propertyWTF™

Taikor/taijar, I come across another problem that needed advice and opinion asap... I'm Chinese, but with Bumi status. Therefore I can enjoy the extra discount for bumi when buying new ppty. However, pp adviced not to buy BUMI lots as I will hv problem in selling it in d future. If my intention is for rental purpose and long time investment, shld I go for BUMI or NON BUMI lot ?

froglai88 wrote:Taikor/taijar, I come across another problem that needed advice and opinion asap... I'm Chinese, but with Bumi status. Therefore I can enjoy the extra discount for bumi when buying new ppty. However, pp adviced not to buy BUMI lots as I will hv problem in selling it in d future. If my intention is for rental purpose and long time investment, shld I go for BUMI or NON BUMI lot ?

Boss, you sino from Sabah?
Well, put it this way, when you buy a bumi unit, you get 5% discount and when you sell, your price is 10% lower that market rate due to bumi unit....

So what is your take? Do you want lower entry price or higher selling price? This is chicken-egg issue.

Above just as an example and most of the it happens like that.

I think for rental purpose should have no problem but when come to selling, this is the sad part...

Tower wrote:Boss, you sino from Sabah?
Well, put it this way, when you buy a bumi unit, you get 5% discount and when you sell, your price is 10% lower that market rate due to bumi unit....

So what is your take? Do you want lower entry price or higher selling price? This is chicken-egg issue.

Above just as an example and most of the it happens like that.

I think for rental purpose should have no problem but when come to selling, this is the sad part...

Tower kor, this is very helpful...... now really hv to make a decision between Discount = Low Selling price... hahaha.

Some pp adviced if it is for rental purpose, then is worth it. But not for short term flip....

froglai88 wrote:

Tower wrote:Boss, you sino from Sabah?
Well, put it this way, when you buy a bumi unit, you get 5% discount and when you sell, your price is 10% lower that market rate due to bumi unit....

So what is your take? Do you want lower entry price or higher selling price? This is chicken-egg issue.

Above just as an example and most of the it happens like that.

I think for rental purpose should have no problem but when come to selling, this is the sad part...

Tower kor, this is very helpful...... now really hv to make a decision between Discount = Low Selling price... hahaha.

Some pp adviced if it is for rental purpose, then is worth it. But not for short term flip....

so what is your decision? Discount or Higher selling price?

Buy low, sell low. Buy high, sell HIGHER...hahaha

For High end property such as KLEC, you better think twice as if you go for bumi unit, you will have smaller market and make harder to sell. For low or mid cost, think the impact shouldn't be that much compared to high end properties.

Hahaha... this is going to be a very hectic question for me.....

So far nvr buy any BUMI lot yet.... It only come to my mind recently, when considering MSQ or EVE suite.

What abt mid costs ppty in Damansara Damai, can consider BUMI lot ?

froglai88 wrote:Hahaha... this is going to be a very hectic question for me.....

So far nvr buy any BUMI lot yet.... It only come to my mind recently, when considering MSQ or EVE suite.

What abt mid costs ppty in Damansara Damai, can consider BUMI lot ?

How much is the one that you are aiming in Damansara Damai?

Around 300k.

froglai88 wrote:Around 300k.

One Damansara in Damansara Damai?

Ask yourself these few questions first.

1) For flipping or rental yield?
2) What is the expected rental?
3) Tenant market/profile?
4) How long do you want to hold it?
5) Capital appreciation potential?

Then we can talk further whether want to buy BUMI lot or not...

froglai taikor.. u hv a problem that i wudn't mind to be in yr shoe..

let me share a bit from the view that i have gathrered as an investor.. as far as bumi is concerned, i will hv to assume it's same across whether u're a malay or a sino east malaysian..

1st distinguish between bumi-lot and bumi-allocation.. for the latter, no issue.. it's the bumi-lot that u'll have to decide..

2nd, check out the discount, 5% / 7% / 10%, in malacca or certain states, it cud be higher, especially the priority in allocation..

an example, a recent experience in the balloting of new launch Sri Petaling shop-offices by I&P, 50:50.. the exercise was done in alternate sequence starting with the bumi ballot.. but these are free-for all units, means that anyone can choose any unit, i presume it's bumi-allocation then, not bumi-lot.. as this is commercial afterall..

3rd, leasehold or freehold? individual or strata? i.e. the title.. and the time required for transfer if it'sallowed..

4th, what are the guidelines for disposal of prop purchased with bumi-discount?

5th, what are the restrictions disposal from a bumi owner to a non-bumi purchaser? this may not be that apparent to your case, but in some, whether it's a bumi-lot or bumi-allocated, there are some "guidelines" like min holding period of 5 years etc. so, usually will try to avoid props that require consent, re 3rd item above..

there are ways to "manage" it, i'll leave it to other taikors to share.. of coz we are talking about direct from developer, but if u ask Faizul, notwithstanding most of his purchases are subsale, i suspect he did not really go all out for the bumi-discount even for the off-the-plan purchases..

good luck..

EMYHGT : Wah, never really thought there are so many restrictions and limitation for BUMI lots. Always thought is a straight forward buy and sell procedures...... hahahahah, but I really appreciate ur opinion.... Can you explain abit more on ur 3rd ?

'3rd, leasehold or freehold? individual or strata? i.e. the title.. and the time required for transfer if it'sallowed..'

Tower : yup, One D'sara condo, initially thinking of low entry price and Malay area, can consider of buying a unit under BUMI lots. Most likely d tenant is Malay then future buyer also Malay......straight forward.... but.........