Thursday, July 11, 2013

Cheated by Residential Property With Commercial Title?

I just remember a conversation that I had with a property sale person in few months back in a property fair and he basically tried to convince me to buy a condominium with a justification "Cheap" at prime location. 

He basically asked me to compare the prices with other developer projects with the same type of quality and location, and see if I can get any offers that cheaper than it? So I tried to answer him and the conversations goes below...


Me: Yeah, I can't find any. But why? I'm curious to know.

Him: That's why is offer. Just left few units, better hurry!

Me: (Since he didn't really answer my questions, so I tried to probe him more). Is this leasehold?

Him: No, freehold! 

Me: Strata title? (Stupid that I asked this because I get used to asking this for landed property)

Him: Yes, of course. It always a Strata title for condo/apartment. 

Me: Hmm... commercial unit??? (Now I hit it!)

(He somehow silent and pretended never hear my questions, so I asked him again with slightly more detail. lol) 

Me: Is this condo with commercial title or residential title?

Him: Commercial title but no difference. Basically both are the same!

Me: Oh okay. I will consider it (My turn to pretend! lol)


Honestly, how can it be the same? If same, why we need to differentiate them at the first place? It is a residential property that built on a commercial land. This type of property is usually called "Service Apartment / Condo". 

Do check out my very old post on different type of properties that you can find in Malaysia here.


Why I say No to Commercial Title?

  • It is not covered by housing Act. You can't sue the developer if anything goes wrong. 
  • Utilities bills are more expensive. Expensive by how much? I don't really no. Maybe if you know, you can share with me.
  • What if your neighbor makes their home become a business? I will be no privacy and I can't report them because it is legal!!!
  • Don't you feel weird, residential property on commercial land? What is this? Common sense tells me this is not right unless I really aim this for renting it out to expat. But what if it doesn't turn out to be service apartment for expat? Oh crap, I will lost my investment!

I guess this is the outcome from developers who buy that piece of land for commercial initially (e.g. building shops) but somehow they change plan later for some reasons to build residential units instead.

After that, they try to convince you and me that commercial title is same with residential title if we aware it is commercial title? lol!


Summary

I'm sharing this because I "feel" many may think that all residential properties by default is with residential title which is not case. I"m not sure if there are any real victims of buying this type of property or perhaps I think too much. Everyone knows what they're buying. :)

Hope that helps! :) Let me know especially if you think otherwise (e.g. commercial title is better) for staying or even for investment.

15 Comments:

LCF on Personal Finance said...

Damn. Who's the developer?

ChampDog said...

Can't really remember, it is not those big players but it has very good reputation due to it's proven track record.:)

Kris said...

When you signed a S&P, always read try to read thru it instead of breezing it thru. You will notice commercial title there.

ChampDog said...

Or just get the copy of the title certificate, it should be stated there.

But if you wait till S&P, too late already. Just ask them directly, they will still the tell the truth. Just that sometimes, they don't tell if you don't ask. lol. I haven't seen one lies yet at this moment. :)

kampunginvestor said...

Its very common for those sales agent to hide some negative news on their property. They will only tell you the bright side of it so that you will get blinded and purchase it.

ChampDog said...

That's why I can't be in sales! :) lol

kampunginvestor said...

Why not bro? Be in sales but be a sales person with integrity. Should be ok ma.. ^+^

ChampDog said...

It depends lor. If the product is really good, nothing to cover up. Then I probably I can do that very well.

To me, a sale person requirement is you can sell no matter how good or how bad is the product. If a product is bad, you still can sell, then you are a good sale person.

To do that, you can't expose the bad side of the products but only bring out the good things. Yes, you can don't lie but you need to know the trick to hide it. So technically can still be considered has integrity if want to argue but morally, I don't know. lol! :)

kampunginvestor said...

Very subjective lar.. Janji we dont do bad things to people can d. Sales man also need to cari makan ma right bro? ^+^

Either we are smart or stupid consumer only lor..

ha ha

ChampDog said...

Btw, don't misunderstand that I look down on sales or say they're not good. It is just that I"m not suitable to be sales simply because I'm lacking of that skill. :)

I realized long time ago when I became a direct sales member. I just simply screwed!

maveric said...

@ CD

Somebody said that there is no such thing as a 'born' sales person and I kind of agreed with it.

Other than some basic competencies needed,the skill lacking part can be beefed up by training really...

When I was still gainfully employed those days before my retirement,I used to marvel at some 'senior people' on their articulation,persuasion & finesse skill...etc2


Well...come to think about it now,these people had a great deal of training and exposure both internally ( I mean oversea stuffs like own HQ & associates in different countries ) & of course external courses,seminars ...blah3


Sales like anything else can be learnt....:D


ChampDog said...

Very well said Maveric. I think as long as we have passion or willing to learn, everything is possible.

It is matter of choice. Whether you want to choose to be expert in that area. All skills can be learned.

But, I don't deny the fact that some people really are born with certain skills. That is what we call "talent". This makes them acquire the skill a lot faster than the rest.

The problem that I have is, I don't have or don't know my talent. I"m still searching for it, most likely I don't have. :) Too bad, isn't it?

Hye said...

This is awesome!

Anonymous said...

The latest hot sales - empire damansara condo units both studio n soho. Is a commercial title. Right? Still everyone rushing for the subsales.

ChampDog said...

Sorry, no idea. :)


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