Wake me up when I can buy ttdi landed at 500k 🤭 oh wait bubble doesn't exist in prime areas

Wake me up when I can buy ttdi landed at 500k 🤭 oh wait bubble doesn't exist in prime areas

It’s a bit irrelevant to contrast luxury high rise market as the potential market for those have been greatly diminished. This market segment has the power of choice and could easily rent out a fully furnished landed if they wanted to or bargain down the asking rental. I’ve seen almost 2000 sqft KLCC property go for 3k/+ month rent.

The genuine market is of course the local populace. Your sub 1 mill units. There’s a tonne of choice for a 2k rental 3 bed/2 bath place. It’ll just depend on how many months of vacancy an owner can tolerate.

WoW...i used to rent a KLCC property at 1060 sq feet for RM5,300 back in 2015/16 !  

Wake me up when I can buy ttdi landed at 500k 🤭 oh wait bubble doesn't exist in prime areas

WoW...i used to rent a KLCC property at 1060 sq feet for RM5,300 back in 2015/16 ! 

I’m not saying all KLCC property are the same. There was a lot of leverage here to bargain since this property is facing the kampung baru mrt and u can complain about noise etc. Ultimately, the rent is just used to pay for management fees which for these types of units are like 50c psf or more.

After 2 years of vacancy, most owners will just hire the bullet and take what they can get. It’s truly a buyer’s/tenant’s market.

My bad, I shouldnt have picked luxury units for case study. One can always include the non-luxury units as case studies to get more data.

Redoing calcs, with a non-luxury unit.
E.g. Hamilton, Wangsa Maju

https://www.propertyguru.com.my/property-li...othman-34027755
Rent 1.8k for 1000 sqft = 1.8 psf

https://www.propertyguru.com.my/property-li...jc-tai-34116035
Asking price 550k for 1000 sqft = 550 psf

ASSUME maintenance fee of 0.35 psf

For it not to be negatively geared at the interest rate of 3%, (1.8 - 0.35)*12/0.055 = 316 psf.

316/550 = 58%, hence a drop of 42% is required to not negatively gear this unit.

I do agree that not buying a property now is a wise choice. Invest elsewhere, the return can easily cover the rent, and will still have extra cash on hand after paying the rent for other uses

  EXACTLY.

For me personally, I like to see things in numbers; with numbers, I am able to make a more sound decision (less affected by emotions). Also, I did the calcs with a random listing from auction, just to answer the below, and at the same time to show that even properties on auctions are not necessarily worth buying. A lot of property gurus turn into auction gurus, preaching others to BBB, telling them that auctions are 'cheap' and even bid higher than subsale price 
The market value for one of my father's properties bought at 700 to 770k is now ~ 400k
Just sharing, so less people become waterfishes

Your points are very valid bro, but, when it comes to my hard earned money, yes now I only take the sure 99% win approach, or as sure as I can damnably assure myself of. If that lowers the returns so be it.

Let me share my property story.. in my late 20s now. First property is my greatest regret, bought new from dev during the MRT hype in 2015 at 700k, as with most young people, stupidly attracted by cashback and future "mall". Highest rent I got was 2.8, currently it's 2. I'll be lucky to be fetch over 650k for disposal now. After that picked up two old subsale condos as university hostels average price of 700+. After renovation costs of 50+, 7-8% yield. Then covid struck. Rented to shop workers/interns at 60% the old rent and much lower capacity. This year Thank God, should be 6-7% barring a new lockdown. Last purchase, a klcc subsale studio for 500k for airbnb. Maybe I got a bad manager, but for the first year net yield never went over 2.5 which was disappointing, so rented it out to an expat, at 2.5. He got retrenched a few months back, and had to drop to the current market rate to get it tenanted immediately, which is 1.5. Current mkt value? 400k.

Would I still buy another property? Yes, but it would have to tick so many boxes. And anyway I'm much more interested in moving money (and myself) out of Malaysia at this point.

What to expect during a burst? Can sapu at good bargain? Then again, what's a good bargain at the time when everyone's trying to liquidate their properties?

Oil up...

Be advised.

Location location location.

Cash back, glitzy fully furnished 900psf NU NY = GG

Landed. Freehold. Prime locations.

Are you buying for me? 

Damn sad story. He went out from another hole and jump into another hole. Digging the hole even deeper.

Take it easy, do your due diligence. There will be good bargains out there, need to hunt patiently.