I have a serviced apartment property in cyberjaya, bought it at price 273,400 (4xxsqft) since 2011 (12 yrs ago). Been 12 yrs now current market price was 240k. (balance loan Tenure 23 yrs). Current rented rm 1.1k.

Come to my my question is should I let go? Continuesly rented out? Or partial settlement?


1.Rented out, let tenant pay installment for you.
2. Partial settlement/monthly pay extra more for early settlement
3. Don't keep. Just let go since value doesn't goes up.
4. Rented out + pay extra monthly for early settlement. In future I can do refinance cash out for leverage in biz, children education, semi retirement?

Which should I go? Looking for advise from experience sifu or respective elders. Appreciate 🙏

that was expensive in 2011

bad buy for u

assuming 274k loan current rate roughly 4% ur monthly is 1.2k excluding maintenance

u are definitely bleeding slightly but at least tenanted so ur tenants are essentially paying the interest for u

just hold it forever I guess n hope cyber can boom up in the near future

If me will go for 2 . Don't need fuss over small money , else when big opportunity come u also won't see it .

TS, there are few points I would like to clarify

1) 12 years ago, the Strata Management Act 2013 yet to come into force . Have your unit Strata Title been issued or is it still under the master title?

2) Alot of machinary life cycle is at end of phase when reaching 15 years , how is the maintenance condition of the common property like lifts?

3) This one the most important , how is your neighbourhood? Are they friendly ? How many defaulters % of the maintenance ?

1. Is under master title. Property VP 2013 if not mistaken.
2. I felt is bad maintenance condition, lift always having problem
3. Most of them student form LKW and MMU. 30% expats.

Recently alot unit here are lelong.

1. For the unit VP at 2013, most likely the the Strata Management Act 2013 yet to come into force. The new amended Laws cannot be enforced to the existing units. Your unit most likely , the developer is dragging / not bother to complete the Strata Title division & nothing can be done against them. If this is the case, this is the first -ve point for keeping the unit. If the Strata Title is out but you are the one who delay on the Strata Title perfection, the issue is on yourself.

2. The major equipment are having the life cycle of 15 years. Some components may be phased out already. The misconception of the investors who hold the high rise as long term & expect the value to increase = every 15 years, there is a ticking bomb of major overhaul for the main infrastructure like lifts, water pumps, fire pumps, water piping, etc. If the your current MC/MO unable to rectify this, it is most likely the JMB/MC is having insufficient fund ( even the sinking funds is not enough) for the refurbishment. Please note, the maintenance & sinking funds rate is going up, it is not going to stay.

3. Having the LKW & MMU at the close proximity is the only selling point you have. I can tell you, if the rental rate is good, there wont' be an lelong units. From the availability of the lelong units, most probably a lot owners are not buying for the own stay but as investment.

There are few hard facts over longer horizon for you, you just give some time to think about it :-

1) Government policy on affordable housing , with more & more Rumah WIP, Selangorku & similar in nature scheme being planned on the pipeline and coming to market over the nation, what make you think your existing pigeon unit will be more attractive to the buyer ? The subsidized rumah WIP/ Selangorku around 865 ~900 sq.ft with pricing around 300k. 240k @ 4xx sq.ft vs 300k @ 8xx sq.ft. To make it worse, the old unit need major refurbishment cost vs new unit still comes with DLP under developer.

2) The next point, not many ppl are able to vision it. In the past generations, there are scarcity of placement to local universities , a lot ppls of previous generation unable to secure a placement to the local universities. That time, each household easily got 4~ 8 siblings.

Those who didn't get the placements, they will opts for private universities. Resulted the mushrooming of the tertiary private colleges & universities. After these generation of ppl grow up, imprinted in their minds, their generation have suffered, they do not want their next generation to suffer. Ended up, they rather have no children or single children in their generation.

Their next generation when growing up, the population is not as huge as the past generation. Competition to enter local universities will no longer be as tough as previous generation ( do take note, there are more & more local universities addition to the market over generations). With the quota of the non-bumi remained the same but the population based of non-bumi is shrinking in exponential trajectory, what make you think there will be more ppl going to private university ? Have you ever thought of possibility that the private college / university may cease to operate due to insufficient students admission ?

3) The rental yield & the lelong units tells a lot. With the more & more new units coming into market at surrounding, why would the student pay rental for the unit that is with poor maintenance ? That explains why the rental yield is stagnant or getting lower & lower. The moment you try to increase the rent, the student will just move to newer unit with newer facilities at same rate / slightly more expensive rate.

If I were you, I would not hesitate to dispose off. Sell it when there is still some selling point to attract the dumb investor. The moment you lose the selling point, there is no way for you to dispose it. Mind you, the issue with master title, the moment the developer become bankrupt / liquidated, it will be very troublesome to proof your ownership. If want to leave something for your next generation, leave something is clean & with clear Strata or Individual title.

This post has been edited by nihility: May 29 2023, 10:11 AM

Good advise/ explanation..

ideally is to dispose off, but in reality is not that easy.

my brother has a similar situation. his studio in serdang, also target student market. MV around RM250K, we even advertised like RM190K, also cant find buyer for months.

and the end, ask my father to pay off the loan as need to take off the ex-gf name from SNP.

currently is tenanted RM1K.