What about loan interest and repayment?

Ah yes....i forgot to mention assumming the owner is renting out the unit.First few years might have some negative cashflow but after that should have positive cashflow until year 30.The positive cashflow over these years would be able to cover all kind of expenses (quit rent,assessment,vacancy,maintenance,loan interest)

Ah yes....i forgot to mention assumming the owner is renting out the unit.First few years might have some negative cashflow but after that should have positive cashflow until year 30.The positive cashflow over these years would be able to cover all kind of expenses (quit rent,assessment,vacancy,maintenance,loan interest)

If could generate positive cash flow, many investors would have bought and current value would have worth a lot more than $300k.

Property price appreciation remain at about inflation rate in the long term.

Sure will have positive cashflow from my example(assuming you bought 30 years ago).you bought at 68k,installment is about rm300.at that time rental may be around 200-300.so no positive cashflow at THAT time.

Fast forward 10 years later,rental should around 500-600 and there is your positive cashflow since your loan installment remains more or less the same (around 300)

Fast forward another 10 years (currently) 900-1000 rental and loan installment still at 300.That is the positive cashflow that i am talking about.

Year 1-10 - no +ve cashflow
Year 11-20 - approx 300 +ve cashflow per month
Year 21-30 - approx 500 +ve cashflow per month

The positive cashflow from year 11-30 is more than enough to offset whatever expenses that occur.So turning RM6.8k (10% DP,90% loan) into 300k (current value with no more loan after 30 years) is definitely more than compunded 5% return p.a

Conclusion:-
1)Buy property with HIGH DEMAND from renters.(very few vacant unit).No need to fork out own money to pay installment.
2)Buy property with AFFORDABLE rental.
3)Use LEVERAGE (loan 80-90% from bank) and let tenant pay it off.
4)Hold for LONG TERM to enjoy super return.

Yeah yeah,who dunno our mom is woman?but with point 1-4 above,i am pretty sure we can generate a return much higher than 5% compounded return per annum.

Happy investing everyone

Conclusion:-
1)Buy property with HIGH DEMAND from renters.(very few vacant unit).No need to fork out own money to pay installment.
2)Buy property with AFFORDABLE rental.

cyberia old place.
better go for the arc. same penthouse unit. duplex maybe. not really sure on the layout there.

Lelong!! A-27-6, 27th Floor, Menara A, The ARC, Persiaran Bistari, Cyber 11, 63000 Cyberjaya

New reserve price 🔥🔥RM 385,000🔥🔥
⚠�1st auction RM 880,000⚠�
Penthouse unit 1915sqft freehold
Auction: 27Mac 18
p/s: 500k drop in price.     

BBB is cumming soon. Prepare your finances.

Honestly buying condo in Cyber for staying is pure waste of money and time. Myself bought landed in Cyber but condo is a big NO NO. Full of arab and african students (every single one of them) where you can't even enjoy the condo facilities peacefully.

On another note, always wonder what happen to those owner's credit score when their house got auctioned. Can they apply for another housing loan or will they blcklisted by the bank?

Honestly buying condo in Cyber for staying is pure waste of money and time. Myself bought landed in Cyber but condo is a big NO NO. Full of arab and african students (every single one of them) where you can't even enjoy the condo facilities peacefully.

On another note, always wonder what happen to those owner's credit score when their house got auctioned. Can they apply for another housing loan or will they blcklisted by the bank?

Once again no taker.

B-2-3A, Vision Residence @ Puchong South - Cyberjaya
Size: 2485sqft
Date: 28 Mac 18

1st auction Rm1,000,000
2nd auction Rm900,000
3rd auction Rm810,000
4th auction Rm729,000
5th auction Rm657,000
6th auction Rm592,000
7th auction Rm533,000
8th auction Rm480,000
9th auction Rm432,000 --> current reserve price

Anyone taking?

Once again no taker.

B-2-3A, Vision Residence @ Puchong South - Cyberjaya
Size: 2485sqft
Date: 28 Mac 18

1st auction Rm1,000,000
2nd auction Rm900,000
3rd auction Rm810,000
4th auction Rm729,000
5th auction Rm657,000
6th auction Rm592,000
7th auction Rm533,000
8th auction Rm480,000
9th auction Rm432,000 --> current reserve price

Anyone taking?

First auction at 700k. Now price drop till 400k and not even sure at this price got any taker or not.

What a surprise. Both units also no taker today. Will be really too cheap now.

SB-06-02, Tower B, Paragon @ Pan'gaea
New reserve price 🔥🔥RM 212,580🔥🔥
Freehold
675sqft
Auction: Mid Apr 2018

ST2-24-14, Menara Solstice 2
New reserve price 🔥🔥RM 295,300🔥🔥 Freehold
893sqft 3R2B
Auction: Mid Apr 2018
Auction record: same size unit sold at 364.5k in Feb 18.

KUALA LUMPUR, March 26 (Bernama) -- Property prices in Malaysia continued to decline in the fourth quarter (Q4) of 2017 as the market corrected itself amid a complex scenario of growing oversupply in certain segments and a prevailing lack of consumer affordability, said the PropertyGuru Group.

The PropertyGuruMarket Index (PMI), which tracks the asking prices of residential properties in Malaysia, showed a decrease of 1.6 per cent for Q4 compared with the previous quarter (Q3: 0.2 per cent decrease).

In a year-on-year comparison, prices fell by 3.7 per cent. Save for June, February and October, all other months in 2017 showed a decline in asking prices across all classes of residential properties, it said in a statement today.

PropertyGuru Malaysia Country Manager, Sheldon Fernandez, said the declining trend was consistent with prevailing market sentiment and the ongoing price correction was healthy for the residential sector in the medium and long term.

"The declining trend was evident throughout 2016 and 2017, so it's no surprise. Importantly, it has been gradual, so there are no significant shocks to the market and both buyers and sellers can adjust themselves accordingly.

"Declining prices usually co-relate to improved consumer satisfaction. In fact, our last consumer sentiment survey showed consumer positivity towards the real estate sector has improved," he said.

According to PropertyGuru's latest consumer sentiment survey released in January, consumer satisfaction had improved to 38 per cent, with 57 per cent of Malaysians intending to buy in the next six months against 52 per cent previously.

Fernandez said with the lack of affordability continuing to be a major issue, there was greater downward pressure on asking prices.

"While the desire to transact remains strong, most property buyers -- about 67 per cent -- can only afford houses priced between RM300,000 and RM500,000.

"In addition, PropertyGuru data shows that three out of four Malaysians believe the market to be oversupplied. Hence, many buyers are opting to adopt a wait-and-see approach, especially with talk of general elections throughout 2017," added Fernandez.

PropertyGuru said in tandem with the national price trend, all key property markets, including Kuala Lumpur, Selangor, Johor and Penang, also saw asking prices decline in Q4 of 2017.

In Kuala Lumpur, prices dropped by 1.2 per cent compared with the previous quarter (Q3: 1.4 per cent) and similarly, Selangor, Johor and Penang saw quarterly price decreases of 2.1 per cent, 0.5 per cent and 0.2 per cent respectively, it said.

However, the property portal said certain key locations across all four property epicentres had experienced price stability, or sellers were still able to relatively maintain their price offerings.

In the Klang Valley, these would be Sentul and Bangsar, while up north, Balik Pulau and Tanjung Bungah in Penang had remained comparatively stable, it noted.

"Bangsar is a mature location with an established name.Hence, the ability of owners, especially those who bought their properties many years ago to hold on to their prices," explained Fernandez.

Meanwhile, down south in Johor, prices were largely on an uptrend for Q4, but popular locations such as Nusajaya saw prices decline slightly, while emerging hot spots like Gelang Patah showed an upward price movement.

"This is probably due to consumers searching for homes in alternative areas compared with the established areas of Nusajaya, Johor Bahru city and so on. However, given that Johor prices have been on a high for a while, on a year-on-year basis, prices still are holding," said Fernandez.

According to PropertyGuru Group, the PMI is a comprehensive, insightful quarterly overview of home pricing trends at national level, as well as the key property markets of Kuala Lumpur, Selangor, Johor and Penang.

The data is cleaned, aggregated and indexed to provide insights into price movements on a quarterly basis. The index also considers supply volume of properties from both the primary and resale markets.

http://www.mysinchew.com/node/119363

think twice before hoarding all those overpriced high density pigeon holes in the klang valley.
After 30 years they become dilapidated and near worthless and are more like cars depreciating with old age,just when you have finished paying off the loans.Then its time to fork out money to buy another home far away from the city.