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Property devalue, Advic
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Cavatzu
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 Jan 21 2023, 03:49 AM
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QUOTE(techman007 @ Jan 20 2023, 11:11 PM) Hi, Need advice for a property purchased 4 years back, on govt loan for 30 years, with 2300 installment. Property valued at 420k during the time of purchase, by agent from developer. Now got possession of property last year and can rent for 1100 partially furnished. And property value devaled to 340k (or actually property value was bloated by agent in the first place). As can see, rental is quite lower than bank monthly payment. What's best advice to deal with this situation? Specially, looking at recession and prosperity market slowdown. Continue as is, rent property? Thanks. This all goes back to your original intent of buying this property and if you foresaw this would happen. If I were you, I’d look at creative ways to increase my rental first. And really examine your personal cashflow to see if this property is sustainable. |
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Cavatzu
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Jan 21 2023, 10:45 PM
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QUOTE(techman007 @ Jan 21 2023, 02:32 PM) It's a condo. Completed in 2-3 years, that's where i meant, i got possession, to live or rent. Bought directly from developer, but at a later stage, and i think at a higher then market price/value. Didn't do proper check before agreeing with agent involved from developer. Original intention is to get rental and pay bank installment through it and eventually own it . Haiya this is so common nowadays. You may have seen a paper capital loss of 20-30% which is common for most high rise nowadays vs some which were severely marked down by more than 50% of their purchase price. The projects that break even or are positive cashflow are the real outliers now and uncommon. You are not the only one going through this and many have walked down this horrible path of Malaysian real estate. Until the real fundamentals of the economy improve for the better, nothing will change... yet. |
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Cavatzu
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Jan 22 2023, 05:35 AM
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The only places that see continued strong rental demand are your usual suspects in MK, DPC etc where expats and affluent locals desire to live in.
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Cavatzu
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Jan 22 2023, 04:12 PM
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To be fair, no one truly knows the true state of things unless they are very immersed in the property scene. Back then, who knew how bad things would get.
We seem to be one of relatively few developed property markets in Asia where new property can halve in value or landlords end up subsidising tenants.
The country just needs to live up to it’s potential and things will improve.
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Cavatzu
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Jan 23 2023, 06:32 PM
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QUOTE(Azury36 @ Jan 23 2023, 04:47 PM) The supply and demand curve is only applicable to the property that is not in a prime area and strategic location Some look old but the demand is high due to the location 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. |
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Cavatzu
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Jan 26 2023, 07:24 AM
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Aren’t gov loans on really good terms?
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Cavatzu
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Jan 26 2023, 08:45 PM
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QUOTE(codercoder @ Jan 26 2023, 01:35 PM) 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. 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. |
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Cavatzu
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Jan 27 2023, 06:25 PM
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QUOTE(jojolicia @ Jan 27 2023, 11:52 AM) Property is still an asset class. Look further for other property class. Residential is the passed, years passed when everybody is talking loud about it in pasar pagi. No it’s not. Not in this country. It’s become a FMCG particularly high rise with how policies have enabled it. Even Singapore does not build thousands of units in one go. So you ask yourself, how the injection of supply in units has impacted your property market. But people are ignorant or defiantly so. Landed remains prized and will do its own thing. Lest we forget about the relevance of Bitcoin, there is a finite amount of it due to artificial scarcity yet our high rise market has defied convention for this. This post has been edited by Cavatzu: Jan 27 2023, 06:28 PM |
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Cavatzu
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Jan 27 2023, 07:58 PM
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It’s simple. You want our property market to go up then you get everyone to reproduce a lot more and make babies. Or they can just grant citizenship to a whole bunch of refugees. It’s an easier prospect than fixing the economy and becoming truly competitive.
As finance minister I would ban all contraception and incite religion or perhaps give grants to reproducing citizens. Oh wait have we done that already?
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Cavatzu
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Jan 28 2023, 05:22 AM
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QUOTE(danielcmugen @ Jan 27 2023, 10:57 PM) Then there will be even more supply of new condo I dunno man. I think we’re almost at the theoretical maximum for how dense you can go on a piece of land. Things will continue to get built so solve the demand side. |
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Cavatzu
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Jan 28 2023, 12:59 PM
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QUOTE(Chanzeryl @ Jan 28 2023, 10:13 AM) Recent trend shows more and more investors are moving towards the auction market owing to the availability of online platform, like how trading stocks online. Those with higher risk appetite will join the so-called sifu or guru companies and participate in bulk purchasing, which mainly benefits the sifu or guru by raising their bargaining power like a trade union against desperate developers . The saddest ones are those buying first-hand from developer nowadays whereby the principal purchase prices already factored in future appreciation. How to buy cheap when the product is sold expensive? Just wait for the familiar voices ringing in property market through loud speaker: Lelong, lelong, old tilam tukar new tilam... The day will come when it becomes like a Pasar selling all these primary units. |
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