What to look for when buying a piece of land

[badrul880]

Dear Sirs and Real Estate Sifu's in the Forum Hope someone can help me...This will be my 1st land purchase. What to look out for when buying a bungalow lot? How do I check if the land is free of encumbrances, pledges etc?I have paid the agent a booking fee of 2%, when will the balance 13% be paid assuming I'm taking a 15% margin of finance.. When do i pay the stamp duty? what else do I have to bear other than the S&P?..Please advise. Thank you.

 

[Bishop]

check Feng Shui first....

 

[jarance]

Dear Sirs and Real Estate Sifu's in the Forum

Hope someone can help me...

This will be my 1st land purchase. What to look out for when buying a bungalow lot? How do I check if the land is free of encumbrances, pledges etc?
I have paid the agent a booking fee of 2%, when will the balance 13% be paid assuming I'm taking a 15% margin of finance.. When do i pay the stamp duty? what else do I have to bear other than the S&P?..

Please advise.

Thank you.

Normally you will have 30 to 60 days to arrange for the loan.
You can do a search at the Land Office with a copy of the land grant. you will also need this when you are apply for the loan. if there is any caveat on the land, it will be stamped on the land grant.

Stamp duties are usually paid when the S&P is concluded. These are usually include in the transfer fees, bank charges etc.

transfer fees, bank charges, S&P (lawyers fee), stamp duties, agent fees are some of the cost that you might considered. better to get your own lawyer or bank's lawyer to handle the S&P.

Oh yes... Look at the land first... Sometime for new development, you might a clear view and after a few year, somebody might built a tower block and block your view. The developer should have a master plan. do check with them.

One thing you have to look out for is whether the grant is for individual or group. also industrial or agriculture which are "converted".

Security is also a must and the most important thing is the reputation and track record of the developer.

I have a friend who also bought a land and he built his own house on the piece of land. It in Botanical garden in Klang. So far he is the only tenant there but the neighbors is coming up soon. A bit dusty since construction is going on now.

 

[Don Franco]

A simple advice. Get a lawyer to do all the work after all you are paying for the legal fees. The lawyer will make sure everything is in order.

 

[chookleng]

check Feng Shui first....

dude...big LOL

 

[badrul880]

Thanks Jarance and Don.. I have the grant with me and all. Will check at the Land Office soon. So far it is a gazetted residential bungalow lot in Kota Damansara Sec 9. So far on the grant there is no caveat being stamped and land can be mortaged or resell.. Dont seemed to see the land is only for bumi or opened? Where can I see this...

Thank you again..

Bishop: Not a fengshui savvy type of guy...but thanks...

 

[badrul880]

Jarance as for further development, Im not worried as all the area is gazetted for bungalows.. In front of the land there is a void area over looking the main road in Persiaran Mahogani so I wouldn't worry so much as it is not a bungalow lot or any other lot.. It is just void with of trees...

 

[kevster30]

Most important criteria: below 30 bikini clad neighbours

 

[okow]

Also good to check how long you are allowed to leave the land vacant and how matured that area is coz you dont wanna be the only one living there. Also, is this a gated community, if so..you may want to consider other issues like if most land owners are speculators and investors, they wont be building soon, hence maintenance collection will be low....issues with security etc..

 

[Don Franco]

Jarance as for further development, Im not worried as all the area is gazetted for bungalows.. In front of the land there is a void area over looking the main road in Persiaran Mahogani so I wouldn't worry so much as it is not a bungalow lot or any other lot.. It is just void with of trees...

open area? hmm best check out with the developers what they got planned for the site. From my experience 'future developments ' are very suspicious.. the developer can always put up something there.. shop lots... schools.. etc etc.. at a much later date.I dont know how big the area is , but best to check it out anyway.Some developers also allocate some parcel of land to the local council or political parties..

 

[badrul880]

Don - The open area is too small for development.. 2 car lengths only..

Okow - Thanks for the advise.. The area is matured and its a cul de sac with surrounding semi D, surau and a park.. As for the security, since no one has build anything yet so..cant say much. Being a leasehold land the process is long.. Suffice to say if next year this time I can start building, I'd be very lucky..

 

[jarance]

Thanks Jarance and Don.. I have the grant with me and all. Will check at the Land Office soon. So far it is a gazetted residential bungalow lot in Kota Damansara Sec 9. So far on the grant there is no caveat being stamped and land can be mortaged or resell.. Dont seemed to see the land is only for bumi or opened? Where can I see this...

Thank you again..

Bishop: Not a fengshui savvy type of guy...but thanks...

If you see the grant then it is good. I once bought a shop lot in a industrial land and the shop does not have individual grant because the developer did not (or refuse) apply for it. So every time when you want to buy or sell, you have to get the developer written consent. The developer charges a few thousand for issuing the letter. I have no choice but to pay or I could not effect the S&P.

I presume the reason there is no caveat is because you are the first owner. (That is good) :top:

BTW, after you buy the land, you still to hire an architect to design the house. Some developer allow free style but some do not. I know one developer in Telok Gong have about 12 designs to follow.

After you get the design approved, you can get PCK pte ltd to built your house. :listen:

 

[badrul880]

Design and lay out is totally free... Can make a house that looks like a cake oso... hehe

 

[lilisa.lopez21]

While buying a land few thing always keep in your mind like, u should be very careful about the paper work. Check about the owner of the land. But do not worry everything will be all right.

 

[VKS]

If its for investment purpose then my 2 cents is to look land by the roadside as in future there might be some development(Tesco,Giant,Housing, etc) or even ur own petrol station..its like buying a lottery waiting for it to strike...You can also get your lot and mukim numbers and bring to Jabatan Perancang Bandar & Desa and if ur lucky might get some future plans for the area..

If its for your own like building a house to stay, then its same as above but makesure you look for the surroundings bcoz its going to be your everyday living area...also do look on fengshui too since it will be very useful when u are selling the property again...