Landed Property vs High-Rise: Which Should You Choose?
Every new home buyer is faced with an important decision: Do you go for a landed property or a high-rise?
Both options have their advantages and disadvantages. Before you start house-hunting, take some time to weigh the pros and cons, and choose an option that works best for you and your family.
You don’t want to purchase a property and then find out about all the disadvantages the hard way! Whether you opt for a landed home or a high-rise condo, make sure you know exactly what you’re getting into before you close the deal.
To help you make an informed decision, we’ve compiled a list of pros and cons for both types of property.
Landed Property
Pros
1. More space
Landed properties tend to offer larger built-up area with more rooms, making it the ideal choice for large families.
Aside from the built-up area, landed properties also have a front porch and some even have a backyard. This added space can be quite attractive, especially if you enjoy gardening or have pets.
Plus, the larger space provides more room for storage. If you have a lot of kitchenware, sporting equipment, books and other things, the extra space will be incredibly useful.
2. Better resale value
The price of landed properties tends to appreciate more over the long run. As such, you can earn a better return from selling a landed property down the line.
While the resale value of condos, especially those in attractive locations, may increase as well, the overall management and maintenance of the building also plays a role. When condos aren’t properly maintained and become rundown after several years, this could adversely affect its resale value.
3. More parking space
Another upside to landed properties is they have more parking space. The front porch can usually fit one to two cars.
Other cars can be parked right outside the main gate or opposite the house. This can make a big difference, especially for families that own multiple vehicles.
4. More flexibility to make changes
With landed properties, you have more flexibility to renovate or extend your house (with the permission of your local council). This is a great option to have at hand as you can modify your house accordingly as your family grows.
Cons
1. More expensive
Landed properties in the city can cost a bomb! In Klang Valley, the price of landed properties can easily run into the millions.
Properties on the outskirts of the city cost less, but could result in longer commute times and hefty toll charges if you’re travelling long distances to and from work.
2. Fewer facilities
Landed properties don’t usually have facilities such as swimming pools or gyms. At most, they may have playgrounds nearby. An exception to this would be townships such as Desa Park City. However, the price of landed properties in such townships can be quite costly.
3. Requires more maintenance
Landed properties need more upkeep as they have a larger built-up area. As a result, they may require more cleaning and repair work. Properties that have a front garden will also need regular mowing and tending to.
4. More vulnerable to break-ins
Housing areas with no security services are more vulnerable to burglaries as people can enter and exit the residential area freely.
While newer properties that adopt the gated-and-guarded concept offer better security, they require residents to pay security charges that can cost you anywhere between RM 50 to RM 100+ per month.
High-Rise
Pros
1. Cheaper
If you prefer to stay in the city, high-rise properties are certainly the cheaper option. With a budget of RM 400,000+, you could get a condo in Klang Valley, but a landed property will be hard to find.
2. Access to various facilities
Condos offer residents access to various facilities such as swimming pools, gyms, badminton/basketball/tennis courts, BBQ pits and event halls. This helps you save money on various memberships and allows you to enjoy these facilities at the comfort of your own home.
3. Convenience
Condos in the city are often located with easy access to public transport, making your daily commute more convenient. Some are even located above shopping areas, so you can easily purchase food and other necessities without having to go very far.
4. Security
Condos also tend to have better security. Residents are issued access cards to enter and exit the building. Plus, guests are usually required to provide ID and register at the guardhouse prior to entry, reducing the risk of burglaries. However, some landed properties with gated-and-guarded features may offer similar levels of security.
5. Better rental
Condos often command better rental than landed properties as a result of their strategic location, facilities and security features.
With its relatively low purchase price and high rental rate, it’s possible that the rental you earn from a condo can cover your monthly loan repayments. As such, high-rise properties in the right location can be a good long term investment option.
Cons
1. Maintenance fees
High-rise properties have various facilities that are open to all residents. While these facilities are very attractive, it’s important to note that condo managements charge a monthly maintenance fee for the upkeep of these common areas.
Maintenance fees vary from building to building, but it’s usually a few hundred ringgit a month. That’s quite a hefty amount to fork out on a regular basis, so if you opt for a high-rise, be sure to ask your agent about the maintenance fee.
If you’re looking to buy a property to rent out, keep in mind that this fee, unlike utility charges, is usually borne by the owner!
2. Higher utility charges
Some condos are located right above commercial shopping areas which makes life very convenient for its residents. However, condos with commercial titles incur higher utility rates than properties with residential titles. So you might end up paying for the convenience of having shops right at your doorstep through higher utility charges.
3. Less parking
Most condo units only come with one or two parking spaces. This may pose a challenge for larger families with more cars.
Of course, you could rent additional parking spaces, but this will add to your monthly expenses. If the parking spaces are all taken up, then you’ll have no choice but to park your car outside. This can be quite a hassle, especially during the rainy season!
4. More limitations
High-rise properties generally have more limitations compared to landed properties. Some condos may have rules against having pets. This can be quite disheartening if you or your kids crave the company of a furry friend.
Also, with neighbours all around you, having a party could be challenging as you may receive noise complaints. Plus, without any actual land, your options for renovating or modifying your home are rather limited.
5. Risk of poor maintenance
With condos, there’s always a risk of the building and common areas becoming rundown over time. This can happen due to poor management or when many residents don’t pay their maintenance fee, leaving the management with little funds for repairs and general upkeep.
So, which should you choose?
The type of property you choose ultimately depends on your family size and needs.
For growing families, a landed property may be a better option. You’ll have more space and the flexibility to extend your house as your family grows. Plus, you’ll also have some outdoor space (front porch or backyard) for your kids and pets to play in.
For single individuals or couples working in the city, a high-rise property can be a practical and convenient choice. It’s usually located close to malls and public transport terminals, making shopping and travel easier. It’s also the more affordable choice for first time home buyers who are struggling with rising house prices.
Once you decide between landed and high-rise properties, the next step is to schedule property viewings to find your dream home. Submit a request on our platform and our certified agents will contact you with matching properties!
Good luck and happy house-hunting!