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 Let's Talk Properties. The Q&As, What would you like to know?

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Felix-da-happy
post Dec 17 2020, 02:19 AM

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Thanks for opening this topic!

I look at properties on iProperty and they provide estimated capital growth and rental yield. I noticed some have negative capital growth. How important is capital growth if I planning for own stay? Thank you smile.gif
Felix-da-happy
post Dec 17 2020, 11:15 AM

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QUOTE(YeohKW @ Dec 17 2020, 08:23 AM)
Hi. If I am buying for my own long term stay, I wouldn’t really bother about the capital growth in that area. As long as I like it, I will just buy it.

As a REN, I normally will share with my clients on this:
Own stay - Get all of those who are going to stay in the house to go along and view the property, location, environment, and everyone to agree that it is the best place for them

Investment - Capital growth, potential income, and many other factors that potentially going to influence the price and rental as main considerations before buying

And to add more on your question, there are few reason why there’s negative capital growth too.

1. Old neighbourhood where the capital growth is past its peak and starts to drop or stagnant due to the property getting older.
2. New development next to property which offer better options
3. Developments of the area is slower than expected
4. Current market situation which is slower
5. Other reasons.
Hope this help.
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Hmmm ok thanks! I believe that it's negative because it's high rise as well. But me and my partner really like the location and the building. It's those lower rise kind of condo and not high density. Then very well maintained too, despite it's age. But I worry we will regret if we buy and then keep watching the price drop sad.gif for subsale is it better to get landed?


QUOTE(mini orchard @ Dec 17 2020, 08:45 AM)
Capital growth indication will tell you something about the location....upkeep, people profile, safety, amenities etc.
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I see. When I visited it looks quite ok or maybe I not yet see all the problems that caused price to drop. Could be because is old condo but no strata title yet. I think the other residents and the way is maintained is good but if price continues to drop, don't know if they will keep it up sweat.gif
Felix-da-happy
post Dec 18 2020, 09:13 PM

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QUOTE(YeohKW @ Dec 17 2020, 08:42 PM)
High rise normally will drop in price due to aging and it's old and without strata title, then the situation even worse. However, there are also cases where a well maintained building will still sees a small increase despite it being old. As for landed, while it will continue to increase as long as the tenure valid, it also depends on the location, development in the area too and other factors. 
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Ok thanks. Give me something to think about since I prefer subsale but my parents don’t like landed.

Speculative question: do you think buying new launch condo now is a good idea? Since most of them are very high density, I cannot imagine in the future price appreciate as well as condo bought 10 or 20 years ago. Asking because I’m not the expert <3
Felix-da-happy
post Dec 19 2020, 11:14 PM

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QUOTE(YeohKW @ Dec 19 2020, 02:55 AM)
Any time when you are financially and mentally ready is a good time.

But buying mow means
1. HOC benefits
2. Lower interest rates
3. Better packages offered by developer.

But of cos, performing due diligence is very important.
Developer’s background, development plan for the area, and for property investing purposes, there’s even more to look into. For own stay, as long as you and your family member are happy with the location, project environment and the unit itself, then it should fine.

For capital appreciation, it’s definitely will increase BUT there might be a drop too since KL is a matured area. And if it’s a high rise, then the chances of the price getting stagnant or even drop in the far future is even higher due to the wear and tear of the property and also the management of the property. Just a point to consider.
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Very good insights and helpful. And your honesty and straight forwardness very refreshing:) Thank you!

 

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