Ok you’ve done some research yourself. So ask yourself is it worth whatever instalment you are paying as well as amount you need to top up for this “investment”. Is there any upside in terms of rent going up in the future or capital appreciation? If yes, why and if no, also why?

Strong opinions are apparent all throughout the forum but the most important is your own but please don’t be delusional. And throughout the history of investment there’s always been bulls and bears.

The dominant consensus is the rental market is strong in either places of employment or where there is little supply and high demand. Be realistic if your targeted property fits this criteria and imagine who your target tenant profile is and if they would pay above the odds for your property. Convenience and social standing are the 2 intangible factors that create perceived property value.

This post has been edited by Cavatzu: May 30 2023, 08:11 AM

Are expectations so low now? What about maintenance fees, taxes? Regionally every other property market in ASEAN is trucking along so why is KL - the capital city struggling? Another question to posit.

Just remember the only thing on your side is to buy smartly.

Hmm I think the 80% figure only applies to paying for bank interest. You add in the other costs and capitalise renovations then you’re looking at something like 50-60% coverage.

There are projects that have exceeded expectations - South Brooks DPC was launched under the 700 psf mark which was comparable to everything else being released in KV and is now hitting the 1k psf mark after VP in 2021.

In short, places that do well have to be desired by affluent locals and expats. If you base it on the common man on the street then can wait forever for appreciation.

This post has been edited by Cavatzu: May 30 2023, 11:28 AM

Umm u just pointed out a nightmare scenario. A mortgage of 3.5k with 1.5k rental meaning a top up of 2k which is pretty much an entry level salary. That is barely 50% loan coverage. This is not an investment, it’s called subsidising your tenant or a Lelong scenario already. Please rework your numbers.

Let’s just say TS numbers are completely off. Somehow he’s gotten the idea that 1.5k rent is ok for a mortgage of an 800k+ property. That describes a 1k sqft property in Sqwhere. It indicates there has been a failure of some kind and people will still buy whatever.

Well yea that’s location specific. So your usual suspects like MK, DPC, Bangsar South, KL city etc. A 3.5k mortgage equates to roughly 800k++ property.

Otherwise you have to reverse engineer the rent to solve for the maximum purchase price. If units in an area can only rent for 1.5k then you wouldn’t want to pay more than 500k for it. If you die die want to buy something that is 800k then buy in prime location where u can guarantee strong rental otherwise u should just buy cheaper.