I have come to the conclusion that we are unable to join the lucky ones living in JB. Traffic jams, fears (too much sensationalized crime reports) have finally make us decide not to move in. I am still very keen but better half is very firm in refusing to move. So, now we are stuck with a decision on what to do with our current asset in JB. Here are my choices. Constructive suggestions and advice, please. I am on the verge of a nervous breakdown...
Option 1
Sell now and pay 30% RGPT. The easiest way out as we exit immediately and put everything behind us. But painful to pay 30% RGPT.
Option 2
Wait for 1 and a half year more before selling and pay 5% RGPT. Disadvantage is that it will still be around and quarrels may still flare up. Especially if property prices head south. My argument is that it is unlikley to depreciate to the level of 25% RGPT in payment. And more likely to appreciate instead of depreciaing... But of course, no one knows 100% for sure... We are also worried of leaving an empty house to the elements. May get unsighty after months of neglect..
Option 3
Renovate and rent out and still sell 1 and a half year later (RGPT 5%) This option include all the disadvatages of Option 2 and more... She is most against this idea as she doesn't want to pump in any more money into the house. But I am looking at it from an investment point of view. She is worried about tenants problems, such as not paying rent and "destroying" the house, etc.. Which is valid, but a necessary investment risk. As we bought 3 years ago, the yield is about 10%. On top of that, I read elsewhere that renovation cost can be used to offset paying RGPT. Is this true? Anyone who has successfully done it comment? I need to show proof to her as she doesn't believe anything as she heard govt policies always changing.. Does that mean that if we spend 100K on renovation, and when we sold and RGPT payable is 200K, we only need to pay 100K? If this is the case, there is a strong push to go for Option 3.
The reason why she is keen to bring back the cash is that she wants to move to a new apt in Singapore. Logically, it is a crazy idea for me with prices heading south here. But that is what needed done emotionally. We are still able to take a hefty loan without selling the Malaysia house. But the argument is to bring back the cash and reduce the loan quantum. At the end of the day, I just need to convince her on the wisest decison to make and explain all the risks to her. Hence, hope that some seasoned investors can help me work on the numbers, pros and cons.. Thanks and zillion.
Option 1
Sell now and pay 30% RGPT. The easiest way out as we exit immediately and put everything behind us. But painful to pay 30% RGPT.
Option 2
Wait for 1 and a half year more before selling and pay 5% RGPT. Disadvantage is that it will still be around and quarrels may still flare up. Especially if property prices head south. My argument is that it is unlikley to depreciate to the level of 25% RGPT in payment. And more likely to appreciate instead of depreciaing... But of course, no one knows 100% for sure... We are also worried of leaving an empty house to the elements. May get unsighty after months of neglect..
Option 3
Renovate and rent out and still sell 1 and a half year later (RGPT 5%) This option include all the disadvatages of Option 2 and more... She is most against this idea as she doesn't want to pump in any more money into the house. But I am looking at it from an investment point of view. She is worried about tenants problems, such as not paying rent and "destroying" the house, etc.. Which is valid, but a necessary investment risk. As we bought 3 years ago, the yield is about 10%. On top of that, I read elsewhere that renovation cost can be used to offset paying RGPT. Is this true? Anyone who has successfully done it comment? I need to show proof to her as she doesn't believe anything as she heard govt policies always changing.. Does that mean that if we spend 100K on renovation, and when we sold and RGPT payable is 200K, we only need to pay 100K? If this is the case, there is a strong push to go for Option 3.
The reason why she is keen to bring back the cash is that she wants to move to a new apt in Singapore. Logically, it is a crazy idea for me with prices heading south here. But that is what needed done emotionally. We are still able to take a hefty loan without selling the Malaysia house. But the argument is to bring back the cash and reduce the loan quantum. At the end of the day, I just need to convince her on the wisest decison to make and explain all the risks to her. Hence, hope that some seasoned investors can help me work on the numbers, pros and cons.. Thanks and zillion.
