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

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SUSNew Klang
post Jul 7 2018, 05:41 PM

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QUOTE(flight @ Jul 6 2018, 10:06 PM)
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.
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If the initial price of 400k cannot hold, and drop to 250k, this is beyond redemption, and is high risk unless the location becomes matured and sought after due to a strong factor that emerged thereafter.

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.
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The 200-300k must have been bought a long time ago and prices should have appreciated a lot.
SUSNew Klang
post Jul 7 2018, 05:46 PM

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QUOTE(AskarPerang @ Jul 7 2018, 01:21 AM)
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.
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This M is high risk.

QUOTE(icemanfx @ Jul 7 2018, 01:30 AM)
Many cyberjaya units were auctioned and auction price was substantially cheaper. Cyberjaya or people bought at cbj is low end?
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Cyberjaya will rise again.

QUOTE(HELLO HELLO @ Jul 7 2018, 01:13 PM)
Also sibeh manyak high end put up to auction liao. Only manyak low end saja meh?
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Any freehold landed individual title in KL, PJ, Klang, Kajang?


icemanfx
post Jul 7 2018, 05:51 PM

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QUOTE(New Klang @ Jul 7 2018, 05:46 PM)
Cyberjaya will rise again.
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No doubt after over supply is fully consumed.

flight
post Jul 7 2018, 06:02 PM

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QUOTE(New Klang @ Jul 7 2018, 05:41 PM)
If the initial price of 400k cannot hold, and drop to 250k, this is beyond redemption, and is high risk unless the location becomes matured and sought after due to a strong factor that emerged thereafter.
The 200-300k must have been bought a long time ago and prices should have appreciated a lot.
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I think ur reply is like saying. "Ur mother is a woman".

Obviously there r reasons why this property got auctioned for so many times. U need to dig deeper.

But if out of 600 units, everyone paid 400k for their property, and 15 units are auctioned at rm250k. The ppl purchasing at 250k will have a substantial buffer, especially if they want to sell out later.

How many ppl buy at rm400k want to sell at rm300k?

Sometimes the auction reason can be something innocous, its not always a permanent problem with the prop.

AskarPerang
post Jul 7 2018, 06:49 PM

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QUOTE(flight @ Jul 7 2018, 06:02 PM)

Sometimes the auction reason can be something innocous, its not always a permanent problem with the prop.
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By looking at current trend, newly completed props fall into auction one unit after another. Subsale also no record yet. So this is problem with the property, not an isolated owner bankrupt or face financial problem case. Example:

9ine Residence, Cheras. Many units
BSP 21
BSP Skypark
Green residence
M Residence 2
Bandar Tasik Puteri (Garden heights & Acacia Park)

Not to mention those well known king of lelong property for the past 2 years such as M City, The Elements, Central Residence, Mutiara Ville, etc.
flight
post Jul 7 2018, 07:42 PM

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QUOTE(AskarPerang @ Jul 7 2018, 06:49 PM)
By looking at current trend, newly completed props fall into auction one unit after another. Subsale also no record yet. So this is problem with the property, not an isolated owner bankrupt or face financial problem case. Example:

9ine Residence, Cheras. Many units
BSP 21
BSP Skypark
Green residence
M Residence 2
Bandar Tasik Puteri (Garden heights & Acacia Park)

Not to mention those well known king of lelong property for the past 2 years such as M City, The Elements, Central Residence, Mutiara Ville, etc.
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There r diamonds in the rough. Not all is great, but there r some gems. Im not looking at any of the properties u mentioned. Aside from m city and the elements.

And only if the prices can come down sufficiently low enough.
icemanfx
post Jul 8 2018, 08:14 AM

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QUOTE(flight @ Jul 7 2018, 07:42 PM)
There r diamonds in the rough. Not all is great, but there r some gems. Im not looking at any of the properties u mentioned. Aside from m city and the elements.

And only if the prices can come down sufficiently low enough.
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If there are gems, auction price should be close to prevailing market price.

flight
post Jul 8 2018, 11:10 AM

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QUOTE(icemanfx @ Jul 8 2018, 08:14 AM)
If there are gems, auction price should be close to prevailing market price.
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Dunno if u r trolling or what...

There r always good deals. Especially when market turn bad.
icemanfx
post Jul 8 2018, 11:39 AM

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QUOTE(flight @ Jul 8 2018, 11:10 AM)
Dunno if u r trolling or what...

There r always good deals. Especially when market turn bad.
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Yes, when blood is knees deep on the floor.

SUSNew Klang
post Jul 9 2018, 09:28 AM

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QUOTE(flight @ Jul 8 2018, 11:10 AM)
Dunno if u r trolling or what...

There r always good deals. Especially when market turn bad.
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When has the market turned bad?
flight
post Jul 9 2018, 11:00 AM

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QUOTE(New Klang @ Jul 9 2018, 09:28 AM)
When has the market turned bad?
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The market has definitely slowed. Sales for new launches r down a lot. Some old units cant be sold. Oversupply starting to kick in as the new units sold during bull times hit the market and are searching for tenants. Rental yields dropping.

There has been no major crash. But if there is a major crash, depending on how long this slowdown lasts. U may see a big drop in values.

My gut feel is that many ppl wouldnt be able to service the property loans without any tenants to defray the instalments.


The longer the slowdown the less the pain will be if there is a real crash.
SUSNew Klang
post Jul 9 2018, 11:03 AM

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QUOTE(flight @ Jul 9 2018, 11:00 AM)
The market has definitely slowed. Sales for new launches r down a lot.  Some old units cant be sold. Oversupply starting to kick in as the new units sold during bull times hit the market and are searching for tenants. Rental yields dropping.

There has been no major crash. But if there is a major crash, depending on how long this slowdown lasts. U may see a big drop in values.

My gut feel is that many ppl wouldnt be able to service the property loans without any tenants to defray the instalments.
The longer the slowdown the less the pain will be if there is a real crash.
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Property value after VP depends on the sale and move-in ratio of occupied units.

Even in bad times, some locations still see good profit margins.
flight
post Jul 9 2018, 11:52 AM

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QUOTE(New Klang @ Jul 9 2018, 11:03 AM)
Property value after VP depends on the sale and move-in ratio of occupied units.

Even in bad times, some locations still see good profit margins.
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I thought u say market not yet turn bad?
icemanfx
post Jul 9 2018, 12:17 PM

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QUOTE(flight @ Jul 9 2018, 11:00 AM)
The longer the slowdown the less the pain will be if there is a real crash.
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Property is illiquid, price takes years to bottom. one could argue property is unlikely to see a crash like stocks or commodities. as most invested in property with bank loan, price remain stagnant would mean incurring losses on loan interest.

SUSNew Klang
post Jul 9 2018, 12:52 PM

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QUOTE(flight @ Jul 9 2018, 11:52 AM)
I thought u say market not yet turn bad?
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So far so good for me.
SUSNew Klang
post Jul 24 2018, 08:18 PM

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I dont know why many here said dont touch Mah Sing properties.

I just follow blindly and dont touch.

Are they all bad?


woolei
post Jul 24 2018, 10:13 PM

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QUOTE(New Klang @ Jul 24 2018, 08:18 PM)
I dont know why many here said dont touch Mah Sing properties.

I just follow blindly and dont touch.

Are they all bad?
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u can try, but good luck..
flight
post Jul 25 2018, 12:39 AM

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Get the one kena lelong 50% off 1

 

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