Q & ACategory: PropertiesMistake in properties
Yow weng wai asked 3 months ago

Hi kc, I’ve been following you since I was in uni, haven been reading much for a while to be honest, but back to following. 
I’ve been holding a double storey unit in m residence 2 (rawang) for a few years, rented out to cover 40% of the instalments.
I really have made a mistake buying this property, I was young when I bought it ard the peak of the property market fearing I might never be able to afford 1 in the future.
Wanted to get it for own stay so I didn’t worry so much on the location hence the value of the property. But afterwards my gf now my wife bought a house in kepong which is closer to her family so we decided to settle down here.
And the sad news is, the property prices at the area has been dropping, I think I might still owe the bank for abt 470k/480k, the listing price now is actually 460 or lower. Should I sell it at a loss, forking out cash to sell it…
I have been wanting to sell for a long time but couldn’t justify topping up to sell a property.
I also have another property at eve suite, rent is covering the instalment. But that area didn’t developed as we expected.
And also the prices have gone down…
Was thinking to sell both to cover the losses of the rawang property but now I’m really at a cross road.
It’s easy to rent out this unit, and my tenant is ready to extend another year.
Hope to hear from you soon.

1 Answers
KCLau Staff answered 3 months ago

You have a few options:
#1. Sell it at a loss – it will free up your cash flow so you can invest elsewhere.
#2. Hold it long enough for capital gain (that might be several years)

That depends on your cash flow situation. If it is tight, Option #1 is better.