4 Things To Be Aware Of When Buying High-Rise Residential Towers

Updated 30 Jun 2015 – By Loanstreet


High-rise residential units seems to the popular mode of choice for the current generation. Land scarcity and hefty price tags all play a part into the surge of rapid high-rise developments. While staying in a high-rise has multiple benefits over a landed counterpart, you should be aware of the pros and cons that come along with it.

1. Bills and Payments

The payments and bills to be committed when residing in a high rise may not be so obvious. Here are some that you should take notice of.

Maintenance Fee
For high rise property like condominiums, a monthly maintenance and sinking fund fee is used to pay for maintenance, repairs and upgrades. The average rate for maintenance cost in Kuala Lumpur goes around RM0.25 to RM0.45 per square feet. Maintenance fees tends to be higher for older properties because of the ageing facilities. There is also the possibility for an increment in fees as time goes by. Also, if you are renting your property out, it is still your duty as the landlord to pay for the maintenance bill.

Parking Fee
If you own multiple sets of cars, you might not be allocated enough lots for them. You can either choose to rent or buy additional units to complement the number of cars under your belt.

Commercial rates
Many serviced residences are built on commercial land which equates to commercial billing of water and electricity bills. It can add up to more than double of what you would pay for a residential unit. So think twice if being on top of a shopping mall is worth the premium.

2. Facilities

Landed residential units usually don't come equipped with swimming pools, gyms, cafeterias and the lot. (Mega lavish homes aside)

In general, the more facilities a property has, the more comfort and activity it provides for it’s residence.

A good upside to living in a high-rise.

3. Livability

There are multiple factors that affect the how livable a high-rise really is.
Let’s take a look at some of them below.

a) A higher dense condominium can get a little overcrowded. Your overall experience with lift waits, tiny car parks, and traffic congestion may be an unpleasant one.

b) Is your environment quiet and peaceful? You might prefer higher units or units facing away from the swimming pool to avoid the noise.

c) Is the environment safe? If you frequently hear robbery and snatch cases within the vicinity, you might want to take a look somewhere else.

d) Look around at the overall community. Are your neighbours mostly students, families, foreign labours and etc? The community builds the ecosystem of a high-rise residential area. You might want to make sure you have a strong community of like minded individuals in your area to maintain a good upkeep.

4. Appreciation

For property investors, the rate of appreciation plays a major factor. Appreciation for high-rise buildings are determined by it’s facilities, livability, accessibility,freehold/leasehold, future development of the property’s area and also, demand and supply. The driving force behind the appreciation value of a high-rise has to be correctly identified less you run the risk of burning a hole in your pocket.

Conclusion

With all factors put into consideration, you should be able to have a good gauge and make the appropriate compromise to get yourself a good unit. The differences of a high-rise and landed properties may be stark, but it really boils down to the individual. So do weigh the pros & cons and look at our home loan comparison tool before making the plunge.

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