What's your worst property purchase?

this is my story of my journey, pain and frustration of my worst property purchase, lessons learned will be shared below. I wanna rant here cause my lorong neighbour today lelong off their unit at below market price.
this is my second property I purchased (also my first landed house), so I was relatively new to this prop thingy. a real newbie
I bought from stupid IOI during early 2015 and is in IOI Bandar Puteri Bangi @ Teresse 2. during that time, they are doing pile foundation on the site



bought it at MYR769,000, with 90% loan for 35 years, that amounted to MYR699,000. Topup 4% @ MYR31,000. Got a discount of 2% from IOI Club platinum membership (cause bought more than MYR2,000,000 of prop value from them), another 2% discount from events promo (CNY that time buy) and another 2% discount from referral (extended family referral fees pass back to me for down payment).

now here's the shittiest part, after 7+ years, the house value never increased but decreased. why? there are so many unsold units, and the developer are trying to sell them off ASAP. so they throw in some ridiculous discounts.
eg. take bumi lot for example, 7-10% discount over the years (CRAZY!), then raya/cny promo 4-5% off, referral scheme another 2-3%, IOI club membership 2%. total discount is almost 20%. that is -20% of the original house value, so people are buying at around MYR630,000 for my unit type post CCC for those unsold units while I bought it at MYR722,860. that's more than MYR100,000+ difference and it's so unfair. it pull down the property price. and to make matters worst, IOI introduce a scheme during MCO. BUY NOW PAY LATER, loan is under IOI. so they buy the prop and dont have to pay loan for 5 years. CIBAI!



so many people buy those props, but never move in ... until today. so what happened? well.... they cant pay back the loan, so banks lelong it at stupidly cheap price, like 40-50% below market value. then people started disposing it -10% below market value too.



as you can see from the screenshot, the property is already overpriced, stupid developers made it fucking worst. a 7 bedroom, 7 bathroom 3,300 sqft unit 3 story terrace house 1KM away is CHEAPER by MYR100,000.

now you might tell me, just wait till the value appreciates and dispose the unit. meanwhile rent out.
well, renters are hard to find in that area cause they are spoiled for choice. like i would wanna rent in that 7 bedroom 7 bathroom house 1km away, which cost MYR1,800/month. meanwhile my taman rent is 1,900 cause have to offset installment to bank which is around MYR3,600/month. so rental is slightly more than half. so what my creative neighbour did is to partition up the entire house, 3 bedroom downstairs, 3 bedroom upstairs and rent the rooms out for MYR400-600 to cover the installment. but that barely covers the full amount and there are only 3 renters at the moment. sad shit

so i am stuck in a dilemma, cant rent out (too low rental and too many competition, not enough renters), cant sell (-10% market value now, brand new house -50% value), and if wait until full loan tenure then sell off, i would be actually paying MYR1,512,000 (total payment with principal and interest). i will be paying MYR882,000 in interest over 35 years, and i doubt capital gains can cover that.
also this property have so many defects, some of my neighbours have their roofs fallen on their heads, leaking everywhere, huge cracks and even hollow garage due to soil erosion. the developer sucks in marketing as well as workmanship too
this prop is beyond fucked.


Credit: neighbour's house. this shitty IOI developer workmanship sucks beyond belief. complain to MPKJ already, developer still dont wanna fix

so my lesson learned:
1. avoid small and medium size developers. and for the big fish developers, in my opinion and experience, only Sime Darby, Glomac, Tropicana can be trusted. the rest like Mahsiao, IOI, etc. can eat shit
2. dont trust sales agent, dont trust marketing gimmicks. a property is your biggest investment in life, do your research gao gao. if possible, price check on every single property and future developments around a 5km radius. dont slack up, cause developers love to upscale, oversell and overprice their properties.
3. track record and reputation of a developer is important. if the developer has multiple red flags before, avoid that developer at all cost no matter what.


later i post some defects of my neighbour's house. see also wanna cry



This post has been edited by iEatCuteDogs: Feb 10 2023, 02:25 PM

my water leakage is bad, but my taman neighbour's leakage are even worst. whole plaster roof collapse, with fan lights and all.
last year (2022) i spent almost MYR10k to fix water tank area leakage and huge cracks. in 2021, i spent MYR20k to put awning, ponding and cracks. every year at least MYR10k+ to fix cracks.
IOI workmanship is the worst. and their achitect+designers are all retards. water tank area is exposed flat roof. OFCOURSELA PONDING, CRACKS EVERY YEAR. WATER TANK SO HEAVY YOU KNOW. U PUT IT OVER A STUPIDLY THIN CONCRETE SLAB!

this is homestay, not speculating also

but /k has to know, IOI is the top3 shittiest developer. they gave me more shit than MahSiao

This post has been edited by iEatCuteDogs: Feb 10 2023, 02:39 PM

this is ori wall, this is endlot house

we need to make a list here in lowyat to red flag all these developers. reddit and lowyat has threads about them, but they are not compiled in a list that people can refer to.
this is the most expensive purchase in our life, a list like this to help future buyers is like so important.
i am sorry for those people that work in those shitty developers, esp sale agents/accountant/etc. but if people are from upper management & architects are in this thread, SHAME ON YOU, BUCK UP PLS!
you are not selling MYR20 mekdi set ok?

my taman representatives complained to some YB and MPKJ, IOI did come to some patching externally and that's it. the cracks came back months later and it's even worst. the underlying issue is not solved ... SOIL EROSION.
there's no embankment wall that stops soil erosion into a man made lake few meters away from the taman (CAUSE IOI IS CHEAPSKATE, WANNA SAVE MONEY ON EMBANKMENT WALL).

that screenshot of the house with huge cracks on the walls, is the house closest to the man made lake. i heard from his complaints that his garage is hollow, basically his cars are resting on a few feet of concrete. if i am not mistaken, the owner spent a fortune pumping concrete under his garage

This post has been edited by iEatCuteDogs: Feb 10 2023, 03:50 PM

3 story house bro
RM200+ persqft

CONTOH

CONTOH 2

yes, i bought EV4 in Elmina City. water leakage aint that bad compared to IOI's flagship bandar Puteri Bangi super terrace house (lol @ their marketing gimmick)
i also saw that hammerstunt, that tropicana went cheapo and fucked up. but their old developments like Tropicana Grande which i owned, still top notch

and talking about sincerity to fix problem during 2 years of warranty. yeah, sime darby is good, really sincere and good.
my bathroom for both my units in Elmina was leaking, they hacked up the entire bathroom, redo the water proofing and replace all the tiles, included the marble tile walls, itu mahal wei, but they did it

This post has been edited by iEatCuteDogs: Feb 10 2023, 03:45 PM

yes, LOD through MPKJ. IOI came and fix some (not all) houses externally, my house is not included cause they said my cracks not so "severe". wtf? cracks also got severity? berapa inches gap until you considered severe enough to patch up?
a handful houses with with really big cracks internally, they come patch. at the end of the day, the cracks came back .... and it's bigger right now.

to make matters worst, the next taman is another developer building terrace houses. during MCO, they did dynamite blasting (not once, but many times), my whole taman shook like an earthquake. later found out it is illegal but what to do, crack even bigger after those blasts

house owner in teresse 1 & 2 too?

omg really? Tropicana? as in Tropicana Corporation Berhad this bad?
Tropicana really dropped quality over the years. can add to red flag already, if they dont improve their workmanship and products, can add them to ban list

what a pity, what a waste, they used to be real good. like Setia good

lawyer fee i think cannot, but question. why you pay them before the signing tho?
i remembered paying only after the loan is approved, as in you sign S&P and Loan agreement then pay, gov cant reject cause you signed on paper already.
always remember, other than deposit of the house (which is refundable) you dont have to pay anything, not even MOT, stamp fees, lawyer fees. u pay MOT before you ambik kunci, you pay lawyer fees once your loan is approved and you are ready to sign paper (after you sign S&P and loan agreement then you pay, not before signing), you pay stamp fees .... wait it's FOC for new house

This post has been edited by iEatCuteDogs: Feb 10 2023, 04:20 PM

well the thing is, when many banks offer you their loans with X% interest .... you get to pick and choose correct? and at that time, they will collect your info and can tell you can approve or not. you dont pay them jackshit, if they ask, then it's red flag already. once you get offer letter from bank, you can proceed to sign both S&P and bank agreement on the spot same time. then pay the lawyer & bank agent after you signed both... i would recommend you meeting both your bank agent and lawyer for S&P at the same place to sign both papers.

This post has been edited by iEatCuteDogs: Feb 10 2023, 04:32 PM

this is developer problem already, they fucked up i had never encountered this before, so cant really advice you on paying the balance lawyer fees

ya i really feel bad for them. i dunno how they are gonna crawl out of a huge debt, and whoever kena conned buying with IOI buy now pay later loan, and deferred paying installment for 5 years .... RIP

thread reference: https://forum.lowyat.net/topic/5091003

This post has been edited by iEatCuteDogs: Feb 10 2023, 04:55 PM

what the hell ....
where is this place? who is the developer?

i dunno, that is why i am ranting. i am stucked

same thing happened in USJ1, the Empire Remix apartment.
i know some of my kolik and friends bought units there, money gone and they paid interest to the bank for several years (not sure if they are still paying the bank interest today)

err no? full flexi loan. but RHB sucks. no matter how much you put in, it will shorten the duration, not reduce the installment

sadly yes. now bank value that liability (that house) around ~500k+. so if you try to sell at 750k, 50k more than the original price you bought, the loan only approve for 500k+