Attracted 3 bidders today.
Sold at 296k.

Here's the S&P price of the unit D1-17-03:

yea all in Klang Valley area. my condo is at Old Klang Road. my friends, one in Ara Damansara, another in Sungai Way.

all our condo market value depreciated by about 15% in the last 6 yrs 

Invested in one condo and collected the key recently, my main purpose to flip for quick cash but unfortunately market is bad and hardly to sell now to make profit.

So in your opinion how long do I need to hold it before I can sell it off with handsome profit? The condo is epic residence bukit puchong, studio unit 624sf.

Bought new condo in puchong with 5% rebate, served loan 5 years average 2k / M plus maintenance. Now bad timing so wanna sell but the condo price depreciated. Damn, now already told some agents help to sell with loss, but till date no buyer at all and many units waiting for sell too... Habislah I...

I do the calculation, owe bank 340k, if manage to sell I can get back arnd 310k means I hv to top up another 30k to fully settle the loan. If add in the 5 years installment I think lost 100k

Believe or not up to you, is true story. Every year I have to pay cukai taksiran and fire insurance too. The first 5 years installment all gone into interest - average 1k interest per month so the principal not moving. So I already paid 60k interest to bank and now the condo has to sell at loss. I wanna release it so can have peace of mind at least less burden

Cont hold and fully settle the loan, reserve the condo for own use

What troll? I wanna cut loss at 340k. If you willing to take over I will sell to you.

Bought 520k in June 2018 and auctioned for 236k.

Bought 520k in June 2018 and auctioned for 236k.

An example property is illiquid.

Regretted investment
https://forum.lowyat.net/topic/4988813

how is my property doing?
https://forum.lowyat.net/topic/4987372

Condo investment, How long to hold
https://forum.lowyat.net/topic/4350855

COCR, leverage amplify profits as well as losses.

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as of 9.45am, rear line

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front line

average prices at RM500psf - RM530psf..

RM500k - 550k.. all good units got sapu..

tomorrow launching block D (fronting highway and transmission line) for public

Last year developer clear stock around 495k

Developer cleared stocks however those would be lower floor units with additional car parks.

There are quite some current listings even selling at below 500k, higher floor, basic renovated and furnished somemore.

Next month auction units....

Next Friday, price drop 20% direct.

First lelong unit for Nadayu 62. Guess just completed less than 6 months ago.
Price should drop few more rounds before got any taker.

B-12-5, Nadayu 62, Taman Melawati
950sqft
Leasehold
Reserve price: 🔥🔥RM 590,000🔥🔥
Auction date:  19-May-2018 (Sat)

Only 296 units here. and almost 10% can be found in the lelong market at the moment.

B-22-3. RM 393,660. 1086sf
B-22-2. RM 450,000. 1086sf
B-18-2 RM 526,500. 1086sf
B-18-3A. RM 451,980. 1126sf
B-15-6. RM 251,505. 557sf
B-16-3A. RM 291,600. 557sf
B-20-6. RM 524,880. 1126sf
B-16-9. RM 291,600. 557sf
B-9-5. RM 351,000. 557sf
B-23-3. RM 585,000. 1086sf
B-15-2. RM 335,000. 557sf
B-15-3. RM 330,000. 557sf
B-20-1. RM 580,000. 1086sf
B-20-3. RM 580,000. 1086sf

What reason? Bulk purchase or compress loan or proxy?

Wow. Dirt cheap pricing.

Kesian STUPID investor listen to popety guru take compression Loan Now go Holland d.
Loan compression, or multiple financing, can put an individual in a negative cycle of debt as it impacts one’s ability to repay the loans.

Loan compression is when an individual applies for several home loans simultaneously from various banks in order to purchase multiple properties at a time, so they do not count as second or third homes.

This loophole has been exploited in the property market for some time now. Although it is tantamount to defrauding the bank, it is technically not illegal.

“Loan compression might harm borrowers, especially millennials who do not have long-term positive cash flow, as it means taking on never-ending debt.

“If servicing the loan is not managed wisely, there will be defaults or even bankruptcies on the loans, and this will hurt the bank’s bottom line,” Credit Counselling and Debt Management Agency (AKPK) financial education department head Nor Akmar Yaakub told Property Advisor.

However, she said loan compression is positive for developers and their “property gurus”. “The sales of certain properties/locations will entice other purchasers to jump on the bandwagon.”

A group of property investors who bought high-rise units in the Bukit Bintang area are now facing or fighting bankruptcy.

“We own properties with negative equity and have withdrawn our savings, even from the Employees Provident Fund, just to keep up with the monthly instalments. If something sounds too good to be true, it probably is, and we have learnt this the hard way,” said a member of the group who spoke on condition of anonymity.

The group bought high-rise units based on recommendations from a property guru, even though the prices were marked up to higher than RM1 million when the real market value of these properties was nowhere near that mark. The prices were marked up because of the cash rebate.

“The cash rebate is not free money. The individual is taking on a 30-year mortgage for a property with an inflated value.

“The monthly instalments for a RM1 million property on a 30-year mortgage range from RM5,000 to RM7,000. You own this debt, no one else,” said the group’s spokesman.

Today, some owners are unable to keep up with the monthly instalments and have put their properties up for sale. “We are those owners. You could buy one of the high-rise units last year for as low as RM690,000 on the sub-sale market.”

The practice, according to Nor Akmar, is widespread among investors who plan to purchase a few units/properties at a time and avoid the 70% loan margin for the purchase of the third and subsequent properties.

“Investors are actually cheating the system by receiving 90% loans for all properties, a rate that is usually reserved for first-time, genuine buyers,” she said.

“It is usually for ‘cashback’ properties where the units are being sold in bulk to a group of purchasers. Thus, the developer is able to offer a massive discount for its units (as high as 40%), and each buyer will get a disbursement via a cashback amounting to up to six figures per unit.”

She said the cashback money is alluring as buyers can use it to service their mortgage. Essentially, one is “paid” to buy the property from the developer.

The cashback refers to a sinking fund to finance the gap for repayment of loans or shortfall of rental.

Since the Central Credit Reference Information System updates on the 10th of each month, Nor Akmar said, these “greedy” buyers submit several loan applications to different banks on the 11th to “beat the system”.

What is the impact of loan compression on the market? The ultimate concern for those who commit themselves to loan compression is that they are now overleveraged.

There is a possibility the property prices or rents will not rise sufficiently, hence these investors are trapped and unable to access additional financing.

Credit reporting agency, CTOS Data Systems Sdn Bhd CEO Eric Chin said that when borrowers start to default on their loans, the banks may not have the capital to cover all the debt.

“The worst-case scenario is that the impact of overextending home loan debt by consumers can cause a worldwide recession, as was seen in the 2008 global financial crisis.”

During the 2008 crisis, lenders were giving out loans under very lax conditions, especially in the US where billions of dollars of home loans were sold to people who could not afford them. When interest rates began to rise, house prices started to fall and borrowers began to default on home loan payments.

According to Chin, based on the assessments done with some lenders, 15% of customers display loan compression behaviour as they have Debt Service Ratios of between 80% and 90%, which hits the maximum limit allowed by Bank Negara Malaysia.

CTOS also revealed that the riskiest age group is 35 to 44, as they tend to take on more credit than needed, which leads to more delinquencies in their credit profile, based on CTOS’ one million subscribers who had taken the score.

End of loan compression

There is no shortcut to becoming rich, and some experts see loan compression as improper, said AKPK’s Nor Akmar. “We believe that anything that is done improperly will eventually come back to haunt you. It looks and sounds attractive but the future is uncertain, especially with uncontrollable events like Covid-19, recession or loss of income.”

CTOS’ Chin warned people not to commit to loan compression. “Banks have guidelines on the amounts they can lend people based on their salaries and the property prices for a reason.

“That reason is, as responsible financial institutions, they do not want to put homebuyers in a position where they may not be able to service their loans and get into financial difficulties.”

Hence, CTOS considers the amount of outstanding debt that a person has as one of the criteria when defining their CTOS Score.

“Once a person is overleveraged, it will negatively affect their credit score, and potentially mean that future credit applications may not be viewed favourably,” says Chin.

Oh my god. There's no coming back from that...

Lelong unit check in. Drop from 1.7M.
Now at below 1M.
3 storey semi D.
Title perfection done.

1st auction RM 1.7M
2nd auction RM 1.53M
3rd auction RM 1.37M
4th auction RM 1.24M
5th auction RM 1.11M
6th auction RM 1.0M
Now is 7th auction

No. 23, Jalan Tropicana Cheras 1,
3 Storey Semi Detached House
Reserve price🔥🔥RM 905,000🔥🔥
Freehold
Built up: 3976 sqft
Land area: 3197sqft (20" X 80")
Auction: 08-Aug-2020 (Sat)
*Vacant unit

Tell this to those who has experienced 1984-1987 poorperty bubble burst.

what one doesn't know doesn't mean didn't occur.

Wow RM 166k, about RM 140 psqft