I am considering selling my failure investment property in Saujana Utama, Sungai Buloh which is under Glomac Development. I have bought the property 10 years ago with 143k and seems that the properties market value are "frozen". Should I sell off the property or re-finance it for new investment? Your opinion and recommendation are most welcome. Thanks

Without doubt sell. People often dwell on their mistakes. They hope and hope that the market will pick up and they'll make their profit.

Instead they could have bought something way better and made far more money.

Just sell if you can...

Agree with Andrew's opinion. Just sell it and use that money to reinvest in other hot areas in KL.

Wish you good luck and have a good return in your future investment.

Regards.

Thanks for your advise, Andrew and China Coin. Currently my property is under tenant which below my monthly instalment. Should I terminate the tenancy contract which shall be ending soon first before I sell the property? Furthermore, please advise if there are any properties in the market which is possible to make a 5-7% return? Thanks.

Kai Chong Chan

If your tenant allows viewing then let the tenant stay. This is the best option as you are still earning rent and the house looks nice when you are selling.

But if the tenant is difficult then perhaps remove him/her. The problem with removing the tenant is that you then need to sell fast as you are losing every month and the house will look bare.

Sadly, I would say it is pretty hard to sell the property even after the UiTM is nearby.

To earn a 5% return is not a problem. It depend very much of your budget. Let's say you are planning to spend below RM100k in a property, I think you can consider apartment in Wangsa Maju area. For example, a walked up apartment in Wangsa Maju Section 2 is selling around RM80k to RM90k, and can esaily rental out for RM500. As such, the ROI is around 7%.

Kai Chong Chan wrote:
I am considering selling my failure investment property in Saujana Utama, Sungai Buloh which is under Glomac Development. I have bought the property 10 years ago with 143k and seems that the properties market value are "frozen". Should I sell off the property or re-finance it for new investment? Your opinion and recommendation are most welcome. Thanks

freehold? land area? built-up?

Lease hold, 20 x 70, 2 storey link terrace, 89 years left. 10-12mins to UiTM which starts operating in 2009.

Hi Kai Chong Chan

Did you buy the house at Saujana Utama with for investment - rental to students, since it is nearby the UiTM? I dont think you can rent to them for now because there is plenty of houses they can get nearer at the Puncak Alam or Shah Alam 2 there. I think that is why it is failed for investment. Do you think so?

Actually I never taught of that when I was buying it.

mmm...... u might as well used the property as ur own home temporary......

Currently it is under tenancy with very low rental.

Kai Chong Chan wrote:
Currently it is under tenancy with very low rental.u meant rental lower than your monthly loan payment?

Yes. It is lower than my monthly instalment.

If you want enjoy higher rental return, for my opinion,u better invest in condo surrounding hot pick area (college/near public transport). You easy to rent it out and can enjoy the rental. If you want get the higher return,you better buy the property under construction (better in 1st launch),then you can enjoy the market value appreciation and rental after completion. But you invest in trusty developer the avoid the building abandoned in half way.

For you case,maybe you can re-finance your loan and get lower interest rate. If you want to sell this property, you might calculate alot of charges (Bank pernalty,property gain tax,agent fee,legal fees),isn't worth to sell it? If your financial strong,mayb you invest other property to cover back your loses..

Jenny,
Thanks for your advise and I am well aware of it. My concern here is to sell out this property asap

have sold the prop at suajana utama?
only folks who have interest within the sg buloh or surronding would consider since it is a lease prop. and distance to downtown.

FYI my property is still under sale.

If you in seriouse mode of selling the property are you willing to sell at your purchased price?
Personally, I did sold my prop at the purchased price just want to get rid of the installment and enable myself to get a new loan for another prop.
Selling lease hold prop is cheaper and difficult cause we won't know what happen when the time is due.