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RUMAWIP a Hedge Against Inflation?

Purchasing a RUMAWIP as a long-term investment strategy can provide a substantial income, but it’s crucial to understand that it’s not a quick path to riches. Achieving success in the property hold and sell strategy requires diligent effort, extensive research, and deep knowledge, especially considering the 10-year restriction on selling RUMAWIP units from the S&P stamped date. Nevertheless, with the right approach, it is possible to generate a gross profit of at least RM 150,000.

The initial step in acquiring a RUMAWIP is to identify the right property. Seek out RUMAWIP units situated in desirable neighborhoods, such as Residensi Dutamas Dahlia (FREEHOLD) located in Jalan Dutamas Dahlia 5, which serves as an excellent example. Once you have found a promising RUMAWIP, conducting a comprehensive analysis becomes essential. Evaluate repair costs, estimate the property’s value post-repairs, and gauge the potential profit. However, bear in mind that this estimation becomes more challenging as it pertains to a period 6-7 years later after vacant possession, considering the likelihood of increased renovation and repair costs.

The key to achieving a substantial profit lies in executing renovations swiftly and efficiently. This approach minimizes carrying costs and enables you to return the property to the market as soon as legally permissible. Utilize high-quality materials and engage experienced contractors to ensure the work is performed correctly.

Upon completion of the renovations, it’s time to market the property effectively. Utilize real estate portals like Property Guru and highlight the property’s features and improvements to attract potential buyers. (For instance, Residensi Dutamas Dahlia was sold at RM 333 per square foot in Jalan Dutamas).

The final step involves closing the sale and collecting the profit. This can be accomplished through a real estate agent or via a direct sale to a cash buyer. Carefully factor in all closing costs, fees, and any outstanding debts associated with the property.

In summary, buying and holding a RUMAWIP can serve as an effective hedge against inflation, especially when coupled with diligent maintenance. However, it requires substantial effort, thorough research, and extensive knowledge to achieve success. By identifying a hidden gem within the RUMAWIP market, it becomes feasible to generate a gross profit of at least RM 150,000. It’s important to acknowledge that not every RUMAWIP presents a worthwhile investment opportunity, and some projects may prove more challenging to execute than others.

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