From a purely financial point of view, there are advantages and disadvantages to either buying an owner-occupied home or a cooperative home.
Owner housing – pros:
The good thing about an owner-occupied Puchong Jaya house is especially that you can get a mortgage loan, which is cheaper and at a fixed interest rate compared to the bank loans you can get for a cooperative home, not Bukit Jelutong condo or apartment for rent in Petaling Jaya.
- You can also borrow a much higher amount for an owner-occupied home.
- On the other hand, it is much more expensive to buy an owner-occupied home than a cooperative home, i.e. because both the state and the banks charge a number of fees and charges associated with the purchase itself.
- You may also risk having to pay for major maintenance work on the property in an owners association.
Therefore, if you are buying a home, you should familiarize yourself with what your change of ownership insurance covers.
Co-operative housing – for and against:
Cooperative housing is often much cheaper than owner-occupied housing, so you do not have to take out such a large loan.
- At the same time, the purchase itself is also much cheaper because there is not as much paperwork and as many fees associated with it.
- On the other hand, the loan is more expensive for a cooperative home because you can only take it as a bank loan and not a mortgage loan. This means both that the interest rate is higher and that it is variable. Major maintenance work on the property will be covered by the common expenses of a cooperative housing association.
When buying a cooperative home, the bank will review the cooperative housing association’s finances/minutes from the general meeting and will also send out a valuer and look at your home as extra security before lending you money.
But you should of course also review the association’s finances yourself, as you will be attached to this for purchase. You do not pay property value tax in a cooperative home, as you do not own the home, but only own a share of the association’s assets. It is quite complicated to sit with a home dealer alone, therefore it is money well spent to get a few advisors.
Who will help you?
No matter what home you want to buy, you will need advice. A home sale is a complicated process that only very few people can complete without professional help. A housing trade requires deep insight into the housing economy, the housing market, construction technology, and law. Therefore, a home sale always involves one or more advisers, and even though it is expensive, the money is usually spent really well. Click here to read more.