RENOVATION MAY BE AN OPTION TO CONSIDER
WHEN it comes to upgrading, most people will think of buying a bigger house for their growing family. But have you considered upsizing your current home through renovation?
According to Savills Malaysia managing director Datuk Paul Khong, Kuala Lumpur City Hall (DBKL) introduced revised renovation guidelines in January 2017 titled Garis Panduan Ubahsuai Rumah Kediaman Jenis Teres/Berangkai 1, 2 Dan 3 Tingkat Lot Saiz Biasa (Standard Lot) Di Wilayah Persekutuan Kuala Lumpur.
Applicable to standard-lot terrace houses within Kuala Lumpur, the guidelines allow the owner to increase the plot ratio from 1:1.3 to 1:2.5. Khong said it meant that house owners can double the size of their existing homes when they renovate their premises. This gives them the chance to replan the house into a two or three-key design or just a big three-storey building.
“Take for example an old terrace house measuring 22sq ft by 80 sq ft. The current build-up size will be around 2,200sq ft (22sq ft x 50 sq ft x 2 floors). If it is located in Sri Hartamas, the house could easily be priced from RM1.45mil to RM1.5mil,” Khong explained.
With the new guidelines, the owner will be able to have a house with a bigger built-up size of 4,500sq sf to 4,800sq sf for about RM900,000 to RM1mil (about RM200per sq ft based on reasonable finishing). And the total cost for this new place will be RM1.5mil + RM1mil = RM2.5mil, which translates to about RM500per sq ft based on built-up and is cheaper than a Mont Kiara apartment priced at RM750per sq ft.
“This new set of guidelines is a favourable document and has yet to catch on in the market. With houses getting expensive and land getting scarce in the city, this is something that the public should consider,” said Khong.
He elaborated by saying that not only will the new house be a freehold landed property, the old mantra of “location, location, location” still applies.
“The redevelopment opportunity will provide a cheaper alternative for upgraders against buying a big bungalow in a far-away location,” Khong added.
For more information, please visit bit.ly/upgraderbuyer