People are ignoring that building permissions are giving the supply equation so much weight. It’s thousands of units in one go not hundreds.

Places like MK and DPC work because under residential title they are still only building hundreds though with larger build up.

Based on this post, the property is purchased during construction, so valuation report is not required during loan application. The agent does not bloat the property, they just market it to you. Whether the agent has being misled or overrepresented the potential of it to you for investment, that is a different story as if you are buying for own stay and investment, the criteria will be totally different.

Well, it is important for you to do your own due diligence before deciding on whether the property is good or not because agents / marketeer are only performing their duties to push the sales out so you need to have your own sets of skills to decide.

As the property has being purchased, nothing you can do much unless to optimize the property rental first. Either by convert it to AirBNB or rent it out by rooms since the rental is much lower than the RM2,300 installment that you are paying.

Thanks everyone for your valuable advice. Paying 2300 per month isn't an issue but thinking in terms of recurring loss, as in imbalance of rental vs payments and all those initial years of payment, i heard is fully interest payments and not principal. One more question on settlement to be sure. If we sell it now, for 340k, meaning find a buyer for 340k , we need to give difference 80k out of our pocket to settle bank to settle loan, right? Or some more impact of ibank interest ? Have to pay whole 420k as all 4 years installment will be considered interest payments?

For full settlement of any loan, borrower have to request a statement showing balance to be paid.

In your case, since is govt loan, it should be from LPPSA.

If not mistaken, govt loan will start with instalment (principal + interest) from first salary deduction, unlike banks where they charge progressive interest during construction.

Aren’t gov loans on really good terms?

Most sa don't share, poorperly guru don't tell and few novice poorperly investors aware; the above 4 years of loan repayment, difference in loan settlement amount and expenses incurred is financial losses.

Leverage amplify profit as well as losses.

This post has been edited by icemanfx: Jan 26 2023, 10:36 AM

Condo second hand market very slow. Many people wanna let go their condo and been waiting for years. I don't even know why people invest in Condos. For staying ok la but for its bullshit as investment.

Simply because service apartment is NOT condominium.

One bought a service apartment but wants to sell it a condominium in subsale?



This post has been edited by jojolicia: Jan 26 2023, 11:29 AM

Like a forumer above said gov loan instalment starts repayment (principal+interest) from 1st salary deduction (say, upon spa) unlike private progressive interest. The math you are looking should be:-

Say flat, your gov loan 2% pa(420k), monthly interest payable is 700. Your every monthly 2300 instalment, 1600 goes to principal reduction. 4 years paid, 48x1600 in principal reduction.

You can safely estimate your principal balance is in range 420k-(48x1.6k) and should be slightly lesser as i calculated flat (should be effective reducing balance)

This post has been edited by jojolicia: Jan 26 2023, 11:34 AM

TS gg liao ... market at southville now

BANK LELONG ~ Bumi Lot :
Unit No.B-10-02, Cerrado @ SouthVille City, Bangi.
~ Freehold / Size 656 sqft (2 bdrooms)
Lelong Price RM248k
Market Value RM300k

cutting loss is really big loss or just try rent it out cheap

What does “house flipping” mean? This is a term used when a person buys a property and then resells it for a profit within the shortest time period possible.

There are several methods used in house flipping, such as:

Purchasing a property during a launch and selling it off when the keys are handed over.
Buying an old/abandoned property, giving it a makeover, and then reselling it.
Buying an existing property that has already been renovated and placing it in the market for resale.
Purchasing properties with the rent-to-own (RTO) home ownership solution.

This type of strategy is best used during an uptrend in the property market, when banks are willing to provide loans with affordable interest rates.

Property flipping is especially common when the property market starts to pick up, as many property investors recognise the opportunity.

During particularly robust times, a lot of people have made money overnight with this method.

However, there’s a lot to consider if you’re looking to jump on the bandwagon due to how risky it can be.

I can see the trend now is the new property is always cheaper. We (sub-sale owner) won't be able to compete with developer new property price. Developer still can afford to sell it at 'cheaper' for all these new property because they have ways to play this game ie build a higher condo to sell more units etc...When you think the new property is 'cheap', next year another new property will be 'cheaper'. It has been like this every year.

Poorperly flipping is not newly invented or discovered. If is half as profitable as claimed by poorperly guru, every da ma and da Shu would be veteran, where give chance to fomo gen strawberry.

This post has been edited by icemanfx: Jan 26 2023, 03:48 PM

Around 2014, it seemed like everything in KV would go up to more than 1k psf. It hasn’t happened and the RM regressed.

From hundreds of units per development now to thousands. It’s never been a better time if you’re looking for a home but investing is another issue.

in the past maybe 15=20 years 90% of the investor earn money. in the recent years 90% of the investors loose money. tenant can get to stay in new property for good price. but problem is tenant can't really build his own home with your own renovation ideas. i think those that really can get a good deal are bulk buyers and property agent (they can buy real cheap from those desperate owners). otherwise, I think new properties are actually 'expensive'.

Cerrado @ Southville City aka "KL South" is commercial title service apartment.
Although is without any shops at below (unlike Savanna), the title is still commercial.

Savanna, Cerrado, Sensory and so on many other future phases will be developed there.

Most likely your unit is the 2 bedder 656sqft unit.
Slight advantage as Savanna 3000 plus units there all bigger size unit.
But Sensory got affordable homes unit 550sqft, 2 bedder at 270K, tied by 5 years cannot sell moratorium.

It's Savanna Executive suite 3 rooms 2 bath ~900 sq ft without balcony.

Savanna already completed at least 2 years plus ago.

Mahsing SouthVille is Condo located at Bangi (A stone throw away to Nilai), a township development with thousand residential units, but full amenities has yet to ready. Agent would use DPC, Setia Alam to convince you "township development is the future trend" and developer has set a "high price", in fact Southville is rank no 1 in Qty in auction portal during MCO. My opinion, the price has stable at its lowest price, if Ts able to hold, I suggest to hold and rent based on market rate, you might need to do "little deco" to attract prospect, but not too much, Southville is not ready to attract high profile prospect. Wait for the recovery and decide later. A pcs of note, as recent OPR increase, bank loan approved has been dropping for the last 3 months, expecting short term supply > demand. Another side of comment, as most developer slowing down their launching, we could expect Demand > supply in next few years...

The situation is getting crazier right now but all this is planned and encouraged by the government. Am I correct to say all the above developments are happening in Bangi? So all at once there will be a flood of affordable homes in the market, mostly high rise. The property market there will not see any capital appreciation for quite some time, my take at least 10 years given location and supply. I agree all this is good for young folks looking to buy for own stay but its quite bad for investors. Flipping for profit is a thing of the past. It was quite easy to make money then, buy and pay 10%, get a loan and flip when completed taking profit. I used to say this is the best way of paying your self a bonus instead of relying on your boss. Unfortunately it didn't last and that didn't help my retirement plan .

Now is the time to buy for own stay OR look for sub-sale below market price which can give you good rental returns and hopefully pay for itself. Otherwise keep you money in EPF... 5 to 6% roi nowadays is fantastic!