You only have yourself to blame for buying at a 3rd rate shithole and convincing yourself you bought a bluechip property.

Loan interest killing you? You only have yourself to blame too, who asked you to take on a 100%LTV mortgage to buy one?

If you have to then clearly you couldn't afford that investment or as they say trying to wear a big hat when your head ain't all that big.

From your postings it is pretty clear you have little to no understanding to any type of investments in this country no need to talk about Shanghai or NYC or London.

Mostly gimmicks to say the least.

High probability of backfiring on the developer as well these days and does cost them money especially in lost or reduced sales.

There is a unit in Cantara Residence I wanted to buy, told my agent that was the unit I was after. Could not buy it because first come first serve during balloting.

I bought a less expensive unit instead.

3 months later that unit is back on sale because of loan rejection.

Tell these to BBB/uuu, certainly not me.

Nowadays property launches aint as grand as back in 2011-2014. Houses in Kinrara had people queueing up for it. It was for houses that were 450k-500k.

That was because those houses were a relative bargain, was still within reasonable commuting distance and you could not buy a house that was similar size in PJ for that kind of money so this was the next best thing.

Now soft market and launches tend to be condos that are expensive anyway.

I do believe each time a rumawip is open there are crowds queuing up no?

Rumahwip famous nowadays. Very affordable with 900 sq

haha good post, I read page by page for my knowledge in property market.

Was thinking to buy my first house as it is HOC this year, but looking at the market now, I did the calculation as it seem like I hardly able to cover my installment by conventional rental yield.

Majority told me rental able to cover 80% is already very best case for market now.

Other tolds me the only way that MIGHT gain positive cash flow is only by AirBnb.

Somehow pull my legs back for getting my first property :|

If rental could cover loan instalment, qualified tenants would have bought.

so the market now either
1) do partion as much as u could, possible to get positive rental
2) flip
3) hold for long haul, wishing for appreciation while rent and bleeding 20+-% loss every month ?

Are you sure it is worth the effort to do partitioning?

Flip?? Not a chance.

Unit a and b have same floor area, unit a has 3 rooms, unit b has 5 rooms. If budget is not a issue, which unit room you will choose? How much cheaper need to be for you to choose unit b?

Bleed 20% is provided you have tenant.

nobody said u also?

How to determine the market value & bank value?

For example:

Ali buy a property from developer SPA RM550K
Developer give 10% rebate net price RM 495K
Ali loan 90%, so 0% downpayment bought the house at net price RM495K

2 year later house completed, Ali take the key, monthly repayment RM2200, but the market rental only RM1500. Due to pandemic & financial difficulty. Ali want to sell the house at SPA price RM550K.

But after all the bank valuer check the property value, its only average RM400K. So If Ali want to sell the house, either he follow the valuer sell RM400K at lost 95K, or keep selling 495K (feature buyer need to folk out 135K downpayment), or keep selling at 550K price (feature buyer need to folk out RM190K downpayment).

Since this is New House, surrounding dont have a lot of new project to know the market value, only those old old like 10year old house surrounding selling like 400K, and transection history is around that also, that why he is thinking selling 550K like developer SPA price is resonable as it newly build only.

So the question:
1. Is it Bank Valuation = Market Value?
2. Is it Market Value is based on the supply and demand of 1 area, or bank valuation determine the market value?
3. If Ali ready sold his unit at 550K, and will it be new market value? and how many unit sold at market at new price only will then become a new market value?
4. How to determine Bank value vs Market value vs Developer value?

If they tell u, their industry don't need to cari makan liao

Developer value = whatever is the highest price they can sell you the unit for. They can get this very wrong too.

Bank value = depends on lending criteria at the time, it can be stricter or more lax. At the stricter end of the scale, based directly on verifiable rental transactions and sub sale in the area.

Market value = depends how clued up the buyer is but it would be based on breakeven point of verifiable rental with a premium for being fully furnished. A good buyer will haggle the seller down in these times if they sense desperation.

Caveat is that this is viewing all of them as investment property. Blue chip own stay property have different metrics as is landed.

This post has been edited by Cavatzu: Oct 26 2022, 02:20 PM

Yeah, for investment point i think rental market is huge factor determine the market value, but this is for investor view. XD haha i think bank consider as Investor as well, so this sound logic. And Landed house market price should be depend on the willingness of buyer to buy the property at the market, so supply demand more for landed / ownstay property.

But now a day property buyer feel uncomfortable, why property value and price is determine by bank but not buyer themself. for example

Ali want to sell 550K, then bank loan 550K 90% margin lah, why brother with bank value. 1 willing to buy, 1 willing to sell, the buy one agree with the price, the buy one willing to pay. This is what i am thinking bank shouldnot determine the price.

Of course i know bank is smart, and risk calculator, and analysis all the data. they dont simply lend the money, but sometime valuer mistaken? XD

This post has been edited by Aldo-Kirosu: Oct 26 2022, 03:54 PM

Market/Bank valuation needed because if borrower default the loan, when going to auction bank can recover most of the loan amount from auction itself.

EG market value 500k, so loan is 90% of 500k = 450k. if borrower default and lelong the property it should be sell off at around this price, example 400-450k range. bank can already recover most of the loan amount already from auction itself

Imagine like your scenario willing buyer willing seller, market value 500k but seller sell at 800k, and bank loan u 90% of 800k = 720k, when lelong sell at 400-450k, bank still have to wait for the borrower to pay back the balance of around 300k.

This post has been edited by Rinth: Oct 26 2022, 04:40 PM

1. Bank valuation is risk valuation. How much can the property be sold at the point of loan application. It can be less or more than the transacted price.

Market value is willing seller buyer basis. Price that a seller buyer wliling to conclude after viewing and nego.

2. Several factors ... supply demand, location, construction, facing etc. Two neighbouring properties will seldom transacted at similar price.

3. Market value is the average price of similar properties transacted within the last 6 to 12 months. Abnormal transacted price are normally excluded in the comparison method due to unavailable reasons .... marked-up or down, family related, self forced sale before foreclosure etc.

In 2017 I bought a property for 610k and official bank valuation is 725k because of seller facing foreclosure notice from bank but I have to pay mot for 700k valuation.

There is no one market value for a property. Valuation is about opinion after studying the available data. Every valuer will place a different value for the same property and so is seller buyer for the property as mentioned in 2.

4. Bank and market value as explained above.

Developers value are cost input plus profit margin.

market value is not determine by the bank but from register valuer. bank also will refer value provided by valuer. Also, bank was the party who provide loan to buyer. If borrower default the installment amount, then bank need to lelong their home. Sometimes is not easy for the bank to lelong the home.

As you can see, there is always auction property lelong in the market and the the price is way lower than market value.

MOT @ 700K because developer refuse to allow direct transfer?