I heard that ppl are always saying auction property is risky, what is the risk?
and what does reserve price mean?

can you recall a few years back where a buyer had the shock of his life when he found a corpse stuffed inside a fridge in an auctioned property in mont kiara?

Chin Kim Keong

Are you serious? Oh my gosh, that sounds terrible.

I suppose that could happen in a non-auction purchase too.

I think the biggest risk with an auction property is that you don't necessarily get vacant posession.

But just wondering, is that the only major risk?

Can't new developed properties be auctioned?

Hi....

It is not always risky to buy auction properties.

So far I had bought 2 myself. When I got them, they are all empty. Immediately, I cleaned the place up, did some repairs and rented them out.

I had also help my investors to bid for about 6 other units. We went to talked to those that still have people staying in and they move out in time. Those tenanted, continued with the tenants. We just do new tenancy agreement.

Normally, it is advisable to pay a visit to the property, just to have a look at it, if possible.

Bring a young child with you, if can. Normally for children below 3 years old, their sense of feel are more sensitive. If the like the house, then it is ok. If they cry or feel scare or uncomfortable, then do not buy.

Auction properties are normally cheaper than resell market.

Thank you.

Regards,
Mdm Koo
(Negotiator)

Mdm Koo

How much do you think you saved by buying your properties at auction. 20% off the market value?

thanks for the info

Hi.....

I bidded for one property which had a market value of RM80K for RM55K. That is slightly more than 30%. The rental for this property now is RM480.00 per month. If I put RM55K in the bank, I only earn about RM1,650.00 per year. Now I earned about RM5760 per year.

I do not encourage my bidder to go for very very expensive properties. The most important thing you must remember is when the economic is slow, you must make sure you are able to pay the monthly instalment.

Unless you are buying with Cash, then any properties below market value will do. Then again, you must also make sure there is a tenant, as some properties, require you to pay maintenance. No tenant, means liability.

Thank you.

Regards,
Mdm Koo

Wow, Mdm Koo, that is amazing. That's a rental yield of over 10%. Was it freehold?

Do you think you can buy properties over RM500k that give that kind of rental return. I know it's expensive but I'm a foreigner so I can't buy below RM500k.

I'd be really interested in buying something with your help if you can figure out a way of getting those rental returns for the RM500k+ market.

Surely Johor has good rental returns if you rent to Singaporeans? I'd really be keen on investing. What do you think?

Everyone has explained the benefits of buying auctioned properties i.e. cheaper.
Does anyone know the risks ? I believe there are quite a few :

1. You are buying on an as-is-where-is basis
2. Often, you will not be able to visit the property as the owner/occupant will be hostile - effectively they are being evicted !!!
3. No recourse if you are not able to transfer the property to your name.
4. No time to arrange financing as 10% is payable on the fall of the hammer and no refunds

Best if you seek some expert legal advise before proceeding into auctioned properties.

Furthermore, there is the matter of the agent's fee. I am not sure if they are able to collect from the vendor, whereby you may be expected to bear this cost.

Good luck & regards

thanks..helps

Prasad....wat do u mean by '3. No recourse if you are not able to transfer the property to your name.'?
Can u xplain abit as i m very much interested in Auct Prop.
TQ.

mdm khoo, when u mentioned your "bidder" do u mean we appoint our own bidder.sort of outsource the work..or is like a "runner" who we pay to go and bid and they just follow our instruction?..how much do we pay them,tq