Once again another cheap lelong unit check in. Drop from 550k.
BUMI lot and possible owner occupied unit.

B-3-3A, 3rd Floor, Block B, Pangsapuri Bayu Sentul
Reserve price 🔥🔥RM360,855🔥🔥
Leasehold until 2089
1363 sqft
Auction: 22-Oct-2019 (Tue)
*BUMI lot
*Occupied unit

Another lelong unit available at cheap price. Expecting those that fail to win the last unit will aim at this unit.
From Green Block but this time is vacant unit.
Can bid up till 300k?

A1-28-12, Block A, Parklane OUG Service Apartment
Reserve price 🔥🔥RM 262,400🔥🔥
Freehold
950sqft, 1 car park
Auction:  22-Oct-2019 (Tue)
*Non bumi lot
*Vacant unit


Previous Auction(s) for this property
Auction Date  Price
2019-09-27  RM291,600.00
2019-09-10  RM324,000.00
2019-08-15  RM360,000.00
2019-07-29  RM400,000.00

At 5th round re-auction.

Do not wait for rock bottom price. Surely other people all having the same thinking.
3 bidders just now. Once again when price got too cheap, big fight will happen.
Sold at 458k.

Last month at 401k nobody interested.
2 months ago at 445k nobody interested.


Attracted 11 bidders just now. Usual when price got too cheap, many will come try luck.
Sold at 303k.

Last month at 291.6k nobody interested.

A bigger size lelong unit sold few months ago.
971sqft sold at 576k. Single bidder win.



Opening of the unit (airbnb / homestay condition). Hit jackpot. Lucky new owner.

A bigger size lelong unit sold few months ago.
971sqft sold at 576k. Single bidder win.



Opening of the unit (airbnb / homestay condition). Hit jackpot. Lucky new owner.

A bigger size lelong unit sold few months ago.
971sqft sold at 576k. Single bidder win.



Opening of the unit (airbnb / homestay condition). Hit jackpot. Lucky new owner.

In awe of the unit, it's like hitting jackpot...

Oh the kawtim money is quite new to me. Always tot they share with client..
What if the properties got sold below client tu punya max bid amount. If the agent kawtim.

If really can kawtim so easily, agents on their own must as well go and borrow money. Everytime they just try luck submit bank drafts on possible units with at least 1 registered bidder. Why need to waste time find interested buyers for the unit?

If really can kawtim so easily, agents on their own must as well go and borrow money. Everytime they just try luck submit bank drafts on possible units with at least 1 registered bidder. Why need to waste time find interested buyers for the unit?

AUCTION PROPERTIES -WHAT YOU REALLY MUST KNOW
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WHY DOES A PROPERTY GOES FOR AUCTION AND HOW DOES IT WORK
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- When owner fails to service its loan and the loan becomes NPL.
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- the reserve prices drops 10% everytime the property is auctioned but no takers.
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- we bought 9 units from auctions to date so we are not a season player and relatively a noob. So this is our personal perspective .
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GRADING RELATED TO AUCTION PROPERTY
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- grade A properties has got very limited auctions
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- grade E properties with speculators tends to see few auctions every year
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- this is why banks are interested in our property grading
.
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AT WHAT POINT BUYING FROM AUCTION MAKES SENSE
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- we only enter auction today if we can buy at 50% below current property value
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- our purchase of all 9 units was at 70% below property’s intrinsic value. We bought commercial units in Damansara nearby MRT for less than RM100psf.
.
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WHAT MOST PEOPLE DONT KNOW ABOUT AUCTION
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CASH HEAVY - its really cash heavy. You can buy property from primary or subsales zero down but you cant do it with auction.( for now ). You need to standby lots of cash for:
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1. shortfall in valuation or top up
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2. maintenance fee, assessment fees, and taxes. Some banks cover this but you might be required to use your own cash first.

3. since you cant see the unit, you have no idea if the unit’s condition is okay and its a gamble. You might have to spend 5-figure to 6 figure for repairs.
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VALUE CAN DROP FURTHER - just because its 30% below market value today, it doesnt mean the value cant drop somemore. What is 30% below market value today might be just market value 2 years later as values continues to drop
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FINANCING - Some banks wont finance a property on subsales when there are too many units that goes for auctions and high NPLs, causing further drop in valuation
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VP - if the property is occupied, To get rid of existing occupants, can be very dramatic and taxing.
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- SPECULATORS - when theres alot of units going for auction in that development, it doesnt mean that the whole development is bad. Is just that the development has too many speculators who do not understand what they bought, and doesnt have the required holding power.
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OWN STAY - The higher number of own stayers, the lesser units that will go for auction.
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RENTAL VALUES - And the higher rental values are, the less likely you’ll see units avai for auction. ( less than 1% normally ) look at TS, Summer Suites small units, Vipod etc. This is where our Propery Grading helps greatly.
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AGENTS - Auction agents makes money from the following :
- service fee ( discretionary). Can be on success or per case.
- banks and auctioneers pay them commissions for every successful bid
- And they are the only agents who gets rewarded when their clients FAIL to buy property as they get “kawtim” money. Its not uncommon that they take kawtim money from the sold bidder in order to prevent price war.
.
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SUMMARY
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- Auction price isnt market value, and its usually represents a discount Vs subsale. Cant see, dont know damages, cant buy zero down and if you dont buy at 20% disc Vs subsales, you are not getting yourself a good deal. So if I were to give a guide using this example of Vista Alam :

- If actual/real subsales value for Vista Alam is RM400psf, then the auction price i would enter should be about RM320psf or at 20% discount since I need to standby budget for repairs and I have no idea how my unit is gonna look like.

- I will standby at least 20% of the reserve price as capital for downpayment and repair, so about RM80k- RM100k capital will be needed. 40k downpayment, 20k repairs and about 20k-40k to furnished the place. This is a cash heavy play. The 10% alone isnt sufficient.

The same 100k capital, can be used to buy 2-8 properties that can also give me positive cashflow and at least 10%-30% below market values. Over 10-20 years, these 8 properties will be worth a loooooooot more than the 1 property bought under auction. So that why today, i focus buying more from primary market compared to auction unless i can buy the auction property at 50%-70% discount.
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P/s : Do you know whats the best type of property you can buy from auction today? If many of you wants to know, i’ll share soon here else i’ll share in our private class je😀

Hi guys,

Got a question. I am refinancing my house. But I just noticed that I didnt change my cukai pintu name to mine. Upon checking w the city council, it will take 14 days for the change to take place.

Since the lawyer requires me to have the latest bil of the cukai pintu, I just want to know if lets say I forge the docs to change the name into mine, will the lawyers double check on this? I kinda need the money for repair and cant wait 14 days for the name transfer. Waiting for the disbursment alone is a long period dy

said many times..

auction market is crazy....
after few rounds of reduced price.. the latest & final transacted price hike towards back to the first round reserved pricing... people goreng it to the max..

Is this sign of turnaround? U actually seen this happening or hearsay? So far the examples given here some goreng to the previous round.

Hi guys,

Got a question. I am refinancing my house. But I just noticed that I didnt change my cukai pintu name to mine. Upon checking w the city council, it will take 14 days for the change to take place.

Since the lawyer requires me to have the latest bil of the cukai pintu, I just want to know if lets say I forge the docs to change the name into mine, will the lawyers double check on this? I kinda need the money for repair and cant wait 14 days for the name transfer. Waiting for the disbursment alone is a long period dy