QUOTE(Lcclcc @ Mar 27 2019, 05:11 PM)
Mind to share your experience on Auction for Low Cost Flat.
I have bought one unit of low cost apartment some two years ago, it's title as low cost apartment.
After i won the bid, then i am getting confused by the lelong agent as well as my lawyer if it's categorized as low cost flat.
And was worried there might be Authority Conscent required for such Low Cost Unit.
Both the agent and lawyer can not give me certain criteria if an property is categorized as low cost flat.
And many confusing criteria which can not be confirmed:-
1. The First Purchase Price are less than RM40K
2. If the property are more than 10years it's free to transfer to anyone
3. The unit should be smaller than 650 sq ft.
4. Both KL and Selangor, or every state have different policies on this.
I make the full payment to the auction bank and eventually the title transfer was completed with no hassle.
I bought the unit at RM80K at Reserve price and spend around 8k to paid the unpaid bills and small make good, and it has been renting out RM700 since then.
I would say that it is good on rental return, but it's not much on price appreciation, and not viable on financing/selling, as each transaction will involved with a lot legal fees.
I wonder if Sifu have any deep knowledge and what is the standard procedure that you have handled in the past to shared with.
I definetely want to purchase more of this kind to my portfolio very much like a saving for long term if i have the knowledge.
Thanks
Definitely can buy those low cost units or affordable housing scheme projects via lelong. Dont have no meet the criteria to buy.
As mention previously, got investors even willing to bid more than the market price for such units, coz via normal method, they got no chance to buy such property. Yes, still need to ask for consent. It will be given. Is just formality to complete the process. Here copy paste from somewhere:
QUOTE
(a) Pemilik rumah kos rendah tidak dibenarkan menjual rumah dalam tempoh lima(5) tahun selepas Perjanjian Jual dan Beli ditandatangani kecuali jika rumah tersebut digadai oleh pihak bank yang mana harganya tertakluk kepada harga pasaran; dan
(b) Selepas lima (5) tahun, pemilik rumah kos rendah boleh menjual rumah mereka mengikut harga pasaran dan penjualan/pembelian ini tidak lagi akan tertakluk kepada syarat- syarat/kriteria kelulusan permohonan untuk pemilikan rumah kos rendah swasta.
Buying such units from lelong certainly no problem. You should be more concern about how to sell back in the future.
Coz your future potential buyer need to meet all the criteria. Easy to find such buyer? Easy to dispose off after 5 years? Here an example of the syarat-syarat (might not be the latest and other state will have their own set of criteria):
» Click to show Spoiler - click again to hide... «
Additional: Some state such as Johor and Penang even got criteria you can only sell back to Johorean or Penang ppl. The buyer I/C as proof.
That's the main reason why such property got no appreciation. Very limited subsale market.
Rental return wise no doubt is fantastic but some people will argue say you will find trouble collecting rent from those "lower income" group, and better not to waste effort venturing in such property.
Plus some people will say just leave it to those that really need, those that can only afford such property people. Not morally right to take away their "hak", as per this illustration:
» Click to show Spoiler - click again to hide... «
Haha. No right or wrong. Just general opinion from keyboard warrior, those netizens.