Recently my property agent come to me with a good offer of shop lot to me.

Is leasehold,expiry 2095.
Ground floor shop lot 22x70
Located at Jalan Kepong, near Metro Prima,Jusco Kepong or opposite Carrefour Kepong.
Crowded population by apartment's surrounding.

asking for 630k nett.

market rental at Rm 2.8k - 3.2k.

i looking for investment purpose,but the problem is the leasehold will cause me a problem when i sell may be 10 years later.

It left 85years from the Geran, resell value will drop when it getting lesser?

If the lease is long enough the resell value should not be too much of a factor. I think <50 yrs is a little risky. In your case, should still be ok. Maybe you can calculate the COCF as a gauge whether if it is a good investment or not?

Anyway, just my 2 cents.

let say when i sell left 70 years,will buyer face difficulties on loan?

Sri Petaling shops are at an even shorter lease. Keyword here is still location location location.

For your yield of 5-6%, it is considered ok only, not excellent.

any1 here who bought a property which left 60years leasehold before?I need comment...pls

as long it is in a prime/good location i believe its worth

Shouldn't be any problem on the loan with 70 years remaining.

i would say buy.. find the right tenant too.

My friend found Papa Rich as tenant.. needless to say hit Jackpot

This post has been edited by airline: Nov 24 2009, 10:28 PM

I guess nowadays, as long as it's prime location, nobody cares about years remaining on leasehold anymore.

This morning, I was at an auction. A 10000ft² bungalow @ Seksyen 22 PJ, leasehold with 50 yrs remaining only. 5 bidders pushed the price from RM1.3m till RM1.7m.

according some for banker's and agent's say that so property leasehold remaining below 50 years,bank are not going to finance it to new buyer.So 70 years remaining leasehold loan ard 60% from purchase price...is that true? Any1 here got experience?

I donno about this, I think if you get a bank loan you'll be paying in excess of 2K each month, so you'll just be earning a few hundred each month, on top of that it's a leasehold, as each year pass, it's going to look less and less attractive.

IMO if freehold then probably worth it.

loan 85% with BLR -1.5 with MRTA =Monthly 2600.

The problem is i worry about the re sell value since it leasehold...years getting lesser and lesser by the time...

Lease can be extended as your as you pay for the fees, right?

Some more, it still has 86 years to go. There are many lease hold properties out ther right now which has shorter lease than this. Are they not transacting too?

thanks...

60 years left of unexpired lease will not effect the loan. Normally the bank require at least 30 years. It is the mindset of people that they are picky about the leasehold property. As my old man once said, I HAVENT DIE the property need to be renew.

I've once bought a shoplot with 20 years lease left. The reason why i took such a big risk is that :
1) The shoplot is located in the centre of the town. It yields high rental.
2) Since the lease left 20 years, I can negotiate the shoplot below market value (i bought it 40% under market value)


Back at my hometown, Sarawak the Land of Hornbill, some of our shoplot lease are 60 years. I don't see there is any problem with that.


Anyway, if the lease expires, just go to Land and Survey Department to renew your lease by paying a premium.

will Land and Survey Department no going to renew the lease? If Gov decide to use that piece of land for future development?

It is unlikely to happen.
If the shoplot is expired. Why not the Land and Survey renew its leased? What will a 1,200 sq ft of land worth to the government?

The goverment will always go and get a new land to develop. Normally populated shoplot and housing area will not be taken by government if the lease expired. *Do not mention about kampung area or the case in penang. It is a totally different scenario.

This post has been edited by edyek: Nov 30 2009, 06:38 PM