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.

Lower down profit by 20% maybe can sell within 1 year

Tough life, loan + maint fee 2k for this condo yet hv to serve car loan or existing house loan. Must tighten the belt every month

If total rental can cover, say 70%-80% of yearly commitments (i.e installments, management fee, estimated repair etc), maybe can keep for at least 5 years?

Anyway, that is my plan.

How much do you plan to sell? What is your definition of handsome profit?

About 100k gain is handsome. Bought at 373k and target sell it arnd 450k. But I knew it is impossible now as still many left over developer units, so I can only hold for now. No plan to rent as I dun wan the hassle of managing tenant.

wah if you dont plan to rent then you should buy a landed property and hold.

anyway, can see agent start posting rental for studio RM1100. probably with minimal furnishings.

After 5 yr good timing

Either rent it out to minimize lossses (although it will be negative cash flow)

Or sell it off to at least breakeven

The next cycle of prop booming will take some time given the average income is not growing fast..

There are still chances to grow if the location is upcoming with future amenities, not sure about Bukit Puchong

Rent it out asap.
Cover more than half is good now

Nobody have the crystal ball to predict the future lah, but wise man say the longer you hold, the higher return you can get, property price will only go up base on history, property price is resilience bad economy and financil crisis, no worry....haha

what's the net price after discount from dev for same type?
I sold my both soho units about 10% below their price in CBJ last year, found buyers within 3 mths from VP.
my rational is that if it is not performing well, then ditch it asap, save the opportunity cost.

This post has been edited by lamode: Jul 7 2017, 02:07 PM

haha....u r very right ....tough life
so when mkt gd u see people with properties most people so hot and so keen....so when market down is all the way tough life....very few people will want to have this kind of life...what is the point...life is to enjoy

rent it out for around 1300 and wait for developer units to clear out.... otherwise sell at no gain no loss (inclusive of your expenses)..... handsome profit... u bought ur hse to flip at wrong time bro... towards the end of property bull run... lol

Oh... epic jialat susah. I pigi survey the place And surrounding Liao. Impossible to flip. Developer sell Premium price tag from start. Go for cheap rental first to hold as long as you can until bull run again.

This post has been edited by HELLO HELLO: Jul 7 2017, 02:09 PM

u can still try...
Allow buyers to markup loan to minimize their deposit. (most of buyers fell for this)
and if prop is less than 5 yrs, dont 4get to pay RPGT. good luck!

TS you obviously missed out the entire (hidden) chapter of property investment.......

1. Not all properties will make u money, lets along handsome profit
2. Locationx3
3. One bedder in non commercial area

Good luck. Please join the queue of many investors to cut losses.

buy condo but dont want to rent?? why not buy land

This post has been edited by HarpArtist: Jul 7 2017, 02:51 PM

I got 5% rebate only and hv to serve interest. But developer gave better offer after with 10% rebate. Lucky the developer can deliver ahead of schedule and save us some interest. But the price quite steep and very hard to sell now.

Now I get tied up with this condo already and pray hard my job will be stable. Else once I lose my job I will bankrupt immediately.

His intention is to flip roti canai and pocket 100k...

Like many of his friends did before him.

Cut loss......cancel yr japanese or europe trip.....
Yik yr subsale buyer......lower yr expectation.

rather than left it out without being rented, it is better or atleast u rent it out..
At least, u can loose abit of ur tighten belt.

what sector are u working in?

flip? RGPT isn't a fool dude, it's not 10 years ago

I don't think there will be any handsome profit , probably do a nice reno and hope buyer would appreciate

Time to wake up
https://youtu.be/-GUqa9ePNCg

Rental can cover 70-80% of ur loan installment consider very good dy at this market environment
If not just try to rent out as long as u receive some money

Market is not favorable for flipping now ....
Some more yours is studio? I dunno about others but my rule of thumb is dun get studio if u plan to flip

Looking at the condition, u better start raising issue about the African tenants, if u want get good appreciation
Wait for 2-3 years ba... if condition and management good, maybe got chance

It is always good to start with the exit plan in mind.. especially when invest into studio.. btw BNM is reviewing the fiscal structure to raise OPR by end of the year or early next year.. need prepare some hedge funds else will be GG oledi..

p/s: puchong still got some chance lah.. if +bukit in front of puchong then need think twice..

This post has been edited by honesty tan: Jul 7 2017, 03:42 PM

preferably hold for 5yrs and rent it out to cover installment

In the long term, property price rise at about inflation rate. after factoring in interest payment, real gain may not be worth while for negative cash flow one need to endure.

This post has been edited by icemanfx: Jul 7 2017, 03:33 PM

Many told me property make more money rather than put your money in bank - inflation, low interest, currency dropped, blabla. Hence I also try to invest and hope able to gain in next few years. For now just tighten the belt and patiently wait. Tropicana city studio also can fetch 600k plus, why cant my studio get 450k? Just time only and it is freehold so no worry to hold.

honestly that place ah....

Road entry not good, a lot of foreigner there, old shop still got a lot, so don't hope the commercial will boom in near future, this place quite quite far from puchong, address is under sepang, public transport bus only lo, LDP damn jam during peak hour and it getting worse, is surrounded by toll except go to pchuong,

good things are near to Taylor school lo, near to Tesco, .....but i just don't think enough. There got a lot of cheap condo and lander, rental quite affordable...forgot to mention, it near to a beautiful mosque on the hilll

The wharf is in better location compare to here as the population there is higher, also not doing well....sooooo what you think leh

This post has been edited by Nikmon: Jul 7 2017, 03:42 PM

property does make money but the problem is when u buy new unit, u got charged kaw2.. very high price which does not represent ur house worth.. thats y still gain but not too much, ur case want 100k in near time, have to wait..

This is studio with 1 bedroom or no room unit? Such property is hard. Rare to find family will buy for own stay. Only investor will buy. But if rental not able to break even the price also no investor will buy.

the wharf i ingat negro nest.....? doing well also bcum not well already.... lol... and its leasehold right.... its actually further away from puchong city....

tell you a crucial truth, why Tropicana city studio can fetch 600k, it is not because our economic shoot up in the sky, salary went up double, but just because of regulation change, and all these benefit from gov are fading....

example buy house could relieve 30k in income tax for 3 years!!!!

other forumer please share the benefit we can get by buying housing during boom time.

Lol. That is why you make this stupid decision. You think every house is the same?

Tropicana city is a better location than your "epic" (lol the name is so ironic) location. Tropicana is so near to mall, got MRT, nearby hospital etc etc, what does your place have?

And again this is Malaysia, when you buy a studio unit, what do you intend to do with it? Flip? You think everything can be flipped? Do you think families want to stay in a studio unit? So who the f would buy (or rent) your inflated price studio?

If want to invest in property, invest in knowledge first. Don't just simply follow people. I bid you good luck.

your mentality is kinda wrong... i mean yea... other than freehold... u shud think wad other factors that your studio have compare to tropicana city ones? and bear in mind bro... u hold few more years... more subsales studio coming in the market... especially those at hotter areas than bukit puchong... not trying to pour you cold water.... u have a good mindset there... which is be positive and live on...

Sorry but wrong mentality of investing. Good lock!

We have to thank uuu/bbb for this.

I guess many had also told you location location location is also i vital factor to make good return on investment.

Location is a major factor in how valuable the propoerty is, other factors including developer branding, finishing, amenities, upcoming catalyst (highway, public transport, education center, malls, government planning etc)

why tropicana city can fetch higher than bukit puchong? - Location (highway connection, amenities, demography (higher income group), proximity to major business area)



TS, I suggest you have to make a decision, either sell it off, cut the losses and move on

Or, rent it out to minimize your losses while waiting for prospect buyers

To me, studio only works in dense business area with working ppl of higher income, or expats
and studio is more of renting out for +cashflow. If there is capital gain will be a good bonus
for me, places like KL city, PJ and maybe subang are the area where studio has higher demand and better ROI

Puchong till today, cant really see any studio that really oustanding, moreover bukit puchong is better off with landed or high rise with bigger sqft.

Setia Walk (850 sqft) partial furnish asking rental price is very similar to Zest (1200 sqft) partial furnish.
However Zest has a better rental yield due to its lower entry price 8 years ago while Setia Walk started off with much higher entry price.
Gain wise, Zest perform much better than SW

For me, Puchong is still favorable to Landed and highrise with bigger sqft

This post has been edited by twincharger07: Jul 7 2017, 04:50 PM

hi all sifu, is this project worth to invest?

http://www.greenfieldresidence.com.my/

Sucker is born every second in this world.

Assuming RM373k 30yrs loan @ 4.5% = 1 month 1.9k installment. Saw in another thread saying management fee is RM0.42. so one month need to bleed RM2100++ (RM1900 + RM262).

If wait 5 years and sell @ RM500k. RM373k + RM126k (5 years installment and not renting out). Congrats. You will earn Rm1k nett **meaningful profit**

its more meaningful to calculate rental yield now based on property price than looking at the installment liao... haha... no matter what he these few years need to bleed alot of cash flow anyway... gain or loss is another matter.... the rental yield if able to cover interest at least... he consider as getting the property at cost level liao disregard the transaction expenses...

0.42 include GST yet?

The maintenance fee on serviced apartments and SoHos are also subject to GST and there are no discounts of exemptions unless a unit fulfils the conditions by the customs department and is treated as residential property. Only then is the maintenance fee on the unit no longer subject to GST.
https://www.theedgeproperty.com.my/content/...tled-residences



This post has been edited by elmond: Jul 7 2017, 05:04 PM

So just need to lower ones expectations and rent out at average 1k per month,then at least got 60k gain.

[quote=aaron1717,Jul 7 2017, 03:58 PM]
its more meaningful to calculate rental yield now based on property price than looking at the installment liao... haha... no matter what he these few years need to bleed alot of cash flow anyway... gain or loss is another matter.... the rental yield if able to cover interest at least... he consider as getting the property at cost level liao disregard the transaction expenses...

[/quote]

[/QUOTE]No plan to rent as I dun wan the hassle of managing tenant.[QUOTE]

Bro. My calculation based on owner unwillingess of managing tenant.

Ur calculation so funny, 5 yrs serving loan the loan amount already reduced. So how can u deduct the loan amount 126k from selling price 500k?? No one can predict the future, just patiently wait for few more years. The nilam putri built by bujit hitam also fetch handsome profit in case you dun know

Just a simple/straight forward calculation bro. No argument there bro. Just best to rent it out. As you said, no one can predict the future.

are you in IT industry?? loan serving is part of expenses, need to deduct out to get the net profit...

I not in IT, I hv faith to my own investment. Only time can tell.

Good mind set, since you have invested, so chances to gain 100k or more still there, just bear in mind that lose 100k also possible. haha

if and only if 5 years later able to reach the price of 500k.

Your investment also so funny. Your comparison with Tropicana studio also so funny.

Erm. TS we are just giving our opinion since you open this thread and seeking peoples advise. Since you have fate to your investment then why you still open this threat

why property price could increase 100k or as high as 500k,

1) No gain Tax
2) property installment dropped as high as 60%*
3) could save up to 8k income tax.
4) household debt stand at 60%
5) limited supply**

*lending rate dropped from 10 to become 4, a cleaner can't buy condo in 2007 buy able buy in 2009, installment dropped from 6k per month to 2k++, they even want sona facility in the condo
** whoever went through the 1997 crisis should know why the supply is limited during that time.

during that time, location*3 mean nothing, cause all the property increase at least 100% to 300%, guarantee profit.

as for now, all the factors mentioned above are no longer exits, instead gov and bank negara implement measure to curb the property investment, worst still interest rate is no longer at lowest and slowly climb up in future, the only hope is ...you know i know lah. This make property investment become very high risk and not lucrative as last time.

This post has been edited by Nikmon: Jul 7 2017, 06:02 PM

Let me give you another perspective - Nilam Puri Condo nearby. Renting at RM1,400 for a 1000++ sqft. How much you are looking to rent for a studio? RM1k?

All those booming Prima and Rumahwip selling way below RM500k for bigger unit and better location are completing in the next few years.

You still looking to sell after 5 years for RM500k at RM800/sqft in this location?

Good luck bro.

Can fetch 450k ? Now even a new condo in jalan ampang is only selling studio at 299k.

You cant compare 10 to 20 yrs old apartment with brand new mid end condo. The facade is nice and build quality is fantastic. Some of your opinions are useful, but we shall see in next few years depending how bukit hitam to develop this area

First 10 years installment mostly goes to bank interest.

And ts want leave it vacant.... Jialat.

This post has been edited by HELLO HELLO: Jul 7 2017, 07:58 PM

Ts has his own thinking ask for opinion but doesnt take what he doesnt like to hear. Dont waste time here guys

Yer can cover half (50%)also ok..

I dont want to reply actually as you seem to be very positive. But overly defensive doesnt help or are you an inexperienced young lad. Anyway please, keep an open minded and learn from sifus here. Sorry to tell you, location wins over age of a property. Just like men as they get older, they are wiser! A wrinkled woman is more real than a hot chick. Jln Ampang vs Bukit Puchong seriously he only gave you an example.

You have 2 options, lower your selling price but bear in mind you might not even get any buyers and/or secondly rent it out (this is the best you can do) but it sounds like you want to stay there so best of luck.

Just wasted. Over and out.

https://forum.lowyat.net/topic/3625807

an example studio at Jalan Ampang which the price below your so call mid end condo

oppss wasted my time chiao now

Rent out studio?
Know how much $$ to fully furnished? Sure investment can recoup?

Epic puchong as mid end condo.....laugh die me.

Give me kudalari anytime vs new pavilion dsara.

Ok ok, thanks all for ur advices. For now I prefer to go there overnight once awhile and use the facilities like my personal hotel. Can take my own sweet time to slowly renovate it bit by bit to make it as second home.

You think it is bad location and low end condo, but I like it. If cant sell then I can continue serve loan till end and move there after retire.

Smart respond to those offensive repond here,

When everything else faiils.....keep as holiday home loh ..

Hear it agsin n again.......

since you are open to advise maybe i insert some of my 2 cents

there is a thin line between buying what you like and buying what is viable for investment.
Some buyers bought a property base on emotion and fall into the trap.

Buying an investment property is about picking a property based on the market potential. Buying for own stay is based on what you like and what make you happy.
of course, sometimes both co-exist.

Falling in love with your property might cause you a life time in terms of debts and financial freedom.
since you are saying you have other commitments, so you might want to think about it.

sometimes we just have to treat it as a business, if its not viable anymore, just have to cut it and move on. take it as a lesson learned.
You may find other better opportunities in the future. But holding on the old property might just holding you back from getting the new opportunity.

Good luck.

This post has been edited by twincharger07: Jul 7 2017, 11:21 PM

agreed.... come here just to debate/rebute other sayings and speak out his opinion... might as well just open a thread on his own opinion about property market and close the thread....

in his defence. admitting mistake is a bitter pill to swallow. god knows we all did it at least once

nobody can answer that question for you, how long you need to hold. Because nobody knows how the market will turn. If you can rent it out, even cheap cheap, then Rent it out and get some money back. This is the best and only financial recourse you have at the moment. Consider yourself lucky that you can probably find a tenant. There are some projects in Malaysia, absolutely you can't find a tenant.

of course, what you actually want to do with it (holiday home etc) is your own call.

I know of a serial investor (multiple properties around Malaysia) once told me that one must enjoy the whole process of buying property. He also told me some of his properties he leaves vacant because he goes for holiday once in a while and likes to stay in his own property whenever he visits. What i mean is that some people are doing so well, they prefer to buy instead of rent even when he stays only a few weeks a year. This particular guy he told me it's too troublesome to rent out some of his properties. However i know that his business is doing really well.

I agree with twincharger07, more units will come in and things might not be easier for you.

Sell or rent out, maybe select very good tenant only to minimize hassle.

Bizmen lain cerita....

All tks here said to rent out to rent out...

Even renting out also need indepth experience and hamding de. ..

Otherwise...u just throw good money after bad money....

For holidays home, one is better to buy in a scenery place e.g beach, hill, lake, etc and certainly not in concrete jungle.

This post has been edited by icemanfx: Jul 8 2017, 02:27 PM

Bro,they are helping you. There is 2 possible scenario after 5 years if you hold.
1)Very very positive scenario, If your unit can sell at 500k, you will earn nothing without rent and serve bank interest every month.
2)if can't fetch 500k, you will lose a lot without rent, so better to rent it out at least to cover some of your bank interest serve. Look for buyer at the meantime.

Better go and check how much interest serve on first 5 years, bank interest will be crazy if the longer you hold without rent, unless you bought by cash,Bro.

This post has been edited by Properlog: Jul 8 2017, 02:46 PM

Assuming loaning 370k for 30years with 4.5% interest, TS will be paying about rm80k worth of interest after 5 years while still owing the bank rm340k. (check amortization schedule). Maintenance fee might had amounted to rm18k in total for 5 years.

Transfer of title from Master title to strata title most likely will happen within the 5 years, that cost about RM10k

if selling thru agent, commission ~ 3% of selling price, thats RM15k

Thus total cost will be about rm80k+rm18k+rm10k+rm15k=rm123k

The break even price will be rm340+rm123=RM463k

I haven't add in utility bills and local council assessment fee yet.

Selling at RM500k might gain about RM30k. If the value fall below RM460k, most likely will be a loss.

__________________________________________

Scenario 2, if renting out for 5 years

RM1000 x 10months x 5 years will get you around rm50k of rent. (10months is used assuming commission paid to agent and certain months with no tenant)

The break even price will be RM463k-RM50k=RM413k.. this allow some margin before making a loss.'

Cheers

This post has been edited by twincharger07: Jul 8 2017, 03:48 PM

Good breakdown, Bro. Hope he can look at your figure.
Never hear anyone bought condo without rent for long term investment. Unless you are super rich with no care or bought as holiday house initially.Cheers👍

This post has been edited by Properlog: Jul 8 2017, 04:31 PM

Need to add in 20-30k for reno, bare unit difficult to rent out. So any party can give fair value to the property in Malaysia now?

This post has been edited by jhuitan: Jul 8 2017, 04:35 PM

I think TS unit is furnished or partly furnished by developer. thats y i didnt factor in Reno cost

By experience, less than 20k can somewhat turn to almost fully furnish if its a bare unit.
Need to be smart in shopping for furniture and electrical appliances.

Some i heard just use rm15k..

This post has been edited by twincharger07: Jul 8 2017, 04:44 PM

Ok, still need some time. Need to fix defects first and install basic things like fan and light. If I can find good tenant then I will rent, no plan to use agent as I will post ad at mudah and bilik. Got friend rent using agent and faced lots of issues as tenant default payment and refuse to move out.

getting a proper Tenancy agreement is the vital key to resolve dispute between owner and tenant. Just make sure it is being done properly if you choose to engage it yourself.

Cheers..

how a tenant default payment and refuse to move out are agent's fault?

Wah.. so many prop sifus gather here. Wish to ask all sifus, what is your forecast rental in the next 5 years as there are so many RumahWIP, Prima, PP1AM unit VP later? Will the rental of a unit of size lesser than 1000sqft to only gain a rental of RM800 per month in 5 years?

Props for investment are Afterall a biz. Move on if not willing to rent. Treat it as bad debt.

Agent only wants commission and wont care the quality of tenant. Hence I hv bad impression on agents

I already plan for the worst when I bought this condo, as long as I am working I will hv no issue. But if I jobless I hv to fire sale it

For bkt puchong Pls do consult ah lard

He sibeh gungho of his con project there

Smart move .....

I guess your 6sense can tell who is good n bad tenants......

Funny the blame would go on agent when owner is the one who sign the offer letter to rent to the prospect. The agent don't decide who you rent to, is the owner. So why blame the agent and not the owner?

Better u rent first. Didn't u think about this beforehand?

Owners have the final say on which tenant they want.. Agents are merely finding the match, doing the groundwork, bringing prospect to view your unit when you don't have the time.

Unless your friend is the one who desperately renting out the unit without screening the tenant properly.

There is a higher chance of getting better tenants with a good property as you can pick and choose from a pool of tenant that want to rent from you.

Those properties with lesser tenant demand where owners are likely to be more desperate.

If an owner willing to take a risk to buy a property with uncertainty and lesser demand, be prepared to take risk of what sort of tenant you will get as well..

This post has been edited by twincharger07: Jul 9 2017, 12:01 PM

Hmmm agents are only tools for owners/buyers... the decisions eventually belongs to you

Anyway as widely suggested... renting out 1st will be wise... and actively looking for buyers in the meantime will be good

Cutting loss is as important as entering into an investment... when your investment doesnt serve your purpose... better to cut (hopefully minimal loss) and reload to fight another day

But of course all these depends on many factors, since we don't know the full circumstances

Rent out, suffering f -ve.
While hopefully future can sell by at least breakeven (losing opportunity cost) of your invested money.
If not, bear some losses.

That's it.

Now any new vp condo can make profit immediately? I dont find any as condo is over supply, so we can only rent and hold to wait property boom again