Dear Taikors,

Please help to advice my dilemma as below:

I'm going to work in KL soon, targeting a few areas until I shortlist into these 2:

1. Rawang M Residence Phase 3 (under con)
Type: Freehold
Area: 22 x 80 (plus 5 ft garden become 27 x 80)
Price: RM 697,800
Purpose: Investment
Completion Date: Mid 2015

2. Universiti Tower, PJ Section 11 (subsale)
Type: Freehold
Area: 1300 sqft (3 rooms)
Price: RM 600,000
Purpose: Own stay 1 room & Rent out the other 2

Considering the property market in 2015 (For option 1),

Which of the above is better move?

Option 1 OR Option 2?

Loc pj beta. Prop type landed beta. Pricing rawang cheaper. Value pj beta.

Very hard to say coz u never mention u want rental play or capital appreciation. And hows ur financials? Rental play no need strong financials that much while capital appreciation play need stronger financials. Can u pay without getting any rentals? These are a few questions u need to ask urself.

AMINT gor,

Usually my plan after a new house VP, I can opt for these 3 options: rent out, own stay or sell it.

For M Residence, I not planning for own stay and rent out. The only way is to sell it after VP. (target for cap appreciation)

For UT, I aim to keep it long term (own stay and rental play).

My question: for biggest advantage, should I go for rental play (UT) or cap appreciation (MR)?

Giggs gor,

So Pj wins in terms of loc and value,
Rawang wins in terms of prop type and pricing?

What would u recommend?

To know which is the best for u whether rental or capital play, like i mentioned earlier. Can u pay without getting any rental? If u can, i suggest u go for capital apppreciation but may need to hold longer for the location. If u cant pay and hold for a long period, go for rental play. Honestly i dont like rental play coz it is a waste of time imho for residentials. I rather rent it out just to cater for appreciation to kick in to my desired value. I say this because nowadays ROI% is BS and some more need to pay to LHDN. Rpgt also need to pay but after 3 years, the amount is reduced or better yet, after 5 years, zero rpgt

Hard to judge in ur case. For me as an investor, I ll take pj. But for home seekers, I would advise for rawang due to pricing. And u would not care much in short term bout the capital appreciation. No one ll know if rawang outperform pj in 10yrs due to the lower entry price for landed. On the other hand, who knows maybe pj ll stil grow another 200% due to the gd loc.

If u r really buying either 1 purely for investment, I bet pj is beta for now, at least. Especially when u r stil getting a FH in pj.

Bro 1 of the conservative strategy in rental play is to at least get the installment amount together with all compulsory expenses like tax u mentioned, and maintenance fee etc etc without including bank interest. Tis strategy is used by some who r very strong in holding power. And usually u c those buyers for super prime area eg bangsar, pj state, bkt bintang are doin tis. Try look at the cap appre. It can outdo the rental at anytime.

So easy to sell it and profit after VP?

yeah but it is not easy to find such property. today, many property value increased too fast while rental lagging behind. end up ROI is 3-5% in KV even before minus the tax to LHDN. After minus, we will lose 1-2% somemore. outside KV also some doing better in terms or rental coz value not that high....yet..

My advise, do not intend to sell a prop in 10yrs. Sell it after 10yrs. Unless the offer is irresistible eg 100% in 3yrs.

U can c the diff.

Hi Noblebaby,

That's my concern on property market in Rawang 2015. (though I can keep it for long)

Considering that many projects esp condo will VP in 2014 & 2015, not sure if it will affect landed market.

Wow ...

Under con vs Subsales
Completion mid 2015 vs currently completed
Landed vs Condo
Rawang vs PJ

I think this is too hard to compare unless more definition given for the investment purpose, game play and holding of short or longer term.

Chris kor,

My game play / current situation as below:

I have previously bought an under-construction condo in PJ.
This is my 2nd house, which will be my last bullet (cant afford LTV70 after this )

So wat would you recommend?

(in the sense of diversify, I think Rawang+landed will complement my 1st house PJ+condo, but both also undercon)

This post has been edited by utph145: Apr 14 2013, 12:11 AM

yeah AMINT & GIGGS kor, I've done some calculation that the in (rental - RM 2500) and out (monthly repayment + maintenance fees + tax) will give some slight positive cash flow.

IMO, the positive cash flow will keep increasing, slowly, as the rental can increase over years while monthly repayment & maintenance fees shall remain stagnant.

Yeah, rental may increase over the years. Monthly repayment and maintenance may go up too in the future. (i have also experienced reduction coz more owners becoming responsible and paid)

En. Amint, cantiknya avatar tu.

cilok kat internet. hehe

property investment rule no 1. location. buy the worst house on the best street. not the best house on the worst street.... u do the math.

For rental or capital appreciation play it will both be PJ.

Rawang landed, if cheap then still okay.. but with such high entry price, I don't think you can see some good return in near future. Definitely need to hold for sometime.

Or you can consider Cheras/Sg Long/BMC if really want landed. This side of Selangor have better potential than Rawang. My colleague who bought a DS FH at Sg Long Last year @450k, now his neighbours are asking 560-580k to sell one. 100k appreciation in one year. That's sounds not bad.

I also hunting for one at that area now