PETALING JAYA (July 9): Looking to buy into a stratified property on the secondary market? Besides the usual questions such as the cost of maintenance and facilities, Chur Associates founder and managing partner Chris Tan added another crucial aspect that could help a prospective buyer decide whether the property is a good investment -- the project's Annual General Meeting (AGM) minutes.
“The AGM minutes are important. You know why? From the minutes, you can see a lot of things about the property's management such as whether there has been a raise in maintenance charges or sinking funds. You can see what were the issues that were brought up, whether there have been problems with the lifts or the swimming pool for instance. The minutes will give you some idea [on what has happened on the property],” said Tan.
Tan was one of the panelists at EdgeProp Malaysia's Virtual Fireside Chat on "Stop! Are you destroying your property value?" this evening hosted on EdgeProp Malaysia's Facebook page.
Joining him were Architect Centre Sdn Bhd accredited architect and trainer Anthony Lee Tee and the Muslim Real Estate Consultants Association of Malaysia (PEHAM) president Ishak Ismail. The session was moderated by EdgeProp Malaysia editor-in-chief and managing director Au Foong Yee.
Tan likened buying a stratified property on the secondary market to buying a club membership where one must know who their fellow club members are. He added that the AGM minutes are like the property’s “medical report”.
"Ask for a copy of the AGM minutes from the seller of the property. If he cannot give it to the prospective buyer, it is already a tell-tale sign that something is not right with the property," he said.
PEHAM’s Ishak highlighted that one can also obtain the minutes from the Commissioner of Buildings' office.
He highlighted two key points to look out for. One is the collection rate of the service charges. "If the collection rate is below 50% for example, then there is probably not enough funds to maintain the property well," he said.
Secondly, he added, be certain that the property management company managing the property is registered under The Board of Valuers, Appraisers, Estate Agents & Property Managers.
The virtual fireside chat was organised in partnership with Nippon Paint Malaysia and supporting sponsors Panasonic Malaysia; KipleLive, a wholly owned subsidiary of Green Packet Bhd and Matrix Concepts Holdings Bhd. The event is also supported by The Edge Malaysia.
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View the Fireside Chat here.
Don’t miss the next Fireside Chat on July 16. Register here.
Get the full results of EdgeProp Malaysia’s Best Managed & Sustainable Property Awards 2020 here: https://www.edgeprop.my/awards2020
View the virtual awards ceremony here: https://buff.ly/2YFNcVg
For the full report on the virtual Fireside Chat read the July 17, 2020 issue of Edgeprop.my e-Pub.