GET SET FOR YOUR FIRST HOME
by Lim Lay Ying
Property Times, New Straits Times
04th September 2004

Pause for a moment. Indulge yourself in a daydream. For the first time in ages, it seems, the real estate market seems enticing. Indeed, the rally in stocks over the past year has been just strong enough to rekindle the fantasy.

Not only is buying a house beginning to feel possible again, but it feels full of possibility. Whatever your ideal home scenario might be – watching the sky turn tangerine orange as the sun sets in the city skyline from your sky terrace, hearing the excited squeals of your children’s voices as they play in the park in front of your home, casting a reel on a perfectly still lake as dawn breaks – go ahead and picture it.

Now get a grip on it. Keep that image at the back of your mind as you calculate how many acorns you had managed to squirrel away so far, after several years of working hard at your career. Quite likely, inside millions of us, whether we’re lucky enough to be an HNWI (high-net-worth-individuals) or are just an OJ (Ordinary Joe), what better time than now to lay claim to our very first property.

It’s time to start asking yourself: are your dreams bigger than your wallet? What will it take to buy that stunning home with a shady porch and a driveway that is large enough for your cars, and maybe your guests’ also?

The road to property ownership, well, it’s pretty darn straight. Happily, it’s easier than you may think. You don’t need access to top secret documents or inside sources. Your own experience as an occupant, in fact, can help you sort the value buys from the pretenders. Here are three questions to ask the best home expert around: Yourself.

1. Is the developer looking for ways to meet your needs?

Only a few companies identify customer needs first, then create complete experiences to fulfill them. The vast majority just try to make you buy the products they already offer. Those companies are product-centric, no matter what they claim.

Here’s an example of the difference. YTL Land & Development Bhd. identified an important segment of its customers in the Klang Valley: Generation Xers – those aged between 24 to 35 years, a consumer group made up of adult children who are still living at home (with parents) but readying themselves to be future caregivers.

It is obviously a valuable segment, since its members tend to be quite affluent and take pride in pragmatic approach. They are entertainment lovers and early adopters of new technologies. They want their homes and communities to be equipped for the technological age. Also important to them are health and security.

To meet those needs, YTL Land introduced The Tamarind and the Saffron condominiums at Sentul East, a 108-acre 21st century residential and commercial precinct which offers modern downtown living. Gourmet delis, sidewalk cafes, local coffee shops, and hypermarkets will make up part of the 24/7 tempo of life in the vicinity. Spectacular views of Kuala Lumpur’s city skyscrapers and The Park at Sentul West (another 186 acres of the developer’s urban regeneration efforts of Sentul) complete the offerings packaged for the Gen-Xers.

The results have been exceptional: first-time homebuyers, investors, even empty-nesters, have signed up in droves. With this make-over, the area is looking more upscale than before – thanks in large part to the company’s pioneering customer-centricity efforts.

2. Does the project appeal to you in terms of location, site, density, and neighbourhood profile?

As a young, first-time buyer, with or without small children, choosing a locale – whether an urban one or a suburban one, is visually dictated by how much money you have. The typically higher price of urban land as a matter of fact, would mean higher densities, smaller unit space. But the range of amenities and project features need not necessarily be compromised.

Take Mont’ Kiara, well-known by now as a success story of Sunrise Bhd. which filled a niche market from amongst the expatriate community and the mid-high to high income segments. In addition to the two international schools – Mont’ Kiara International School and Garden International School, the Mont’ Kiara address is also home to a kaleidoscope of amenities, a bustling and increasingly popular commercial hub, and more and more well-heeled Yuppies (Young & Upwardly Mobile Professionals) and Dunkies (Dual-Income-No-Kids). The relatively higher densities of the homes in Mont’ Kiara do not put people off as they are more than made up for by the well-landscaped environments, entrance statements, facilities, conveniences, and design features.

3. Is it property you can bet on, whose true worth will be worth every penny you’re planning on committing to it?

Admittedly, picking winning properties in the last few years was like shooting fish in a barrel. But gains will be tougher from here. A big reason is that interest rate hikes should be expected, and this can be bad news for real estate. History has shown the negative repercussions on market demand and prices.

Do not be intimidated however, because the going is still good. Economic numbers are positive and so is consumer sentiment. Foreign investors are growing in numbers, and that is a tell-tale sign that there is still money to be made in the market.

So, whether you have a tenth of RM200,000, or half a million hard cash, or maybe even more, there are properties whose true worth has gone unnoticed by the market. Seek out real estate not only in fast-developing locations where development has been stimulated by enhanced accessibility and enlarging employment densities, but also in new growth corridors which are gaining much public attention. Pockets of development within the more established areas do offer some good buys too.

You just have to look a little harder than you used to – your ideal property will then become bricks and mortar instead of remaining a mere image in the back of your mind.