This is for people who can only afford 1 property in their lifetime for own stay and below are the reasons:

1.You buy a rm500k condo, you need to pay rm50k upfront Downpayment, rm450k loan, at interest 4% for 30 years, you have to pay rm2.1k per month. Total interest paid would be rm323,409

2.Maintenance fee assume rm200 a month, 1 year is rm2.4k. that is rm2.3k per month just on the condo.

for rm2.3k, it's more than enough to rent a full unit and your rental already includes the maintenance fee and you still have big surplus.

A condo is not like Landed Properties, so Lease Hold or Free Hold doesn't matter much, the older the condo, the lower it's value, because unlike Houses, Highrise won't last forever and will sooner later be demolished to make way for new buildings.

So assume you get to stay in your condo for 60 years, that is rm500k+rm320k Interest investment for just 60 years. That might allow you to stay in the condo for your lifetime or maybe not enough. A simplified version would be you'll be spending rm13k a year for 60 years. Once the highrise reaches it's age, it has little value left, most likely you'll have difficulty selling it off 40 years old units, so you can either continue stay in it or rent it out for the rest of it's shelf life.

So assuming you are buying for own stay, it really is not much different from renting, it's actually cheaper to rent than buy, and less trouble some as when you own the property you have to pay for all the fixes everything you have to settle on your own.

Down side on renting is you have to look face of the owner, if lucky get good owner good unit then it's great, old units chances are the owners won't be able to sell it off even if he wants to, so he have to continue rent, sure rental goes up every year but it would still be cheaper than buying.

Advantage of renting is you have the freedom to move around, any problem just let owner settle, your risk is your potentially losing your deposits but even those amount are still cheaper than Owning. At the end of the day, you just do your part as a good tenant and wipe ur pants when you leave.

Note we are talking about rm500k condos which are considered average, there are many rm700k-1mil condos out there, sure they look good, feels good, but remember you'll be paying for maintenance fees on top of your loans, by the time you finish your loans, you are still paying the fees. and do the math, after 60 years, how much would you have paid for maintenance fee (rm200 x 12 x 60 =rm140k), high end condos easily cost rm500 per month.

Landed properties, even Lease Hold, at least you know the house should still be standing after 80 years, and there is still a chance you can renew your titles at a small fee. Condos, even Free Hold, pretty much worth nothing, ok maybe you get small amount of reimbursement but is nothing compared to the loans you paid for it.

Note this is for own stay and if you can only afford 1 property. Of course if later you dug goldmine buy a house you can rent or sell the condo, that is if you actually dug gold & can afford a 2nd house.

If you can't afford to pay your rents on time, you can't afford to own a property.

For short selling & rental, it might be possible to make profit, but depends heavily on location. For self stay, i say if you can't afford a landed property, better just rent.

Anyway #YOLO, if you really want to own a home, just buy 1. But hey at least i told you so.

inb4 #Rent4Life.

No drills? Tldr. TS is a faggot

Should add consider using a satria

People buy what you kesah apa?

Suka sangat wanna jaga tepi kain orang.

conclusion ts is a jelous faggot

Should build rumah setinggan in the middle of roundabout.

U didnt consider the rent rate will go up gradually after each time change owner. 1st owner bought the unit at 500k after that new owner buy it at 700k n so on. New owner will increase the rate to minimise his installment. Some owner even increase the rate following market rate even though he is the 1st owner.

So in 60 years, u will be paying the current market rent rate of the unit, whereby if u bought the unit 60 years b4 u are just still paying installment for 500k unit.

Completed April 11, 1931; 86 years ago[2][3]
Opening May 1, 1931; 86 years ago
Cost $40,948,900[4]
($645 million in 2016 dollars[5])


The Empire State Building was "officially transferred over to the nascent Empire State Realty Trust for $1.89 billion" in October 2013. http://therealdeal.com/blog/2013... So, we know it's worth at least that.Aug 14, 2014

Actually what TS say does make sense. But actually the loan interest theory is applicable to landed property aswell. Just that landed property tend to appreciate more in the long run. But cons are the rental yield are usually lower for landed property. With endless new property development in our country, I doubt it will be easy to let go even a landed property.

I choose to purchase a non landed property because of location and for future upgrade, condo will provide a better cash flow with it having higher demand in the rental market and lower entry price even for future buyer. If buy landed property, need to have deep pocket if planning to relocate in future. Low rental yield and takes time to let go.

so you're comparing a famous skyscraper in a prime location vs some condo/apartments in KL/PJ?

do you know the spec for skyscrapers are much higher than condos? and do you know how much annually they spend on maintenance & repair? and how much it cost to refurbish old buildings?

sure if you have the money to splash you can even make Pizza Tower straight. but who would wanna refurbish old condos? unless it's monumental. sorry folks, old highrise apartments holds little value.

It's a common fallacy highrises lasts only 60+ years. It's all about d built kualiti and d maintenance. Konkrit bloody lasts FOREVER!

advocado datang lagi

Don't jealous

rent 1500 for 30 years = paid 540k and own nothing. errr doesnt sound too good does it?

This post has been edited by pisces88: May 31 2017, 01:40 AM

u havent factor in the increment in rental too. like my own condo, i increased rental by 10% after 3 years.

assuming :

year 1-3 = RM54k rental paid
year 4-6 = RM59k rental paid
year 7-9 = RM65k rental paid
year 10-13 = RM70k rental paid. lets say the increment stops here.

and so on until 30 years, in the end how much you would have paid ?

or maybe u look for cheaper alternative every 5 years, i think in the end of 30 years should have paid roughly 600k in rental

If you're talking about leasehold then ur correct, but Freehold condo or apartment is ok. It's precisely because you don't have much money you can buy. Just need to make sure you find a good condo with good management. Those that maintain the condos well. You sell off the condo after 5 to 10 years then you'd definitely make enough profit for a landed property downpayment.

Despite your statement that the price will depreciate with time, I have yet to see well maintained freehold condos in klang Valley where the price has dropped compared to past 10 years. So many condos and apartments built in early 90s which are still sold at good price way above the original purchase price.

You rent rm1500 for 30 years, you would have spent 500k just paying rent without gaining anything. If you bought the 500k condo, even though you may have spent 900k in total paying the installment for 30 years, you could easily sell it off for at least the launching price. Meaning in total you only lose 400k...that's assuming the condo is sold at launching price, which almost never happens. You'd usually get around double after 30 years, maybe even more if ur location boom even more throughout the years.

Anyways, you opened quite few threads on similar topic before this, so my only question to you is... How many units you renting out now? Rental market not that good until you have to keep posting to convince people to keep renting ah?

No ppl renting TS apartment or condo now?

Lease can be extended back to 99 years at anytime. If value start to be affected or loan becomes difficult owners can collectively apply for renewal. This can be done anytime even for 30 years old property.

i just can't help, his thread always make me laugh ...

Eh eh, kenot say liddat waaan. To maresians, lishold means die lor, no value. Buy property must "hold" it until Jesus comes 2nd time...