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

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

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

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

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

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..

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

It depends what kind of expectation you have and then determine what kind of property to go for..

I gave you an example:

Regalia Jalan Sultan Ismail launch back in 2007 with 500sqft studio cost RM202k, fast forward today, it is selling RM450k with rental price around RM2000/month
It took 10 years to appreciate from RM202k to RM450k... Gain ~RM250k
Fantastic pool view


Saffron Sentul launch back in 2006 with 1000 sqft condo cost RM225k, fast forward today it is selling RM650k with rental price around RM2500 fully furnish
Pretty good gain over 10 years ~RM425k

Setia Walk Puchong (845sqft) launched back in 2009 with RM320k, today selling at RM500k.. Gain ~ RM180k
Zest Kinrara 9 (1205 sqft) launch back in 2009 with RM250k, today selling at RM550k.. Gain ~RM300k

What is observed is that small unit like studio tend to appreciate much lesser than bigger units
Bigger units which around 1000sqft are more attracted to buyers who want to buy for own stay and own stay property tend to have better appreciation as home buyers are willing to pay for home that they are happy with.
Smaller units are usually bought by investors for renting purpose. Not many buy for own use. Good rental yield but they tend to appreciate much slower.

Another classic example is Casa Mutiara in Bukit Bintang.. the 300sqft studio subsale was selling RM200k 10years ago but only appreciated to RM330k today (only RM130k gain over 10 years in KL city). However, rental is pretty at RM2000 per month.

there are gems around Klang valley like Scott Garden 775sqft with RM400k subsale, rental about RM1800 and i think old klang road still have plenty of potential

Now is subsale market... New launch prices are daylight robbery this days..

Bukit Jalil is another area to watch out.. some subsales are gems.. catalyst like paradigm mall 2 and pavilion 2.. if we only go in after these 2 malls are completed, then it will be too late..

I don't go around new launch gallery these days but rather driving around the neighborhood and searching subsales online..

cheers..

This post has been edited by twincharger07: Jul 9 2017, 09:05 PM

rule of 72