en-terraced-house

6 issues with purchasing a terraced house in Malaysia – You probably had no idea about these!

Most of the people buy a terraced house because of convenience, lack of management fees and so on.

Additionally, if you want to have a pet, extend or renovate the house, you don’t need to notify to the management, it’s up to you what you want to do with the house.

However, you might focus on the benefits and forget about the real problems and issues of a landed house.

In fact, every property – terraced house, apartment, bungalow – has its benefits and drawbacks.

We’ll be brutally honest – but these are the things you MUST know before buying a landed house in Malaysia.

1)  Insects everywhere

insects

Every house has a kind of drain behind the building, and guess what happens in the water? It’s a true paradise for mosquitoes breeding!

Besides that, if your house is located nearby the forest or an old residential area, then you need to be careful. These areas tend to attract insects or small animals, such as centipedes.

So once you know about it, make sure to take the precautionary measures!

2) Rent yields are low

little-money

Most of the people say that it is good to own a terraced house, because of its value will increase faster than the condo’s. The stereotype is: if you decide to sell the house in the future, the selling price will be much higher than the original one. And if you’re getting the house as an investment, the common myth is that you can easily rent it out and earn money that covers your house loan.

In reality, the rental rates for houses are relatively low, especially in residential areas with less public transport. Convenient local transportation is one of the most important requirements for the working families and students. It is very hard to attract them if the transport in the area is a problem. Thus, the owner will usually have to lower the rental fee to attract the tenants.

3) Self-maintenance and care

cleaning

Since there is no apartment service, the owner has to maintain and clean the house by himself (outside and inside the building).

For the owners who have no experience in this type of work, it may be time-consuming and laborious – and taking up to 8 hours a week. Plus gardening, which in cases of big gardens can take up many hours as well.

Another option is to hire the house help, gardeners etc – which is convenient, but unfortunately, generates many costs for the landlord.

4) High spending in the early stage of investment

investment

Generally in the mature residential areas, like Selangor and Kuala Lumpur, the price of land is relatively high, so the initial payments are quite expensive.

On the contrary, most of the new terrace house projects are located in the suburbs. This will not only bring inconvenience for the tenants  – who usually work in the urban areas, but make them to spend more time in the traffic and pay more for the petrol. 

5) Security Issues

robber1

In February 2016, there were 14 cases of theft that happened in 9 days within the same housing area in Cheras, with a total theft value of RM1 million.

One of the reasons why thieves are so rampant is because there is no security- no guards or cameras.

If you are getting a house in an ordinary residential area, not the kind of posh-style, generally there is no hedge-style security. Keep this in mind – and always check if there’s any neighborhood watch organization around, or if there’s a way to install a CCTV camera – at your own expense, unfortunately.

6) Lack of leisure facilities

playground

In the terraced house areas, there are typically only playgrounds and basketball courts provided for the tenants. If you’re dreaming about a swimming pool, jogging track or gym in the neighbourhood, then a condominium should be a better choice. 

All in all, each housing type has its pros and cons -there is no best house in the world, only the most suitable one!