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View Full Version : SriAra Apartment - Sell or Rent??



patrick
25-04-2008, 09:22 PM
I have a medium cost apartment in Ara Damansara called Sri Ara Apartment. My tenants have just shifted out and I am now thinking of selling it instead of renting it out.

Anyone want to share their expert opinion whether I should or should not sell. Thought a second opinion maybe useful. It is a walk up apartment, detached (no neighbouring apartments attached!), 3 rooms, 2 baths and over 800 sq ft. Bought it at developer's price at 99k and last transaction I heard was 140k. Rental was about $600.

Any views?

CS Chua
25-04-2008, 09:29 PM
Personally, I will sell it and take the money. Most likely, your loan balance will be less than 90K leaving you with about RM50K ++ cash. Wait for the right time and use it to buy another place - near the LRT or something. I heard those guys near the Bk Jalil and Amcorp stations are getting good rentals.

Malaysia is still a developing country and you cannot go wrong investing in properties. However timing and location are important.

patrick
25-04-2008, 09:39 PM
Personally, I will sell it and take the money. Most likely, your loan balance will be less than 90K leaving you with about RM50K ++ cash. Wait for the right time and use it to buy another place - near the LRT or something. I heard those guys near the Bk Jalil and Amcorp stations are getting good rentals.

Malaysia is still a developing country and you cannot go wrong investing in properties. However timing and location are important.

Thanks for your views. But loans? Friend, who want to lent me money lah? That is the sad thing about retiring. Almost impossible to get loan! Anyway, who wants to borrow money these days with interest rate so low!!

silver_bird
26-04-2008, 02:28 PM
Better pay your rental in time or else ......
http://www.youtube.com/watch?v=X67N5_JS_J0

CS Chua
26-04-2008, 03:14 PM
Thanks for your views. But loans? Friend, who want to lent me money lah? That is the sad thing about retiring. Almost impossible to get loan! Anyway, who wants to borrow money these days with interest rate so low!!
If loan is no longer possible, then it might be worthwhile to hold on to it. After a certain age, wealth creation should shift to wealth preservation. I assumed you have entered the latter age. So, keep it as part of your retirement plan. In 15 years time, the value will be very much higher and it would have been paid for by your tenants.

patrick
27-04-2008, 06:24 PM
If loan is no longer possible, then it might be worthwhile to hold on to it. After a certain age, wealth creation should shift to wealth preservation. I assumed you have entered the latter age. So, keep it as part of your retirement plan. In 15 years time, the value will be very much higher and it would have been paid for by your tenants.

But for apartment, capital appreciation is much slower than landed property, and normally there is a cap to it. ROI is better than landed property though but not capital appreciation.