Anyone able to sell Rumawip ?

May i know the 10 years is count from VP date or SPA signing date?

i heard some people managed to sell it with the approval from DBKL, how to do it ?

i saw some lelong unit , should i stop paying loan installment and let my unit lelong by Bank? will i get back some money that i had paid ?

The damage from having your credit worthy damaged permanently are too great to consider even and no guarantee your unit will be able to fetch final bid price above your outstanding loan sum.

Lelong? you still want money back?

You should be happy if your unit is lelong more or less the same price like what the bank loan you (you still need to cover for the legal cost, lelong cost etc etc + interests).

If your unit sells below your lending amount... top up payment will be needed too.

did u buy the rumawip house for reselling purpose?

depending on which rumawip u having right now... not all rumawip able to lelong at your price or above... some laubeh ones sold at below purchase price

Lelong is like the final option for owners that cannot pay instalment and the consequences are so great that I don't think worth it.

Also, if you check rumawip lelong units now, you will see they are not worth the initial selling price so bank will convert the difference into term loan and you still have to pay it.

Conclusion, banks are smarter than buyers miles ahead. Contact a banker to know more.

Must be absurdly stupid to resell rumawip through lelong.

Wow......superinvestor some more the name.

If you're willing to damage your credit score by auctioning off your property, potentially and most likely taking years to recover your credit score, and possibly costing you more in the future due to your low credit score (loan eligibility, interest rate offered, margin), sure go ahead.

You're better off renting the the unit at a lost, then damaging your credit score that took years to build.

for own stay. but found out the house is not comfortable to stay. want rent out also less people want it. overall, it is a bad purchase. So, i need to cut loss now. If hold another 10 years, i might lose even more.

Got few rumahwip sold at way above launching price in the lelong market.
1. Gurneymas 198k sold at 292k.
2. Lanai 300k sold at 426k.
3. DNuri 300k sold at 372k.

But got also few rumahwip sold in lelong at below launching price or just slightly above launch price. Such as Pandanmas 1 and 2, Skyawani 1 and 2, Hijauan Lumayan.

If got excess amount, there is no guarantee the defaulter owner will get the excess money. Maybe DBKL or KPKT or relevant agency will claim the money.

Anyway, yes by purposely not paying the monthly loan instalment so that the bank will auction your unit is one method to dispose the property. If you don’t care about your future credit profile.

As long as you do not owe money and not bankrupt, the CCRIS will be clean in one year. Of course, the said bank still have ur record but there are another 10 banks for you.

Didnt advocate this method as rumahwip is strictly for own stay and rental. Flip at your own risk...

Depends on how many ppl attending the lelong session.. Unless u arrange ur own hantu

Which Rumawip?

Professional investors will know what to do....

i believe u can sell ur house via lelong without needing to defaults installment

just go ask any auctioneer to auction

Which rumawip rental cannot cover installment ?

if rental not good means no point lelong it, you will kena heavier loss than u expected... lol... those rumawip which have good pricing in lelong are mostly performing well in rental market... it correlated de

Like, 95% of them?

rumawip is selling below market price. If 95% of rumawip rental cannot cover installment, the open market die very long time ago le...

Assuming a 300k rumawip with 1200 monthly installment, it will not be hard to rent it at 800 at least to cover the bank interest.

Yes it is selling below market price but that doesn't mean rental return can cover instalment.

Open market won't die because the demand for more premium property is still there.

Initially you mean "Which rumawip rental cannot cover installment ?" now you said at least rent out rm800 to cover bank interest. Have you decided which stance you stand on?

Since you said 95% of the rumawip rental cannot cover installment, have you decided which 95% is it?

Covering the bank interest is the worst case scenario, a lot of the rumawip out there are positive cash flow.

Most of the aset kayamas project are renting above installment, Wangsamas Sentulmas Gurneymas Pandanmas and others.

Now your turn?

What do you mean by not comfortable ya? Location, density, build quality, neighbours or what?

To me if u willing to put some efforts its not difficult to rent out near ur installment.

Certainly not the case for ts.

And I have no doubt ak wip projects can rent above instalment just that subtly implying all wip projects can easily rentable and rental is high enough to cover instalment feels kinda funny.

This post has been edited by lollipopkan: Mar 6 2021, 12:38 PM

Yes, i agreed to what you said.

Well again I'm not saying that all rumawip is a good buy, but you saying 95% of of the rumawip rental cannot cover installment? Err where did you get the figure from?

Affordable housing generally does better in cash flow; open market project generally does better in capital appreciation. Tenants just need a place to stay, they do not care about your purchase price.

A 300k rumawip is able to be rented out at 1200-1300, while a 600k project normally fetches around 1700-1800. If 95% of rumawip rental cannot cover installment, then 100% of the open project rental cannot cover installment.

Again where is your list of bad rumawips, I'm still waiting for your list of 95%...

something is very wrong with the mentality of the owner buying this property.

1) let bank lelong - very unconventional and rather foolish to kill your own credit worthiness
2) saying value will drop - you just speculating and you do not have the data to back your saying. follow INFLATION, every year things gets more expensive
the property value cannot stay stagnant. at any location, given the time, population will grow.
3) Just because you think you made the wrong choice of Rumahwip, you say all rumahwip also TAK BOLEH - very shallow thinking.

I hope you dont do foolish thing and make your own life miserable. property is a long term game, is not buy today and make money tomorrow.
dont be fool by all those property gurus that tell you how well they did, they not selling you knowledge on property, they merely selling you DREAM.

i think lowyat forum here is a good place to gain knowledge vs Property guru as some of the people here are buyer themselves, investor and they go onsite to see what is happening. their sharing on the real situation makes a very good informed decision on your buying process.
of course dont go read all those giving negative feedback without any backing at all.

Boss, since when I said all rumawip is bad?

My purpose here is to seek help on how to sell rumawip as some people able to sell it.

Yes, I have my own reason to sell it, because I can only cover half of my installment and my neighbor too, thus I know this location and the property itself has problem and developer refuse to fix it and thus I feel very troublesome as we want to bring to tribunal.

But I saw my friend rumawip at other places is renting out good with positive cash flow.

I will not tell the name sorry, because I want to sell it.

The other guy said 95% of rumawip is bad, not TS


ENESTA ka?

Try talk to DBKL. Officially only can transfer within family but even they approve under special consideration it may be conditional on the price eg they limit ur SPA price max 300k ie. meaning you just breakeven or small loss.

Not sure on your bank loan specifics but right now at 3pc interest what I am paying for the 270k loan installment only $985 monthly; cannot rent out as is (bare unit)?

This post has been edited by ceo684: Mar 7 2021, 12:15 AM

Here case study lelong unit sold for Rumah Selangorku.
Launching price refer here: https://www.facebook.com/LembagaPerumahanDa...12844498875079/

800sqft launch at 170k.
900sqft launch at 200k.

Lelong unit 800sqft sold at 202k.
32k above launching price.

You're referring to Enesta? Well things may get better for it once MRT 2 starts running and Arunya comes along.

When "fewer people want to rent it".. meaning that still got people will rent provided the rental is cheap. Many investors out there are experiencing it. You are not alone.

Exit right now thru auction is not a viable option. When applying, you are well aware of the financial risk. Better to find a way to resolve the problem.

for a 300k project, how much can you lose actually ?
30% below market? so the value of your property become 210k?
if you keep another 10 years/20 years property value still same 210k? not likely right.
even places like Kajang can sell more than this 210k

the interest you lose you can use armotization calculator to calculate.

Date Interest Principal Prop Taxes Home Ins HOA Fees Balance
Mar, 2021 $729 $393 $188 $125 $150 $249,607
Apr, 2021 $728 $395 $188 $125 $150 $249,212
May, 2021 $727 $396 $188 $125 $150 $248,816
Jun, 2021 $726 $397 $188 $125 $150 $248,419
Jul, 2021 $725 $398 $188 $125 $150 $248,021
Aug, 2021 $723 $399 $188 $125 $150 $247,622
Sep, 2021 $722 $400 $188 $125 $150 $247,222
Oct, 2021 $721 $402 $188 $125 $150 $246,820
Nov, 2021 $720 $403 $188 $125 $150 $246,417
Dec, 2021 $719 $404 $188 $125 $150 $246,014

you pay interest rate of RM 730, assuming interest rate 4% per annum for 30 years.
you able to rent out for RM 850 assuming maintenance also included, then you Break even.
whatever extra installment your are paying is just saving.

if you need the cash, after 10 years to be safe, the property value increase, you can cashout again whatever you have paid in principal.
interest wise already taken care by your tenant.
unless you really cannot pay the installment, then you want to default it to lelong, then no choice. you let bank help you sell.
but if you can really pay the installment, i dont see why you must let it lelong.
also for now you only paying construction interest if it is still under construction.

also the 10 years moratorium is from your SNP date usually. 4 years use for construction, unless you sign your SNP later, then wait longer slightly.

ok. Thank you for your comments.

my other reason is to settle this 'shit' and release my quota for another new property/investment

Hi ts, which project? Kindly pm.

Bro, once you go lelong you cannot never borrow from the bank already.
I am not sure for how long, at least your CCRIS report 1 year cannot use.
after lelong if amount can settle all your loan outstanding i think bank wont chase you.
but if not enough, you still have to top up. else they may sue you but cannot make you bankrupt because only 100k above can sue you bankrupt.
they just simply give you a court case/record in your ctos then you already cannot borrow from any bank.
now all banks will pull your CTOS before deciding to give you any loan.
loan now very strict.

This post has been edited by special: Mar 9 2021, 04:38 PM

Here’s what usually happens if your property is about to be foreclosed (bear in mind that there's a specific and STRICT legal process which the banks need to observe):

Step 1: The bank will issue you (the borrower) with a letter of warning to remind you to pay up... OR ELSE.
Step 2: In the 2nd month, a follow-up final warning notice will be issued by the bank.
Step 3: During the 3rd month onward, the bank's lawyers will send you letters requesting for you to pay the remainder of your arrears (basically, a legal jargon that refers to the money that is owed) within 14 days.
Step 4: If you fail to do the necessary payments in Step #3 by the deadline, you'll be hearing from the bank again! This time, you'll receive something called a Letter of Facility Withdrawal. This requires you to pay the full outstanding loan amount within a maximum of 14 days.
Step 5: In the 6th to 7th month, that's when you'll be called to appear in court, and the proceedings will depend on your property's type. This is where the bank's lawyer(s) will apply for a direction of sales, and an auctioneer will be appointed. The final step will be when a real estate appraiser is engaged in order to set the auction reserve price. Getting the final figure will be based on the current market price, as well as the amount of outstanding loan.

auctioned properties carry a price tag that can be wayyy below market value to make them more attractive. The reason for this is simple: it gets sold off faster, the bank gets their money back faster.

Therefore, the final selling price (when someone has made a successful bid) of your property might be much lower than it's actual value.

The proceeds from the auction will go to the bank to pay off what remains of that loan you took, and any other outstanding payments. IF you’re lucky, any leftover balance will be forwarded to you.

However, if the auction amount doesn’t cover the outstanding loan amount due, you'll need to pay the remaining balance out-of-pocket, and that may also include any extra expenses incurred from the auction!

-----------------------------------------------------------
Bank pay commission to Lelong Agent
bank also need to pay all the outstanding maintenance fees etc
Auction house also gets a cut for the auction property
all the fees that the bank pay, including those legal fees for lawyer to draft your POS file and valuer fees and all that will be charged back to you.
not sure the amount but you will be shocked, since lawyer fees all not cheap.

If you lelong on purpose this is what will happen

1) banks will record you as poor paymaster (means your credit score die)
2) high chance your property will be auctioned off at much lower than market/purchase price (and none of the money will go to you)
3) any outstanding loan, legal fees involved, auction fees etc will be charged direct to you

#1 + #3 = kiss any chance of getting financing from any banks goodbye for at least a year, and the bank you got the original financing from may even put you on blacklist so getting loan or credit card from original bank will be extra hard

so you not only don't actually "settle" loan, you end up getting charged much more, especially for a property as low value as affordable housing

the most financially sensible thing to do is to rent out for now and then sell once your no-selling time period is up, to minimise losses without murdering your own credit profile

If your intention is to free up quota your may consider AIA however their rate on higher side although it’s fixed throughout the tenure and won’t appear in CCRIS

i doubt this is allowed for rumahwip

Just small correction, in case of strata, bank will not pay any overdue fee (maintenance fee, sinking fund, cukai pintu and cukai tanah etc). They just let the pending money rolling till next person to take up the said parcel. and management office also will charge interest and penalty for this pending amount. This is why if a unit market price is RM 350K, bank legal it at RM 280K (about 20 % below market value), the new owner need to settle these fee below move in and legally own the property.

If you are talking about foreclosure lelong case.
Depending on bank policy. Majority banks will cover the outstanding maintenance fees, sinking fund, cukai taksiran, quit rent, fire insurance even late payment interest up to the auction date.
Only utility bill TNB, water and IWK not covered. For now even TNB able to change name actually without needing to settle the ex-owner outstanding.

Yes there are some banks just covered partially. Mean maybe up to 10k limit only or 5 years back.
All these T&C will be clearly stated in the POS. Each banks policy is different. Be sure to read and understand before commiting to buy from auction market.

Yes, thanks for clarification.
So buyer need to conduct own survey and check all the term and condition.

10 years start from SPA date..

You cab sell with permission from KWP/DBKL

Hi,

Wanted to ask, if in reverse I want to BUY lelong rumahwip instead,

What is the procedure? I see a rumahwip lelong unit for sale but it was VPed in 2022, so definitely cannot sell but seeing the posts here it seems possible?

sell thru lelong can, sell via subsale need to follow moratorium

May I know what's the entire procedure?

Will be a first time home buyer hence I was considering another new ongoing rumahwip but it would take 4 years to build.

Was thinking to buy this lelong rumahwip instead but I'm not clear on the procedure but at least I can start living there now

Thank u

better seek help from auction sifu, its just normal auction procedure

lelong has too much hidden cost, if you are a first time buyer, i wouldnt go for it, might be 20% -25 upfront due to no rebate, lawyer fee etc.

Can share to me the breakdown hidden costs? As actually I do have the cash available to fund the entire rumahwip project, just thinking if I can have the house now then I can stop paying rent to my current rental room

Bank and credit agency can retain two years max as per law

Experian will clear every one year or you show the debt cleared letter

CTOS will retain it for two years

Thats why CTOS is hated by many lol