Hi all,

I wish to share my view on landed properties with strata title.

Ecobotanic, for example, is a housing project selling landed properties with strata title. If you read about this project, you may find everything was sold out during its balloting day in September 2013. But if you dig deeper, only 285 units were sold. The total units are 624. And if I am not mistaken, bumi-lots are about 50 units. The rest is believed to be purchased by insiders (the developer and its staff).

Let's do the maths:

624 (total units) - 285 (sold to public) - 50 (bumi lots) = 289 (the developer and its staff)

So, about half is taken by the developer's side. This means they have the power to dominate Joint Management meetings. They can elect some of them to be committee members. They can retain their company to be the maintenance provider. They can later set high maintenance fees. The staffs who purchased houses would not mind paying extra since the company will continue making money and perhaps they will get a higher pay and bonus.

If you refuse to pay the maintenance fee, you can be fined and jailed. They can also sell your movable properties (like tv, fridge or car) to recover the outstanding debt.

Think twice if you plan to buy landed properties with strata title!

This post has been edited by UnderTheSun: Apr 5 2014, 06:48 AM

ain't the same with condo/ apartment if developer keeps a handful of units?

So far so good for me. Even strata shops oso no such prob for me. Dun worry too much la.

Yup, it is the same. But in case of landed properties, you have a choice to buy either strata title or torrens (individual) title.

When buying strata title, we have to keep an eye on what the developer is doing. In the situation explained earlier, we have to be wary of EcoWorld who builds EcoBotanic (landed strata) and EkoSky (condo).

This post has been edited by UnderTheSun: Apr 5 2014, 07:36 AM

If we want to flip, it should not be much problem. Basically, the concern will be transferred to the buyer.

If we want to let, we will have to embed the maintenance charge with the rental rate. Our rental rate will be higher than others. Hence, less attractive.

If we want to stay, aiyoo.. maintenance headache

How much is the maintenance charge? Does it include a gym, and well manicured gardens and parks? Also by your account, those insiders want to keep the property meh? more places to goreng yoh in sunway iskandar perhaps>

Condo, service apt, soho etc also having same scenario where units are snapped up by staff n insiders.. wat is so disadvantage about strata landed?

This are usually flippers.. if they dont flip, they will either rent out or stay.. what is the advantage to them for increasing maintenence? So that they dont have to pay?

First of all, the reason why many JMB face shortages of funds are because of people like you. Always skeptical that JMB gasak money lah, increase fees lah. Please la, I welcome all increases in management fees. In fact, I worry they do not increase enough. Few hundred extra is nothing compared to the headache of less well maintained properties because of shortage of funds. High fees = well maintained properties = easy to sell, easy to rent = high market value of your properties! Don't fret over small money.

this i agree

As I said earlier, some of them maybe flippers. Flippers will not worry about the maintenance problem.

But some insiders want to dominate Management Committee. With this domination, they can choose the contractors to maintain the landscape, etc. They will choose the same developer or its related company. The developer will expand its business from developing property to maintaining property. As business expands, income increase.

As a result, the staffs and the management will be able to enjoy salary increment and bonuses. Since they are major chunk of the community, all they have to do is collude during Joint Management / Management Corporation meeting. Some of them will forward proposals and the rest will support. They will also elect their people as committee members. This is the disadvantage when major chunk of units are purchased by insiders (consist of staffs and the management of development company).

If you go to MAPEX which is being held at Midvalley Megamall today or tomorrow, you can ask EcoWorld about the maintenance fee. They will say they plan to charge about RM400 monthly for landed strata and condo.

Bro, everything come with a fee. If u think the facilities and security are not a must, why buy strata title prop at the first place? Dont forget about strata title act too.

Don't buy landed with strata title if can't afford pay for maintenance. It is your decision. Once decision had made, then don't complaint MUCH here and there. No one force you buy.

Boss I dun think the insiders wanna pay high maintenance fee if they r holding or living in. My current full GNG onli charge 0.20 psf. Reasonable or too high har???

0.20 is reasonable and cheaper compared the one I bought in semenyih(hearsay 0.30psf).

This post has been edited by maodi: Apr 5 2014, 10:27 AM

i think it's cheap...

And I dun c them raising the bar for charges!!!

I guess its all depend on the facility gua. My area has all basic facility except for tennis courts n gym room. Nice jogging track but mini size.

Developers are divided into two: incompetent and competent. Among the competent developers, there are sincere ones and cunning ones.

Horizon Hills in Nusajaya is developed by a sincere developer. They only charge between RM100 to RM150 for security and maintenance. Clubhouse is optional with an additional fee of RM100. Golf membership is also optional. Yet the landscape beautiful, neat and well-maintained. The property value is superb.

We need to pay adequate maintenance and security fee, not too low and not too high. Paying too high for maintenance and security fee reflects inefficient spending of community money.

Strata Title Act (Act 757) requires the participation of developer even after the property has been delivered. The owners are not at liberty to choose maintenance contractors which offer best value for money. This is a flaw of the Act. The Act was drafted by mainly consulting the developers, not owners of properties.

You worry too much .~

'The staffs who purchased houses would not mind paying extra since the company will continue making money and perhaps they will get a higher pay and bonus.'

Laughing until my teeth drop when read this statement...lol!

exactly....if i were the staff, i will bising also lah...what you think i own the company meh....