if u have invested in 2019 then get ur money stuck there for 3.5 years. But then invested in KLCI also not so much difference lol

Too much capital chasing ever diminishing returns. The reason for capital should be to create value and riches but now going into "non-productive" returns chasing like crypto, shares, currencies etc. Eventually the system will break down.

renting a unit is difficult now a days because there’s too many units !!

I do understand that property investment require long term strategy. but what would be your advice to those who regretted their purchase? be patient and wait? or exit to cut loss?

I think when we used to think long term, it might mean 5-10 years. Now it will be longer because of various missteps. Modern day technology has facilitated building very dense and very high at relatively low cost. Don’t know if anyone saw this coming, yes price per unit has come down despite inflation but at the expense of oversupply. Malaysia does not sit on any fault line so can build as high as 100 storeys if they want to at minimal cost.

Can’t comment personally on your property as there’s so many unknown variables. But here’s a few thoughts for you:

a) why do you regret your purchase? Is it completely unrentable or unprofitable? Is there no further upside for this property in the future?

b) who are the likely renters/buyers for this unit? What do I need to do via basic renovation/ price reduction to get their interest?

c) if I cash out now maybe at a loss, can I redeploy my capital effectively. Can I afford to wait for things to pick up or not? Do I buy property for financial or personal reasons?

There’s no property that’s truly unsalvageable unless you severely overpaid for it. In which case you have to chalk it up to a learning lesson.

This post has been edited by Cavatzu: May 26 2022, 05:05 AM

It is getting tougher to use property investment in Malaysia as a wealth generation tool. Tougher but not impossible. Most disciple of property gurus are heavily leveraged, no different from investing in stock market with a margin account. There will always be someone getting rich using other's people money and in most cases bank loans. Property gurus make most of their money from the kickback from bulk purchases and markup from renovating and management of their member's property. All in the name of helping you get rich because he was once poor. Signing a NDA because people will be jealous of the discount you get and blah blah blah.

Anyway, property in Malaysia is still OK as a wealth preservation tool for those who can afford it.

So back to the question, if you are bleeding every month with negative cashflow, cut loss if you can and live to fight another day (opportunity cost). If it just paper loss, then do all the research again and decide whether to wait or to exit. Things are not likely to get better in next 5 years unless a booster is coming up that could be linked to your property.

This post has been edited by remora: May 26 2022, 02:29 PM

How's the current situation now? Rental rates getting even lower than in 2019?
Any potential in increase of the rental rates eventually?

More matured area with lesser competition with available new units should be stabilising . I foresee there rental revision coming months because many JMB/MC are in the plan of revising the maintenance RM/sq.ft due to inflation & minimum wages policy.

As if supply > demand doesn't play a part in rental.

Depends on the entry price I guess and location.

During boom days lousy location demanded very high price - if can dispose now- perhaps cut loss and reinvest in more hot areas as price is slowly picking up

Rentals are catching up now.

Look at it this way. It can’t get any worse can it? I believe we’ve seen the floor price and it will be maintained this way. Hardly any appreciation due to the amount of supply unless the development has strong USP or you bought cheaply.

Incoming travel into Malaysia is still lagging behind many countries. China needs to open for the tourism economy to take off.

I stated mature area with less competition with the new units. The supply & demand still in play. Only there is less supply to market at that mature area.

This post has been edited by nihility: May 27 2022, 10:22 AM

Which area in kv is mature and less supply?

Hahaha...this kind of info normally we keep to ourself to fence of unnecessary competition. No one will give out such information.

For landed or strata? Which area?
Got to qualify and clarify this bold statement lol

Selective location with less competition. Those area with developments of thousand of units coming into the market at the same area, you will still be ppl throwing the rental to minimum.

PJ

+100. Good location condos demand is more than supply now.

Cavatsu is nice enough to spill the beans to ice kor.
Now will ice kor do something about it