I have thought of selling the rental unit first, use the money as deposit to buy a new one. Move in, then sell off the remaining one to help settle the loan.

I agree with epf. However, the capital appreciation is a plus point on owning a property compared to epf. I tjink I would be at a worst situation if I dont have these 2 houses. After this, I think I'll just put everything in epf if I can get a dual key to rent out the studio half.

Try find medium cost apartment. Condo not reli affordable these days.

400k loan repayment 1700 per month.

I'm not getting 400k loan.

Well if they still can climb the stairs then it’s fine.

But half a year to sell and buy another unit is not realistic.

You’ll need at least a year to sell your property, unless it’s a fire sale and you can attract buyer quick enough. And you’ll need time to hunt for the next property as well. Undercon is completely out of the question and you can only go for subsale or leftovers from newly vped project.

So in total you are looking for at least 1-2 years of waiting time before your parents can move in.

Can they wait tho? What happens if halfway they suddenly can’t climb the stairs? It will be problematic to move them out last minute.

Just my 2 cents.

We’ll need to look at this wholistically.

The entry price of the investment could have been lower- hence apart from rental income there is appreciation of the asset value.

At the current market value of the property the Return on value doesn’t seem to be very attractive - 4.5% kr maybe even 4% after expenses. ( which honestly isn’t too bad) nevertheless I assume the value has increased over the years.

I have somewhat a similar walk up flat in w/maju: entry price was rm 90k in the 2004. Rental started off at RM 530 ( 30 for maintenance) and stands at RM 980 now. I can easily dispose of the property for rm 180k. My returns on value has reduced based on %vs value but not t has always hoovered around the 6% range. I spent about rm 12.5once in 2014 to completely revamp the bathroom/tollet, kitchen and flooring.

So if one does the right purchase - property can be very rewarding

And I don’t believe - Lelong property must be cheaper than developer price - it must be cheaper from the current market value of the property on that area.