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 (http://www.smland.com.my/)

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...

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