Juliet Risdon
5. Can my landlord throw me out of my apartment ?
Yes, but only under certain circumstances. These include;
If a tenant does not pay rent at the appropriate time;
If a tenant uses the property for illegal purposes;
If all or part of the property is sub-leased without the express permission of the landlord;
If the usage of the property is different from the original purpose, for example if the apartment is used as an office or workshop space;
If alteration work on the apartment is carried out without the express permission of the landlord.
4. What the best way to get a cheap property ?
As a tenant, the cheapest option for property is to remain in the property that you are in, paying rent on time and negotiating with the owner for the longest possible rental term.
You will find that many agencies charge lease renewal fees nowadays, and these vary from agency to agency. Especially when rents are rising, paying a renewal fee is far cheaper than arranging a new lease. However, do make sure you know what the fees are before you agree the renewal.
As a buyer, the best way to get a property at a knock down price is to be ready to place a substantial deposit on a property instantly. In a dynamic market, properties sometimes move faster than the blink of an eye.
3. Is there a rent increase cap?
No, not yet.
According to Macau Law, the rental amount paid by a tenant is in agreement with both parties.
Macau law states that a rent increase must be ‘reasonable’. By definition this means that as long as both parties agree to it, it is deemed reasonable.
The government are currently reviewing measures to try to ‘cap’ rent increases. However, it is probable that interference in the market would have a reverse effect as we have seen many times in the past.
For example, if rent increases were capped at 15 percent many owners would not rent properties. As supply falls and demand grows, this would push rental prices even higher in the mid and long term.
2. Can I use the security deposit to pay the last 2 months rent ?
No. Deposits may not be used to cover rents.
A deposit is for the fixtures, fittings and furnishings of the property. Macau Law is very specific about this.
The moment that a rent is unpaid for 30 days, the landlord is entitled to the amount of rent owed plus an additional penalty equal to 100 percent of the rent.
In other words, if you don’t pay rent for the last 2 months, you will owe 4 months rent.
1. What’s going to happen to property prices in Macau ?
As we are all very much aware, Macau is extremely small. Even with the addition of Hengqin Island, land and space are limited. There is only one way to build; Up.
Macau’s economic future looks as certain as anything can be, at least until 2049. Over the long term, it is difficult to see anything other than a rise in property prices.
Every increase is met with similar attitudes from prospective buyers; It can’t continue to rise, there is a limit of ‘x’ beyond which it will never go etc.
We can see many arguments for continued growth, whilst slowdowns like the one we are currently experiencing are usually the result of something happening outside of Macau.
As such it is difficult to draw a conclusion other than this; Provided you have a long term view of 5 years or more, Macau property prices are likely to rise.
* Figures expressed in MOP unless otherwise stated
Juliet Risdon is a Director of JML Property and a property investor.
Having been established in 1994, JML Property offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
www.JMLProperty.com
info@JMLProperty.com
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