The Insider's Guide to Buying Subsale House in Malaysia

Buying a house is a significant financial decision, and for many Malaysians, the prospect of securing a home can feel daunting, especially in the current real estate market.

However, one option that has gained increasing popularity in recent years is the subsale house.

In this comprehensive blog post, we'll explore the ins and outs of buying a subsale house in Malaysia, providing you with the knowledge and insights you need to make an informed decision.

What is a Subsale House?

A subsale house, also known as a secondary market house, is a property that has been previously owned and is now being sold by the current owner, rather than the developer.

This type of transaction occurs when the original buyer decides to sell the property before the completion of the development or before the end of the loan tenure.

Subsale houses can offer several advantages for buyers, including potentially lower prices compared to buying directly from the developer, the ability to move in immediately, and the opportunity to negotiate the terms of the sale.

However, it's important to understand the nuances and potential risks associated with subsale transactions.

Advantages of Buying a Subsale House

Potential Cost Savings: Subsale houses can often be purchased at a lower price compared to buying directly from the developer. This is because the current owner may be motivated to sell for various reasons, such as needing to relocate or facing financial constraints.
Immediate Occupancy: Subsale houses are typically ready for immediate occupancy, as the previous owner has already completed the necessary paperwork and moved in. This can be advantageous for buyers who are looking to move in quickly, rather than waiting for a new development to be completed.
Negotiable Terms: When buying a subsale house, buyers have more room to negotiate the terms of the sale, such as the purchase price, payment schedule, and other conditions. This can provide more flexibility compared to buying directly from a developer.
Established Community: Subsale houses are often located in mature neighborhoods with established infrastructure, amenities, and a sense of community. This can be particularly appealing for buyers who value a well-developed living environment.
Customization Opportunities: Subsale houses may offer more opportunities for customization, as the previous owner may have already made renovations or upgrades to the property. This can allow buyers to move into a home that better suits their preferences and lifestyle.

Potential Risks of Buying a Subsale House

Title and Legal Issues: It's essential to thoroughly investigate the property's legal status and ownership history when buying a subsale house. There may be outstanding loans, encumbrances, or other legal complications that could affect the transaction.
Condition of the Property: Subsale houses may have been subjected to wear and tear or neglect by the previous owner. Buyers should conduct a thorough inspection to ensure the property is in good condition and identify any necessary repairs or renovations.
Financing Challenges: Obtaining financing for a subsale house may be more complex compared to buying a new property directly from a developer. Buyers may face additional requirements or restrictions from lenders.
Lack of Warranty: When buying a subsale house, buyers may not have the same level of warranty or after-sales support as they would when purchasing a new property from a developer. This means any issues or defects may be the responsibility of the buyer to address.
Potential for Delays: The subsale process can sometimes be more time-consuming and complex than a direct purchase from a developer, as there may be additional paperwork and legal procedures involved.

key Areas to Consider

When looking for subsale landed houses in the Klang Valley, particularly in Selangor, here are some key areas and price ranges to consider:

1. Bukit Sentosa, Serendah

This area is one of the top-selling subs properties in Selangor.

It offers freehold terrace houses with an average median price of around RM 260,000 and an average median size of 1,170 sq ft.

2. Taman Sentosa, Klang

Another popular area, Taman Sentosa in Klang has seen significant transactions.

The average median price here is around RM 390,000 for terrace houses with an average median size of 1,205 sq ft.

3. Bukit Beruntung, Serendah

Located in the Serendah subdistrict of Hulu Selangor, Bukit Beruntung offers freehold terrace houses with an average median price of RM 255,000 and an average median size of 1,195 sq ft.

4. Bandar Bukit Raja, Kapar

This area is known for its freehold terrace houses, with an average median price of RM 595,000 and an average median size of 1,302 sq ft.

5. Bandar Utama

While slightly more expensive, Bandar Utama offers freehold terrace houses with an average median price of RM 1,400,000 and an average median size of 1,647 sq ft.

This area is more upscale and closer to Kuala Lumpur city centre.

6. Laman Glenmarie

This area is mentioned as a potential option for those looking for a central location with reasonable distances to private schools and tertiary education institutions.

Prices here can range from RM 800,000 to RM 1.2 million for double-storey terrace houses.

7. Putra Heights

Specifically, the Laman Putra area in Putra Heights is another option to consider, though specific price ranges are not provided in the sources, it is generally within the budget of RM 900,000 to RM 1.2 million for similar types of properties.

8. USJ

Areas like USJ 5 and USJ 11 are also viable options, with prices for double-storey terrace houses typically falling within the RM 800,000 to RM 1.2 million range.

Area Information

1. Shah Alam

Shah Alam is known for its spacious homes and well-planned neighborhoods.

Price Range: Approximately RM 500,000 to RM 1.5 million.
Average Size: 1,500 to 2,500 sq ft.
Notable Areas: Section 13, Section 7, and Bukit Jelutong.

2. Petaling Jaya

A vibrant area with a mix of residential and commercial properties.

Price Range: RM 800,000 to RM 2 million.
Average Size: 1,800 to 3,000 sq ft.
Notable Areas: SS2, Bandar Utama, and Damansara Jaya.

3. Subang Jaya

Popular among families due to its schools and amenities.

Price Range: RM 600,000 to RM 1.8 million.
Average Size: 1,500 to 3,000 sq ft.
Notable Areas: USJ 1 to USJ 10, Subang Heights.

4. Klang

Klang offers a range of affordable options with good potential for appreciation.

Price Range: RM 350,000 to RM 900,000.
Average Size: 1,200 to 2,400 sq ft.
Notable Areas: Taman Sentosa, Bukit Tinggi, and Bandar Bukit Raja.

5. Puchong

A rapidly developing area with various amenities and good connectivity.

Price Range: RM 450,000 to RM 1.5 million.
Average Size: 1,500 to 3,000 sq ft.
Notable Areas: Bandar Puchong Jaya, Taman Kinrara.

6. Cyberjaya

Known for its tech parks and modern living spaces.

Price Range: RM 500,000 to RM 1.3 million.
Average Size: 1,600 to 2,800 sq ft.
Notable Areas: Cyberjaya Residence and D'Island Residence.

7. Ampang

Ampang is well-known for its expatriate community and proximity to Kuala Lumpur.

Price Range: RM 700,000 to RM 2 million.
Average Size: 1,800 to 3,500 sq ft.
Notable Areas: Taman Keramat and Ampang Hilir.

8. Bangi

An area popular among students due to its proximity to universities.

Price Range: RM 400,000 to RM 1 million.
Average Size: 1,200 to 2,200 sq ft.
Notable Areas: Bandar Baru Bangi and Seksyen 15.

The Subsale Buying Process

Research and Identify Potential Properties: Begin by researching the local real estate market and identifying subsale properties that fit your budget and requirements. Utilize online real estate platforms, property portals, and local real estate agents to find suitable options.
Conduct Due Diligence: Once you've identified a property, it's crucial to conduct thorough due diligence. This includes reviewing the property's legal documents, such as the land title, sales and purchase agreement, and any outstanding loans or encumbrances. Engage a lawyer to assist with this process.
Property Inspection: Arrange for a professional property inspection to assess the condition of the house. This will help you identify any potential issues or necessary repairs, allowing you to make an informed decision and potentially negotiate the purchase price.
Financing Arrangements: Secure financing for the purchase, either through a bank loan or other financing options. Be prepared to provide the necessary documentation and meet any additional requirements set by the lender.
Negotiation and Offer: Once you're satisfied with the property and the financing arrangements, you can proceed to negotiate the purchase price and other terms with the current owner. Submit your offer and be prepared to engage in further negotiations if necessary.
Completing the Transaction: If your offer is accepted, work with your lawyer to complete the necessary paperwork and legal procedures. This may include transferring the property's ownership, settling outstanding loans, and ensuring a smooth transition.
Move-in and Enjoy: After the successful completion of the transaction, you can move into your new subsale house and start settling into your new home.

Tips for Successful Subsale House Buying

Seek Professional Advice: Engage the services of a experienced real estate agent, lawyer, and property inspector to guide you through the subsale buying process. Their expertise can help you navigate the complexities and minimize potential risks.
Understand the Property's History: Thoroughly review the property's history, including any renovations, outstanding loans, or legal issues. This information will help you make an informed decision and avoid potential pitfalls.
Prioritize Location and Neighborhood: Consider the location of the subsale house and the surrounding neighborhood. Factors such as accessibility, amenities, and the overall community can significantly impact your quality of life.
Inspect the Property Thoroughly: Conduct a comprehensive inspection of the property, either personally or through a professional, to identify any necessary repairs or renovations. This will help you negotiate the purchase price and budget for any required work.
Negotiate Wisely: Leverage your research and the property's condition to negotiate the best possible purchase price and terms. Be prepared to walk away if the owner is unwilling to meet your reasonable demands.
Understand the Financing Landscape: Familiarize yourself with the various financing options available for subsale house purchases, including bank loans, alternative financing, and any government assistance programs. This will help you secure the most favorable financing terms.
Factor in Additional Costs: In addition to the purchase price, be mindful of other expenses associated with buying a subsale house, such as legal fees, stamp duty, and any necessary renovations or repairs.

Topic that you may find interesting to explore:

Conclusion

Buying a subsale house in Malaysia can be a smart and cost-effective way to acquire a new home, but it requires careful consideration and due diligence.

By understanding the advantages and potential risks, and following the proper buying process, you can navigate the subsale market with confidence and find a property that meets your needs and budget.

Remember, the key to a successful subsale house purchase lies in thorough research, professional guidance, and a willingness to negotiate.

With the right approach, you can unlock the benefits of owning a subsale house and create a comfortable, well-established living environment for yourself and your family.

Frequently Asked Questions (FAQs)

1. What is the finest city in Malaysia?

Kuala Lumpur is often considered the finest city due to its amenities and cultural diversity.

2. Where is the most expensive place to retire?

Areas like Kuala Lumpur and Penang are popular but can be expensive for retirees.

3. Where do most Koreans live in Malaysia?

Many Koreans reside in areas like Kuala Lumpur, specifically in Mont Kiara.

4. Where do most Chinese live in Malaysia?

The Chinese community is prevalent in urban areas like Kuala Lumpur, Penang, and Johor Bahru.

5. Why do many Japanese move to Malaysia?

Many Japanese move for job opportunities, a favorable climate, and a lower cost of living.

6. Where do foreigners stay in Malaysia?

Foreigners often stay in expat-friendly areas such as KLCC, Mont Kiara, and Penang.

7. What is the richest district in KL?

Bukit Tunku is considered one of the richest districts in Kuala Lumpur.

8. Is Bukit Jalil expensive to live?

Bukit Jalil has a mix of property prices; some areas are more affordable, while others are expensive.

9. Who owns Bukit Jalil Pavilion?

Bukit Jalil Pavilion is owned by the Pavilion Group.

10. What is the best city to live in Malaysia?

Penang and Kuala Lumpur are often cited as the best cities due to amenities and lifestyle options.

11. Where do the rich live in Kuching?

Wealthy individuals often reside in upscale neighborhoods like BDC and Demak Laut.

12. What is the average price of a house in Sarawak?

Average prices can range from RM300,000 to RM500,000 depending on location.

13. Is Penang cheaper than Kuala Lumpur?

Generally, Penang can be cheaper, especially in terms of housing and food.

14. Is it cheap to live in Penang?

Yes, living costs in Penang are generally lower than in Kuala Lumpur.

15. Can I sell affordable housing in Penang?

Yes, but there may be specific regulations regarding selling affordable housing.

16. Can a foreigner buy a house in Penang?

Yes, foreigners can buy property in Penang with certain restrictions.

17. Which is bigger, a villa or a bungalow?

A villa is typically larger and more luxurious than a bungalow.

18. Are bungalows worth less than houses?

Prices vary based on location; bungalows may be less expensive than larger homes or luxury properties.

19. What is the difference between Soho and studio?

Soho (Small Office Home Office) units combine living and working spaces while studios are primarily residential with single-room layouts.

20. What is a townhouse in Malaysia?

A townhouse is a multi-storey home that shares walls with adjoining properties but has its own entrance.

21. What is the difference between corner lot and end lot houses?

Corner lots have two street frontages, while end lots are located at the end of a row of houses with only one side exposed.

22. What is the disadvantage of link house?

Link houses may have less privacy due to shared walls and may be noisier than detached homes.

23. What is the difference between a linked house and a terrace house?

Linked houses share walls with neighbors while terrace houses are part of a continuous row of homes typically sharing walls on both sides.

24. Are link detached houses noisy?

They can be noisier than fully detached houses due to shared walls with adjacent properties.

25. What is the difference between terrace and superlink?

Terrace houses are standard linked homes, while superlink houses offer larger spaces and more architectural flexibility between units.

26. What is a Flexi house?

A Flexi house allows customization of layouts and designs according to buyer preferences and needs.

27. Can I build my own house in Malaysia?

Yes, you can build your own house subject to local regulations, zoning laws, and obtaining necessary permits.

28. Where do most Koreans live in Malaysia?

Many Koreans live in areas like Kuala Lumpur, particularly in Mont Kiara and nearby neighborhoods.

29. What is a cluster house in Malaysia?

A cluster house consists of several units grouped together within a gated community, sharing communal spaces.

30. What is semi-D house in Malaysia?

A semi-D (semi-detached) house consists of two residences sharing one wall but having separate entrances and gardens.

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About the Author

Danny H

Seasoned sales executive and real estate agent specializing in both condominiums and landed properties.