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> Low price properties are riskier, Quality of owners is the factor

New Klang
post Jul 6 2018, 09:54 PM, updated 5 months ago

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Ever wonder why low end properties are often auctioned?

The owners are mostly from the lower income group and have less discipline to pay loan installments promptly.


flight
post Jul 6 2018, 10:06 PM

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Ur right. Not sure what is ur definition of low cost is. Low cost properties r riskier, specifically low cost flats.

But that is different from say an apartment launched at 400k and the price drops to say 250k. If 250k is low cost to u, then ur low cost is different from mine.
Hevlaska
post Jul 6 2018, 10:10 PM

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QUOTE(New Klang @ Jul 6 2018, 09:54 PM)
Ever wonder why low end properties are often auctioned?

The owners are mostly from the lower income group and have less discipline to pay loan installments promptly.
*
I have to disagree with this, i find that the most lucrative properties, at least in my own portfolio, are low end properties(200-300k) and middle-high 1.5-2.5m value quantum. Anything in between is rather negligible or too much of a hassle to be managed.

There are occasionally middle/higher end properties on auction as well if you keep an eye. Rate of failure to service loan is spread out rather evenly, you are only seeing more low end on auction simply because there are more low end properties in the proportion to the market.
flight
post Jul 6 2018, 10:42 PM

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Be careful of low cost properties. Unless u rent to company for the workers.
empatTan
post Jul 6 2018, 11:09 PM

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OVERpriced r d most dangerous...
AskarPerang
post Jul 7 2018, 01:21 AM

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QUOTE(New Klang @ Jul 6 2018, 09:54 PM)
Ever wonder why low end properties are often auctioned?

The owners are mostly from the lower income group and have less discipline to pay loan installments promptly.
*
Not low cost properties.
Not low end properties.
But is overprice property as mention by empatTan

Example easily from Mah Sing project. Haha. every project launch at 10 years or more into the future pricing.
When completion, even if able to rent out, the bleeding is too much to bear for the investors.
Flipping? Lagi impossible. Just look at M City enough. Launch price nett at 1000 psf.
icemanfx
post Jul 7 2018, 01:30 AM

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QUOTE(New Klang @ Jul 6 2018, 09:54 PM)
Ever wonder why low end properties are often auctioned?

The owners are mostly from the lower income group and have less discipline to pay loan installments promptly.
*
Many cyberjaya units were auctioned and auction price was substantially cheaper. Cyberjaya or people bought at cbj is low end?

This post has been edited by icemanfx: Jul 7 2018, 11:47 AM
leodinouknow
post Jul 7 2018, 01:37 AM

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Low cost use it to do student rental house, may gain profit
nexona88
post Jul 7 2018, 08:50 AM

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Well low cost properties like flat is where u make good income.. I mean rental play.... There's risk too, but the risk of overprice is low 😑
Quang1819
post Jul 7 2018, 10:44 AM

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QUOTE(Hevlaska @ Jul 6 2018, 10:10 PM)
I have to disagree with this, i find that the most lucrative properties, at least in my own portfolio, are low end properties(200-300k) and middle-high 1.5-2.5m value quantum. Anything in between is rather negligible or too much of a hassle to be managed.

There are occasionally middle/higher end properties on auction as well if you keep an eye. Rate of failure to service loan is spread out rather evenly, you are only seeing more low end on auction simply because there are more low end properties in the proportion to the market.
*
Concur to that. Low end is actually less risky than those higher end condo. Look at the amount of auctions in Putrajaya, mostly are mid class and even at auction it's still difficult to sell it off. At least lower end flats or apartment your loss is lesser and find it much easier to rent out then higher class
HELLO HELLO
post Jul 7 2018, 11:51 AM

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All property guru Ini Macam punya. Most of them success usually start from dirt cheap parang price subsale property market. Some even way Below rm60k, ada Lagi bought property full price rm7-8k only (not a old dude, just 30+ year old guys).

Ada earn first bucket moolah + gain fame liao, then start to distort liao. Keep help developer pushing new project which selling future price. Manyak commission earn. End up all manyak jadi water fish.

If pocket ok, lelong very manyak a good try.

This post has been edited by HELLO HELLO: Jul 7 2018, 11:53 AM
BEANCOUNTER
post Jul 7 2018, 12:45 PM

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QUOTE(New Klang @ Jul 6 2018, 09:54 PM)
Ever wonder why low end properties are often auctioned?

The owners are mostly from the lower income group and have less discipline to pay loan installments promptly.
*
Perhaps you can break yr observal down to 2 categories

1. Ownstayer kena lelong in low end prop
2. Investor kena lelong in low end prop
ManutdGiggs
post Jul 7 2018, 12:57 PM

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QUOTE(HELLO HELLO @ Jul 7 2018, 11:51 AM)
All property guru Ini Macam punya. Most of them success usually start from dirt cheap parang price subsale property market. Some even way Below rm60k, ada Lagi bought property full price rm7-8k only (not a old dude, just 30+ year old guys).

Ada earn first bucket moolah + gain fame liao, then start to distort liao. Keep help developer pushing new project which selling future price. Manyak commission earn. End up all manyak jadi water fish.

If pocket ok, lelong very manyak a good try.
*
Tis god lvl indi u must PM me the name liao🤣🤣🤣
HELLO HELLO
post Jul 7 2018, 01:03 PM

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QUOTE(ManutdGiggs @ Jul 7 2018, 12:57 PM)
Tis god lvl indi u must PM me the name liao🤣🤣🤣
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Wakaka 😜 Ini Dalam newspaper article property section Macam last month i think. Special Interview on this young dude. Somemore a few pages article.. Macam ada Lagi cover highlight somemore. He Mentioned his very first property below rm10k. (Rm7-8k)

Memang pandai potong

You cari lar. I pun tak tahu mana liao. 😬

This post has been edited by HELLO HELLO: Jul 7 2018, 01:06 PM
HELLO HELLO
post Jul 7 2018, 01:13 PM

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QUOTE(New Klang @ Jul 6 2018, 09:54 PM)
Ever wonder why low end properties are often auctioned?

The owners are mostly from the lower income group and have less discipline to pay loan installments promptly.
*
Also sibeh manyak high end put up to auction liao. Only manyak low end saja meh?
ManutdGiggs
post Jul 7 2018, 01:24 PM

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QUOTE(HELLO HELLO @ Jul 7 2018, 01:03 PM)
Wakaka 😜 Ini Dalam newspaper article property section Macam last month i think. Special Interview on this young dude. Somemore a few pages article.. Macam ada Lagi cover highlight somemore. He Mentioned his very first property below rm10k. (Rm7-8k)

Memang pandai potong

You cari lar. I pun tak tahu mana liao. 😬
*
Oh okok tqtq
Hevlaska
post Jul 7 2018, 01:29 PM

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QUOTE(Quang1819 @ Jul 7 2018, 10:44 AM)
Concur to that. Low end is actually less risky than those higher end condo. Look at the amount of auctions in Putrajaya, mostly are mid class and even at auction it's still difficult to sell it off. At least lower end flats or apartment your loss is lesser and find it much easier to rent out then higher class
*
Yeah, 500-1m properties are difficult to handle, even if up for lease, turnaround is usually slow and around 30-40% of them are bound to head into some rental issues at one point or another. Low end properties on the other hand, is easily transacted, easily tenanted, even if tenant giving issues, cost to refurbish is way cheaper and usually doesnt even require furnishings apart from new coat of paints. Only problem you may face from low end high rise is management related issues which could be a hit or miss.

The real money is seen at as above, higher end properties or top notch "lifestyle" class properties. As expensive as they are rare (pavillion/KLCC etc), they always have takers(sales) and with the right connection, there is always rental market for those for MNC corporate tenants. Price isnt really an issue for these investors/leasee, its the matter of "like it, take it".

Apart from these, sub 1.5m-3m hot area commercial properties. But need to be wisely managed.
HELLO HELLO
post Jul 7 2018, 01:53 PM

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QUOTE(Hevlaska @ Jul 7 2018, 01:29 PM)
Yeah, 500-1m properties are difficult to handle, even if up for lease, turnaround is usually slow and around 30-40% of them are bound to head into some rental issues at one point or another. Low end properties on the other hand, is easily transacted, easily tenanted, even if tenant giving issues, cost to refurbish is way cheaper and usually doesnt even require furnishings apart from new coat of paints. Only problem you may face from low end high rise is management related issues which could be a hit or miss.

The real money is seen at as above, higher end properties or top notch "lifestyle" class properties. As expensive as they are rare (pavillion/KLCC etc), they always have takers(sales) and with the right connection, there is always rental market for those for MNC corporate tenants. Price isnt really an issue for these investors/leasee, its the matter of "like it, take it".

Apart from these, sub 1.5m-3m hot area commercial properties. But need to be wisely managed.
*
Now the property market situation Ini Macam, property macam under rm400k sale is very good and ok. 500k or above very not so ok and quite slow. But props above 1mil above start very quite ok.

Manyak can buy 1mil above, very no care about burn hand. The only problem they have... is the money burn too slow or not fast enough.

Ini Macam could be also can reflect the poor and rich gap in malaisiao now.

So die die want invest. Better buy below 500k or best below 400k.

If want try Lagi high risk high return. Can go for 1mil above props. Better pray pray your investment can tahan till get one of the Richy buy from you and hit jackpot.... Before your pocket pecah jialat.

Anything between above 500k to 999k better put aside and think 3times before buy. Later cannot sell and stuck there Kao kao lat.

This post has been edited by HELLO HELLO: Jul 7 2018, 02:02 PM
Hevlaska
post Jul 7 2018, 02:18 PM

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QUOTE(HELLO HELLO @ Jul 7 2018, 01:53 PM)
Now the property market situation Ini Macam, property macam under rm400k sale is very good and ok. 500k or above very not so ok and quite slow. But props above 1mil above start very quite ok.

Manyak can buy 1mil above, very no care about burn hand. The only problem they have... is the money burn too slow or not fast enough.

Ini Macam could be also can reflect the poor and rich gap in malaisiao now.

So die die want invest. Better buy below 500k or best below 400k.

If want try Lagi high risk high return. Can go for 1mil above props. Better pray pray your investment can tahan till get one of the Richy buy from you and hit jackpot.... Before your pocket pecah jialat.

Anything between above 500k to 999k better put aside and think 3times before buy. Later cannot sell and stuck there Kao kao lat.
*
Honestly, i've stopped going property shopping(locally) about 3 years already now. Prop now isnt really worth the time or effort for investment vs what the market was like. Im gonna stay still and be good boy, when i service off at least 80% of my current properties loans then i'll reconsider. Ill just have to be content with whatever income i get from what i own now, overall its lesser than what it used to be.

Last one i purchased was in Bangkok, and its actually one of my top performer, i've been eyeing on a project Pattaya which looks yummy, and more excuse for me to go there laugh.gif

For those looking to invest, if Malaysian market seems exhausted and saturated to you, keep an eye out for foreign properties, do your research and learn more, they are not as expensive as it seems and not as troublesome as they may sound and you may have more financing options than you think. My current portfolio covers Indo(this one troublesome due to ownership law and complex acquisition method but rather lucrative played correctly), Thai, Aus and Tokyo.

Safest investment with long term returns would be Tokyo, those 30-40sqm investment properties, many offering 4-5% GRR up to 35-40 years. Again, hit and miss thing, be wise with which developer you buy, some discriminate prices domestically and foreign buyers.
HELLO HELLO
post Jul 7 2018, 02:37 PM

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QUOTE(Hevlaska @ Jul 7 2018, 02:18 PM)
Honestly, i've stopped going property shopping(locally) about 3 years already now. Prop now isnt really worth the time or effort for investment vs what the market was like. Im gonna stay still and be good boy, when i service off at least 80% of my current properties loans then i'll reconsider. Ill just have to be content with whatever income i get from what i own now, overall its lesser than what it used to be.

Last one i purchased was in Bangkok, and its actually one of my top performer, i've been eyeing on a project Pattaya which looks yummy, and more excuse for me to go there laugh.gif

For those looking to invest, if Malaysian market seems exhausted and saturated to you, keep an eye out for foreign properties, do your research and learn more, they are not as expensive as it seems and not as troublesome as they may sound and you may have more financing options than you think. My current portfolio covers Indo(this one troublesome due to ownership law and complex acquisition method but rather lucrative played correctly), Thai, Aus and Tokyo.

Safest investment with long term returns would be Tokyo, those 30-40sqm investment properties, many offering 4-5% GRR up to 35-40 years. Again, hit and miss thing, be wise with which developer you buy, some discriminate prices domestically and foreign buyers.
*
koret koret, biggrin.gif now when you look for props investment, better look for pork halal place macam thailand bangkok pattaya, tokyo japan, cambodia, Mymmar and Vietnam tongue.gif


in malasiao this jialat place, getting quite susah because all this stupid laws and nonsense.
last time malasiao can do well, all because manyak neighbor countries belum come out from war and open to market.

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