I bought a NEW property in Penang,leasehold, very high intensity (2000units). It's affordable units but I buy via Public Units. At RM480K. I haven't get the key yet.

It is in a strategic location. However, my unit is given high floor car park (6th floor starting fr G, 1,2,3,4.... )

I a bit regret.

*Rental hardly can cover 30-40＋％ of the installment, most likely.
**I m willing to sell at very little to none profit.
***There might be many sellers after a few years especially affordable units bought at cheaper price.
****I need suffer lock in period loss if sell now.
***** 2nd hand leasehold, transaction take longer time? How long


This post has been edited by hotguuy: Apr 7 2019, 10:50 AM

Assuming holding 10 yrs:

440k loan, repayment 2300.
-1000 x 12 = -12000 p.a.
- 12k x 10 = -120k

-120k - 350k (amount due with bank = -470k

As a rocket lander, do you think the value of the condo can be able to sell back at spa price of 10 years ago?

It's just a break even + opportunity cost. But still better than lose everything.

BUT if the management is nkt good 10 years of condo can aged really bad.

This post has been edited by heavensea: Apr 5 2019, 08:18 PM

I ain't familiar with rocket land at all, thus my opinion is merely based on figure.

Imho, get rid of it if really ada buyer.

Some said Penang land is scarce and rental income is subsidizing ownership.

Not racing, but rocket lander friend told me its hard to make moneh from Chinse in eocket land especially in: foods, rental.

They already get used to cheap foods and rental. Those prop mahalx2 main ground business folks only.

Totally agree, but mainly Penang employment income is not even Top 3 states in Malaysia. Kuala Lumpur is the first

But, Penang pricing can go up to RM1000/sq feet

This post has been edited by hotguuy: Apr 5 2019, 10:17 PM

How much is the monthly repayment?

How much per month do you have to top up assuming you rent it out empty and unfurnished?

How much do you need to dump in for furnishing to make it fully furnished and how much more per month could you potentially get in rental?

Is there a market to rent it out by the room?

I doubt high floor carpark is an issue.

How long would it take to sell an empty unit? Likelihood of lelong units being cheaper? Can you afford to hold?

what is your initial strategy when purchase the unit?

invest? own stay? flip?

bad market now to sell..

SIFU

1. I haven't started to repay yet... But, it's estimated to be RM3K+ repayment initially. The loan design is like tht, pay higher initially (Full flexi).

2. Rental unfurnished, most likely RM800-1000 (I guess). So, top up at least at least 2k+

3. Estimated minimum 25-30k ba, most likely laminated kitchen(cheapest), but rental maybe increased by RM200 at most. RENTAL maybe RM1000 - 1200 (I guess)
Top up loan, less than RM 2k

4. Room by room, possible. But, the car park not enough. It's more problematic for me too.

5. Thanks

Follow friend buy.... But, she is rich (Cash buyer), I m not.

Location good. Walkable to shopping mall, lots of restaurants walkable, Near sea. (sea view etc)

Almost 500K units, rental around RM800... Thts lost making biz lo.

But, Penang. It's like that lo

-24k++ p.a. to hold...
5 years = 100k....

2.5 percent of yield...
Fd also out run.

Buy cheaper own stay ok la.
Investment wise, commie (that can afford by wealth) is better bet.

Fpr penang.

Less than 2% rental yield if RM800

Sifu, any advice?

Those who voted Others, what is the idea?

This post has been edited by hotguuy: Apr 6 2019, 10:01 AM

One Foresta? More than 2500 units.

Before buying have you done any due diligence? or just base on some friend or "guru's" recommendation?

Under current market condition if the rental can cover your monthly loan interest than it is good enough. Whatever the top ups considered as a savings.

Wonder how many buyers are facing similar dilemma like ts in the market? 10%, 20% or 30%?

Penang property market scenario....

Need to consider bank lock in period too....

Got penalty too

If m.s southville is any precedence, ts may want to consider a quick sales at >30k losses from day one.

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

the highest density up to 4k in kl.
2k maybe not that serious in bleeding

Perception is different from reality.

Penang is a strong base of money game. If Airbnb is worthwhile and profitable, many would have jumped in the bandwagon. Wannabe won't have any chance.

This post has been edited by icemanfx: Apr 8 2019, 06:48 PM

Agree I don’t know much about Penang. But only to cover 40% of installment is a no no wherever you are unless you have bottomless fund or really want to buy and stay.

Really hope this buyer can exit without so much loss. His options:

1. Stay there
2. Furnished out to showroom level interior design and try to sell to a buyer who love the ID. (maybe make loss and have to topup)
3. Figure out what is the best rental strategy so as to get as much rental as possible.

Whichever way, buyer have to make more money to throw into this unit. 😓😓

Mercedes boy mean people who work at mercedes ? or tenant who drive mercedes?

People who work at Mercedes la. Tenant driving Mercedes most likely wont want to rent my middle class apartment lar

another victim of Adrian wee cult group.

This to me is the most logical way, if considering your claim that it is in a very strategic location

Dissapear for so long, then come bek. i tot u 2x6 liau lol. Undertaker

What is tht?

I happen to look back at your old thread

https://forum.lowyat.net/topic/4753741

My perspective is that your location is not strategic at all for working professionals as most are mainly looking at Bayan Lepas location.


Secondly, from what I see, you bought your property like buying sayur in the market. People say selling like hot cakes and almost sold out, you believe. People say loan rejected unit, you believe. People in LYN voted for low level carpark, you want to change unit. Aihhhh so gullible. If I were the REA, I will snap a photo of a fake cheque saying it is booking fee to raise your price.

Take that loss as a lesson learnt

This post has been edited by Harry_Bobinski: Apr 9 2019, 02:31 PM

Thanks for ur input

My brother already got a unit of condo in Bayan Lepas... He is complaining cheap rental.

Thts why I didn't even consider Bayan Lepas.

Thanks for ur input

My brother already got a unit of condo in Bayan Lepas... He is complaining cheap rental.

Thts why I didn't even consider Bayan Lepas.

And your apartment is not cheap rental now? LOL

Did you survey the market yourself? Check ibilik, propertyguru, etc? -.- You seem like you do not do a lot of homework and just listen blindly.

https://www.penangproperties.com/list/apart...for-rent-bb.htm

Bought because personal reason, girl friend. And she wan... Secondly, friend also said worth it. Now, already break up.

Sifu, seems u know Penang properties. What advice u should give in my current situation for this property.


Yes, I do not survey the market before tht, u are right.

I am not a sifu, I own only 2 residential properties in Kinrara and 1 agricultural land in Seremban and as I mentioned, I am not familiar with Penang market. But it’s general common sense to research market before you buy a property. It takes me months to research on the market and really physically go to a property before I buy one. That’s 35 years of commitment -.-

Back to the topic, I was in Penang for 3 years and from what I know, people who stays in Penang most likely work in Prai or Bayan Lepas. In any case, I suggest you stay in the apartment and rent out other rooms. Put in aircond and try to charge rm400 without ac or rm500 for a/c room.

This post has been edited by Harry_Bobinski: Apr 9 2019, 05:49 PM

Haha market soft then ayam mia. Now wanna come out.cari cacing makan. Your unit when vp? 2020 Q1? The progress seems quite fast.

Congrats, congrats.

Another financial advisor specialist professors wantanbee professional property deep mountain tok guru?

i dont think he want to stay there lor, he is ok to sell at a lost.

I know this condo, reclaim land. (I actually bought it for own stay)

Actually, Tanjung Pinang location is strategic ,walkable To Tesco and Straits Quay, near Gurney Plaza. It is one of the most expensive place in Penang.

There are expatriates who are living and renting there.
But, they have too many options to choose and rental is low.
Condo worth RM 1million can let out around RM 2K+

For me, the location is better than Bayan Lepas.
But, have to Agee wit u Bayan Lepas easier to get tenant because near to factory.

But, Penang salary range is much lower than KL, the rental in Bayan Lepas is low, spoiled by cheap salary and low cost flat/middle cost apartment.

Some Penang people willing to wait for months to let out at high rental.
The link u provide show kind of idealistic market rental.
Reality, the rental is lower.

This post has been edited by Irresistible: Apr 9 2019, 10:29 PM

3 years have passed and wondering in the end what TS has done to his property. still holding? own stay? rent out? sold off already?

Maybe one of those jumper case

That’s very mean. I am curious about the state of Penang property. KL prices at half the rental income. MM2H changes might see more of an exodus of the retiree expats.

So its true from what i heard, Penang folks very kiam siap... rental also low low despite salaries from those working in multinational companies quite good. My conclusion arrived at many years back.... only the Klang Valley property market allows you a good chance to make money vs Johor and Penang. other states don't even think about it.

Penang roi always low one. Penang more like rich ppls holiday home collection.

Commercial always worth a look. Esp near UNESCO

I don’t think it’s necessarily the kiam siapness la. It’s purely a function of supply vs demand. Why pay more when you don’t have to? Penang is not a metropolis after all. I think Intel has now cabut also right?

You need competing demand from everyone to drive prices up.

This post has been edited by Cavatzu: May 24 2022, 02:18 PM

I hope it's true as I hope to retire to the island one day (though falling markets may have delayed those plans by a few years)

But food there is no longer cheap.

Still cheap and gooding compared to KL / Selangor.

This post has been edited by heavensea: May 25 2022, 12:29 AM

I don’t know if I’d choose to retire in Penang just because their CKT is 1 or 2 RM cheaper. Actually, their famous ones are super ex.

Yes it’s a bit more relaxed but I wouldn’t pick it over KL unless I was from there. My retirement plans are to be in a central and convenient hub that facilitates cheap travel abroad.

You're correct, don't forget about the private medical advancement at KL.

To be fair Penang is known for medical tourism and is a good place for R and R. An ideal scenario is you rent out your KL property and take advantage of cheap rents in Penang not buy there. Immediate cost of living arbitrage.

Penang private hospitals is as good as KL? What's for R and R?

I wouldn’t say they are inferior or anything. Many foreigners do go over for elective procedures and get a mini holiday as well for their recuperation. Most likely still cheaper than their home country all in.

Malaysian medical care is considered very good quality for the price as a lot of the doctors etc graduate from good universities. Add to that cheap food and services on top of the English proficiency and you have a winner.