Monday, September 21, 2009

Forced to Sell! Urgent Sale!

KLCC K Residence force(d) to sell at RM806psf. Above shopping center and Light Rail Transit (LRT). Profit from it! Contact....

KLCC Marc Service Residence 967sf & 1007sf high flr basic RM1k psf up urgent sale Call...

Pardon the poor English grammar above. I tried my best to copy exactly what these guys put up in the classifieds. These ads have been featured in the classifieds for the past 2 months almost on a daily basis. Which makes me wonder, if they were really forced to sell or urgent sales at all. I am sure those of us who monitor the classifieds long enough would know these are scams. If they were really forced to sell, surely the price must reflect the urgency. Just above the K Residence ad, was another one advertising a 2739sf unit selling at RM2.1million which is RM760psf. While this is more reflective of their urgency to sell, it is usually typical that bigger units are cheaper per square feet compared to smaller units.

Couple of years ago, during the good times, there were a couple of estate agents who advertised Marc Residence at around RM800psf. I can see one of them in today's classifieds up to the same trick. When you call up, she will say the unit is sold and she has another one at RM1000psf which is a better unit. Funny enough, 2 weeks down the road, she was still advertising the price of RM800psf. There are many estate agents today trying out their luck in a thinning market. The gimmick is to get you to call them instead of other agents who are advertising a more honest price.

I am sorry for those new investors who would have to waste a phone call to these real estate agents.

One should also avoid buying properties at a "per square feet" price. For example, the benchmark for Marc Residence today seems to be around RM1000psf. So, if you manage to find a unit at say RM800psf, it does not necessarily mean that you have got a good deal. These could be those small 860sf units facing the busy and noisy Jalan P Ramlee which goes boom boom boom till 4 am in the morning. So, you would have paid too much even at RM800psf. Always look at the whole unit and work on a total price before making a decision.

9 comments:

Joseph said...

Hi Sinleong,

Lately properties at Mont Kiara is going crazy. Price goes up in a matter of days. especailly the latest Solaris Dutamas studio unit and Tiffani. What is your opinion on these projects at Mont Kiara. Is it a wise investment?

sinleong said...

"in a matter of days" ? Sounds like speculators at work... I won't touch it. This is KLCC case repeated. Those who bought at the peak will suffer when prices crumble and readjust

Joseph said...

i am actually struggling whether to invest in 231TR. Since you have a unit also, do you think is good long term investment as the rental yield is quite ok. Do u think Platinum Park can boost the value of the property at this area?

sinleong said...

231TR got maintenance problem... their management has no experience at all and they have this china man mentality. put your money somewhere else...

Joseph said...

you are absolutely right. Management is the main concern. They never wanted to switch on the lobby light..do not know what are they saving? ANy good suggestion around that area? Parkview?

sinleong said...

Yes, the lobby leaves the 1st impression. This part, Urban Delta fail badly. Secondly, I noticed the chaotic situation outside during the day due to Indonesian embassy's activities. But 231TR is the cheapest in and around the area possibly due to volume of desperate sellers. If you have to invest in 231TR, pick Type-B. This is the easiest one to rent out.

Other areas depends on your budget. If you are considering Parkview, go visit on a Wednesday or Friday night at 1am. You might chnage your mind.

Anonymous said...

Sinleong,
Yeah it annoys me whenever I call up some agents and they offer much more expensive units instead. I also see a trend in a property website where prices are not stated, only "View to offer". What kind of crap is that? If I offer like 200k less, will the agent accept? If not then why waste people's time?

Joseph said...

Sinleong,
Some people said taht Casa Mutiara near puduraya is quite a successful property. I went to visit that area last weekend and found out that area is quite isolated and inconvenience. But it fetches good rental return. Why is the reason? DO you think is a good buy? I also consider Bidara near Istana Hotel as their price is quite attractive.

sinleong said...

Casa Mutiara, Maytower, Mutiara Villa etc.. are popular because they are the very few condos in KL city area which offers rent below RM2000 and even as low as RM1200/month. If you were an early buyer, I guess the rental return is good. But now, people are selling as high as RM280k for a little studio. You'd get 6% to 7% which in my opinion is so so...

Bidara does not come with parking. The parking is expensive which you have to pay on top of the hefty maintenance fee. If you really have to buy Bidara, go for the corner 2 br units or the studio.