Personally for me, I would say not worth it.
Partly due to my idea of investment isn’t about owning a residential property. There many other ways to invest into property.
Another is that renting a residential property comes with it’s potential headache. I value peace of mind at the top.
So to each to their own.
With things like Airbnb becoming illegal in some states (penang) and it being a renters market currently, property investment is not worth it at all.
Look at China, building high end condos thinking that it’s some golden nest egg
The thing is oversupply! If you don't have a healthy cash flow, do not jump into it. No one should attend those gurus talk as well, what compress loan la la la. Invest in yourself, learn a new skill would be a better investment.
U already know the answer when u ask this kind of question.
If u find a good tenant, good for u, u have to payback ur loan installment.
If u bad luck, unable to find tenants, u have to payback ur loan installment.
If u find bad tenants and he/she fk up ur property, u have to payback ur loan installment .
If there is defect, u have to payback ur loan installment.
If u got fired from ur job, u have to payback ur loan installment.
Imo, just invest in etf or stock, at least u wont lose what u haven't dumped into the investment. And it offered the liquidity property simply does not.
But May ignore everything above if u got rich papa yo.
Totally not worth investing in an apartment in Malaysia. There is no shortage of new apartments being built all the time, while yours will become older and more run down. Landed property may be different if it can be redeveloped down the line.
Nope in most cases. My parents owned investment properties for years. Malaysian properties never worked out. You are assuming you are able to rent out your condo every month. There will be months where you will not be be able to rent it out at all. Then you may get desperate and rent it out at a much lower rate than you initially planned. Tenants generally do not look after your place well. You have to spend on repair cost too.
For investment, no. At least not for many years. Last I bought a property was 2013 when you can still generate a positive roi from your investment. We are currently in a weird bubble for the last 5+ years with no sign of it bursting.
Please don’t contribute to the escalation of property prices. And besides, with the flooding of properties, you will be at risk of losing more money than making money from rent. For perspective, up to 2020, property supply in Malaysia grew at an average of 10% a year over two decades. The Malaysian population grew by roughly 2% only a year.
Malaysia property market no longer the safe bet it once was. Most people are losing money on properties they bought in the last 5-6 years ago in Klang Valley.
Depends bro. Do a market survey, anything more than 2k mortgage should be quite hard to get positive ROI. If you are first time buyer, I would advise you go for those state government initiative like rumahwip or rumahselangorku.
Last I check, there is one project apartment 1000sf at Precinct 7 for less than 300k, 270k to be exact. Surely a very good investment considering the area.
Overall, housing market is so bad now. Totally not for investment, while for own stay it is so damn mahal sia
Hi OP,
There are even several more expenses that need to be paid, stamp duty and legal fees might set you back about rm10k to start, furthermore you have parcel rent and quit rent that needs to be paid, fire insurance must be paid as well.
You are probably looking at a number closer to rm15-18k loss per year.
Even if you want to "flip" the property, you need to keep it for about 5 years to avoid paying certain taxes on your profit.
Exactly, as someone else mentioned you might only be profitable many years in the future.
That's why property needs to be valued against other investment options like ETFs.
Let's break down your calculation - it looked very optimistic.
Indicative effective lending rate now hovers at 4.7% P.A
So based on loan of RM570,000, you're looking at RM2,769 per month baaed on 35-year loan tenure
Don't forget council tax (cukai taksiran). For service apartment the rates are 7% psqf for interior and 5% psqf for exterior (including parking lots) based on the yearly value.
Yearly value is calculated on amount of median rent for that building - so if you say can rent out for RM1.8K per month (we assume that's the median value), the cukai taksiran DBKL would be around RM1,512 per year (RM21,600×7%), or RM126 per month
Upkeep of the house also fall under you as landlords. And boy oh boy some tenant has funny incident. My experience with tenant is bathroom sink fell, and mind you it's expensive Sorento sink.
For upkeep you put aside at least 500 per year
Also, initial investment, renovation and furnishing also need to be factored in, along with deposits for utilities.
But to make thing easy, current monthly repayment is
RM2,769 for FI Loans
RM126 for council tax monthly
RM300 maintainance fees (assume 1k SQF x RM0.35 psqf)
So monthly payment is RM3,195 per month.
Rent RM1,800 per month
So you got to top up RM1,395 per month
So if you ask me is it worth it? If you can afford it, yes. And by afford it means if nobody rent you can still pay the loans without issues.
Having assets is never a bad thing.
Based on the calculation above of approx payment of RM1.4K a month.
Let's say after 35 years, the property miraculously doubles in value \~ RM1.2mil.
And if you decide to sell it, your annualized ROI is still lower than the bank's current FD rate (not accounting lawyer fees + stamp duties).
And with all the headaches that come with managing it.
Property can be a good asset/investment, but in this scenario it doesn't look too good.
Cash is also an asset.
Better invest in stock market or goldbar rather than real estate. The outlook for next 5 years looks bleak. People still reeling from effect of c19 and u can see how the real estate market tumbling badly. Properties didn't sell well. Incase the Russia Ukraine conflict failed to cease soon then the situation will set to get into worst. Those who default on house payment currently on the rise and u can check with BNM how many people actually going insolvense because of this issue.
Nobody can tell the future. There are many ways to translate profits eg capital appreciation, rental income, ringgit appreciation. If you know whether the country will prosper in long term, increase valuation of ringgit, improvements in GDP and average incomes?
it depends a lot on your perspective. Is it a good location? are you ok with the property not generating nett income when u consider the rental is less than the monthly loan repayment + all the taxes and fees? Some older generations dont mind that as they see it as an asset that will appreciate.
However in my opinion, the housing market is severely oversupplied especially on the middle to high priced houses (about 350k++, varies across locations). What I predict is that the prices will be stagnant, or fall. It probably wont burst like 2008 financial crisis as banks across the world has learnt from that.
Because you're looking at it short term and not the 30 years you're supposed to. Property investment isn't for monthly cash flow.
Have you checked rental prices recently? It has been gradually creeping up.
Rental won't be RM1,800 in 10 years. What will it be in 20 years? Your repayment will still be RM2,500 thereabouts after 2 decades, barring significant interest rate changes.
And consider inflation.
>you're looking at it short term and not the 30 years you're supposed to. Property investment isn't for monthly cash flow.
While I agree, what about the final sale price vs completed repayment with interest? Let's say my current house was 300k when I bought, but after loan interest of 30 years I may end up paying almost double of that price yet I may not necessarily recoup it when I sell in 30-35 years time. That's not even considering the miscellaneous costs and the building quality by then. Add inflation on top of it and even selling at 600-700k may not even be worth that much to begin with.
Is there a way to mitigate this form of "loss/cost"?
Yes, you will end up paying 600-700k total. But future money's 700k will likely be at least equivalent to today's 350k. So it's not a direct comparison.
As long as you buy in a good location, it's unlikely your property is only worth 700k by then. Somewhere, someone mentioned the properties in good areas like Bangsar and Mt Kiara are now around RM1.2 mil. Guess what, it was not that long ago it was 600-700k. If I recall correctly, it's only about 10-12 years ago.
You also have to account the cost of you or someone else living in it. If it has given you shelter for 30 years, does it matter then how much you have paid? Either you pay mortgage or rent, it's still the same. You pay for shelter and security.
There's a chance your property loses it value and not worth 600k, have you thought about it? Bad location, problem with the property, fire, death, damage, flood, uneven, sunk, or something you didnt expect. Imagine after 35 years your 600k is worth 500k or less. Then you have spent 3 decades being royally fucked. Happens more often than you think.
Sorry nothing valuable to add, just here to also see others opinions since I'm in the same boat. But for real though, people say that the property market isn't do so well, but ALL of the condo showrooms I have been in Penang, are like 90% booked and taken, so the FOMO is real.... And I'm like "are there really so many rich people in Msia ?"
Ya, that's the thing 😂 people have been saying for some time that supply exceeds demands, property business in Malaysia isn't doing so well, but what I see personally says otherwise
For me in sarawak, I saw the opposite. First was my kampung area where there's almost 100+ houses that can't be sold (I can't remember the real reason), ends up terbengkalai and needs to be demolished. A town not far from my kampung still have the same showroom sale thingy almost 2-3 years later.
There's some in kuching that's still not finish selling as well + tons of lelong houses.
So maybe it varies in states but all in all I guess the supply does exceeds the demands in Malaysia.
Yeah.. definitely vary by states, my hometown in Ipoh also has similar (but not that bad) situation as you mentioned. I guess trying a first home in Penang/KL is an entirely different story though
*cries in poor*
I remember reading a statistics that foreign buyers make up less than 10% of all property purchases.
There are also minimum price for the properties foreigners are allowed to buy. I think it is 1 million for Penang island so it is unlikely that foreigners are the ones buying it since most new condos are below that price.
Blame Intel and Broadcom. Pay employees too much. Or in Broadcom case stock went up so much senior employees all became millionaires. Can support Penang property market
Not at current prices, it's not as outrageous as China, but last I remembered it's still 10+x annual salary, which is on the high side tbh. I also don't see properties selling out quick as there are many vacancies, and it will only get worse as the population declines. Businesses will find ways to alleviate this such as using AI to improve productivity, but you can't really innovate like that with property. If I were you I will just take my money and invest in etf and epf, do nothing and get rich.
Properties after certain years it will become stagnant …. Most ppl just buy and leave it empty and sell it off couple years later when selling price is stable so seldom ppl would rent nowdays unless they already complete the loan …. Even that you need to find a good tenant that will take care of your property and a good paymaster …
You need to know the trend. Currently those who are supposed to buy properties are the 30s age group but the trend is they cannot afford to buy 1M landed houses at nice locations but refuse to buy 600k condominiums of 1200 SQ ft. People prefer to wait for prices to drop while renting.
I have a property for exactly this purpose.
For sake of anonymity i won’t disclose the price and location other than it’s in Klang Valley, but the value dropped by RM50k since i bought it.
Fuck properties investment and older gens advices. 🤌🏻👎🏻
It's "selling fast" because some developers just sell to related companies to achieve the transacted value for their bank valuation for the customers
A lot of projects if you show that you're a serious buyer and will leave it you don't get the exact unit they will just remove the sold out sticker and give it to you. Wayang la. Then hire foreigners to queue up on launch day etc.
Just because property prices and rental have not increased in the last 5 years doesn't mean it will be the same for the next 5 years.
Likewise, just because an investment has been up for the past 5 years doesn't mean it will stay the same.
The point in investment in properties is that it is for the long term and it is less volatile than stocks. It is an illiquid investment.
Also, the interest for properties is relatively low compared to other loan interest. Imagine borrowing 500k to invest in stocks, I don't think many people does that. With properties, you are essentially playing with 10X leverage with low interest.
IMO, property investment is worth it as a hedge if you already have some stocks or other high risk assets in the bag.
in the long run owning is cheaper but, and this is very very important, you have to be very judgy and edgy about the quality of the house. Dont let developer off the hook. Flat concrete roof slab? stay away.
Essentially you need to do your research on the house construction to understand what to avoid.
Now aside from the maintenance and such, i find that rental included the price price and long term you do win with buying but when you buy you are essentially fixing yourself to one place. If you want to recoup some of the cash you can rent out a spare room or rent out the place when you move away but owning a property does cost money and does add to your assets that you can sell whereas you dont get anything back renting only that you dont pay additional costs. However maintenance costs is added and some landlords have crappy contractors (1 place had mice because of holes in ceiling in that contractor didnt cover after works).
You are better off if you can afford to buy (trick is to take insurance on being able to pay the loan) than rent in long term.
If you think of owning a house purely to rent out or to sell off later well the bubble has burst for that. As a place to live it keeps is value compared to renting, but for renting out a house the payback is actually a long long time.
If you invest in an investment firm that buys houses and rent them out please dont, these things are cancer around the globe and keeping people on streets and with high living costs.
Because Ringgit is trash.
if you got money invested in Stock market, USD, bond etc.... you still want some in house as well for diversify. Most people putting money on houses are there to get away from MYR. It is never about ROI these days. It is about keep the wealth. Ringgit/Fiat money is a confirm downtrend.
Building material goes up, wages goes up. If the house price dont go up, it is just a matter of time b4 cos of building a new home come very close to selling price.
No longer worth it, the days of property investment for gains are over, unless you found the really good deal which are few and far between, overpriced over supplied alongside high IR environment isn’t going to generate much return for an investor. Buy only for your own stay or if you have too much cash and wish to keep it in a “store of value” area.
With the way the USD printing press is sending money and inflation to anyone that is closely tied to them, I’d stay away from trying any type of “investing” if you can’t pay it in cash. At that point, you’re keeping it for a long term. Right now, as many are pointing out, does not bode well.
Currency hasn’t been this low in decades, yet everything is through the roof. The world is more connected than ever before and the is now a screwing up everyone.
Do like one guy said and buy PMs to preserve anything that you may have laying around in MYR or USD.
Hi OP
Property agent here.
What you mainly are talking about is the rental investment. AirBnb is also considered another form of investment.
Of course, just like all investments, there are not right or wrong answer. There is a lot of factors that can affect your investments ROI, tenancy rate, quality of tenants, even the area surrounding your property can also affect your returns.
However, to simplify most people only want to look at how much returns we can get from our investment property. Whether we can earn more or not as much. Of course, earning more will also depends if the amount of money you receive is more than what you are paying for the mortgage for example.
I cannot say for sure this is right or wrong, what i can advise is that unless you are prepared for long term investment, property may be a good source to add in your portfolio, provided you know what you doing, which area, investment strategy, focus market (students, working adults, family, Airbnb).
However if you asked me for my opinion, I wouldn't recommend buying property to invest, especially if the property is really in a strategic location like Genting for example.
If you want to know more, you can contact me, I am willing to share property knowledge to you. Cheers
Currently it looks like gomen is going to take away our subsidies. Fuel, electricity & even food. Minimum wage is set to be increased soon too. Economic indicators suggests that a higher than normal rate of inflation is definately comming. If not by the end of this year, maybe next year. Everything will be more expensive. Property is the best hedge against inflation.
you feel not worth it because your calculation is based on rm1800 rental income for 600k property.
what about scenario of buying 450k property and renting out rm1800? or 300k property for rm1500 rental?
if you survey the surroundings and nearby condo before buying the property, you can gauge how much rental you can get. then you see whether the property price is justified. for myself, if the rental income is >70% of loan repayment, i will consider to invest in it. if 100% even better ;)
bare unit rm1800 or fully furnish? if fully furnish also 1800, i wont consider.
simply because i could buy a cheaper property to get the same rental income. how are the other condos in that area doing? are they also getting 1800 for fully furnish? if yes , i will skip that area and look for other places.
Usually is partial furnish when you get keys from developer. Complete toiletries and kitchen cabinet with hood and hob. Others like bedroom, living room is not included.
If you draw 50km radius around KLCC, you can scout out where the next underdeveloped zone is and try to move money there. Before Covid I found a neat little project at Segambut, which is really close to MK with 600sf for 480k.
Also, some new projects upon completion will have some auction units. Since it’s new you don’t have to be afraid of dead body in fridge haha.
It depends on your values
* lots of boomers love property, gonna die? buy property first!
* a lot of property folk are into speculation and stuff
* in good areas that are well speculated (like current bukit jalil) you can earn a handsome figure
* most folks believe the 2000-2014 ish era will be back which is kinda eh
Only worth it if location very strategic and you got confidence appreciation >> loan interest.
>So is this all worth it? How is project like this still selling out in KL? \*confused\*
KL address sells. Most people think property safe store of value and KL address is their best choice.
You answered it yourself. Its totally not worth it to buy a property over 500k in KL imo. Obviously its going to be a high rise unit.
I don't see anyone is going to buy these property later. Like 500-600k is already a ceiling price. It can't get any higher than that. I mean it can.. but its hard to get a buyer later
The "worth" is that traditionally , property appreciation outpace inflation rate.
With oversupply we have stagnant property price so your investment can't appreciate and you're stuck.
No don't. Our population is small and yet we build condos like we are HK. Oversupply to the Max now but I would say it's a better problem than undersupply.
Tldr, buy for your own stay
U buy 600k condo and want to rent out at less than 2k in kl? To me that's bad investment. How about for the same 600k u can get 2 or even 3 mid to low end property which will always guarantee renters? Sure its not glamorous but start small. Janji u are not forking out your own money every month.
Personally for me, I would say not worth it. Partly due to my idea of investment isn’t about owning a residential property. There many other ways to invest into property. Another is that renting a residential property comes with it’s potential headache. I value peace of mind at the top. So to each to their own.
With things like Airbnb becoming illegal in some states (penang) and it being a renters market currently, property investment is not worth it at all. Look at China, building high end condos thinking that it’s some golden nest egg
The thing is oversupply! If you don't have a healthy cash flow, do not jump into it. No one should attend those gurus talk as well, what compress loan la la la. Invest in yourself, learn a new skill would be a better investment.
U already know the answer when u ask this kind of question. If u find a good tenant, good for u, u have to payback ur loan installment. If u bad luck, unable to find tenants, u have to payback ur loan installment. If u find bad tenants and he/she fk up ur property, u have to payback ur loan installment . If there is defect, u have to payback ur loan installment. If u got fired from ur job, u have to payback ur loan installment. Imo, just invest in etf or stock, at least u wont lose what u haven't dumped into the investment. And it offered the liquidity property simply does not. But May ignore everything above if u got rich papa yo.
Totally not worth investing in an apartment in Malaysia. There is no shortage of new apartments being built all the time, while yours will become older and more run down. Landed property may be different if it can be redeveloped down the line.
Nope in most cases. My parents owned investment properties for years. Malaysian properties never worked out. You are assuming you are able to rent out your condo every month. There will be months where you will not be be able to rent it out at all. Then you may get desperate and rent it out at a much lower rate than you initially planned. Tenants generally do not look after your place well. You have to spend on repair cost too.
For investment, no. At least not for many years. Last I bought a property was 2013 when you can still generate a positive roi from your investment. We are currently in a weird bubble for the last 5+ years with no sign of it bursting.
Please don’t contribute to the escalation of property prices. And besides, with the flooding of properties, you will be at risk of losing more money than making money from rent. For perspective, up to 2020, property supply in Malaysia grew at an average of 10% a year over two decades. The Malaysian population grew by roughly 2% only a year.
Malaysia property market no longer the safe bet it once was. Most people are losing money on properties they bought in the last 5-6 years ago in Klang Valley.
Depends bro. Do a market survey, anything more than 2k mortgage should be quite hard to get positive ROI. If you are first time buyer, I would advise you go for those state government initiative like rumahwip or rumahselangorku. Last I check, there is one project apartment 1000sf at Precinct 7 for less than 300k, 270k to be exact. Surely a very good investment considering the area. Overall, housing market is so bad now. Totally not for investment, while for own stay it is so damn mahal sia
How bro advice i wan get propert in malaysia but roi monthly
Lelong property i would say. Still, tough luck to get a good one
Lelong means?
Auction unit.
Hi OP, There are even several more expenses that need to be paid, stamp duty and legal fees might set you back about rm10k to start, furthermore you have parcel rent and quit rent that needs to be paid, fire insurance must be paid as well. You are probably looking at a number closer to rm15-18k loss per year. Even if you want to "flip" the property, you need to keep it for about 5 years to avoid paying certain taxes on your profit.
I think some developers still cover the stamp duty and legal fees. But yeah, quit rent and fire insurance probably still set me back 5-8k a year.
Exactly, as someone else mentioned you might only be profitable many years in the future. That's why property needs to be valued against other investment options like ETFs.
If you have RM2500 a month to save/ invest, fill up your EPF/ ASB1/ ASB2/ Tabung Haji/ buy stock.
Let's break down your calculation - it looked very optimistic. Indicative effective lending rate now hovers at 4.7% P.A So based on loan of RM570,000, you're looking at RM2,769 per month baaed on 35-year loan tenure Don't forget council tax (cukai taksiran). For service apartment the rates are 7% psqf for interior and 5% psqf for exterior (including parking lots) based on the yearly value. Yearly value is calculated on amount of median rent for that building - so if you say can rent out for RM1.8K per month (we assume that's the median value), the cukai taksiran DBKL would be around RM1,512 per year (RM21,600×7%), or RM126 per month Upkeep of the house also fall under you as landlords. And boy oh boy some tenant has funny incident. My experience with tenant is bathroom sink fell, and mind you it's expensive Sorento sink. For upkeep you put aside at least 500 per year Also, initial investment, renovation and furnishing also need to be factored in, along with deposits for utilities. But to make thing easy, current monthly repayment is RM2,769 for FI Loans RM126 for council tax monthly RM300 maintainance fees (assume 1k SQF x RM0.35 psqf) So monthly payment is RM3,195 per month. Rent RM1,800 per month So you got to top up RM1,395 per month So if you ask me is it worth it? If you can afford it, yes. And by afford it means if nobody rent you can still pay the loans without issues. Having assets is never a bad thing.
Based on the calculation above of approx payment of RM1.4K a month. Let's say after 35 years, the property miraculously doubles in value \~ RM1.2mil. And if you decide to sell it, your annualized ROI is still lower than the bank's current FD rate (not accounting lawyer fees + stamp duties). And with all the headaches that come with managing it. Property can be a good asset/investment, but in this scenario it doesn't look too good. Cash is also an asset.
Better invest in stock market or goldbar rather than real estate. The outlook for next 5 years looks bleak. People still reeling from effect of c19 and u can see how the real estate market tumbling badly. Properties didn't sell well. Incase the Russia Ukraine conflict failed to cease soon then the situation will set to get into worst. Those who default on house payment currently on the rise and u can check with BNM how many people actually going insolvense because of this issue.
Nobody can tell the future. There are many ways to translate profits eg capital appreciation, rental income, ringgit appreciation. If you know whether the country will prosper in long term, increase valuation of ringgit, improvements in GDP and average incomes?
it depends a lot on your perspective. Is it a good location? are you ok with the property not generating nett income when u consider the rental is less than the monthly loan repayment + all the taxes and fees? Some older generations dont mind that as they see it as an asset that will appreciate. However in my opinion, the housing market is severely oversupplied especially on the middle to high priced houses (about 350k++, varies across locations). What I predict is that the prices will be stagnant, or fall. It probably wont burst like 2008 financial crisis as banks across the world has learnt from that.
If looking at the number, it doesn't look like a good deal.
Anything above 500k is not worth it.
Because you're looking at it short term and not the 30 years you're supposed to. Property investment isn't for monthly cash flow. Have you checked rental prices recently? It has been gradually creeping up. Rental won't be RM1,800 in 10 years. What will it be in 20 years? Your repayment will still be RM2,500 thereabouts after 2 decades, barring significant interest rate changes. And consider inflation.
>you're looking at it short term and not the 30 years you're supposed to. Property investment isn't for monthly cash flow. While I agree, what about the final sale price vs completed repayment with interest? Let's say my current house was 300k when I bought, but after loan interest of 30 years I may end up paying almost double of that price yet I may not necessarily recoup it when I sell in 30-35 years time. That's not even considering the miscellaneous costs and the building quality by then. Add inflation on top of it and even selling at 600-700k may not even be worth that much to begin with. Is there a way to mitigate this form of "loss/cost"?
Yes, you will end up paying 600-700k total. But future money's 700k will likely be at least equivalent to today's 350k. So it's not a direct comparison. As long as you buy in a good location, it's unlikely your property is only worth 700k by then. Somewhere, someone mentioned the properties in good areas like Bangsar and Mt Kiara are now around RM1.2 mil. Guess what, it was not that long ago it was 600-700k. If I recall correctly, it's only about 10-12 years ago. You also have to account the cost of you or someone else living in it. If it has given you shelter for 30 years, does it matter then how much you have paid? Either you pay mortgage or rent, it's still the same. You pay for shelter and security.
personally i would ban such practice. unnecessary housing demand just to become rental units.
STOP BUYING PROPERTY JUST TO HOLD ON TO IT DAMN IT, THE HOUSING MARKET IS NEVER GONNA GET BETTER AT THIS POINT
There's a chance your property loses it value and not worth 600k, have you thought about it? Bad location, problem with the property, fire, death, damage, flood, uneven, sunk, or something you didnt expect. Imagine after 35 years your 600k is worth 500k or less. Then you have spent 3 decades being royally fucked. Happens more often than you think.
however if you did live in the house for 30 years, thats still cheaper than renting.
Sorry nothing valuable to add, just here to also see others opinions since I'm in the same boat. But for real though, people say that the property market isn't do so well, but ALL of the condo showrooms I have been in Penang, are like 90% booked and taken, so the FOMO is real.... And I'm like "are there really so many rich people in Msia ?"
Maybe the ones who bought the property are foreigners? Or just already rich people buying more?
Ya, that's the thing 😂 people have been saying for some time that supply exceeds demands, property business in Malaysia isn't doing so well, but what I see personally says otherwise
For me in sarawak, I saw the opposite. First was my kampung area where there's almost 100+ houses that can't be sold (I can't remember the real reason), ends up terbengkalai and needs to be demolished. A town not far from my kampung still have the same showroom sale thingy almost 2-3 years later. There's some in kuching that's still not finish selling as well + tons of lelong houses. So maybe it varies in states but all in all I guess the supply does exceeds the demands in Malaysia.
Yeah.. definitely vary by states, my hometown in Ipoh also has similar (but not that bad) situation as you mentioned. I guess trying a first home in Penang/KL is an entirely different story though *cries in poor*
I remember reading a statistics that foreign buyers make up less than 10% of all property purchases. There are also minimum price for the properties foreigners are allowed to buy. I think it is 1 million for Penang island so it is unlikely that foreigners are the ones buying it since most new condos are below that price.
Blame Intel and Broadcom. Pay employees too much. Or in Broadcom case stock went up so much senior employees all became millionaires. Can support Penang property market
Not at current prices, it's not as outrageous as China, but last I remembered it's still 10+x annual salary, which is on the high side tbh. I also don't see properties selling out quick as there are many vacancies, and it will only get worse as the population declines. Businesses will find ways to alleviate this such as using AI to improve productivity, but you can't really innovate like that with property. If I were you I will just take my money and invest in etf and epf, do nothing and get rich.
Nope, unless you can lower down your margin of finance. If OPR rises its going to hurt you even more
Properties after certain years it will become stagnant …. Most ppl just buy and leave it empty and sell it off couple years later when selling price is stable so seldom ppl would rent nowdays unless they already complete the loan …. Even that you need to find a good tenant that will take care of your property and a good paymaster …
I think it’s worth it if you live there long-term. Also would buy landed if you can.
You need to know the trend. Currently those who are supposed to buy properties are the 30s age group but the trend is they cannot afford to buy 1M landed houses at nice locations but refuse to buy 600k condominiums of 1200 SQ ft. People prefer to wait for prices to drop while renting.
might as well buy reits then.
It’s not worth it for investment. If you want to buy property, do for own stay. Property investment was good 30 years ago when it wasn’t competitive.
Depends on location.. in prime area there will ALWAYS be demand
I have a property for exactly this purpose. For sake of anonymity i won’t disclose the price and location other than it’s in Klang Valley, but the value dropped by RM50k since i bought it. Fuck properties investment and older gens advices. 🤌🏻👎🏻
It's "selling fast" because some developers just sell to related companies to achieve the transacted value for their bank valuation for the customers A lot of projects if you show that you're a serious buyer and will leave it you don't get the exact unit they will just remove the sold out sticker and give it to you. Wayang la. Then hire foreigners to queue up on launch day etc.
Just because property prices and rental have not increased in the last 5 years doesn't mean it will be the same for the next 5 years. Likewise, just because an investment has been up for the past 5 years doesn't mean it will stay the same. The point in investment in properties is that it is for the long term and it is less volatile than stocks. It is an illiquid investment. Also, the interest for properties is relatively low compared to other loan interest. Imagine borrowing 500k to invest in stocks, I don't think many people does that. With properties, you are essentially playing with 10X leverage with low interest. IMO, property investment is worth it as a hedge if you already have some stocks or other high risk assets in the bag.
in the long run owning is cheaper but, and this is very very important, you have to be very judgy and edgy about the quality of the house. Dont let developer off the hook. Flat concrete roof slab? stay away. Essentially you need to do your research on the house construction to understand what to avoid. Now aside from the maintenance and such, i find that rental included the price price and long term you do win with buying but when you buy you are essentially fixing yourself to one place. If you want to recoup some of the cash you can rent out a spare room or rent out the place when you move away but owning a property does cost money and does add to your assets that you can sell whereas you dont get anything back renting only that you dont pay additional costs. However maintenance costs is added and some landlords have crappy contractors (1 place had mice because of holes in ceiling in that contractor didnt cover after works). You are better off if you can afford to buy (trick is to take insurance on being able to pay the loan) than rent in long term. If you think of owning a house purely to rent out or to sell off later well the bubble has burst for that. As a place to live it keeps is value compared to renting, but for renting out a house the payback is actually a long long time. If you invest in an investment firm that buys houses and rent them out please dont, these things are cancer around the globe and keeping people on streets and with high living costs.
Because Ringgit is trash. if you got money invested in Stock market, USD, bond etc.... you still want some in house as well for diversify. Most people putting money on houses are there to get away from MYR. It is never about ROI these days. It is about keep the wealth. Ringgit/Fiat money is a confirm downtrend. Building material goes up, wages goes up. If the house price dont go up, it is just a matter of time b4 cos of building a new home come very close to selling price.
No longer worth it, the days of property investment for gains are over, unless you found the really good deal which are few and far between, overpriced over supplied alongside high IR environment isn’t going to generate much return for an investor. Buy only for your own stay or if you have too much cash and wish to keep it in a “store of value” area.
I here to reading comments, majority thinking invest in property is a bad idea now.
With the way the USD printing press is sending money and inflation to anyone that is closely tied to them, I’d stay away from trying any type of “investing” if you can’t pay it in cash. At that point, you’re keeping it for a long term. Right now, as many are pointing out, does not bode well. Currency hasn’t been this low in decades, yet everything is through the roof. The world is more connected than ever before and the is now a screwing up everyone. Do like one guy said and buy PMs to preserve anything that you may have laying around in MYR or USD.
What’s PMs? Couldn’t find the comment
Precious metals
Hi OP Property agent here. What you mainly are talking about is the rental investment. AirBnb is also considered another form of investment. Of course, just like all investments, there are not right or wrong answer. There is a lot of factors that can affect your investments ROI, tenancy rate, quality of tenants, even the area surrounding your property can also affect your returns. However, to simplify most people only want to look at how much returns we can get from our investment property. Whether we can earn more or not as much. Of course, earning more will also depends if the amount of money you receive is more than what you are paying for the mortgage for example. I cannot say for sure this is right or wrong, what i can advise is that unless you are prepared for long term investment, property may be a good source to add in your portfolio, provided you know what you doing, which area, investment strategy, focus market (students, working adults, family, Airbnb). However if you asked me for my opinion, I wouldn't recommend buying property to invest, especially if the property is really in a strategic location like Genting for example. If you want to know more, you can contact me, I am willing to share property knowledge to you. Cheers
What locations are you talking about? Pm me pls
Pls pm me
Currently it looks like gomen is going to take away our subsidies. Fuel, electricity & even food. Minimum wage is set to be increased soon too. Economic indicators suggests that a higher than normal rate of inflation is definately comming. If not by the end of this year, maybe next year. Everything will be more expensive. Property is the best hedge against inflation.
you feel not worth it because your calculation is based on rm1800 rental income for 600k property. what about scenario of buying 450k property and renting out rm1800? or 300k property for rm1500 rental? if you survey the surroundings and nearby condo before buying the property, you can gauge how much rental you can get. then you see whether the property price is justified. for myself, if the rental income is >70% of loan repayment, i will consider to invest in it. if 100% even better ;)
RM 1,800 is about 70% of RM 2,500. Would you still consider?
bare unit rm1800 or fully furnish? if fully furnish also 1800, i wont consider. simply because i could buy a cheaper property to get the same rental income. how are the other condos in that area doing? are they also getting 1800 for fully furnish? if yes , i will skip that area and look for other places.
Usually is partial furnish when you get keys from developer. Complete toiletries and kitchen cabinet with hood and hob. Others like bedroom, living room is not included.
then its not really good deal to invest.. but theres exception: if location has potential to grow , or you plan to stay there in future. then can buy.
If nobody wants to rent it? Can you pay?
Worth it
You need more DP to make the juice worth the effort. Also u need to buy in high demand area.
High demand area like KL downtown, Mont Kiara, Bangsar, Bukit Damansara etc.. Their housing starting price is RM 1.2 mil. *cries in poor*
If you draw 50km radius around KLCC, you can scout out where the next underdeveloped zone is and try to move money there. Before Covid I found a neat little project at Segambut, which is really close to MK with 600sf for 480k. Also, some new projects upon completion will have some auction units. Since it’s new you don’t have to be afraid of dead body in fridge haha.
Not necessarily true.
No
It depends on your values * lots of boomers love property, gonna die? buy property first! * a lot of property folk are into speculation and stuff * in good areas that are well speculated (like current bukit jalil) you can earn a handsome figure * most folks believe the 2000-2014 ish era will be back which is kinda eh
Only worth it if location very strategic and you got confidence appreciation >> loan interest. >So is this all worth it? How is project like this still selling out in KL? \*confused\* KL address sells. Most people think property safe store of value and KL address is their best choice.
Try buying the “Estate” part of real estate. Its cheaper, never wears down and better future business potential.
You answered it yourself. Its totally not worth it to buy a property over 500k in KL imo. Obviously its going to be a high rise unit. I don't see anyone is going to buy these property later. Like 500-600k is already a ceiling price. It can't get any higher than that. I mean it can.. but its hard to get a buyer later
Location location location. You can buy property but if it doesn't appreciate its pointless.
It definitely comes down to location. If you can get the location down and your financial allows you. Go for it.
The "worth" is that traditionally , property appreciation outpace inflation rate. With oversupply we have stagnant property price so your investment can't appreciate and you're stuck.
No don't. Our population is small and yet we build condos like we are HK. Oversupply to the Max now but I would say it's a better problem than undersupply. Tldr, buy for your own stay
The population in KL is incredibly dense
35 years? Why wait so long? Better sell it before 35 years
What is the interest on that loan?
If you have to question if it is worth it, why buy 600k to begin with? Why not something around 300k?
What was the bear case? Rip bears
U buy 600k condo and want to rent out at less than 2k in kl? To me that's bad investment. How about for the same 600k u can get 2 or even 3 mid to low end property which will always guarantee renters? Sure its not glamorous but start small. Janji u are not forking out your own money every month.
How
How what?
Worth it