Endah Ria Condo: Buying To Invest or To Stay?

endahriacondo

Last week I went to view a condo in Endah Ria Condominium, Sri Petaling.

Details of the condo:

Size : 946sf
Asking price : RM180,000 (not negotiable)
Furnishing : Bare unit
Orientation : 3rd floor, Block C, facing KL-Seremban highway
Condo owner : 1st owner is Chinese, who then sold to 2nd current owner who is a Malay (not Bumi lot)

Looking at the above facts, I started to analyze whether it is a good buy, either for me (to invest) or for my brother (to stay).

 

endahria_map

 

Scenario 1 : If Buying To Invest

Possible rental : RM1,000 – RM1,100 (let’s say RM1,050)
Gross Rental Yield = Annual rental / Total cost of investment x 100%
Gross Rental Yield = 12,600 / 180,000 x 100% = 7%

A gross rental yield of 7% is attractive. However I’ve heard that units facing highway are difficult to rent/sell and are 10% – 20% lower in price appreciation.

Another concern is transferring tittle:

  • It is not a Bumi lot but since I am a Chinese, buying from a Malay owner may have problems in transferring title in Land Office.
  • The agent is honest enough to admit that in the end of the day, there is a slight chance that Land Office may reject my application.
  • If this worst scenario happens, the agent will refund all deposit paid.
  • But I still need to bear the legal fees, estimate about RM5,000.
  • On legal fees, usually lawyers are kind enough to absorb 50% of it.
  • So my risk here is another 50% legal fees, estimate around RM2,500.
  • Not to mention the lengthy process which might takes between 6 – 12 months.

Scenario 2 : If Buying To Stay

The asking price is very tempting and affordable, within budget range.

However main concern is master bedroom and balcony/living area is directly facing a main highway. This is a definitely no-no!

  • Noise pollution – It is a main highway with high volume vehicles passing by especially peak hours. Noise will be louder during the night and will affect sleeping hours
  • Air pollution – Dealing with lots of dust which is bad to health and more cleaning works to be done

Only solution is to CLOSE ALL WINDOWS AT ALL TIMES. I can’t imagine how stuffy and hot it is to stay inside without fresh ventilation.

Thus I’ve pass this property, no matter how cheap it is. The property search continues…

Mind to Share?: I guess some of you may have encounter buying properties from Malay owners. Or selling one to non-Bumi buyers. Is dealing with Land Office judged by luck? Do you mind to share your experience? I really want to know the answer. You are welcome to leave comment here.

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2 Responses to Endah Ria Condo: Buying To Invest or To Stay?

  1. I’m interested for this.
    please give me the details… Thanks

    • Hi Carmen,

      This Endah Ria property ad was posted in iproperty 2 months ago and I’m sure it has been sold.

      Currently price of Endah Ria continues to rise. Recent transacted listing from my friend who bought a unit at RM240k last month. And she is so lucky to rent it at RM1300/month immediately. Some greedy owners are asking for RM280k-RM300k for 900sf+ which is quite expensive.

      On the good side, the whole condo is undergoing external painting in white and grey to match Endah Promenade. So Endah Ria does looks brighter and newer now, no more previous dark corridors.

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