then you better continue follow her to the end... she sell/rent/stay?

Why would anyone buy this unit from you even at the price you bought?

Rental can only cover 40% installment thus this is not for investor.

better wait for auction.

since Rental can only cover 40% installment.. not many have the financial to sustain longer period.

As vendor is unlikely to get the price he wants, holding incur loan interest daily and suffer negative cash flow monthly. Cut losses early is probably the best option.

agreed.
longer he wait.. bigger the losses..

I think u do not understand Penang properties. Middle level or high end properties in Penang ,it's common all negative cashflow.

Capital appreciation in Penang is good, but u guys know this is NOT the good timing though.

I m fr Penang too, so I know

This post has been edited by Irresistible: Apr 6 2019, 11:43 PM

During property bull run 2011-2014, capital appreciation in kv was excellent. So what is your suggestion? Hold or sell?

How do penangkia value property?

This post has been edited by icemanfx: Apr 7 2019, 05:16 AM

Sifu, what u recommend?
U mean SELL, right?

"kl" ppl will assume the best is to sell and get rid of of such -ve prop.(-ve 2/3 is kinda ridiculous for us)

some how i get both of you , i got a penang colleague, he hold 1 empty house for few years(because hard to rent out), another 2 house rent out with 30%~40% negative cash flow & low rental yield.

if 'KL' mindset like me, i will dispose the empty house with a little bit of lost/original price. Dispose 1 more from either one of the -cash flow/low rental yield , after that either put that extra money to one of the house or acquire a new KL/Selangor property that near to LRT/MRT.

well, we aren't from penang thus we wondering how capital appreciation can offset such massive -ve.

Because if we talked about appreciation, it should take years.

-ve of 20k p.a.
20/480k is 4.17 percents.

Assuming hold 10 years:
-4.17 x 10 years = -41.7 percent

Ts prop need to appreciate up to 680k (480k x 1.417) in order break even only)

Don't forget about the opportunity cost which I've been neglected based on the simplest calculation.

However we are not penang ppl thus maybe this is not how they habdle the property game.

I personally think it's better if you seek for 2nd/3rd opinion from penang prop experts such as some good agent/aunty unker investor.

Penang market should be quite different from other stay due to the demographic and scarcity.

In all honesty, I stayed in Penang for 2 years when I was working there. If you’re considering rental, you’re in a tough market. Your competitors are old old apartments like U Garden and N Park which rents out a unit for rm800/month for 800 sqft. And this is already partially furnished.

The one advantage I see for Penang in comparison to KL is that Penang is in an island location, which makes it ideal for Airbnb game. No one will book an Airbnb location in Bandar Kinrara. But there will be someone booking a location in Penang Island and I’ve seen quite a number of people doing that when I used to stay in U Garden.

Add in some cheap furniture and do short term rentals.

Actually, I have the same idea like u....

Thanks for ur input..

How about homestay?

No?

COVERT TO ABNB

If homestay and Airbnb is a feasible solution, many more existing landlords would be providing.

In Penang, you’d be surprised how many locations are actually Airbnb. Especially Penang Island. I’m not saying that you’re guaranteed a return, but it’s definitely worth a shot.

If Airbnb is a worthwhile operation, more landlords would convert existing rental units to Airbnb i.e fewer rental units available and rise in rental. Has rental rise in the last few years?

For me, I believe Penang market is worthwhile for a try out, I’m not familiar with the market there. As for my unit in Kinrara, I’ve never thought of it just cause my JMB forbids short term rental, and there is quite a lot of hassle to deal with considering it’s different people every time. I much rather rent my units to the Mercedes boys. Again there is no harm in trying, rather than just blindly accepting a loss on your unit and additional 3% from banks