Maintenance fees and sinking fund a stumbling block to condo

A reader wrote in and asked this question if it’s worth buying a condo because he thinks maintenance fees and sinking fund is a huge stumbling block to buying a condo. First of all, for those who believe landed is by far a superior option compared to high-rise, you are most probably right. This is especially when we talk about the number of units availability or scarcity of landed versus high-rise. For these landed lovers however, it’s definitely worth considering a high-rise unit, even when taking the maintenance fee and the sinking fund into account. Allow me to provide three reasons why.

Reason 1. Affordability. I am not an economist but when we look at all the examples of more advanced property market, due to the fact that when prices go up, the only alternative is to build higher. These days, every small piece of land is being sold ever higher. Building landed properties would mean suicidally expensive prices. Increasing demand would ensure our investment in high-rise is quite safe.

Reason 2. Location desirability. Every friend who’s buying new landed properties are buying further away. Of course for these further away areas, high-rise may not be that desirable yet but landed homes with parks and lots of green space? If we love an area which is mature today, with lots of conveniences, choices would most probably be high-rise instead of landed. My aunty had just asked me about a condo nearby my mother’s home yesterday. 

Reason 3. Easier to rent out. A close friend just bought a 700 sq ft condo unit recently for RM1,000 per sq ft. It’s in a very established area which I love too. She said she is looking to rent it out as the condo is within walking distance to a MRT station. Thinking further, would we be able to buy any landed property nearby a MRT station and rent it out? Well, we could if we want to suffer HUGE negative every month. 

IMG20140606075011 copyActually, there are many more reasons including my personal one which is for the facilities. My kids use the facilities daily these days unless it’s raining. I could not imagine both of them just playing video games or watching cartoons or having just a very small place to run within the terrace home or even a bigger semi-detached home. Unfortunately, I couldn’t afford those super luxury landed homes with a club house yet. So, a well equipped and maintained condo remains my most feasible choice. Happy deciding.

written on 1 Aug 2016

Next suggested article:   Buying condo – why low floors may just be better

 

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