Whether you buy a new house or a previously owned house, buy wisely.

In this article, we focus on secondary house purchase as an option for those who may prefer buying a property in a more developed location with well-established access and facilities. Lower priced secondary homes are also an attractive option, rather than purchasing land and then, building a new home which can become more exhausting and complicated.

When considering to buy a previously owned house, here are some tips to avoid difficulties in the future.

1. Check the condition of the house carefully. Due to the condition and age, the need for repair costs could be high. If the building is aged less than 10 years, it can be said that the building is a relatively new building; if it’s 10 to 20 years, it is classified as moderate and if it’s more than 20 years, it is considered an old house, which means you have to provide a larger renovation budget.

2. Check the legal completeness. Make sure the ownership documents are valid and there are no disputes with any party. The name listed must be the same as the name selling the house. This is important because it involves the legal ownership.

3. Please make sure also for the ownership status of property, either Freehold Title or Building Rights Title which should be renewed regularly by the property owner.

4. Check other important legal documents, such as:
• Building Permit (IMB), it must state the condition of the existing building.
• The existing building is still within the Government’s and Developer’s standards and guidelines, such as Building Base Coefficient (KDB), Building Setbacks (GSB), Building Height, and others listed on the cadastral.

5. Check bills, such as telephone bills, electricity bills, Land and Building Tax (PBB), Environmental Management and Security Fees (IPKL), water bills and other outstanding bills. Don’t let the old owner's obligations become your burden as the new owner.

Seek help from someone who really understands building and land regulations if you are in doubt.