ASKING SEAN
ฝัง
- เผยแพร่เมื่อ 28 ก.ย. 2024
- In this episode, we will answer a question regarding relocation back to the city after finding it inconvenient staying in the suburbs.
The challenge here is to sell her property at a price including the initial renovation. Unfortunately, renovation cost are not commonly recognised by banks and they cannot be added into the value of the house entirely. Also, the probability of finding a buyer that likes your renovation, and willing to buy your house at a price higher than your neighbours is really slim.
Hence, I would recommend to temporarily rent a bare unit in KL. A location that is convenient for the entire family. Then move the furniture over here, and furnish the existing home with some affordable ones. After that, rent out the terrace house at fully furnished condition.
This case highlighted several cultural belief of Malaysians towards property:
- Nasi lemak property- Individual terrace house
- Tenants that rent houses are second grade citizens
- Anyone who don't own a house before 30 are losers
Those discussions will be done in another episode=)
Property is asset, renovation is expense. You shouldn't even think about the renovation cost you have spent when you sell the house.
Indeed.
(Its common 1st buyer issues)
Thanks Sean Tan cz sharing the layman infos wt us. Kudos.
Fyi.
My friend brought a landed house by Mah Sing nearby Setia Alam. Within a year, they totally "exhausted ulang-alik" from Klang to PJ to office.
Fuhh! Almost 80km everyday... Huhuu
2020. End up, they just brought a condo by OSK. It just 4 minutes from their office. 👍
The biggest reason of me looking for a landed property is because of my dog. Large dog is not possible in high rise at all. Then the reason of looking for landed in outskirts is because of financial capabilities lo. Zero down, bigger land size and lower price. Better environment too. But of course my work is flexible hence it’s not as taxing as those working full time job.
Hi Sean. I really appreciate your insights on my problem. I actually been living in 700 sqft apartment in kl since 7 years ago (this is our first house). Bought the terrace with the intention to have a more comfortable house for our family to grow. But now still staying in kl 😂. The worst thing is now we are paying for both houses monthly. From this video, yes we have to accept the bitter truth that we might not get back our renovation cost. Or if we were to rent the house, we have to drop ‘sayang’ feel towards our new house 😢
Hey yanti, it's gonna be alright. Just think of it as to enjoy that house later in the future.
In that case, just move back to the apartment for another 5 more years until your kids are easier to manage.
On the positive note, think of it as buying the terrace house at an awesome price because 5 years later most likely no more such price right? Hahaha=)
Thank you so much for having the courage to move forward!! Let me know if I can still help in anyway yea=)
perhaps people are wary of the maintenance fee associated with high rise. the door to car inconvenience might be another factor. I have lived in both landed and condo - both has its pros and cons.
You're right. And I do agree on the process of door to car experience. The best of course would be having a landed home within affordability close to work right? hahahaha=) That would be sweet!
@@iherng landed sometimes you get neighbours from Hell. Simply park, bising and nuisance.
@iherng Coming from Singapore, we would love to stay in landed(of course you know how we stay la) :P, but staying in a condo is a good idea. Especially with a sense of security.
Now as for renovation, let me give my example. I picked up a HDB(local public housing) a few months ago. And the place was decently renovated. However, you were right, it did not factor in too much in the price that we pitched for. Also, when HDB came to do a valuation of the house, they ignored the renovation and that made the value less.
So for me, it was a cheaper purchase in the end, but for the seller, his earlier renovation(which he says was ground up) really hurt him in the end.
We took it from him and did not do lavish renovations (less than 1/2 of what the average renovation costs are going for), with the idea that in case we need to sell or rent out after 5 years. Even contractors bluntly told us, why are you spending so much(really surprised me la)
That is painful. I also travel about 100km daily to and fro from work and is still within KV. Travel + jam already drain your life. Another solution is try look for jobs in NS than KL. Might be lower salary but you have more life due to shorter travel time and less jams and also potentially lower living cost. Lenggeng to KL need tolls and plenty fuel cost.
That's a great suggestion!! How come I didn't think of that...
Thank you so much for that great idea and hopefully it'll be helpful for them.
I really appreciate it Liau Yun!!
Just sharing bro. Everyone have own perspective. Just happen I live near the end side of Kajang so I know Lenggeng to KL is how far and crazy jam. I have thought of many solutions over the years. Just my 2 cent. Cheers.
Sean, you've got a point! Thanks for sharing!
Thanks for watching Aaron=)
is there any rule of thumb for renovation cost relative with property price?
Like around 30% of the property spa price or otherwise?
I don’t think price should be the gauge. Like a similar 2 storey terrace house can cost RM2 mil in KL, and RM 300K further away. Why does one justify RM 600k and one RM90k? It’s gonna be way more complicated than that.
@iherng thanks for replying.
Asking this as I always get the queation of why reno the property of 400k with nearly half of the price, not worth.
Just wondering if what I did is consider sane
Hahahaha
thank you for that Sean! I still don't know why is people so obsessing with landed, especially old folks 😂😂 I'm always prefer condo in many ways. Well of course both have own pro and cons, but landed will not be my 1st choice.
I cant understand the mindset to live outskirt just because of the desire to live in landed property.
For those financial freedom or old folk is understandable. But for those young family?
Not only the travel hassle, imagine the area is not cover with fiber internet and weak mobile signal.
Nearest shopping mall or grocery store also limited or non nearby.
Cant agree more. Landed is getting harder and harder to sell, because its expensive and require renovation. Nowadays many condo come with partly/fully furnished and the cost is included in the loan, can rent out straight away.
buying property is like gettin married...think wisely n no rush n makesure u hv a solid 10 yrs plan.plan than commit is far much better commit than plan.
couldn't agree more
We have KaiLan, now NasiLemak, looking forward to hear the next invention from you 😂
Oops... *somebody is keeping track, hahahaha. I seriously need to learn how to give my theories canggih names =)
Anyway, thanks for watching Cadiboy!!
@@iherng should use kiam chai
And also another wrong belief is throw huge amount of money in renovation just right after VP, those old days our parent generation not really practice this, renovation now become an industry and furniture marketing which create an illusion needs playing a key role, everyone thinking of make their house same as show house, haha.those old days, meja lipat can be dining table and now every one prefer a dining set which single dining chair cost 200-300ringgit one pc. haha, interesting, right?
It's totally cool if you can afford it I guess and our parents stay in one house for most of their life. And you're absolutely right on the over-spending, means spending money we barely have on things that are not as important. Thanks for sharing Chuanjun!!
so true that most owners expect to recoup their renovation cost. just take a look at iproperty listings and see the agents state the renovation cost and how the asking price is inflated according to the reno cost.
Bad plan for her..to bad. From her story. Reno for 100k? Wow seems like she about to retire at that house early lol. She need a better plan before end up buying a biiiiig house and stay comfort with reno etc.
I have a this mindset you mentioned just now. Once stay at landed, i must stay at landed. Far also no problem 😂
Well it's a problem when we waste too much time traveling... Anyway, thanks for watching:)
Agree on the rental part. I move around every 6 months and need to be within 15 mins to work daily so im renting. But doesnt mean i DONT own a fancy house somewhere.
Great sharing!! Hahaha. Total optimization of your hustle. But it will be a time where you'll finally decide on a place to call home eventually. By then only we should consider splurging some hahaha=)
landed development is NOT SUSTAINABLE, i believe the quality of living can be equally good for high rise if the architect design it nicely. In fact, some quality high rise project even has better living quality than low cost landed terrace in remote area
Erm, not too sure about your definition of Sustainability but thanks for sharing:)
I like high rise living. Got security, window got view, and downstairs got playground & pool. And is cheaper. why everyone so obsess with rumah teres?
Oh ya, rumah teres u painting whole house interior/exterior so expensive, apartment/condo painting is wayy cheaper, or just DIY also can..
Because for non landed, you're basically buying the air space only. If anything happen to the building due to bad material quality or because of natural disasters of etc, say bye bye to your hard earned money. I guess you can still fork out additional money to insure the latter but what can you do if for some unfortunate reason, the building structure is at risk and only appears after the warranty period. Also, don't get me started on the management fees that you'll have to pay forever for as long as your own the property, house rules and etc...
Great point toi toi. There's always two side to a coin, and I surely hope there won't be natural disaster lah hahaha.
Of course, it's best that they could find a landed home instead of a condo with the budget at a location closer to their workplace in the city. However, this not a discussion of landed versus highrise, but the prices of landed in city is seriously no joke...*expensive weh due to their demand.
Anyway, thanks for sharing!!
I almost wanted to commit to a 750k loan because I really wanted to own and stay in a landed property of my own, the new property is considered the lowest compared to the others nearby. But then it struck me when I browse auction property sites, there are so many sales around the same area for high rise properties, mostly just VP some more! After watching this video I'm convinced that I should take the opportunity to get a much cheaper condo/service apartment instead. Thanks Sean!
hmmm, does that mean there are more high rise properties being auctioned than landed, meaning they are harder to sell. If so, are they then more risky investment?
@@patoises there are always properties being auction, the difference now is there are more new properties being auctioned due to property boom several years ago. Many high price properties were sold then and now the reality sinks in, many couldn't afford the installment and supply is more than demand, rental also drop. So have to do your due diligence to spot a good property with good price to invest in. Some auction price is low enough for rental to cover the installment, but previous owner couldn't do so due to the high price they paid. Risky or not, depends on what price you buy in IMO.
the terrace house in mahkota hill by umland right? Location wise not too be bad, but need another 10-15years to matured. I think there is upcoming EKVE that directly exit to umland project
I'm not sure but thank you for pointing out the location. Great insights!!
Excellent explanation..... my mom loves renovating 😂😂👍🏻
Hahaha!! Thanks for sharing=)
hi...im yusuf from sarawak.intention to buy a condo in kl for my sons own stay instead of renting 2400 with utilities for more than 5 yrs.is there way i can just switch by using rebate,cash back etc if any n discount as downpayment with n covred all hidden cost involve only service the loan same amount paid for rentin all this while n can it be done with join acc with my wife so can get max yrs loan as we both r 45 above.your assist is much appreciated bro.tqvm
also bro our plan to buy property in kl is for myself,my wife n daughter to stay for a longer no of days holiday to spend time with all the family.currently stay hotel n not convient to spend time together but with own property we can hv the feelin of home away from home.
@@gitugitugitok I am from outstation too and bought an under construction PR1MA Condo in the city for our KL-working doter (now renting a room) and also for ourselves if we wish to stay longer in KL. You can buy similar condo for RM300K in and around the city and some are fully completed and still available for sale eg Residensi Pr1ma Jubilee, . Can move in once you complete the purchase and save on rental.Used my doter to apply for the loan to get the max period and as it was only 70% loan, mthly inst only around RM800. But these affordable housing type of condo may not be your cup of tea....
Renovation cost zero.....maybe extension is still abit valuable.
This video was so good that, actually i was watching this on tv and i had to open the app on my phone to type this comment. Thanks for giving the insight in why the typical malaysian sentiment need to be torn down. Practicality vs orthodox
Totally agree with you. Landed is never in my shopping list. Young people should buy property for investment first. As many famous financial gurus always advise, "Own What You Can Rent; Rent Where You Want To Live".
The second thing about first time home buyer (including me) is that we tend to over renovate our house. First time house owner ma, so we get excited and dump all our money to renovate. Later when we want to move our, then we feel sayang to rent out because we are worry that the tenant will damage all our renovation. I learnt that hard lesson as well. That does not mean we cannot renovate and make our house nice. just don't over do it. That is why I like the idea of the makeover guys. Nice renovation at minimal cost - no offense Sean :-)
Why offense leh? You know I'm their marketing manager right? Hahaha.
Anyway, thanks for sharing your take. I absolutely appreciate it!!
@@iherng he he.. don't want to take away your limelight :-D
Thanks Sean for the insight. Really open my mind about not to own house for stay first but instead house to invest.
Thank you so much for the explanation. I really like your thoughts
I'm glad you like it. Thanks for watching Derio=)
WTF, bro, next time yumcha, i like how you bash the idea of obsessed with landed house.
Hi Junny. Thanks for watching. But just to be clear I'm not bashing the idea, just stating out both side of the picture so everyone gets to make a better informed decision haha=)
Very insightful vid there ! 👍🏻
Glad you enjoyed it HW=)
Buying property as investment is a very bad decision because it is very "mah fan" and difficult to dispoase off
That why only those who knows how to play the game makes all the money. It's really a knowledge gap between those who know and those who don't.
Thanks for watching:)
Great content as always Sean!
Which types of renovation can get higher valuation (capped at 30%) as you mentioned?
Renovation on the property structure (landed homes) that are deemed as value added. Great questions Muthalib=)
like adding a swimming pool?
@@same.6409 perhaps, but whe selling it can be a double edge sword. People might not like the extra maintenance, some might love and would intend to use.
Front & back extension, remodeling, converting single storey to double storey all of which come with plan approved by local authority will definitely get you higher valuation.
Even renovation as simple as installing awning, grills, kitchen cabinets, built in wardrobes, tiles help boost up the valuation too!
However, portable items such as aircond, water heater, TV, fridge, washing machine, bed cannot be justified to get higher valuation.
30% is achievable in the case of converting single to double storey or corner lot full extension with approved plan
wow, learn alot from this video
i dont like landed houses, bcos of many reasons, safety is at top. so, i will always look for good and affordable condos
To pay more than $200k for a apartment or house is unacceptable to me. That is why I tell my children, father can't lived forever & they can take over my house when I go 5 feet. I also tell them for what to have kids if their standard of living is less than me. This world is not liveable anymore.
Good recommendation! Sean keep it up👍👍👍
Thanks Arh Jeck!!
Any comments on Duta Park residences KL by malton?
Yup.. Tat wat happen when u need advice from them. A lot of my friend buy outside the city, rent in city near the office. Have time with kids
Useful advice for future investments. Thanks Sean for your insightful and honest comments.
gooooooooooooooooooood
terbaikkkkk
👍👍👍👍👍
Good suggestion to keep the house and rent in the city. Exactly what I did by renting out our old and run down apartment and with the rental income (+ top up of RM50 a month), we get to rent a new condo which is nearby MRT and closer to our kids' kindergarten and babysitter.
You good consultant
Nasi lemak? lol
Location. Location. Location!!!!
it's difficult to have dogs in high rise with all the local council rules
You're right!! But did you know you'll need license to have dogs on landed homes too?
It's a matter of enforcement and the community that you live in, whether are they sensitive to pets.
Great topic Sharon!!
@@iherng That's true! though it seems like people just sneak the dogs into their apartments but it's so risky! really does depend on whether you have nice neighbours or not
Cat is more cute.
just for discussion purpose, not related to your above topic. encounter a youtube video on velocity banking to reduce housing loan by extra payment on day 1 year 1, using cash borrowed from credit card method. thus shorter period and interest savings. Whereby after having 3-6 months savings in bank, used the remaining monthly savings to paydown the credit card loan for 1 year . cc loan must be borrowed annually on day 1 and repay over 1 year with repayment equal to monthly savings. repeat on day 1 every year. lifestyle expense either in cash or inside cc and capped. please see amortisation mortgage calculation with extra payment.
the cc interest calculated every year total is (upto 15x lowered) compared to interest saved from housing loan
Hi iherg, I Nedd your advise. I've sent you an email. Kindly reply.