8 Things That Cause Your Property Price To Drop

Here are the top 8 things that could make any property owner cry like a girl. Property prices can drop (like hell) drastically because of this 8 problems. Some of the issues are unavoidable while some are avoidable. I will try my best to relate some of the issues I know off.

No.8 Termite

Termite is really a pain the wallet for property owners. This problem is very normal for old properties, hence it is worth every ringgit to hire pet control professionals to nip the issue at the bud. This little buggers can eat your wooden furniture like child's play.

No.7 Ceiling Leaking

Common issue due to the developer's poor workmanship and will severely impact the value of the property especially multiple storey buildings such as apartment & condos. According to the normal practises (after the warranty expires), the higher floor property owners must pay for all damages to his unfortunate occupants below. If penthouse owners aka the highest property owner suffers from this issue, it is the properties' management to rectify the issue.

No.6 Landslide

Even if your property is not affected but located near hill slopes, the price will be also affected. Looking at the recent landslide news at the high end premium locations, new potential buyers will be very very wary to purchase. Thus, the property price will be at a discount.

No.5 Tsunami prone area

Tsunami hit Malaysia before, but the damage is not as severe like in Japan. However, this does not dampen the fear of living in property near the seaside. I know of a property development that at one time was very hot because it has a seaview but now turned into a ghost town development because tsunami managed to reach that area. So, as of now, people refrain from staying at that area, and the prices dived by at least 50%. The properties there is still bleeding and the owners are trying to offload it , even with fully furnished units thrown in.

No.4 Wall Cracks

Usually you will see this after the building is completed like 5-10 years down the road. However, due to the rapid demand for properties, it is not uncommon that alot of rush jobs are being done and quality control got neglected. It saddens me to see the walls starts to crack even before vacant possession.

Picture from chenkf.blogspot.com

No.3 Foreign Worker's Hostel

Some condominium could turned into foreign worker dorms if left unchecked, where a single 700sq feet condo could have like 10++ occupants. Although there is a general perception that this only could happen to low to medium cost apartments or landed properties, this can be the biggest wrong perception that you can have. You are dead wrong. I have seen million dollar properties (landed properties) turned into foreign worker heaven simply because the original owners could not flip or rent out the properties, so this is the easier way out to get some rental capital. 

So this causes a chain effect, and more owners rent them out to more foreign workers since no locals would want to live there for obvious reasons. In the end, the whole area's property prices get depressed. The only solution is to achieve a strong consensus from all the owners at the housing area to restrain from doing these easy money practises. I think it is very hard to do so.

Picture from Stomp

No.2 Neighbours from Hell

No comment on this. Just google and you will see some weird feuds that arise from the smallest of thing.

Number 1: Something Lurking In the Fridge

Well, this is the classic no.1 fear for property owners that rent out their properties or those buying auction/lelong properties. Your rentor decides to leave something that was formerly living when they move out. Neighbours might not smell suspect anything until it is too late. The fridge is also a good mummification machine.

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