Property Investment 101: Landed strata schemes, what are the benefits to the buyers?

Property Investment 101: Landed strata schemes, what are the benefits to the buyers?

The only landed property I have is a strata landed scheme (yes, my first landed property)

The reason I prefer a strata landed home is because I do not wish to have any ‘uncertainty’ in the future. I do not wish to have some neighbours growing a tree which may attract ants. For example I love mangoes but mango trees usually attract those red ants and I am so scared with ants these days. Once upon a time, after being bitten by an ant in Bukit Larut, I became unconscious for 1 hour and after waking up, blood pressure dropped to just 55 and was sent into the ICU.

After tests, doctors told me I am allergic to ant bites. It was a a severe life-threatening allergic reaction called anaphylaxis. Source: https://www.seattlechildrens.org/conditions/a-z/fire-ant-sting/

With strata landed, unless 75 percent of all the home owners love to have a mango tree, else no one can grow a mango tree.

This is not all, I also truly hate it when there is someone who just love to paint their homes to a colour they love. Imagine yourself driving a car with a colour you simply hate. Well, imagine yourself coming home every day and you see that house opposite your home with a colour you really cannot understand what was in the mind of the owner?!

Okay, now let’s listen to someone from the industry sharing why strata landed may be a great choice.

Article in freemalaysiatoday.com Strata landed developments are increasingly becoming the norm. These days, terrace, semi-detached and detached houses can be found under gated-and-guarded schemes, which target the mid- to upper-income segment.

The benefits of buying landed strata properties include:

1. Statutory protection

Land parcels with strata titles are regulated by the Strata Management Act (SMA) 2013 and Strata Titles Act 1985. Under the SMA 2013, contribution to maintenance fees and sinking funds by all parcel owners in a strata scheme is mandatory.

The act further provides an avenue for parcel owners to resolve their disputes through the Commissioner of Buildings and the Strata Management Tribunal. The latter is a faster, more affordable and practical way of resolving disputes without legal representation, allowing parcel owners the opportunity for quick redress.

It is the better option compared to going to court, where legal fees and processes can be expensive and time-consuming.

2. Greater aesthetics and security

Strata landed properties are generally uniform, which makes neighbourhoods visually appealing. With restrictions on renovations to facades, homeowners can expect their views to remain unblocked and neighbouring properties unchanged through the years.

Since upkeep will be taken care of by a private management body, developers are also able to provide better landscaping and condo-style facilities such as gymnasiums and swimming pools.

Another benefit is peace of mind, thanks to security features such as guards and CCTV cameras located around the perimeter of the development. You can also get extra protection if you opt for a gated community.

3. Better management

Strata management bodies are empowered by statute to enact bylaws or pursue payment defaulters.

Under a private management body, neighbourhood streets and parks also tend to be better managed as opposed to relying on the local council.

During the annual general meeting, homeowners can vote on members of the management committee, which can then appoint or replace property management companies or service providers who have not been up to task in the upkeep of the community.

Do read the rest of the article here: Article in freemalaysiatoday.com

There are MANY disadvantages yeah

Maintenance fees are required yeah. This is not a freehold property where there are no gated and guarded or even any other facility / service and thus, there are no maintenance fees to be paid. This is similar to the strata high-rise yeah. This maintenance fee will need to be paid as long as you are still the owner yeah.

Maintenance fees are based on land parcel size. it is NOT based on the built-up yeah. In other words, corner units, end-lot units will usually have a higher maintenance fee versus intermediate units. However, if you ask me, I think it’s fair since the owner would enjoy more space if they buy a unit with a bigger land parcel.

Owners of strata landed property must pay for the upkeep and repair of their own property. If somehow the ONLY unit with issue with the facade is our unit after many years, then it’s up to us to repair that and not up to the management committee.

Owners cannot renovate as they like, not even changing the paint colour of the facade. This includes even the gate of the unit, if the unit comes with one. Extension of the home, even within the land parcel would have to be approved by the strata management committee.

Owners need to get their own fire-insurance too. I think this is similar to a freehold property anyway because it’s BETTER to be protected versus hoping that nothing bad will happen.

So, still want to proceed with strata landed home?

If you are asking me, then I think the answer is a firm Yes. Then again, it’s always a personal choice yeah. Some freehold landed home owners will not be prepared to pay for any maintenance fee. They also may not want to pay for any gated and security and even if they want to organise to have more security, they also could not force all other owners to pay for it.

In fact, even if 50 percent of the owners agree to pay and they actually managed to set up a gated perimeter and also hired a security guard, this does NOT mean anyone who did not pay cannot enter yeah. It just meant that the security may keep out the strangers but if the owners need to go back to their unit, no one can stop them. Happy understanding.

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