Hi..
I'm currently own 2 houses, first is low-cost apartment (bought during single) and landed house (currently stay).

I want to sell my first house, due to lift issue. Little background:

-10th/top floor low-cost apartment in Selayang
-3beds, 1bath, 1toilet
-680sqft (end unit)
-apartment have 2units lift, 1unit broken 1year++ and the 2nd unit broken almost 8months. No renter as previous tenant move out after 1month lift out of service. Now they repaired 1unit lift and I'm thinking to sell this unit immediately.

I search on brickz/fb/property website last transaction found is on 3years ago and no latest transection.

So, I wondering how to check current market value as I want to max profit for d/p my new property purchase.
Thanks..

Nowadays, many new affordable housing available. The old ones are not easy to sell esp if is badly managed. Most old low cost housing are small and not suitable for families.

Buy new can get 100% loan for most buyers and other perks plus bigger units and some with facilities plus modern design, facade and fittings.

Getting a loan is easier from govt projects compared to subsale. This is confirned by the few auction units after VP. Infact I bought one virgin unit through auction without the previous owner collecting the keys from developers.

Unless the location is highly in demand, chances of a good price is low.

Not trying to upset your plan but the reality is on the ground.

This post has been edited by mini orchard: Oct 17 2022, 05:37 PM

Best to engage an agent to help you out.
Find out how much are the asking price around the flat or similar projects around the area.

For low cost units, the target market is foreign workers. 3r1b with 680sqft is plenty big enough for foreign workers if the rent is cheap enough - so the buyer of such a unit should be looking for renting out to them.

My own low cost flat (the lifts are in similar state of disrepair) is being rented out to a foreign worker and his family - locals would avoid if possible when lifts are not available for such high floors. Looking to acquire more at the same project since owners are looking to exit - but I don't think I qualify to buy more low cost units since I already own one.

From my own small portfolion, low cost flats gave me the highest ROI besides student accomodation.

Edit : Back to topic, my basis for valuing a property is how much rental can I expect to get out of the unit. I expect a property's rental should be able to cover bank instalments and other misc expenses + give some returns, however this is unlikely during such times and TS low cost unit being in a high floor with a unreliable lift - you can expect buyers to press you for bargains so that they can get positive cash flow from day 1.

For me, the market value = (the loan amount where the bank instalment is the monthly rental of the unit) - RM20k~30k? Deduct more if there are significant repairs to be done to the unit.

This post has been edited by AbbyCom: Oct 17 2022, 11:11 PM

Depending on state govt policy, buyer of subsale lowcost or affordable housings comes with tnc except for auction cases and if is bumi unit, is only reserved for bumi bidders.

Majority of subsale buyers will face borrowing issues because of non regular income, low pay or poor banking records. Out of 10 prospects, maybe 1 or 2 will qualify for loan.

Not forgetting buyer need some savings to pay for downpayment, legal fees, stamp duties and valuation fees.

Those will buy new projects where lending by banks are slightly lenient, 100% loan but somehow rather, few of those units will eventually go into auction market.

After getting vp, he needs cash to renovate to make it liveable.

I do agreed that roi is good for lowcost housing esp if the owner is the first buyer. Not too bad if buy subsale.

Any buyer who likes to buy subsale lowcost for investment would majority own another property which auto disqualify him. And seldom do any first time property investor buy a lowcost but there maybe exception.

Investors not only look at roi but capital appreciation and ease of transaction are also important if he wants to cash out.

How much would the capital appreciation after the subsale in the future? Another 3 to 5% ?

Currently, those who bought rsku or rumahwip will lose money if they let it. Rental income for many may not be enough to cover instalment and maintenamce. Is oredi a losing game from start.

There is always a limit on how much tenants can afford in this segment market. Full furnish is out of the question. If a tenant can afford higher rent, he would rather go to better or newer affordable housing.

And 'expat' tenants will camp 10 in a 2 room units for another 200 or 300 more in rent. They are smarter than most landlord investors as cost per person is lower to them and higher for landlords in terms of wear and tear plus damages.

This post has been edited by mini orchard: Oct 18 2022, 08:05 AM

I'm afraid what mini orchard stated is the current ugly truth. There are just too many affordable units flooding the market & they are going to construct more.

1) The immediate valuation will be based on the current transaction price.

2) If there is no latest transaction price, you need to use the valuation of the new market & apply some discount to it due to the aging facilities.

At the moment, rumah WIP is selling at RM 300k @ 856 sq.ft. This translate into around RM 350/ sq.ft.

If your old unit is 680 sq.ft, it will translate into around RM 350 x 680 sq.ft ( yet to discount) = RM 238,000.00

1 new lift will cost around RM350k. Ratio of 1 lift to 100 units, hence per unit cost of lift to apartment unit = RM 350k/100 = RM 3.5k

Your block got 2 lifts, hence price of 2 units of lift = RM 3.5k x 2 = RM 7k ( to be discounted).

Also, the old low cost, you need to put another discount good enough to sell it so that the buyer won't opt for the newly launch Rumah WIP of Selangorku will provide the 100% loan.

If you ask me, the price should be around = 238k -7k -(5~10%) Rumah WIP competition = RM 238k-7k - 23.4k(worst case) = 203.6k

Also, look at the yield. Low cost per unit usually around RM 700-800 / month. 1 year = RM 700 x 12 - less maintenance ( RM 0.15 / sq.ft x 680 ) x 12 = RM 7176 / annum.

Yield 4% per annum = RM 7176*100/4 = RM 179.4k.

I'm in my opinion, it should be around 180k~204k range. Anything more than that, there will limited buyer unless your location is so strategic, no matter how always got tenants ( higher tendency to use yields valuation).

Ok, I will try engage an agent.


To deduct 20-30k is quite a lot comparing a low cost unit price tag..


So far after 7years owning this unit, I never rent it to expat and I usually heard from family/friends, expat tenant will destroy your house..

Before I bought this unit, I actual rent it for 1year++, then the owner offer me to buy this unit with good price. That time bank value 15% higher than owner offer, so I grab it.

The location is good, near to workplace and during my renting no lift issue.

Renting rate also good, currently my renting for empty unit can cover bank installment+ maintenance fee. My unit does not empty for more than 2months before lift issue.

I know this/next year is tough time to sell a property, but I actual eyeing to buy another apartment which is good.

If I am in your position now i will cash out even if is breakeven. Is getting tougher for old flats to compete with newer units.

Near my current place, one rsku unit just vp this year. Another old flats about 15 years which is just a short drive away. The tenants there are starting to move to rsku and the demand is good.

For those who can afford another 150 to 200 more and working nearby, is worth the move as everything is new and bigger.

This is the view of the same rsku which a friend won in an auction. Brand new and near to developer price and keys still with developer. Forever unblock view.



This post has been edited by mini orchard: Oct 18 2022, 10:10 AM

Nice calculation.. at least i can figure out some number for my unit.. thanks..

But based on your range given..the price is beyond my expectation.. far too high.. if i manage to sell in that range it really good return investment..


This post has been edited by soulmixx: Oct 18 2022, 10:26 AM

Subsale market bad due to bad gov policy .

Pray tell, what's your expected price tag? and what was the last transacted price few years ago?

What's the monthly rental of other units on the same floor? Or the rental price before lift issues?

This post has been edited by AbbyCom: Oct 18 2022, 10:45 AM

ahh...suddenly I got a feel you is talking about the 50-80k / unit low cost.

Such scheme, I doubt you can sell at the open market, you need to dispose to qualify buyer as regulated by city council.

Give u a number..

My purchase of the unit: bank value 105k, owner offer 90k..

Last transection I found is on end year 2019 sell for 120k level 7..

My unit rent 500rm for last tenant as they rent for 2years++ so i just keep old rate. I heard rental up to 600rm same floor for new tenant before lift issue.

What I understand that buyer this unit is tie to Selangor low-cost property requirement..

This post has been edited by soulmixx: Oct 18 2022, 12:18 PM

The price won’t appreciate much coz this is the closed market. You can only dispose around the purchase market price. The qualified buyer also can’t offer much.

I know it won't appreciate much.. that why i asking how to check current market price, so that i can max my profit..

but again, thanks for the calculation. i will figure out my number..

500 x 12 = 6,000

6,000 ÷ 90 000 = 6.6% excuding mantainance sinking fund and wear and tear.

If tenant good then return ok.

Thr longer you keep, the more problem with the building due to aging issue. Eventually only 'expat' will rent. The poorest local will also move out.

If buyer less than seller, buyer is not interested in current market price. Is their price matters if seller desperate to sell.

This post has been edited by mini orchard: Oct 18 2022, 01:28 PM

I have headache thinking to keep or to sell.. The lift broken on a very bad time and now also a bad timing to sell property.. Inflation/ recession..

Actually if no lift issue I just happy to keep this unit.. 8months++ without tenant really koyak my pocket.. Now they just repaired it not sure how long it will last..

Now that the lift issue settled, you can start to market it.

If you have a tenant later, offer it to him like how you bought. You might have to help him to buy the flat.

Previously, when I sold one property, the young married couple dont have cash for booking. So I accepted 500 and the balance he paid when they sign snp and withdraw from epf.

Looks like that the best way to do.. plus need to pray the lift can last another 1-2years without problem..