I’ve bought a new condominum unit in Damansara in 2018 with the investment purpose (rent or flip), but more inclined to rent.
Last year, when Covid hit, I’ve found out that the developer has developed the low cost apartment next to my condominum. All the condo owner/buyer quite shocked to find out about this too, including my agent, who obviously didnt know about it as well.
We became so frustrated by the news, some the of the owner cum future investor like me decided to sell the condo upon VP because the low cost development has already disrupted our market.
Of course we’ll incure loss if we sell it now given the current economic situation. I’m willing to lose some money out of it rather than bearing the loss for another 35 years if I rent it out. However, I’m not sure if this is going to be the right move for me given my current financial condition right now.
Hope I can get some light to the right direction on this matters.
According to your observation, the capital appreciation has not much upside if future buyers will be deterred by the low-cost development.
As when to sell, I would look at the rental yield.
If the yield is too low, not even enough to cover the interest expense, I will sell it as soon as I can.
If the rental yield is adequate, can keep till a better market condition to find a buyer.
Hope this helps.