I have read a few investment books. They always mentioned about they bought property below market price by 15% to 25%..... Most books mentioned about KL area,Kepong, PJ.
How about other "not so hot" location ? Eg. Penang Mainland, Sungai Petani, Ipoh etc...

In reality, I found most subsale selling HIGHER THAN MARKET VALUE.... Eg. Bank value at RM300K, they are selling at RM 420K.... If lucky, they are selling at market price, but at a not so preferable location....

1) How to do buy subsale below market value ?
2) Invest in other "not so hot" location ? eg. Penang Mainland, I m from Penang Mainland... eg. (Bkt Mertajam, Simpang Ampat)
3) Heard about Zero cost home ? How is the actual implementation ?

Thanks

This post has been edited by moon yuen: Aug 13 2013, 05:11 PM

Personally I haven't read any of investment book on property but I know they say all the good thing but not the bad thing. My understanding is to find a 15% to 25% property below market price is to buy property from Ah long client or seller desperately want to sell of their property due to their reason example like business need cash flow.

Again hardworking is a must.

In reality, human nature want to make a profit out of the investment they made even it doesn't make sense at all or far too high than the market value. In Seremban 2 property, there is even people selling their property 22x70 at RM690k price tag which is far too high and other area can get a cheaper price from developer with free SPA, Stamp Duty and best is SEMI-D.

In the end it is the willingness of buyer and seller.

Need to do alot of homework to find a good property worth investing.

Can try lelong.

This post has been edited by Seremban_2: Aug 13 2013, 02:35 AM

Most books r to earn $$$ fr u by quoting previous experiences. Bear in mind those tricks oledi obsolete Liao. Why spend $$$ in those writer's pocket with all the useless tricks when u can actually go into the market by urself??? I havnt been reading a single book at all. I do it my way. Why duplicate other's success by applying those tricks tat won't work today???

Regarding lower subsales, just find harder but chances r slim.

Do you mind teaching us how you do it your way?

Boss just trust urself la. If u dun hav confident in urself, u wont b making gd judgement even given the best book. So trust urself.

Depend on your luck, my neighbour ask me want to buy her 2 storey house or not, she offer me 290k, but bank value is 430k ^^

Agree,

After learning alot of thing here from sifu all, I see property like buying stock market like that. Just different way of the game like football and rugby.

Still alot of homework to do.

Haha, my parents sold Tiara Kelana just before it shoot high high. About 6 months after the complete transaction.

This post has been edited by Seremban_2: Aug 13 2013, 08:15 AM

Buy under value property needs courage. I share my experience :-

Property A (10 yr old Hse) : RM1.5 mil owner asking
Bank valuation : RM1.43 mil max
When show to buyer, normally offer 1.35 mil or say expensive.
Sometimes I tested my buyer : "nolah, the price is 1.1 mil onlyl, pls issue the booking deposit 3%"
99% of my buyer will ask : "Why so cheap?" "Anything wrong with the house ah?" "Why nobody want?" "Got hantu may be, I better think twice"
99% I can't close the deal. It happen mostly to relatively old house

This post has been edited by UFO-ET: Aug 13 2013, 08:30 AM

Nowadays i think it is easy to get property below market value. Because now got a lot of people want to dispose their asset but thare is limited buyer due to restriction imposed by bnm and also public expectation on property price will drop - end of this year.

Current scenario: Most of the genuine buyer is waiting for things that will not happen (property price drop) while seller is pressure to earn extra money by selling off his asset.

If you minitor the property price in your area closely, im sure u will get one below market value. Advantage at this cycle is to people who has decent amount of money to purchase property. Not to people want to sell property. People with strong financial credential will have a good bargain in investing property.

Must master skill of negotiating. Learn from the aunties when they bargain in pasar malam. Joke aside, for me, i will first of all, identify the place you want and most importantly you must know your target price then engage as many agents as possible. Tell them you are not in a hurry to buy. Only call you when they can get the price you want. I must say, I hv managed to get some though not all for the price I set. There are always some desperate sellers. If u r lucky you get it. If there is none, just wait. Money is king now especially in sub sale market. If you hv the ability to get a loan and ability to pay 30% because of the LTV 70% rule, I think you hv a lot of bargaining power. Just my view as a small investor.

Getting a below market value home is possible but normally need more money for renovation at the end so it kinda even out. You be lucky if make some on paper in short term. Nowdays for this to happen in good location, chances are very slim except higher price tag property or far far land. Your budget also restrict the possibilty & most important of all is are you ready financially to snap it off the market. Reality kicks in.

That is so right! It takes courage and one should be mentally prepared to quickly execute...often times on the spot. However, easier said then done, but thats the gist. If you find a good deal but don't execute, then often times its gone when you come back. Done that a few times....missed a few good opportunities because I had the same thought as your buyer. Guess its nature. Sigh.

Coming across under value prop.....
1. Luck
2. Social network - friends, agents, bankers and etc
Buying under value prop.....
1. Decisiveness
2. Courage
Facts......
1. Mostly under value prop don't come from high demand prime prop
2. Mostly its those big size units if its condo
3. U don't find it through advertisement if its a small size and high demand prop....
4. If it requires adv, I don't think tat is a high demand prop.....

This post has been edited by AppreciativeMan: Aug 13 2013, 09:52 AM

ok let me start first
any freehld landed single /dbl storey in pj wanted to sell below market rate pls pm me ya

pay cash can get lower or not?

it depends, sometimes urgent seller that needs money are willing to take the offer.

or maybe undertable to reduce tax for vendor

How about zero cost home ?

As a seller, it doesn't make any different whether buyer buy in cash or loan..... End of the day the seller is getting the same amt.....
Unless seller is in urgent sales, u offer more cash upfront as deposit..... Or other form tat can benefit the seller....

This post has been edited by AppreciativeMan: Aug 13 2013, 11:27 AM

Check the publishing date of the book that you read. And mind you those authors of the books are sharing their past experiance, so those things inside the books could be "outdated" or too good to be true in real time today.

Chinese saying no Kam Na jumping all around the street. Any deal that seems too good to be true are actually trap in this time of day. Just be careful and watch out, there could be a catch somewhere.

All this undervalue and zero entry talk mostly happen in recession time.

so is it feasible to use property agent? saw a lot of complains from this this forum saying that agents tipu kaw-kaw

I viewed a house 2 years ago on in subang jaya ss18. A 22x80 house asking for rm530k. Small buildup, randown. I think if i can secure rm100k for reno, can make it looks good to stay

Now; regret i didnt grab the house

Yes there are still under value properties. Bought two early this early, but there are 'catch'. E.g lots upfront cash, under table n so on

would u elaborate more on the "catch" ?


and all taikos here, do you guys think Miharja Maluri apartment is overvalued with 240k?

Watched a documentary on HK property 1 or 2 months back, this uncle only purchased units with haunting activities, suicide or murder cases. I think he started at age 30, made quite a lot of money as landlord dispose it cheap.

Maybe can go towards this direction.

This post has been edited by Xccess: Aug 13 2013, 04:48 PM

Malaysian Owner, house even haunted, also sell at Market Price

They bet the buyer don't know ...

haha true

BTW, how do we check the market value of a subsale property so that we can gauge whether what the seller asking is "way beyond"? Can we check with the banks or the property agent (which may not give an accurate figure)? The market value is important because when we borrow from bank they base the loan on the market value, izzit?

Most of the time, agent will roughly tell u the market price lo...

If they sell more than bank /market value, u need to TOP UP the difference lo...

Best way is check with various bank...

Dont trust agent. Ask several banks and valuers

Everywhere also got. Ts pls do your research before consider ask everyone here.

Yeah, agents sometime dont give accurate market values intentionally or otherwise.... and i guess banks dont really entertain esp if we are not big timers just someone who wanted to buy a property to stay, not investing to resell... thanks anyway for answer, apprec it

Thanks bro

+1

Do ur own research for the target propert(ies) and location(s) to know the market price first... then monitoring it like reading news paper every day (every few hours if possible. Not joking!)... You'll got it one day! But, ple fast hand fast legs to make appointment and place booking... else the opportunity will gone veryx3 fast!!!

Is that even possible?

Hahaha - like your comments ya lor must be fast esp new properties I guess,,,, i heard rimbayu phase 2 sold out by 3pm today and i only got an sms this morning! wow!

Also apply to sub-sale. Peoples stay at that location know the market price and demand very well. They are the 1st one to grab it! So.... build ur network on the target location will increase the chansi..!!!

even nowadays auction property the price also near market price ...

property today the price within one week can different price especially shop ... thanks to hardworking agents ...

tQ sifu!!

I think want to get under value subsale 1st must know the differences between subsales and developer housing project. What is the disadvantages and advantages from both side? attack seller with disadvantage. hehe!

Disadvantage Subsales will be old building, alot of upfront cash, lesser bank market value than developer housing project, 2nd hand comparing brand new, if got house problem need to trouble seller get it fix by oral agreement, many tenant use the house before, not latest design,most of it bad share after many tenant stay & seller ku han, got hantu and etc.

Advantage for Subsales will be Cheaper than Developer Housing project, can bargain, (Somebody can add for me advantage of buying subsales)

Frankly, Auction reservce price is "CHEAP" !

But, after bidding, it catch or over market value lo

forget about this ,cash rich ppl already 24 hour hunting on this type of property
their full time job is hunting only
and they have wide networking around
property earn them a good income without working

Go get more bank lelong news,alot below market new properties subsale

Normally targeting on under valued prop is not suitable for people who are inexperienced in prop arena or planning to own their first house with low entry price, the seasoned investors that owned many props are your competitors.

Lucky for anyone can snap off one or two.