Five criteria for buying a house

KUALA LUMPUR - A property developer speaking at The Star KL Property Fair 2013 outlined five criteria that buyers and investors should look out for when buying a residential property.

Although location was the top on the list of priorities, said MCT Group executive director Datuk Danny Goh, there were other factors that could cause a development project to fail, even if it was located in a prime location near the city centre.

The project, to be seen as convenient, must be located within 45km from the city centre, he said, using the Kuala Lumpur Convention Centre as a reference point.

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“There is no perfect location. It depends on the needs of the individual but the most important consideration is that it has to be within an acceptable distance to the city centre, where the job opportunities are,” he said during his talk on how to choose the best property on the second day of the fair here.

Citing several case studies on housing projects developed in the Klang Valley, Goh pointed out several developments in areas in the Klang Valley which had not managed to sell its units despite its favourable location.

The second criteria, which is the availability of primary and secondary amenities, was also very important, he said.

 “Primary amenities, such as the neighbourhood shop, clinic and schools, must be within 5km from the property. Secondary amenities are supermarkets or hypermarkets and hospitals which should be within 15km away.

“Having schools nearby is also extremely important, as families would not choose residential areas which are too far from any school,” he pointed out.

Other factors that could “make or break” a residential project, he said, were the security facilities such as gated and guarded communities, the branding and size of the entire development as well as the commitment of the developer to fulfil all the promises made.

Later, during a panel discussion, Goh was joined by three other experts for the Online Property Investors Network (OPpin) 3.0 organised by online property forum PropertyWTF.com.my on issues related to Budget 2014 and its impact on the property market.

The speakers were Crowe Horwath KL Tax Sdn Bhd executive director

Fennie Lim, Fincorp Advisory Group managing partner Wong Lin Chi and strategic property investor and trainer Ahyat Ishak.

Wong, during his presentation, pointed out that property prices would rise due to the Budget 2014 proposal of almost doubling the Real Property Gains Tax to 30 per cent.

“Investors, knowing that they will have to bear the cost, would ultimately sell the properties for a higher price,” he said.