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 Is buying a serviced residence a good investment?

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SUSbronkos
post Feb 7 2020, 10:00 AM

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depends on the location
Xaser_3
post Feb 7 2020, 10:36 AM

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Find out the monthly maintenance cost first. Strategic location would be a plus point for potential tenants.
al_madd
post Feb 7 2020, 11:17 AM

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QUOTE(Womyai @ Feb 7 2020, 09:57 AM)
With so many new projects recently, do you think it will be a good investment? The location is strategic, near to offices building, shopping malls etc and it is freehold. But quite small la, less than 1000 sqft price around 600k.
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how many rooms?
heavensea
post Feb 7 2020, 12:43 PM

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No
cHaRsIeWpAu^^
post Feb 7 2020, 12:45 PM

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i bought sunway avila for weekend getway.
hazwan_zohdi
post Feb 7 2020, 12:56 PM

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QUOTE(heavensea @ Feb 7 2020, 12:43 PM)
No
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Why not?
icemanfx
post Feb 7 2020, 01:34 PM

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Based on data from the National Property Information Centre’s (Napic) Unsold Property Enquiry System Malaysia (UPESM), there was an overhang of 50,008 overhang residential units worth some RM33.96 billion in the country as at the third quarter of 2019 (3Q2019). They include both residential- and commercial-titled housing, namely terraced homes, detached houses, apartments, condominiums, serviced apartments and Small-office Home-offices (SoHos).

Of the total, the non-landed sub-sector tops the list with serviced apartments (17,459 units) as well as apartments and condominiums (13,630 units) taking up more than 60%.

According to the UPESM data, overall, there were 112,244 units and 25,114 units of unsold property under construction and unsold unconstructed property as at 3Q2019 respectively, worth more than RM23 billion in total.

https://www.edgeprop.my/content/1638530/wha...operty-overhang

As if poorperly overhang is not a concern.

This post has been edited by icemanfx: Feb 7 2020, 02:17 PM
SongChiang
post Feb 7 2020, 02:59 PM

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QUOTE(Womyai @ Feb 7 2020, 09:57 AM)
With so many new projects recently, do you think it will be a good investment? The location is strategic, near to offices building, shopping malls etc and it is freehold. But quite small la, less than 1000 sqft price around 600k.
*
you also have to factor in competition. cause you're not the only one buying for investment. some can do long term rental some go for short term stay. what type of tenant you looking for. what makes your unit more attractive than other projects in the vicinity which probably has lower entry price assuming you buying undercon, or even other units from the same project. what is the range of rental in the area. a lot of developer sales agent said its very close to amenities etc etc but how close is close? some driving distance also can say is close. you need to answer yourself these questions lor. good investment for everyone is different. chocolate is desserts for people but poison for dog.

being freehold doesnt really promise anything also. being highrise, chances of it lasting more than 90 years. hmmmmm. it only enable developer to charge you more. thus higher entry price.
if gomen wanna take over your land pun freehold leasehold is the same.

"The location is strategic, near to offices building, shopping malls " but in the grand scheme of things is it close to city center or other high population area? it also didnt guarantee your return if mall and office is half empty.


tingthinking14
post Feb 7 2020, 03:28 PM

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QUOTE(SongChiang @ Feb 7 2020, 03:59 PM)
you also have to factor in competition. cause you're not the only one buying for investment. some can do long term rental some go for short term stay. what type of tenant you looking for. what makes your unit more attractive than other projects in the vicinity which probably has lower entry price assuming you buying undercon, or even other units from the same project. what is the range of rental in the area. a lot of developer sales agent said its very close to amenities etc etc but how close is close? some driving distance also can say is close. you need to answer yourself these questions lor.  good investment for everyone is different. chocolate is desserts for people but poison for dog.

being freehold doesnt really promise anything also. being highrise, chances of it lasting more than 90 years. hmmmmm. it only enable developer to charge you more. thus higher entry price.
if gomen wanna take over your land pun freehold leasehold is the same.

"The location is strategic, near to offices building, shopping malls " but in the grand scheme of things is it close to city center or other high population area? it also didnt guarantee your return if mall and office is half empty.
*
this is probably one of the most legitimate answer i ever heard
tadashi987
post Feb 7 2020, 04:00 PM

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QUOTE(cHaRsIeWpAu^^ @ Feb 7 2020, 12:45 PM)
i bought sunway avila for weekend getway.
*
getaway from waifu? rolleyes.gif
seancl85
post Feb 7 2020, 05:16 PM

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QUOTE(Womyai @ Feb 7 2020, 09:57 AM)
With so many new projects recently, do you think it will be a good investment? The location is strategic, near to offices building, shopping malls etc and it is freehold. But quite small la, less than 1000 sqft price around 600k.
*
Give the exact project I think easier for ppl to give advice.😊
Zwean
post Feb 7 2020, 05:18 PM

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QUOTE(SongChiang @ Feb 7 2020, 02:59 PM)
you also have to factor in competition. cause you're not the only one buying for investment. some can do long term rental some go for short term stay. what type of tenant you looking for. what makes your unit more attractive than other projects in the vicinity which probably has lower entry price assuming you buying undercon, or even other units from the same project. what is the range of rental in the area. a lot of developer sales agent said its very close to amenities etc etc but how close is close? some driving distance also can say is close. you need to answer yourself these questions lor.  good investment for everyone is different. chocolate is desserts for people but poison for dog.

being freehold doesnt really promise anything also. being highrise, chances of it lasting more than 90 years. hmmmmm. it only enable developer to charge you more. thus higher entry price.
if gomen wanna take over your land pun freehold leasehold is the same.

"The location is strategic, near to offices building, shopping malls " but in the grand scheme of things is it close to city center or other high population area? it also didnt guarantee your return if mall and office is half empty.
*
If properly maintained, a medium height high-rise of about 20 levels can last over 80 years.

Many low-medium rise apartments in Australia > the age of 80 years.

The key is proper maintenance.

 

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