Evelyn Chua asked 9 years ago
Hi, I came across your website while searching for some answers to property buying for my own stay. I am contemplating to buy a 20 year old condo within the city center of KL versus new condo property that is further away from the city. My budget is around the $500,000 ballpark. My concern of buying the 20 year old condo is that it may depreciate in ten years time if I do decide to sell as it will be a 30 year old condo as oppose to buying a new condo without having to worry about it losing value but recent new properties have been exhibiting a worrying trend of bad workmanship and overall building qualities. Am i correct with my deduction or assessment? It would be greatly appreciated to have your advice and valuable insight on this matter.
KCLau Staff answered 9 years ago
Hi Evelyn,
Whether the property will depreciate or not, it depends a lot on the location and the maintenance of the building. Since you said the location is good, you would be worry about the maintenance and upkeep of the building. You can assess the management team by doing more survey of the building – Are the lifts working fine? Are the facilities well maintained?
The building might get old, but also due to inflation, more money is required to build a new one. That’s what cause property to appreciate in value over the long term, due to inflation factor.
If the building is deserted in the future, then you will find it hard to sell, and the value will drop. Ask these questions: What might cause building to be deserted? Will “too old” be a problem? Do other 30 year-old condos drop in value?
I think you will be able to evaluate the situation more clearly now.