Wednesday, June 30, 2010

External Factor - The View

This is the question always bother me, and I don't have the answer yet. Probably would be great to hear from other.

Question: How much are you paying extra for a better view unit? For example :

Case 1: Bangsar South Park Residence Condo
- This condo is selling about RM800k in the market today
- For same level, same size unit

Unit facing another Mid Valley/Telekom Malaysia is selling extra ~RM100k-200k compare to unit facing Pantai Panorama.

Case 2: Amaya KL Service Apartment
- This apartment is selling about RM400k in the market today
- For same level, same size unit

Unit facing another KLCC is selling extra ~RM50k compare to unit facing Genting Klang with High Tension Cable nearby.

What do you think?

Sunway Velocity - New Sunway Piramid @Cheras

What do you think if Sunway buld another Sunway Piramid at Cheras?

27 acres of development with Shopping Center and Service Ppartment show above, at Jalan Peel Cheras.

Rumous say Sunway will launch this project very soon in Q3 2010. Estimate the price will not be cheap by looking at the recent launch at Amaya KL. This is "higher" class apartment compare to Amaya KL, so I guess the price will be between RM550psf-RM600psf.

If Sunway able to price this with higher premium, this might benefit Amaya KL as it is just 3 minutes drive to there (based on google map calculation)

Turn on your radar on this area and actively call Sunway for inquiry if you do not want to miss out this chance. This is low density project, most likely will be sapu within 1 day during launch :)

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Sunday, June 27, 2010

Kuchai Avenue - The Magic of Kuchai

Kuchai Lama, the first impression I have is traffic jam, over crowded, small road serving many house and condo, complicated and etc. That is why I never turn on my radar in this area. However, my friend prove me wrong. Kuchai Avenue wake me up and I am watching this area closely now.

Brief Introduction:

- Friend of mine bought this service apartment 3 years ago, at price around RM170k for about 935 sf apartment.

- In early 2010, he sold it for RM245k, minus all cost, pocket in about RM45k.

- Today, June-2010, the apartment is selling at RM260k-EM280k in the market. Translated to about ~RM60k-RM80k for 3 years investment. Not bad at all ! In fact, is very good return for RM170k property , with entry cost about RM30k?

When I heard about it, I keep wondering what is so good about this project? How come it can fetch so good price? Isn't this apartment crowded (~600 units)?

Until I visited the apartment, I am quite impress with the quality of the work, done by the developer Akisama, not bad at all for a RM170k apartment. In fact, it is way better quality than other RM170k condo I saw before.

Kuchai Lama, heavily populated by Chinese, they just love this area. Easy place to find food, and near distance to KL, great access toad to major highway. In fact, it is ok even no LRT at this area.

Recent new launch project in Kuchai - Residensi Desa & G - Residence is already selling at >RM300psf. Heard the upcoming See Hoy Chan project is going to hit RM400psf ceiling too. Kuchai, kuchai, kuchai, the property in this area is no less than PJ nowaday.

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Renovation Headache

Renovation always a big headache, dunno which design to use, what colour, what material, limited budget, which contractor good, how is the quality of the work.....many many things to be take care....

Try to search around internet for some good design idea, found some nice picture below

Saturday, June 26, 2010

External Factor - College

Is your investment property is next to a college, is it a good sign?

At first glance, most of the people will say GOOD, as it is easier to rent out .. I think the same last time, until I own one.

I bought a condominium, next to UCSI college. That was 7-8 years ago, bought at RM156k from developer directly.

Yes, it is true, is is very easy to rent it out to student, with good rental yield. Partly furnish unit can rent at RM1200 onwards, fully furnish can rent at RM1400-RM1600. I can get few hundreds extra cash per month. I guess it is quite a good buy for rental based investment.

However the property price is stagnant at around RM180-RM190k at year 2009. Means is only increase of RM3-4k per year? This is not very good in term of appreciation. Why a condo a strategic location, the capital appreciation is so bad?

You can view the video clips below to get the answer.....

Is it good to have colleage next to your property ? Mmm.....

Mr A: I dont stay there what, as long as rental is good then dont care lar
Mr B: Only appreciate RM3k-4k per

How about you?

Friday, June 25, 2010

Property 101 - Benchmarking

One of the analysis method I like to use when come to property investment is Benchmarking. Whereby I do research at surrounding area, looking for similar type of property and evaulate their performance.

Let's taking Amaya KL as example, one of the service apartment nearby the area is Pertama Residency, developed by a relatively new developer (

This apartment launch @ 2007 with price ~RM190,000, average RM311 psf for Studio unit with 610sf size.

Today, the apartment is selling at ~RM250,000+-, average at RM409 psf. It is increase of 30% over 3 years, which is about 10% increase per year.

Minus all the cost, the owner can pocket in around RM30-40k, for 3 years investment. Not bad, not excellent either.
**The best I ever see with such low entry cost is at Kuchai and Subang, again, will write something about this when got time lar.....

Let's reverse the time backward 3 years <<=== <<=== <<===
- In year 2007, will you buy a Studio unit @ RM311 psf @ RM190k ?
- With this price, you need to rent the studio @ minimum RM1000 to break even, can rent at this price mer? Cheras wor?
- Did anyone tell you that same amount of money can buy you 3 rooms apartment somewhere else in Cheras

So now the questions is, is Amaya KL a good investment? You judge yourself lar...

Property 101 - What Is Your Property Investment Target ?

Friend of my ask me, how much you plan to earn by investing in property? There are two type of return

a) Rental
b) Capital Appreciation

Let discuss on capital appreciation for now. This is very different depends on different indiviual. For me

Property between RM100k -RM200k: Profit of RM20k - RM50k between 3 to 5 years...
Property between RM200k -RM400k: Profit of RM50k - RM100k between 3 to 5 years...
Property between RM400k -RM600k: Profit of RM100k - RM 300k between 3 to 5 years...

Property between RM600k -RM 1mil: Never try before....

Let me do some sample calculation for Amaya KL Service Apartment

Below is calculation of estimated profit if sell after 5 years, using assumption of 7% of capital appreciation per year.
Based on assumption and calculation above, it is still possible to achieve RM100k profit within 5 years of investment.... if all assumption is work as it is :)

Amaya KL by Malton

Amaya KL @ Taman Maluri Cheras - Wing-B SOLD OUT within 2 days pre-launch !

This is unofficial launch from the developer, all still at planning stage. The developer throw in quite attractive offer:

DIBS - Developer Bear Interest During Construction!
20k Discount ! ==> Wah, low entry cost.

Other Plus Point
Walking Distance to to Star LRT (~10-15 mins).
Next to Jaya Jusco.
Well Known Developer - Malton.

As mentioned, this is still "not yet" launch product, therefore information available still very sketchy...

Heard is
- Leasehold property
- Commercial land, 2.7 acres only
- About 399 units service apartments
- ~50 units of 2 level shop at the ground floor
- Car park included? dunno ...
- Partly Furnish ?? ==> NO MORE ....
- Target completion date??? dunno... 3 years from now gua...
- What facilities included???? dunno
- Wing A have nice view - KLCC, but not launch yet
- Wing B facing high tension cable OR telco tower OR sunset, you choose lar
- Will have 5 lifts serving both Wing A and B
- 16 units per floor for Wing A, and another 16 units per floor for Wing many...

3 types of layout
~ 1 room studio - 719 sf
~ 2 room apartment - 920 sf
~ 2 room apartment - 1127 sf

- Lowever unit at RM310k++ onwards for 719sf units
- Lowever unit at RM350k++ onwards for 920sf units
- Lowever unit at RM430k++ onwards for 1127sf units

==> Don't hope, all lower floor sapu by well connected people. Left those high floor, which each floor is about RM5k different... Darn, have to fork out extra RM50k to get a unit at high floor, is it worth?
==> For left over high floor unit, price at RM 430psf for 920sf, crazy mer, cheras area also selling at this price..
==> RM380k loan for 30 years tenure also need installment about RM2000 per month, plus maintenance fee, can 2 rooms unit rent at RM2300 per month??? This is like Mont Kiara rental lor.

TODO: Do some calculation to get figure below...
- To break even after 3 years, need to ...
- To get captial apprecition profit, need to ...
==> Please refer to this posting

Benchmark against
- Pertama Residence. Launch @ 190k, now subsales at 250k++ for studio unit
- Sunway Velocity. Heard is not cheaper than Amaya...
TODO: Let me research more on this and update this section ater

- Nearby high tension cable..
- All still planning stage, what will be deliver still unknown...
- Surrounded with old types of shop houses....

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Thursday, June 24, 2010

Setup Company to Invest in Property ?

Here are some articles about this...

Article 1: Do you still want to invest in real estate through a company?

Article 2: Should you invest in real estate through a company?

Empire Damansara

Click the play button below to watch this creative video :)

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Icon Residence

If you drive around Mont Kiara and Sri Hartamas area, you should be able to notice this magnificent picture putting up everywhere near this area.

At first glance, I really like this property, very unique, mediterranean feel, and just like it.

Try to research around, it is brain child of Mah Sing Group...pause....mmm....

Go to visit the many high tension cable at suroounding area, and there is a school just next to it....mmm....

Heard that Naza Group, the young brothers plan to build kind of KLCC Twin Tower type of building near opposite...if is true then is something good for this project.

Anyway. found this in their website

Rumours said they will be launching this very soon, somewhere 16-18 July at Sime Darby Convention Center.

Really wondering what will be the launching price? rm600psf? rm700psf? Let's wait till next month and see....

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Wednesday, June 23, 2010

Brilliant Articles from Experience Investor

Two great articles from success property investor...

Earning passive income of RM15,000-RM20,000 per months. Gosh...I will retire if I achieve this today :D

The mindset of a property millionaire -

Retire in five years by having RM3 million in good property loans -

However seem like the success can only materialize if invest in commercial property. Double the purchase price in 2-3 years?

Have thought about this many times, but the entry cost to this is very high. And ability to get loan is also a challenge. So how can workers like me enter into this "market"?

Good news is, I saw some residential property achieve 100% return in 3 years time also :) I means selling price double the purchase price. And bad news is, I am not owning any of these great property. Shxx. Will share this painful experience some other times....

Isola Subang

Get to know this when visiting Property Fair at Mid Valley few months ago. Design look ok, but heard that price is not cheap....

Went to the site office, the office is ready, but seem like no one there... keep wondering how much will this condo cost. RM400psf? RM500psf?

Actually I have been to this area couple years back, when there are several launches during that time, Saujana Residency, Tiaraville. That time was quite bother by comemercial land issues, therefore never invested in this area.

Until recently heard about the miracle story of Empire Subang, my attention is back to this area.

Anyhow until todays still have no news from the developer, even I have registered at Sime Darly website ( But rumours from this myrealestate forum is this condo may price at RM700psf onwards..... WAO !!!!!
If this is true, I guess is better give it a miss. With RM700psf, I believe there are plenty other choice I have for investment, including Mont Kiara. Hopefully Sime Darby will price it "reasonably" and not thinking of recoupe their company loss via property projects like this :)

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Tuesday, June 22, 2010

Pacific Place @ Ara Damansara

New service apartment launched last weekend. Publish in thestar newspaper. Decided to visit there after family outing.

First impression: Crowded, and seem like everyone is in buying mode

Second impression: Old fashion design

Location: Ara Damansara. Been to this area few times, is not happenning now.

And this is leasedhold property, left 94 years, and is commercial property. The sales agent claim that the developer will renew it to 99 years upon completion.

Initially quite concern about commercial land, worry it might not protected by HDA, and dunno what the developer going to put into S&P, which I hardly read or understand... But heard that nowaday service apartment is under the radar of HDA with standard S&P already...pending verification...

The developer is riding on low entry cost (10% discount) and the LRT factor (, which is right next to this apartment, ready by 2012?

Approximately 200 units per block, total have 6 blocks, mean in total that would have close to 1200 units !!!! Can't imagine the market competition once completed... Good news is every block have it's own facility at rooftop. Security wise look ok, card system for car, and card access in lift.

Have few layout, quite like the 1200sf++/1300sf++ unit, have dual entrance which can rent out the unit to two different tenant. But I choose to invest in smallest unit 864sft. Why? Lower entry cost, lower risk. Cause this developer quite new in property business, and worry whether it can execute as it plan.

The next worry I have is Proposed College. Have bad experience purchase condo near to college, good for condo but not good for capital appreciation, will post another article on this later. ==> Click here to view

And look at the condo design and broshure, give me impression this developer abit china apek, very old fashion and not creative in marketing this condo.

Another plus point can see is this apartment can riding on Sime Darly, if only Sime Darby success in Ara Damansara. Seem like this MNC have big plan here....

For 864sft, the expected installment is RM1500 per mth, for 30 years loan. Let's say maintenance fee + etc = RM200 per month, need to rent this 2 rooms unit at RM1700 to break even..possible to rent it at RM1700 in year 2013? Doubt so... ==> Rental based investment not so good...

With purchase price of RM300,000, equivalent RM340 psf, I need to sell it at RM400psf to break even, in year 2013. To make profit, let's say RM50k, I need to sell it at RM450psf @ RM388,800 in year 2013, for bare unit, possible? Depends I guess, depends on success of Sime Darby Oasis, depends on success of Citta Mall, and depends on LRT as well as Pacific Place shopping mall... If all this factor in, then possible to achieve RM450-RM500psf ? Hope so...

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Let's Start

Notice my memory getting worse nowaday, I guess is about time to record those important investment experience now, and share it.... Let's start here.