but guys this is Sean done and today it's another episode for asking Sean so today we have text from an Boone author right so then boom on says this or at least whole property will its value drop long term these questions right there's a few ways to answer in my take is that how long is long because if you have 10 years 10 years or 70 years its osteo long term so the problem for this whole is this a challenge has always been one during transaction you need to get consent from the state government so
they were actually prolong the process of actually doing the transaction for name owner a two owner B so that is number one number two is actually Bank valuation so Bank valuation will always decrease when the property lease rate is left until 60 years depends what kind of reasons are you buying the property for if it's for capital appreciation then to bad luck but it is for rental then it makes sense so let's say if you buy a fresh new lease whole property for 99 years right and for 30 years then you actually cash out your
property or even before that you're the cash flow property then it so Kayla but if you get a 60 years left property will you actually consider buy it so especially for land property slander properties if it's leasehold and it's quite challenging actually so my answer in general would be not really just a bank valuation actually decrease the value by dietary revenues or there are alternatives or ways to read at least in the state force Lenora you can renew your lease in different ways one is to actually pay up the premium which is a few hundred
thousand which is how much relief the land is actually cost then you renew in your land to a nine years number two you can have you can pay one thousand to actually renew your lease to 99 years at the current market value so in the future if you sell you will need to share half of the profit with the state government which is fair so will this will probably decrease across time no you will increase imagine a lease for probably thirty years ago and today right definitely the value will be different like just that you
increase less in comparison to a freehold property this is because this whole property if you understand this your property is usually applied on land with high usage for a government because lease Hall is a thing that is a it's a desert condition that maybe one day the government might want to take back the land for their own use that's why they put it under lease whole so and this kind of properties right when you acquire this whole properties you're already buying it at a discounted rate which gives it a very high potential for very high
returns especially for cash flow because let's say glossy if you look at the freehold and let's say this is a frijoles the lease all right this one usually the price is like fifteen to twenty percent lower in price but then the rent alright because when you render the really camera is a frijoles hopper to be right so the renter may not be a lot of difference that's why like if I get the least whole property and a lower price with similar rental rate there will be an ideal case question number two Brickfields is an Indian
major town and I suppose that makes it not very appealing to investors but I'm planning to buy for my own stay my thing is this because brick feels it's very very close it does straight away from the Indian street right and it's a cultural Street that a lot of tourists cause they're another thing our breakfast is adjacent to KL Sentral the main station so if you want to talk about next to transportation hub right send KL Sentral is the place so if you are buying it for own use then it's okay now but if it's
for investment point of view the only thing that you look for properties first is population which is a little the Khaosan traces a lot and it's mainly because of number two the transportation so the transportation that is extremely connected it's it's me scale central question number three which is a sequel my project is Bill and Jalen and thing where it used to be very quiet but now that's tree high-rise underway named Lisa Neil and prima and a government servant Cuates will it be overpopulated once people move in and it's a walking distance away from alabanza
but the road wise is narrow you can email me again if I got this wrong I'm just trying to get a question right right so it's overpopulation a problem in the location that you are you mentioned which is dancing as we mentioned prop property is right you will unless it's super high-end then population actually does help a location to actually reach its peak right when let's say you have a building like San Elin and crema and the government server let's get this right government servant can really sell but they provide a lot of people just
that it's at the working class level and same prima is affordable home which is your income is to be less than ten thousand family income then only you have which is a sunny line right so there's a good mix however this is not definitely not the ACA's area but this has been the focus for the government so if from a welfare point of view when these three buildings beulah so what will happen yes there will be demand for shop offices then there will be demand for offices and certain things like and it's walking distance to
a deep and south which makes it so good right who wrote narrow and not normal Milan because it is walking distance to a bank sorry there will actually give it a very high potential for rent though especially in the working class so if you are buying this right let's say you are buying it for own stay let's give it a five years or it yes but then after that you'll upgrade toward landed property right this can be a very good property to actually let out because of the few things and it because it's a working-class
area and if you look at very high rental returns areas right the similarity is this it's definitely working class meaning people not those artists apartment it's very difficult to expect a 1 million condo go up to 2 million right but it's quite reasonable for 400,000 condo go up to it 100,000 it's still less than a million but then they have higher potential that way and the fourth one will be there isn't any restaurant within walking distance it's because there's not enough populations yeah so if you look right when you reach a new area right then
usually condos come first abutments abutments cancers or infrastructure comes first then when infrastructure and this I did either one comes first really then you have the commercial support so you need happy birthday first then only some developers will build up shop offices surrounding to provide space for commercial support so usually those that comes in number one its mama number two is Dobie now my tree is like childcare tuitions and then you have come again in barber and always cutting so this is quite evident and this has been the trend so far but this is very
based on utilitarian meaning like it's really based on meat not those fancy fancy hipster hipster anything but in what we are talking about is actually with real needs so belong if you're asking this you should buy a not-so now the only question is the price so our suggest you this like surrounding that area if you can look for another four different properties around which is similar let's say if you're looking at a eight hundred square feet you look for similar two rooms a hundred square feet one you come bad you look at the rental rate
so if the rental rate it's almost equivalent to the installments that you're gonna pay the bank then I would suggest you Dickie right because once you take it four years later only you get the condo or apartment the the renter eyes the renter would have picked up ready and the best thing is this the LRT the balanced online right it's one of the most premium line of Iraqis because it connects from Kelana Jaya to KLCC two buses and into one samanu and all right that's the most busiest and most vehement in line I know of
La that's why if you go even to match it Jamie so these are the few transportation hubs that I really think that it will be a demon for your space right so I think that's all for asking Sean number two thanks tomorrow so if you guys still have any questions that you need my idea or my thoughts right do send it to my email I'll put my email down below and that's all if you really like this video like it share it and even subscribe for more information like this this is Sean done chop you
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