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 (http://www.lrtextension.com/), 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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Why is it so cheap?
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