Ever since my first property investment, I never thought of acquiring and landed residential property. The main reason I avoid such deal 7 years ago is due to heavy and high negative cash flow i.e. rental received is not enough to cover my loan. I need to subsidies up to 40% which it will drag down my appreciation value. Beside that, for the past 10 years most of the development or I would rather say majority property developed by our developer was “landed”. You can get any location you want at that time in the region of RM180K-RM280K with average land size of 2000sf.
Sweet dream has over… You can no longer getting prime landed residential property with land size of 2000sf (24sf x 85sf) and prices less than RM350K. Prime location here referring to Likas, Kingfisher, Luyang, lintas, Iramanis, BDC, Penampang or even Kobusak area. Today if you are aware of current development around KK, even newly developed secondary catchments area like Putatan, Tuaran bypass and Dongongong has been snatched up by homeowner and investor. Last month Taman Cerah, along Jln Tuaran bypass, I heard the project was doing extremely well since this is Phase 5!! They are selling terrace house with prices starting from RM 398K onwards (non-bumi) i.e. 22sf x 85 sf (1870sf). Including under construction interest, the cost of the house will easily reach RM430K. New project expected to be launch by same developer near Taman Canggih (along Tuaran By Pass) expected selling not less than RM450K per unit with land size of around 2000sf.
There are few reasons why people started accumulating landed property over non-landed. I have just join the club too… one of the main reason was the increasing rental yield for landed property. Today Daily Express under classified column, landed residential properties are asking rental of RM1000-RM1500 depending on furnishing comparing to few years ago, the rental is in the region of RM750-RM1000 per month. With the cheaper financing from the bank i.e. whole tenure BLR-2.2%, it make landed home cheaper in terms of month repayment and pushing the rental yield which helps in filtering the pain of heavy negative cash flow for investor.
Example: 30 years bank loan with whole tenure BLR-2.2%
Landed non-landed
Purchase Price RM350K RM350K
10% Down payment RM35K RM35K
Monthly installment RM1570 RM1570
Rental RM1200 RM1600
Management Fees RM0 RM200
Negative/Positive - RM 370 – RM170
Rental Yield 4.1% 4.9%
With the above example, you will prefer landed or non-landed? I will go for landed even with extra negative cash flow of RM200 per month which computed into RM2400 per annum. Of course, I will loss extra RM12K over the next 5 year which is still affordable to me. But bear in mind, my value will be more “stable” and I might increase the rental up to RM50 per annum which will pull up my rental yield over the years.
With condominium prices sky rocket, I believe more people will consider landed as it’s cheaper in terms of per square foot calculation. Lately most of the developer in town are facing high costing problem due to high land acquisition cost and sudden rise of construction materials. I heard per square foot condominium costing will cost them as much as RM350 psf especially matured and prime area like Damai, Lintas, Luyang, Signal Hill and Likas. That why if you notice most of the developers in town are selling above RM400psf and some above RM600psf especially prime location like KK Times Square and Waterfront. That’s mean it will cost you RM480K per unit (1200sf) for 3 bedroom lifestyle condominium!! On average I think the rental will be around RM 2500 per month (including management fees) @ gross yield of 6.25%. Just to share with you my old fashion condominium which costing me RM100psf…now can fetch up 7.9% net rental yield per annum!! But the main point here is that, how far your condominium will appreciate if you got it for RM400psf?
Landed residential properties normally come with bigger land size i.e. 24sf x 85sf which easily can accommodate up to 3 cars. There is no extra charge for extra parking. I believe even a small family today easily need 2 parking lots so if you are staying in condominium normally you need to buy parking lot if you have more cars. So landed properties will help you to solve this problem. Not only that, you will have extra land to plant your favorite fruits i.e. Mango or even durian tree!! But if you stay in condominium I think you still can plant but restricted to flower onlyJ
For the past few year land price has push up total costing for developer especially for land at prime location, thus this has help in sustaining the value for all the landed property in KK. Looking at current situation, if both The Peak Suite and Kingfisher Phase 2 terrace house selling for RM 350K, which one will give you more sustainable value over the loan term? Of course The Peak gave you the feel of luxury lifestyle but don’t forget you PAID for it.
To conclude the topic today, for the past 20 years developer spend 80% of their time and land bank developing 80% of what the market want that is landed residential. The rest 20% fall into non-landed which is apartment and condominium. But going forward developer will spend 80% of their time, effort and land bank developing non-landed. This clearly indicating the supply of the landed at prime location will drop thus indirectly pushing up existing landed residential properties. So keep your eye open for the value will go beyond your imagination… Happy Investing.
You cannot Grow Land… CK Wong & MY DAD
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{ 75 comments… read them below or add one }
Hi CK,
Which one would you buy. all intermediate
landed 300k++ for 18 x 75
landed 380K ++ for 20 x 75
landed 430K ++ for 22 x 75
For pure investment perspective. Would people be interested to get lowest value (being the 18). or best value being the 22. Which one easier to sell back ?
Hi,
I wongt buy any of the above for investment. Might as well you consider subsales market as:
1. More matured
2. steady appreciation
3. Bigger land size
4. Matured rental
5. No completion risk
6….cheaper
7..
Open you mind and think ahead of your current knowledge..you will find out better decision.
Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
What if 22 x 80, RM440k, Kepayan area ?
HI,
I think its over price. This is new project or old residential. I dont think you can get the market value. It should be less than RM360K. Of course also depend on the total renovation and condition of the house. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
it is a new project.
“I heard the project was doing extremely well since this is Phase 5!! They are selling terrace house with prices starting from RM 398K onwards (non-bumi) i.e. 22sf x 85 sf (1870sf). ”
can the bank approve 95%(include mrta) for purchaser? to update info
GK
Hi,
Some bank can..you can try. Their latest project selling for RM450K and above and I heard the respond was good also..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
through the information you shared,
it is good for the “cashless” beginner property investor to invest on non-landed property since it generate more cash to cover the loan.
Hi,
At today transacted price even for non-landed, I think its quite hard to find positive cashflow property. I’ve been keep looking but find it tough compare to 5 years ago. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
a 200k apt also need around 27k deposit incl legal fees n SD…making not many new working grads have savings of that much. moreover, at 22 when they work, surely will get a car first if they already dont hv since the advantage is immediate, then assume 5 yrs later they have a saving of 30k , if they save, hehe (that’s 500rm/mth for 5 yrs)
make it sound like cashless is also very difficult thing to achieve in kk unless one comes from a cash laden family. heck, he cud even start learning to rule of the rich man’s game or property game by investing in prop at the age of 18
my point is not to argue u but add view that cashless in kk seem difficult for those who r ‘average’
cheers
HI,
Life is getting tougher day by day, I believe alot of people trying not to understand what we have been doing here..Anyway it’s their choice. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Go back to basics for the new beginners. Learn the fundamentals in property investments. Start small. I am sure opportunities will come by every now and then.
You don’t need to wear such a big hat from the beginning.
HI,
True..But too bad alot of people choose not to start from beginning..end up the “give up” Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Just about a year ago . A non renovated unit of Ujana 2.5 storey corner was priced at just below 400k. Today any unit in the market for sale would be above 500k to 600k. It went up so much in a short time . Rental is only between 1500 to 1800 per month. it’s far from giving you a positive cash flow. Interesting !
Hi Joe,
I agree with you. Just want to share my experience, I got my 1st house which is a low cost double story at Tmn. Sepanggar when there is still not much developement in Sepaggar area yet back in 1997 for about Rm46K @ that time, now it’s worth around RM90K when I’m considering to sale it somewhere this year. Live is difficult for me at that time with only less than Rm2K of combine income with my just married & expecting wife, but I’ve considered buying the cheapest and the furthest house in town with no intention of investing in property or whatsoever but instead thinking of rather than renting I better try something that can give a return to me on a long term basis.
Now rent out that house for about Rm400 thought not much of a income but moral of the story; Just start anyway that is affordable to us especially when you need a house & just wait for the best to come.
P/s: I wish I can return the clock so that I can buy more units at Tmn. Sepanggar during that time.
Indeed, its becoming more difficult for new job seekers to afford properties, especially landed one.
Properties have becoming very much more expensive in the last two years. Escalating land , materials, labour costs…..this is called inflation, except its accelerating faster. Inflation is getting hyper.
As i mentioned before, its easier said than done in property investment.
Its tough enough maintaining the roof over yer head. For those who are earning less than Rm5,000 p household, how can they afford a 450k house?
The income growth in Malaysia has NOT grown with inflation et al. Very soon, average income earners will not be able to afford even landed properties; in fact, it may be happening now.
We have produced low quality grads, comes low quality earnings……fact of Bolehland life
Iam said
P/s: I wish I can return the clock so that I can buy more units at Tmn. Sepanggar during that time.
Could you really afford to buy those units at that time in 1997? Reality was there was global recession 1997 to 1998. Even if you had gotten those units, You would probably not be able rent them out. How would you then cope with the bank loan repayment?
HI,
Life is getting tougher..you are lucky if you realise it now..I feel sorry for those who still blame the economy and people surrounding them that make them poor. At the end of the day, you have to responsible for your own rice bowl. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
i think- even if u cud turn back the clock- u still wudnt buy it. GUTS is what mostly lack. even i believe in myself but the guts is still weak. anyhow, my natural optimism got the better of me n i went ahead and bot properties for myself lah hehe
Hi JCK,
You r rite, I may not afford to buy at that time but my point to Joe/Kurios is;
1) You still have an option to buy a house, not neccessary expensive one but look at your affordability & needs to suit your situation.
2) You will never regret buying a property.
3) Property is an anti-inflation tools & long term investment not neccesary to your benefit but maybe for your children or generation(maybe). Can you imagine how much you need to own a house in 50 yrs to come?
4) “Buy & wait” as what CK mentioned.
5) How the appreciation goes along with the time factor.
imho, fortunately for most ppl, the buy n wait strategy just so happen in the property sector when it is booming. u cannot buy n wait in share market but ck is rite that prop mkt is gradually rising due to inevitable factors so those think short n long will surely and sorely lose out.
but im of the thought that vision is far superior. that , can make one exceptionally wealthy. i think vision n guts kinda come together, somehow, it wont happen without either one. an extreme eg to illustrate my point. say, gates so strongly believed (vision) that one day he cud put a pc on every household n went ahead quitting (guts) harvard. today wont happen had either one element didnt exist. likashing started in baby product , during baby boom, then sold his entire baby industry to apparel when baby boom entered the teens era, then sold everything n involved into cars n estate. he sold everything (guts) to invest into sthg else (vision).
if u cud see what’s “next” in the prop mkt, u wud be the first to reap, very substantially. on another thought, that kinda seem like there’s a word for it, idea? Gates n likashing had an idea.
just penning what i think.
Save your money guys and gals, the property bubble will bust, as predicted by some property gurus. When it bust, you may grab yourself some good deals.
Check out the auction list now and then. I saw a graceville auction for 320k, another palm beach semi d for 320k too. Maybe more are yet to come.
Hi,
I think it still too early. I will continue to accumulate good property..like I alway say..buy and wait..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
invest smart, invest within your ability, you will be safe from any economy crisis, and enjoy the fruit of it regardless of good or bad environment.
i tend to agree with you.
Property talks, exhibitions, etc are hyping up the sector too much for my comfort.
i will wait…property is not buying stocks….each piece cost substantially more than stocks! Of course you can buy property ETFs in the stock market.
look at USA property……dying still after 3 years!
http://www.financialadvice.co.uk/news/property/89729-us-existing-home-sales-fall-to-15-year-low.html
More bad news, SHAREADA has been pushing for smaller setbacks for house, from existing 20′ front and back to 10′ front and back!! Looks like KK’s house will look like those low cost housing in KL and Penang soon.
Their justification is the increasing land cost which in the first place inflated due to their eagerness to buy up lands at ridiculous prices.
Another proposal by SHAREDA to the Government is to GIVE $20k for new home buyers to stimulate the development i.e give more business and profit to them.
Since the selling prices of houses needs to be approved by the Local Government and Housing, another trick to increase the selling price is to sell the houses as “2nd hand” house. Eg. someone buys the at the approved selling price and then pretend to say, you can buy it from the 1st owner at this increased price due to high demand of their properties.
Look at the a big apartment development in Kundasang. They reported ALL Sold, but now selling 2nd hand units!
So the inflation of housing prices is also “played out” by nasty developers. Have met so many developers saying cannot make money from development but they keep upgrading their cars years after year.
Now average Joes will have to rent or but apartments (with high cost per sf) just to stay.
I say give it another 5 – 7 years, only family with RM7-10K income month can afford to stay in houses. The rest, go get an apartment and pray hard your bosses give you at 10% increment or win the lottery.
HI,
This is the fact that every developer is trying to make money. But do you know who profit the most? Landowner…yes Landowner..keep that in mind. If you are the owner of the land for development your sound of unhappiness will reduce..That is why my blog is to teach and lead you to own a land..not to querry and complaint about all the economy and environment. If you still insist of your own principles ie blaiming the developer and govt I bet you will remain below the normal working class forever. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Not everyone can own land..like you.
Many of us are average Joe six packs…..earning a measely wage…..so how?
Yucks! Stay in a chicken coop house? I had stayed in one before in ampang. Cramp, smelly, ugly and low class.
My cousin recommended this blog and she was totally right keep up the fantastic work!
found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
I’m fine with what you said, but what is not right is Developers are RUINING the future of people with less income.
Then again the question of ethics may not be suitable for this blog since is all about making money from property investment. Nevertheless the issue of developers creating a negative spin off from they tricks is still not right.
As investors we also should have ethics and rules to follow or else we’ll end up rich and bullying the others. Making more money is not the most important thing in the world.
Hi,
I assume you are very innocent and honest guy in town. Too bad not everyone are thinking and act like you. In realistic world, who will care about your pocket money? At the end of the day, everyone are taking care of their own pocket money. Back to reality my dear friend…the fact in life always remain. Take care..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
I also agree with CKWong. If you look at history, civilization has been built based on SELF INTEREST, not ethics, but that being said it is important to look at a balance between ethics and self interest.
The reality of the world we live in now promotes wealth, so no point trying to denied it. I would rather think of more ways to make money rather than complaint why the world is so unfair, just like CKWong has been teaching us so far.
There is no clear cut answer to this. Something which is legal may not be ethical eg: making profit by jacking up the prices of medium & low cost house where the poor usually end up buying. This is equivalent to squeezing money from the under privilege. If someone want to invest with a good conscious before God, why not go for condo, semi D, bungalow where the rich will buy? They are rich anyway & they can well afford it. My friend told me Warren Buffet applies this principle. Just my 20 cent opinion.
If developers are creating a scenario where units are All sold and only 2nd units are avail at higher prices, its called scamming. i believe this is ILLegal under the law.
hi..there..
This is i called creative marketing…very hard to prove them “scamming” and normally people dont have time to do those time/energy consuming thgs..
better way is to be-friend to developers, sometime they give u a ‘surprise” as they are human too..at the end of the day, making money is the ultimate goal for both developer and investor..
peace..
Dear Peter
I can sort of understand your feeling and concerns regarding the Developers that are ruining the future of people with less income.
Eg. when i was married 10 yrs ago, with a household income of RM2500 and existing car loan we can only afford an apartment at that time. 10 yrs later with much struggling and hard work, household income has increased to rm4500, but we have changed a new car as the old car is really not worth to repair all the time, therefore with existing car loan, house loan, ever rising living cost, children education, parents allowance and medical bills, etc… eventhough we really badly wanted to move to a landed house with bigger space for children and more activity space for parents but we couldnt affordn to do so.
What I mean is, life is cruel itself. The only way is to increase our income (cruel fact) with right ethnics and moral even though how hard and difficulty it can be at times. There is no other way and choices.
Will hunters pity their preys? No… We couldnt change the fact how developers making money, inflation and Sabah ranking the third highest property cost in Malaysia. We can only change ourself and adapt to this cruel society. No body will pity the lower income group except ourselves. So we can only help ourself.
Thanks for your concern, hopefully all ppl can increase their income soon and also thanks to CK reality statement in life.
Hi,
This is reality of life..developer also want to make more money. The best example I told my best friend…if 1Borneo owner did not sell any of his apartment unit for Tower A & Tower do you know how much extra money he will earn? Simple…when he sell back in 2005 the average price is around RM170 per unit and now market value is easily reaching RM240K per unit..a profit of RM70K x 798units = RM55.8M. Yes, the owner will earn extra RM55M in a matter of 5 years if he keep it until today. The question now to you, are you willing to keep all 798units and only start selling now? So back to the reality, nothing in this world is free. Developer also have take risk and they are well paid for the risk that they took. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
I had previously asked in this forum,” what determines the prices of new launched houses/ apartments in general”. The answer i got was demand and material.
If it is really true that demand pushes the property prices up, then in a way we could control the property prices. If no demand, the property prices won’t escalate so fast. Lets sit back relax and not rush in to buying. Look for good deals, then only invest.
Some of the semi d are selling at over 700k, 800k, that’s ridiculous. It will only make the developers laugh to the banks and us poorer by a few hundred k.
Hi,
Study the market before enter and must enter with “good” deal is a must. But think back carefully Joe, how many semi-d in town worth consider buying? How many more developer willing to develop or got such landbank to developed semi-d and expecting them to sell to you at RM500K? Its not an easy task for developer. At the end of the day, developer is profit oriented company…if business is not profitable I think they prefer to stop developing. The moment development stop, existing properties will be benefited. So its happen visa versa..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi..
demand from “outside kk” such as investor/speculator..play a role too pushing up the price..like it or not..kl Semi-D cost more than 3 million..
lets not forget sabah, esp kk got so many things natural, sun n sea , mountain, island, seafood, all within reach in less than an hour n acceptable temperatures for old folks retreat. n japs ,koreans lik to play golf n eat fresh seafood here. if nt wrong, our fresh deepsea exports to hk? i heard the jap buy some shops here few unit with cash few million. just a cost of a flat in their countries, no? kk is so cheap to them i tink lol naw, in whose wrong mind not to invest in kk?
HI,
The one who always complaint about the high prices of the local property are not from local. Those who are more willing to pay extra prices for the beauty of Sabah, Land Below The Wind..As I alway say local properties are no longer dominated by local..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Oh well. It all depends which on which side of the equation we are in. If we are on the winning side of the equation, We wouldl not complain.
Recently I found a piece land , broker increased it by 5K after seeing me wanted it. I paid. It is not ethical. But I see the deal would outweight the 5 K. I can just walk away to save 5 K but lost the opportunity. So , The gist is stop complaining and spend our energy to look for a good deal that suit you as we all live in an imperfect world.
HI,
Congratulation…Sometimes extra RM5K is nothing compare to the deal that you might get and the potential of gain in the future. I’m on my way to add another properties into my portfolio this afternoon…hope everything gone smoothly..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
It’s posts like this that keep me coming back and checking this site regularly, thanks for the info!
Congrats ck, hope you had a good deal.
Suggestion: as your website gets larger, its getting difficult to find articles. How about putting in a ‘search’ into this blog. Thanks.
Hi,
Hope its a good deal, with minimal negative cashflow I still be able to absord. I will try to insert the “search” buttom. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK,
Many have commented prices is too high for property and worried about it’s sustainability . And like to sit and wait for the so called bubble to burst.
The gist is, there will always be Motivated sellers out there in the market for various reasons. It is in these ‘ Hunting gathering fields’ that you could find good deals.
Azlan
Hi,
Even in a non-capitalist society, there are rich and poor. The truth is that life is not fair and we are living in an imperfect environment. So the reality in life is that you must struggle and work your way out. We must change ourselves rather than focusing on the world to change for us. The successful person is the one who can work around the limitations in his environment and make it. When we are successful, we can then help others around us to improve their lot too. If we do not grab the opportunities, somebody else will – and we will drop further behind because other people are moving faster than us. I had come across brokers who jack up the selling price when they realize that you want to purchase the property. This is not ethical at all. The property market is also an imperfect market and if you do not buy, someone will. So work smart and look hard for good deals and just go for it.
Kepayan land. Road side, NT, how much would you give for rm/sft?
Hi,
It would be in the range of RM40 to RM50psf. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
2nd piece cl 999 years tenure land near to highland along jalan tuaran by-pass, slightly hilly, what price wud u give? RM50psf justifiable?
hi,
RM25-30 psf depending on condition of the land and potential land usage. Happy Investing.
You cannot Grow Land..CKWong & MY DAD
Kepayan land CL title remaining 42 years worth buying?
How much is it to renew to another 99 yrs? Who should bear the cost, buyer/ seller?
HI,
42 yrs is very common nowadays. For Renewal pls ask Land office for more information. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
what is market value for back lane Petronas area , Karamunsing godown area going at.You saying Tg lipat is at 450/psf.Is Tg lipat going thru forced aquisition
HI,
Land at the back of Petronas last was sold for RM75psf. Now I think easily hit RM100psf but less seller? SP Setia Project is about 500M from this land..Happy investing.
You cannot Grow Land..CK Wong & MY DAD
BOSS,
It’s the Petronas building he is talking abt. Not The Petronas station…
well, KK is Madness …., we live to tell our children….so i presume anytg around there , between Karamunsing is $70-100 is a buy.
KK the 3rd most expensive city for property investment after Klang valley and Penang.
After all, it has the 2nd busiest airport in Malaysia and the highest mountain in SEA, just a thought.
Amiable fill someone in on and this post helped me alot in my college assignement. Thank you on your information.
dear ck
i dont have cash to buy land in kota belud but i got a good offer and hard to let it go.
my question is, if i were to borrow money from bank, would the interest be same like buying properties as i think loan is only given for properties. in the other words, is the finance is like a personal loan..or i must have collateral etc for the loan?
tanx..
Nadia.
Buying land is different from buying house , cos the bank lends you lower margin of financing, normally 50-60% depends whether Cl/NT. you cant buy land with personal loan cos is very expensive in terms of rates. You can refinance your house to use the money to buy the land , which will be cheaper in terms of rates.
Good Luck
Hi CK,
Need your help here and forumer’s help too. I’ve a problem I need you and any others who have faced the similar situation to give some advice on how to claim damages from the tenant.
This property does not belong to me but my in-law. She rented her single-storey terrace house in January 2009 to a family which later she only found out that they are from Indon. When she rented out she only know the person by name, never had a copy of their passport. There are no tenancy agreement except a receipt which the tenant dispute that the date given to him was different that the one stated from our copy of receipt book (and he never shown us when we tried to evict them). She collects 1 month rent and 1 month deposit and minimal deposit for water and electrity bill.
The tenant has been paying his rent late usually, sometimes my in-law was frustrated as she had to go few times in a month but never got her rent. Her frustration grew more when one of the day(June 2010) she went and found out they broke her window panes. She checked and found out they had also took her zink sheets and a wooden ladder. She told them to replace which the tenant gives lots of reason and finally said yes.
In July she told them she will increase the rent in August to the husband. However, in August, the wife denied being informed. Therefore my in-law told the to move, if they do not want to stay on. As she went for a holiday, after she came back she went back to the house and found they are still staying there and asked for more grace period as they had not found any place to stay. She took pity on them and let them stay until September 15.
However, after September 15, the tenant refused to move out and started to be violent. She then asked her son-in-law to try to evict them by going quite frequently to check and talk to them as my husband was not in KK most of the time. This time they started to damage the house, resulting to my in-law lodging a police complaint on them and subsequently a court order.
End of last month, they finally move out but did not hand over their keys. They said they had not finished moving out their belongings. Later we found out that what they mean is dismatling their air-con and the water pipe. They move out to a neighbouring house. However when we spoke to them on the handing over, they promised a date to deliver. On the day of delivery they are nowhere to be seen. We went to their new house and the workplace and they are not there, neither they are answering our calls.
The next day, we still fail to collect the key from them. On the same day, we received the letter requesting hearing from the court. We took the letter to them. When we reach the house, we heard the husband talking on mobile phone. When we are inside the house compound, the maid said he ‘went out’. Then when we demand, she then said he went to sleep and ‘jangan kacau dia’. Anything talk to the wife. As I was in a fury, I told them the letter is addressed to him and we rented to his husband, he must collect this letter. All these while they talk to the wife who was the mastermind…
When the wife returned after a while(the husband must had called her) cos we told them if he is not coming out we are bringing a police. When we asked them about the handover, the wife just said, its lost, we told you already. All this while they had been going in and out and never told us anything about lost key?
When they accepted the letter from the court and they dashed out without discussing with us on this issue and said they are going to the police station to report us for our false accusation.
During the weekend, we went back to the house, trying to go in with our extra key. None can fit in so we had to force open. Apparently they spoilt the door lock by inserting sharp object in the door lock(3 doors ), spoilt ceiling fan, toilet, etc etc… And they had not even paid their electricity and water bills amounting RM600!
We had court order for hearing yesterday but the court couldn’t care less said that our amount was too low(less than RM2000). The tenant(husband) turn up but later dissapeared, leaving the wife to go in and see the judge. She told the judge he had to go and do his passport and the judge allow that!!!??? And the court does not even verify the IC by allowing the wife to go into the proceeding room.
What can you advice? How can we claim back the damages. We only have with us their water and eletrity deposit and its not even enough to cover all the damages done deliberately to the house. I had been reading it seems that Malaysian court do not favour landlords and my in-law was sighing everyday at her home turned into something that’s being hit by typhoon. We do not have the person’s real name as per passport, do you think what action can we do to claim back? We’re not ah long… and Malaysian court is too friendly to them…
Help!
Thanks. Appreciate all your comments.
DILEMMA recently highlighted a fairly common landlord’s nightmare in sabah- in some cases merely unreasonable, in other cases very unreasonable tenants.
from my personal experience, landlords must insist that tenants sign a tenancy agreement and, know a little more background of the tenants before committing our property to them. if you already know your tenants you don’t need to but, in some cases, you need to consider whether to ask your tenants for the names of their previous landlords. this is so that you can get verbal references of your potential tenants from the previous landlords. people in sabah are generally open & sincere so don’t be afraid to ask. at the most you will only be told very little but, from experience most people tend to open up when asked about their tenants! in addition, every few months or so, find an excuse to make an informal visit to your tenants.
some of you may find the last point a little strange as there’s usually a clause in the tenancy agreement for the landlords to provide quiet possession of the property to the tenants in return for the rent they pay. the idea of the casual “drop by” at your property is for you to find a way to take a quick peep at your property to see if it’s OK. this is especially important in cases where you rent out property to people who bank the rent into your bank account every month. most tenancy agreements will contain a clause entitling landlords to inspect your property so this shouldn’t be a problem. however, try to do it tactfully as you will be entering people’s homes.
the need to visit is less applicable with condos, apartments and flats. excesses are usually reported by neighbours or the building supervisor.
with commercial property it is a lot easier as well. but landed residential property is where you tend to have more potential problems. it doesn’t seem to matter whether your tenants are foreigners or locals, lowly educated or highly- educated, young, middle-aged or older. i once had highly-educated tenants who were locals. they rented a house from me. they paid rent very promptly at the beginning of the month for years but neglected the interior of my property rather badly. their good standing in society and their good payment record falsely lulled me into believing that they were also good home managers.
like all businesses, renting out our property takes effort and time.
peggy
Thanks Peggy for the comment. Will take note of that. I think enforcing higher deposit is a good choice but sadly, this will lower down the percentage of getting people to rent unless the property is located in the up-market residential area. This house unfortunately was not located in the up-market residential area, therefore selection of tenants was a bit “headache” to find i.e. those who would pay you 2 months deposit+1 month advance rental +deposit utilities bill.
Sadly speaking, my in-law rented this house early last year. We only started finding out more info and get into this property business end of last year, therefore a lot of the important stuff not known then. The previous tenant had been renting for years and never gave her any problem until she bought an apartment in Sepanggar.
Lesson learnt, we must be more careful in tenant selection in the future and will make sure the tenants sign the tenancy agreement. Btw, can anyone advice although with tenancy agreement, what’s the likelihood of default and its implication? Can we still recover losses despite with a tenancy agreement?
dear ulu,
i got d verification already n i do appreciate ur in4…tanx
Dear Ck & all
Any comment on the prima hill terrace houses, selling price from RM385k? worth or not?
Hi CK, I have a landed house in luyang lorong unta linked house, currently rented out at RM700, but i plan to sell the unit, just wondering what is the market value around that area? (land area apporx 2400 sf)
Hi,
Market value should be around RM250K-300K depending on the condition. But the problem is formal value from valuer might not reach this level. People will buy from you simple due to location of the house. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
Hi CK, Thanks for your info, I saw the advertisement for taman fortuna phase 1, double storey Corner ask for RM550,000 is it worth to buy? what is the actual market value around that area? Thanks
HI,
How big is the land?What is the condition of the house?Fully renovated? Find out more first. Happy Investing.
You cannot Grow Land..CK Wong & MY RiCH DAD
HI,
Your costing upon completion will reach RM480k (inc bank interest).What is your expected return from this heavy investment? Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
I plan to investing it for capital appreciation and with rental income of around RM1200 per mth at the same time.