as follows;

Interest Rate: 4.5%

Loan tenure: 25 years

In today, shop office X and Y has each positive monthly cash flow as below;

Shop office X: RM 2,454 (positive monthly cash flow)

Shop office Y: RM 2,447 (positive monthly cash flow)

Total monthly cash flow: RM 4,901 (RM 2,447 + RM 2,454)

After 12.5 years, both shop offices has potential capital gains as below;

Shop office X: RM 250K (capital gain)

Shop office Y: RM 350K (capital gain)

Total capital appreciation: RM 600k (RM 250K + RM 350K)

After 25 years, the property net worth will increase to RM 3,300,000 and monthly cash flow will increase to RM 16,000.

If the property loans have been fully paid after 25 years, the properties will generate the capital gains and perpetual cash flow to you.

So, isn’t that sounds good? If you invest in commercial property in the right way, right time and right place, the property itself will then generate a significant profits to you and you are able to retired early with massive wealth after that.

As a smart property investor (since you have read this article), you will always practice to buy in any properties at below market price and sell it off at higher price. Some properties may need some times for appreciation perhaps 5 years or 10 years, in the meantime, you can rent it out to the prospect tenants. And not to forget to do the maintenance work to your property every once year.


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

5 Simple Guidelines For Property Investment

Before purchase any property, whether you’re purchase for your own stay or investment purpose, you must put these following into your concerns;

Ready-built Property

➊ Buy Ready-Built Property

As a wise property investor, always buy the ready-build property from secondary or sub-sale market instead of from developer. This is because you can reduce the risks and you can get immediate returns by rent it out to the tenant.

Purchase The Property at Below Market Price

➋ Right Location For Investment

Location is the main factor to affect the property appreciation. There is a high demand for the property nearby transportation services, shopping mall and other convenience amenities which mean you can rent out or sell out easily. Here is a tip for you, if you’re target tenant market is expatriates , then you should invest in the property that nearby international schools, have a good infrastructural links, near the place of their work or have the presence of other expatriates from their own country.

Property with High Occupancy Rate

➌ Buy The Property With Ready-Tenant

Purchase a property with ready tenant because they often come with a rental income. Tenants are able to help you to pay part/ full of your monthly loan instalments. Every property investor always take good care of their tenants and treat them as their customers because without tenants, they’re unable to earn profits from rental business.

➍ Buy And Keep Forever

Buy the property with the purpose of keep it and never ever sell it out. And you only sell it out if the property goes from good to bad (there is new highway being constructed in front of your property), or there is a better investment deal comes to you and you have no any extra money to accept it.

Residential property

➎ Never Regret What You’ve Bought

If you’re plan to move into somewhere unfamiliar areas for some reasons, it is advisable to rent the property for a several months and only make the decision of buy or not to buy after 2 years. This is in case you don’t like its area after several months, due to bad neighborhood or you’re not prefer the amenities.


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

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.


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

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.


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