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> Is there a rental reduction trend going on now ?, Your input, personal experience and comm

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icemanfx
post Jan 12 2019, 08:36 PM

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For every month the unit is left vacant is equivalent to 8.3% shortfall of yearly rental income. It is better better to drop 10% than leave it vacant for 2 months.

icemanfx
post Jan 13 2019, 12:02 AM

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QUOTE(puchongite @ Jan 12 2019, 10:13 PM)
If rental is still dropping, then more auction will enter market, auction price will drop to new low.
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rental is a early indicator of property price. property price track rental price most of the time; property price is likely to drop until rental yield is attractive to buy to rent investors.

This post has been edited by icemanfx: Jan 13 2019, 12:12 AM
icemanfx
post Jan 13 2019, 04:17 AM

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QUOTE(kuci_mayong @ Jan 13 2019, 04:03 AM)
This is sort of a double edge sword too. If you discount your rental, you will reduce overall asking price and set a new low.

Unfortunately, this is hard to control when you are not the only provider.
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Landlord tenant relationship is like game of chicken; at current market sentiment, landlord is likely to brink first.
icemanfx
post Jan 13 2019, 10:53 AM

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QUOTE(trust4you @ Jan 13 2019, 09:11 AM)
The reason why its dropping becos ppl like new thing. As arron says people like to small new thing, new car, new house, if ur condo is aged n worst still management is poor, many tenant wull just leave. They wun tell u straight, but most of the reason the tenant will leave for other building if management is poor
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Between newly vped and older condo; for the same price and everything else is the same, most if not all will choose the newly vped unit. Like handphone, car, furniture, fashion, etc, older units and previous design need to drop price to sell.

QUOTE(SongSongLai @ Jan 13 2019, 10:46 AM)
Tenant from 1050sf RM1500 rental old apartment move to new 850sf RM1700 rental new service apartment is the trend now..end up all the old apartment force to rent to bangla is the trend now
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In a few years time, currently new service apartment will walk down the same path as old apartment.

This post has been edited by icemanfx: Jan 13 2019, 10:56 AM
icemanfx
post Jan 13 2019, 11:13 AM

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QUOTE(trust4you @ Jan 13 2019, 11:04 AM)
unless that area no more land to develop, then price will keep increasing, just like hong kong. haha land is sacare.

and uh, desa park city. almost no land liao there, pokkai
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Redevelopment is always a option e.g kl sentral, bbcc, trx, bandar Malaysia, klcc, plaza equatorial, etc.

Dpc developer could reduce the park and build like in many golf course.

This post has been edited by icemanfx: Jan 13 2019, 11:14 AM
icemanfx
post Jan 13 2019, 11:27 AM

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QUOTE(trust4you @ Jan 13 2019, 11:24 AM)
redevelopment incur cost and compensation if hte area is built
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Buying land cost money also. When the building is only worth the value or less of the land, redevelopment is financially feasible. Metropolitan cities like NYC, London, Tokyo, Sydney, Beijing, Shanghai, etc never run out of development.

This post has been edited by icemanfx: Jan 13 2019, 11:30 AM
icemanfx
post Jan 13 2019, 11:55 AM

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QUOTE(trust4you @ Jan 13 2019, 11:39 AM)
the fact that buying land is cheaper than to pay back those high rise density development each individual title, demolish them, and redeveloped back.
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Not all building and places is worth to redevelop. It needs to be financially feasible e.g bbcc, trx, lyan n miho, KL sentral, bandar Malaysia, equatorial plaza, Unilever at bangsar, f&n in pj, bat in pj, icon city, etc.

This post has been edited by icemanfx: Jan 13 2019, 12:09 PM
icemanfx
post Jan 13 2019, 01:41 PM

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QUOTE(silverwave @ Jan 13 2019, 12:34 PM)
I am having a similar issue and my unit is fully furnished, so the rental is higher than bare units. Entering the 3rd month now, with no luck. I've given 5 agents to advertise and i'm thinking if i should advertisement myself (though i don't know what kind of tenants will enquiry since i don't have the pre screening ability like agents).

When i got the unit in 2014 (property prices were at it's peak), the previous owner was renting it at Rm300 more.
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If your unit is one among hundreds available in the area, and all else being equal, cheapest price is probably is the best and only method.

3 months of vacancy is equivalent to loss of 25% annual rental revenue. On hindsight, had you asked for 15% cheaper, you are likely financially better off.

This post has been edited by icemanfx: Jan 13 2019, 02:22 PM
icemanfx
post Jan 13 2019, 11:56 PM

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QUOTE(AskarPerang @ Jan 13 2019, 10:44 PM)
The funny thing is got many property guru / sifu still keep on saying that rental price will increase over time due to inflation.
If today you are getting negative cash flow return, but hold few years later will get break even or positive cash flow due to able to increase the rental each year.

Well, all those stuff yesterday story. Not happening in the current market today. With affordable homes like rumahwip also renting out openly now plus able to offer cheap rent as the owner got the unit at a cheaper price, so dont think market will improve in the near future.
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Many property guru/sifu have vested interest or are hired gun, should take their advise/opinion with a large pinch of salt.

QUOTE(BEANCOUNTER @ Jan 13 2019, 11:27 PM)
Yes........flipping cant work already.....

Go for rent 1st and see how the market react.....

At least if bull time return, you got stock on hand....
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Until overhang is reduced substantially, price is unlikely to rise. given number of overhang, it is likely to take longer than most expected to reduce substantially.

by or about 2030, malaysia will become ageing nation; if ageing country like japan is any precedent, property is likely on long decline.

IF and by the next property bull run, recently vped property will be aged and undesirable like currently older condo.

This post has been edited by icemanfx: Jan 14 2019, 12:03 AM
icemanfx
post May 26 2022, 10:37 PM

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QUOTE(nihility @ May 26 2022, 09:18 PM)
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.
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As if supply > demand doesn't play a part in rental.

icemanfx
post May 27 2022, 08:04 AM

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QUOTE(nihility @ May 27 2022, 07:06 AM)
I stated less 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.
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Which area in kv is mature and less supply?
icemanfx
post Jun 8 2022, 08:25 PM

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QUOTE(Cavatzu @ Jun 8 2022, 06:28 PM)
Just watched a HGTV show where rents in Phnom Penh, Cambodia are going for USD 600-700 for crappy old 1 bed units.

FYI how far they’ve come and we’ve stayed stagnant. That budget will get you your pick of the thousands of modern 3 bed/2 bath units in KV. But also points to how supply and demand really dictates all.
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If you find Phnom Penh expensive, wait til you see price in sihanoukville.

This post has been edited by icemanfx: Jun 8 2022, 08:26 PM
icemanfx
post Jun 9 2022, 03:32 PM

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QUOTE(cy91 @ Jun 9 2022, 02:29 PM)
Probably because we din't open up the property market for foreigner? Especially chinese (HK / mainland)
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QUOTE(PAChamp @ Jun 9 2022, 03:26 PM)
Very true. In fact our government slammed the door in their faces by imposing an above RM1 mil (KL) and RM2 mil (Selangor) limit in order to keep prices low for locals. Maybe its time to tweak the policy by lowering the limit in certain locations which locals don't like to spur the property market. This will help with capital gains but maybe not so much the rental
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Almost every prc poorperly investors in the last 10+ years is underwater. doubt could attract many new prc poorperly investors.

for hongkee, it is more sensible for them use rental income from hk to live here.


This post has been edited by icemanfx: Jun 9 2022, 03:34 PM
icemanfx
post Jun 9 2022, 07:03 PM

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QUOTE(Cavatzu @ Jun 9 2022, 05:21 PM)
Malaysia had the most foreigner friendly property policies for a long time at a fraction of the price with no extra levies or anything. The $1M minimum limit was appropriate. But yea 2018 left a sour note for the Johor investment.
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Opportunity for locals to buy forest city at discount.
icemanfx
post Jun 9 2022, 09:40 PM

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QUOTE(Cavatzu @ Jun 9 2022, 08:09 PM)
Well would you buy it? It’s not quite the Shenzhen it was made out to be eh. Speaking of which Shenzhen property rose 2000% in the span of 15 years.
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Emperor xi said residence is meant for dwelling.


 

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