Hi all,

would like to get some insights from all the expert here. Im in dilemma now.

my current house is fully renovated which i spend quite a large sum of money in it. ( fully extension from and back / plaster ceiling / new gates / new tiles etc etc...)

My situation
i bought a new house and now thinking wanna to rent or sell it. Why im dilemma because i initially plan to inherit it to my kid in future.
so if i rent it out, I worry the tenant will "destroy" it as I cannot expect the tenant will take good care as I do. the cost of repairing will be cost a bomb later. i dont have any experience to rent out as this is my 1st property.

Plus, the rental is base on "fully furnished" or "non furnished". Not so sure about renovated or non renovated. Thats why base of my noob understanding, cant rent for high price also. ( i might be wrong)

If i leave it vacant, waste also as it doesnt generate income.

So, if I plan to sell it, i believe can get a good price. If i sell it , i dont think i can afford to buy a similar property to my kid in future. ( please dont blast me "why you need to buy for your kid. Let them buy themselves in future. Dont spoil your kid, dont create strawberry generation , dont spoon feed your kid till adults..... etc etc).


thank you.

Market isn't great to sell
Renting out will definitely create wear and tear to your house

I would choose to rent it out. As it generates cashflow. Impose a higher deposit and weed out problematic renters to reduce damage to your prop

actually is not easy to rent or sell in this time, why not just post it rent or sell and which ever comes first

where is your location by the way? different location different strategy..

So ur current house is a landed. It won't generate gd roi regardless u r renting out with or without furnishing. U won't necessarily get a bad tenant n yes in malai u c more irresponsible tenants around.

I would say rent it but hunt down ur tenant slowly. No one ll guarantee u a gd tenants. Even the tenant won't say they r bad to u.

Just for sharing, I hav frenz renting their landed to the same tenant for more than 10yrs in kd n ttdi without having any issue. 1 of them offered to paint the whole house after 10trs as a token of appreciation at the same time to upkeep his house. Another fren sending hampers to tenant every yr, by hand.

On the other hand oso hav fren houses got destroyed n really spent a fortune for refurbishment.

Rental game is tricky. When u r lucky u get a gd one for many yrs. If unlucky then need to fight to evict just few mths after renting the house out.

To keep yes as u said in future maybe hard to get. To sell oso it's not a definite answer u won't get a beta wan elsewhere. Or u r very certain ur kid ll liv the old house or ll stay put in malai for long???

M2c

higher deposit,,....mmm....good idea. thank you.
previously got offer...but the price too low. the person offer me the price for basic units around my neighbourhood... so i decline

thats the reason i dilemma. just like gambling, get bad tenants headache.... sell also headache.... dont sell also headache...

what i see at those rental property are those investor who buy and then "little bit refurbish" . but mine ady spend a lot in in. If tenants destroy it, waste lot of money.

got offer, both rent and sell

Sell: too low.

rent : didnt take renovated unit as a consideration. same rental as those basic units at the neighbour hood/

both also decline. cz im still staying in this house.

old old old housing area. not prime area like mont kiara, damansara, PJ etc etc etc

How far is both houses to each other? What is nice or good about the area ? Cant you mention just the Taman name ?

Is your spouse working fulltime ?

This post has been edited by mini orchard: Dec 28 2022, 08:49 PM

its a liability later headache maintaining it and your renter drama

imho and nfa better you take money invest and gip money to kid

Why not rent the new house?

Heavy fully renovated house for sale? Please check the bank value is it available to cover your desired let it go price. As your knowledge bank not lend money for furniture and id etc. It only boost 10% the from the market value compare to non renovate House surrounding (some bank).

If for rent, you need to learn and customised a very special tenancy agreement (don't simply use a sample). Not only imposed the higher deposit, in the tenancy agreement need to take all the furniture and renovation picture clearly stated in the agreement, add on the maintenance requirement, for example. Every year need to service the air con, or any yearly maintenance are doing by yourself for that house also. I can imagine the tenancy agreement will be like 20 or 30 page of inventory check list.

By doing this (strict tenancy agreement) then it will be not easy to rental out your unit. So. Need patient to find a good tenant ( whole family category).

Even the roi may not optimal. But don't waste it.

Rent out to friends family members close relatives. Nowadays lots of buy sell property scams

Avoid, unless prepared to 'fight' till grave.

And how are owners going to sell their properties if they worry about buy sell scams ?

Can sell/rent but dont expect with good price.

Unless lucky meet a buyer who aiming your area.

Serdang.

Both houses not that really far. not like in Semenyih


"What is nice or good about the area ?" --> just mature area where you can get anything with walking distance. Clinic, grocery shops, makan place. suitable with family with kids.

This post has been edited by BboyDora: Dec 29 2022, 11:10 AM

money will depreciate thorugh time. Im bad in investment . Crypto burn until "mother cant recognise" also.

It's a subsale house. not new. got tenant live before . need renovate also only can stay in.

thank you very much for your advice. I will definitely take not on that. Take picture for every part...great suggestions. That's why my tenant that im loooking for will be very niche...only family. Cannot rent to those youngster or students. thats why i dilemma... sell also headache...dun sell also headache.

ROI not optimal doesnt really matter as this house ady fully paid. (you can see in EPF thread) I use all EPF money dump into it.
Just worry tenant "destroy" my fully renovated designed house.

got buyer previously. offer same price with no renovated unit. I decline

no family members wanna rent.

Yes. that's why if i wanna sell the so call "market value", i rather dont sell it and keep for my child in future.

I know bank don't care about fully renovated or well-designed. They only see the land size. fully extension here and there, they dont care to as that is "built up size" .

Thats why i sakit kepala.

Nowday most probably only can sell below market value. dont expect much

Since you oredi spend money on reno, I suggest you do homestay. That is what I am doing now ... going into 6th years.

if your kid is "too" young to inherit in the very near future, just rent it out and perform refurb later.
those renovated interiors will get dated unless your kid gonna take over very near future (repeated 2x).

Which house you are staying right now? I would do a simple renovation or repair for the new subsale house. At least any damage after won't be too extensive.
For me renting should have a mindset house will be damage. So any profit from the rent should be save first as repair fund before you can bear the profit.

Some pros n cons list for you:

Option 1: Sell the property
👍 Get large sum of money that can be invested in SSPN and an early EPF account for your kid (there's no minimum age for opening EPF account, FYI), which will grow exponentially over the years better than most rental yield (usually)
👍 No need to worry about managing property
👍/👎 (Depending on how you view it ) Kid has future freedom to move or get house elsewhere with the savings you've established for them.

👎 Takes time to find seller
👎 Might not be at a price you'd like (although if your intent is for kid's future, if money is saved and invested your kid may end up richer than the price you get when you first sold)
👎 Have to pay costs of selling property

Option 2: Keep property
👍 Steady cash income if able to get reliable tenants, which can be saved for child's expenses or used to invest for their future
👍 House can be passed on to kid, giving them an existing roof over head in the event of your demise.

👎 Cost of maintaining property to keep it in liveable condition
👎 Vacant property is a money sink
👎 Beneficiary who inherit the property might not even want to live there, so any costs of selling/upkeep is passed on to them, which will cause headache for them after your demise.
👎 Effort needed to look for tenants and manage the property+collect rent

This post has been edited by DragonReine: Dec 29 2022, 01:31 PM

no tourist attraction or uni nearby. UPM also quite a distance. dont think homestay got ppl stay.

Which house you are staying right now? --> the renovated old house. plan to move to the new subsale house.

"For me renting should have a mindset house will be damage". --> thats why if damage, it can't cover from the rental too.

I would just stay in the old house and rent the new subsale. Just a little bit fund for repair and painting. Then can rent it out already. Leaving a house empty for long period also need refurbishment if want to stay after that.

ohhh.... not planning to do that. rental couldnt cover my monthly installment plus OPR keep increasing. basically i will be paying bank for the tenant to enjoy the new subsale house.

if it is a house (landed), and close to shops, grocers etc as you describe, bad time as now not really effect on the selling price, people will still buy even it is higher than bank value

when u rent out, dont aspect the tenant will take care of ur property, also, the law is protect the tenant not the land lord.

when u rent out, dont aspect the tenant will take care of ur property, also, the law is protect the tenant not the land lord.

if you think like that, better dont rent because tenant also have a thinking that they are helping Owner pay the bank for their house.

My view is, how much u will lose if u sell it. how much is the repair cost in case u rent to a bad tenant. How much is the cost of re-furbish in future if you leave it vacant. Compare the 3, you will have to choose either one.

ya. its landed.

Condo and high rise berlambak gila gila.

Thats why im dilemma. dunno which to choose.

No. i wont lose anything if i sell it. Just a bit waste if i leave it vacant.
If i rent it out, the repair cost is my main concern.


"How much is the cost of re-furbish in future if you leave it vacant" --> dont think will cost much as I ady fully renovate and fully extent. maybe just need repair roof and paint if i leave it empty for 10 years.

thats the reason im dilemma.

If i bought a property just to rent it out, thats different story. I just furnish a bit and put some light. I will rent it out.

From a buyer's perspective, close vicinity to shops may be a negative selling point. If directly next or behind shops, most buyers will avoid due to rodents, pest, rubbish, workers, smell etc resulting in lower prices.

Cheap cheap rent to me, i help u take care the house nice nice..

where is ur house for rent btw?