This is an interesting but quite unlikely scenario. You will very rarely find rental rates in a certain development diverging by as much as that. Comparing RM3.6K vs RM2.8K that is divergence of almost 30%, assuming all are similar type units (intermediate vs inter or corner vs corner). Even on location wise for commercial, unless the popularity is extremely uneven (ie shops facing main road all busy but shops behind extremely quiet).

But to your question:

a) Market has not dropped but you are paying over the odds of market price - ie bigger risk. If rents fall to the level of Lot C gradually, you lose yield (ROI). If you need to dispose of your property urgently (short sale), the odds of you finding a buyer are lower, as buyer would need to top up RM80K on top of 15% downpayment.
b) Same as A except even worse - in case of sale buyer would need to top up RM210K extra on top of 15% just for you to breakeven.
c) I would buy C (unless some external subjective factors like condition sucks or location really bad) - as the risk is all covered. You match the banks valuation. If rents drop to match the lower level, you are still unaffected, and if rents increase to match the level of Lots A or B you profit.

Opss i had to changed. typo just now. hehe. i choose A actually.hoaaaa. many replied to my reply. thanks guys. Anyway in my opinion, there is a reason why C is lagging behind. It is on the road that not many cars flowing as compared to A and B. If you ask me, I will definitely choose A because in commercial, I believe, die die must buy good facing (doesnt necessary mean facing main road coz based on my analysis it all depends on flow of traffic. there are some shoplots not facing main road getting more traffic than those facing main road). Anyway, these are the businesses of individual lots:

A: Kedai langsir

B: Kedai perabot

C: Kedai perabot

From my observation, A's business is thriving while lot B and C are competing with each other. However, take note buying A needs RM170K and one will have a risk of having trouble to sell back due to low valuation. One day, valuation might keep up with the price one will pay but it will take a while.
Anyway, what do you guys think with these investments? Good or bad or risky or what?

If you ask me, for a bumi, one better put his money like this:

Put in whatever one has in AS1M, ASN and take loan for RM400K in ASB. ROI combined would be around 7%. no pening2 with tenant, no pening2 to sell back.

Unless Lot A, B and C future capital appreciation and rental incremental are substantial. This is why sometimes I always ask myself to weigh between rental and other investments.

For flipping, provided one has bought at good development, this is a sure win if one can sell with a profit by taking into consideration of rpgt as well.

oh i thougt you guys are using same id....it's relying to each other it seems. 

Nice debate, but no one can predict what is going next. Maybe after few months, we will know who is pro and who is "pro". Personal point of view , currently issues about unable to afford a house, highly believe that blr rate will stagnant or decrease only and only increase the resell profit tax or etc. if not, how developer cari makan, how banks cari makan and how gov comfort everyone? . Renting, well, if supply more than demand, might lost some rental due to competition and the beneficial ones still the owner and the poor ppl like me

  Simply you don't understand the fundamentals of market. Where is your 20% growth yoy perpetually? Inflation can only push up housing prices? Where is the next greater fool to buy those empty and newly built units? Do you conveniently ignore the negative price growth stats? Don't worry, we will put your "strong holding power" theory to the test.

So, will u like my shxx if I m tycoon?
If not, you golden rule fails.

Typical weak guy style!

Don't dare to answer the question though u said that "I learnt
When you are a tycoon, whatever shxx you say will be a golden rule."

And u only believe in your mind that I m not a tycooooon.

lol..
This is your failure  in your personal character :-

1). You don't know who am I and you believe I m not tycoooooooooooon.
2). You assume other people also think as you.

Come on Man, don't look down other people and don't assume anything IF YOU ARE NOT CERTAIN.
The world is soooooooooo big and you are soooooooooo small.

You know me, then write down:
My Name
My address
My Telephone

Don't bullXXXX here!

Let just say I beg to differ.

"as a responsible and mindful adult"

For me is make sure I have food on the table to feed my family and a roof over their head
"Without debts, your wealth will surely and definitely been 'transfer' out to those closer to the monetary expansion circle, both public and private"

Dont have debts =/= dont invest.
Before you come screaming : O, u must be rich or from rich family ....... I come from the typical middle income group family. Just that I CHOOSE to Save and invest and NOT to Borrow to invest.

I have seen "millionaires"  bankrupt during 1997 when interest rate shoot through the roof, hitting 20% or more. My question is how many could withstand the cash flow problem when interest rate go up another 1 to 2 percent for your loan ?

As someone my senior used to tell me , over-leverage, you end up as a "slave" to the bank....

Just my 2 cp

Agree... the debate just goes on.. but one thing I notice is that the price has been stagnant for 2 years
There are 3 groups....
First group belongs to property investor, speculator, property agent, someone relate to developer which want up up to the moon
Second group belongs to genuine home buyer which want down down till correction
Third group belongs to observer

But Property Talk section have a lot of the first group people... so... property price have to go up... interest rate have to go down... genuine buyer have to buy whatever price because buy for own living (   )... interest rate have to go down... foreigner have to come and goreng more

Pity the genuine buyer whom want a place call home...   

I have friend who also hopes everyday for the past several years for the home price in Penang to come down. In the end, he bought a property in Alor Setar for RM200K which has a appreciation to about RM280K after a few years.
Instead of betting solely on home prices to come down, you should have plan B, C and D. Example, If the homes in KL are too expensive, maybe you should consider investing in a property further away, not to stay but as an investment. In KL, rent a place as a home. Your investment property will appreciate (or for rental) and maybe in the future, you can sell it to fund your dream home in KL.

Can I ask a stupid question? Hypothetically - what if the crash really happens, and market value slump by 30%,
- What the rich with holding power will do?
- What will the middle income fully leveraged will do?
- What will the down camp will do - for middle income group with average savings?
- Life goes on for the poor?

Wow. What a racist comment u have there. Huhu. Chill bro. U think being a bumi so easy to make it? Bumi reserved land/unit = biggest curse ever. A bumi buying leasehold and wanna sell = a curse too. And dont get me started in opening business. I failed a business which was dominated by 1 race. That time, i remember i buy spare part more expensive, i buy halfcut more expensive and etc. lastly i sold the business. It is not all that easy bro. Besides, nowadays non-bumi can become a bumi. U just need to know the way.

"fact" indeed...if you are providing facts instead of opinions may I have the source of your assertions please.

If the AFC is not a bust, I suppose cancer is also not a life threatening disease either.

Another thing, I am not providing wisdom. I am providing my opinion.

Do try to distinguish which is which.

The costs
KVMRT1 - RM22.2billion
KVMRT2 - RM24.9billion

Budget deficit
2012 - 4.5%
2013 - 4% (Target)

We can have KVMRT2 if GST is introduced, as it will bring an additional RM20bil - 27bil revenue to the government.

However, with resistance to the GST, I have no idea how KVMRT2 can be financed yet still meeting the budget deficit reduction target.