Hi,to all the property sifu's.Hope to get some advise from u all.I own a newly completed apartment & going to get key by next 2 week.At first i bought this property is for long term rental investment,but now i found out that i might be able to sell it with a 50% gain from my purchase price.

Really feel very confuse if i should sell it now or keep it for long term investment.

A few thing keep poping in my head :-

a)If i sell now, will the value of the property shoot up again when the International school start building.Its a well-known international school.From insider information about this I.school project,it is said that no campus will be provided and most of the student,employee,lecturer will need to get a place to stay within its nearby area.My apartment is just beside it(walking distance 3 min).

b)If my (monthly installment)rm460 + rm 80(maintanance fees)= rm560.And i able to rent out by 650, means i can get rm90 income permonth.It gives me about 16% income each month.Should i count like this?

c)If sell the property now i can earn a profit about 40k.Should i sell now....sigh...

d)How much an apartment value can go?How to estimate?

Sell or keep, rent or take profit?

Plsss advise....thank you in advance!

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Added on December 15, 2009, 10:57 pmI got keep track of my property value by the bank & i found out it increase about 25% more suddenly when the confirmation about the International school is build beside it.(This increase is the bank valuation & not by the housing agent as this is a new property and no sub-sale has transacted before).

This post has been edited by benjamintan: Dec 15 2009, 10:57 PM

i got confirm buyer i'll sell it off.
if i like the place then i keep.
40k now days not much also...

yea..40k doesn't seem much nowadays..
I'll rather rent it out if can breakeven with the installment and maintenance fees let alone getting profit from this..

If you are not in the hurry to use the money, just keep it since it is giving you positive cashflow. Wait for a few more years for property appreciation and you can think it over again whether to sell it off to buy another property or refinancing or rent it higher.

Depend on your objective, if u r in for flipping then sell it off, if ur main intention is rental income then don't sell.

Thanks for all the reply and suggestion.

Actually i did a simple calculation.

Base on the expectation of the income i can get after deducting my installment & etc, i can get about rm90 income permonth.if i able to settle my loan ealier,which i hope to be faster but atleast will take me about 8yrs.So in this 8 years i can actually get rm90 X 96(months)=8640.00.And assume i really able to settle it on the 8th year,from the following year i able to get about rm570 permonth.So to get the amount of 40k profit i need to rent it out for another 5 year which gives me rm34,200. + 8,640.00= rm42,840. The whole process will take me about 13yrs.....

But to achieve this, i must :-

a)Get this property loan settle by 8yrs or sooner.
b)Must be fully rented out for this 13 yrs.
c)Must make sure get good tenant,if not i will need to pay extra cost on repairing it.
d)The demand rent for this property to maintain in this 13 yr.
e)Hope fully maintanance fees do not increase like crazy in future.
f)etc....

Should i just sell it off?The only main concern is How big is the effect for a property when a International school is build beside it?How much appreaciation can we expect?

Based on the figures, it is quite a no brainer to me. Sell it off now and take the RM 40K profit.

40k is how many percent of ur purchase price?

if got confirm buyer, sell it.

the demand for rental won't be as high as u expect. even if an international school is next door, only the employees would look for a place to stay.

don't bother about the students. their parents aren't interested in RM650/mth places.

What was your intention in the first place when you first decided to buy the place ?

That probably answers everything that follows.

no matter what you can hardly get a place at 80k (my estimate as u said u made 40k (50%) if u seel now) so keep it. furthermore the property value wl not stay the same after 15yrs my fren. No matter what you are in a win-win position if that area is good/safe area to stay.
I think the management of the int'l school wl not be stupid to choose a poor or unsafe area to build their school.......