Buy, rent out and keep 10 – 15 years. Why not?

Buying a property for flipping is not something easy these days, agree? Heck, even buying a property is getting ever harder. Just look at all those who complained about their inability to get their loan applications approved. Difficulties in getting a loan will continue… 2019  Well, many are still looking at the primary market and buying the affordable ones and within a few years time should save enough for renovations. I trust most of them would not be selling those units as it should be for own stay. There are also many of these affordable units which meant that flipping them for good money is not a good idea. Demand would continue to grow, of course but when supply is completed in tens of thousands, then it’s good for the buyers and not so awesome for the sellers. So, what about those who think that 2017 or even 2018 would provide an opportunity to buy? Then, they may want so read what Ron Ong write in an article in NST here.

I do not know the writer personally but according to the introduction at the end of the article, Ron Ong is a practising lawyer, investor and property manager who owns 19 properties worth RM17.76 million. An impressive number that most of us would love to aspire towards. He shared that there is no such thing as a good or bad time to buy. The reason is because bust cycles is often followed by property boom and every boom cycle is then followed by a busy cycle. Latest boom? 2010 to 2012 and all those who bought during 2008 and 2010 should have enjoyed good returns on their investment. He shared that 2017 to 2018 is a downturn and he believes the recovery would come in a few years’ time which meant that it’s a good time to buy now. He also said that banks have also been tightening their loan approvals and the current slowdown has resulted in negative sentiments for the property market. It is thus the best time to buy and buyers would find it easier to negotiate too. His strategy is to buy properties, keep them and rent it out. He would then hold these newly bought properties for up to 10 or 15 years. His full article in NST here. 

My brother-in-law asked me about ‘disposal of asset under the real property gains tax act 1976’ when he was submitting his tax returns a few days ago. I told him that he has not yet sold his current condo, so he does not need to pay any tax on those. Actually, if we did not buy because we want to flip, there’s really not too much to worry about tax or even the ups and downs. The riskiest remains if we bought the wrong property. Haha. As for what is overpriced, well there are transaction price guides here. Always understand the prices of similar units nearby. Yes, it’s true that landed units would provide the highest potential that it will increase in prices since it cannot multiply which the high-rise can be built ‘higher-rise.’ It’s also true however that majority of Malaysians could only afford a high-rise unit…..  This is why it’s not so important to keep debating whether landed or high-rise. It’s better to analyse where to buy instead. Happy buying, renting and not flipping.

written on 28 April 2017

Next suggested article: Burnt today, will still try tomorrow due to greed 

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3 thoughts on “Buy, rent out and keep 10 – 15 years. Why not?

    • Hi John Paul, true also. Then again, I have always been advising the same thing. ‘It’s not when we buy. Make sure what we buy is the one we want to buy. Fortunately, not everyone agrees on the same thing to buy which makes the market vibrant. City centre is loved by many, city fringes are appreciated by many and far away from city is still being bought by many. 🙂

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