Regional Second-hand Houses
Many people complain when the new housing project is being released, it will immediately getting sold out and cause most of the homebuyers not able to buy any new house.
But for those who are working in property industry saying that if the homebuyers were unable to buy new house, then they can consider of buying second-hand housing which can be ideal house for them as well.
Most people are having the mindset that second-hand housing normally need them to spend more a lot of money for renovation, however, this tend not to be true.
Second-hand Houses Recommended by Property Experts
Disclosure by the property industry experts, some popular new high-end completion of real estate sites at Klang Valley, even though all units are being sold, but the occupancy rate is very low, mainly because the owner buying the house is for investment purpose and not intend to live in the house.
However, even the prices for these hot spots are very high, but the rental returns are lower than other areas, and this cause some homeowners not wiling to rent out the property and leave it just like that.
Under such circumstances, those homebuyers who are intended to buy property in the area may seek help from brokers and can make the deal for an ideal house at reasonable price.
Commenting on the Malaysian housing industry conditions, we found that home buyers prefer to purchase new houses compare to second hand, which has been the major reason why the price for new houses keep going up
Many people don’t want to buy second-and house because they think they need to spend money on renovation, but it does not mean that new houses will not required for renovation. Unless you are buying a serviced apartment, or you will inevitably still need to spend money for renovation.
Housing Loan Limitation For Second-hand Houses
Another reason why people do not want to buy second-hand house is mainly due to the difficulties on applying for housing loan. Since the house value is determined by the assessment appraiser, the bank will based on the value that assess by appraisers to determine the lending amount.
Unlike the 80% rate of housing loan that you can get with the purchase of new house, generally the highest amount of housing loan that you can get when buying second-hand house will be 70%, which means that homebuyers will need to come out with 30% of their money to pay for the second-hand house. Because of this, most homebuyers are prone to buy new house instead of second-hand.
But still many property experts have suggested homeowners to consider of purchasing second-hand housing. One of the benefits would be due to the house been completely built and the population in the community has generally formed. Therefore, it will be easier for homebuyers getting to know the status in the community such as household quality, security & maintenance quality and other available public facilities.
If you happen to buy a house from former homeowner who are maintaining the house in good condition or even have complete the renovation, then you will be able to save a considerable amount of renovation costs.
It is advisable that when you go to check for the house that you are consider buying, you may try to talk to the broker or the homeowner by asking questions such as how long and what are the reasons the house been being vacant for some times, perhaps by doing so you may get a better price when come to negotiation.
Things to Avoid When Come To Purchase Second-Hand Houses
Although second-hand house can be a good choice, but homebuyers have to be vigilance to avoid from buying a second-hand house that with a lot of problems. You may use the following list as reference to avoid buying problematic second-hand houses:
– Only one toilet in the house (it has limitation for the house value to get appreciated, thus is not easy to sell in future)
– House is facing at the back of shopping malls or commercial center
– Close to the busy road (even the sound of vehicles speeding are non-stop in the middle of the night)
– Tenants neigbourhood who neglect for taking care of the house and cause the house is overgrown with weeds
– Mottled paint off or roof damage
– School quality is poor or too far away from your house
– Adjacent to the industrial zone or airport
– Security of the area is poor
– If it is apartment property, you need to know whether the homeowner is in arrears of management fees
– If the location of the house is easy for getting flood, you can go to check out the area during rainy days
– Property prices around the same area having no potential for appreciation
– Space is too small (if the master bedroom is too small)
– Too close to the sewage treatment plants or reclaimed land
– The house facing the road junction. This is not because of superstition, but is due to you will have to endure the exposure of all passing vehicles headlights every night
– Heavy traffic area. As you will need to endure the traffic every time going back to your house.