SOS Read this before you INVEST in Stocks
SOS What next for Malaysia Properties?
sosfinance
Publish date: Fri, 10 Apr 2015, 11:26 AM
sosfinance
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VALUATION DOES NOT DETERMINE THE PRICE, IT'S JUST A TOOL TO ESTIMATE A VALUE OF A BIZ
www.sosfinancialplanning.blogspot.my
"How do you save RM50,000? - I shared with a friend on how to do it. I got a term life for RM280 p.a covering RM100k until 70 years old. I cancelled my wholelife insurance of RM2,800 p.a. for the same coverage up to 100 years old. Save RM2500 p.a x 20 years = RM50,000. (PM0122037325)
.....IS THIS ARTICLE FAKE OR FACT?? ANYONE CAN CONFIRM?
www.sosfinancialplanning.blogspot.my
"How do you save RM50,000? - I shared with a friend on how to do it. I got a term life for RM280 p.a covering RM100k until 70 years old. I cancelled my wholelife insurance of RM2,800 p.a. for the same coverage up to 100 years old. Save RM2500 p.a x 20 years = RM50,000. (PM0122037325)
.....IS THIS ARTICLE FAKE OR FACT?? ANYONE CAN CONFIRM?
SOLARIS DUTAMAS
Service Residence (completed in 2010): For 1200 sf: selling price RM540k at launch, today RM1,200k.
The price went up from RM430psf to RM1,000psf.
PACIFIC PLACE (ARA DAMANSARA)
Next to Symphony House and Citta Mall.
Service Residence (completed 2014): For 930 sf: selling around RM420k at launch, today RM560k
The price went up from RM450psf to RM600psf
I believe there is further UPSIDE when the entire Pacific Place is completed and also the LRT conpleted.
SOLARIS DUTAMAS VS PACIFIC PLACE
Solaris went up since launch after 5 years: 2.2x
Pacific Place went up since launch after 1 year: 1.3x
Of course, it is not an apple to apple comparison. I am trying to provide a scenerio of some similarity, at the early completion, the capital appreciation is SLOW. In Dutamas, the the price did went up after completion for 2 years from RM540k to RM700k, i.e. about 1.3x.
SOLARIS DUTAMAS ON HINDSIGHT
The reason of SLOW appreciation for the first two years after completion is because,
a. not all faciities are there yet
b. noise and polution due to the final phase is in progress
c. market upon completion is flatish, not vibrant yet
vs
PACIFIC PLACE ON FORESIGHT
THERE is some similarities between SOLARIS DUTAMAS and PACIFIC PLACE in the following ways:
a. not all facilites are there yet (shopping complex and other shoplots and f&b)
b. noise and polution due to work in progress
c. market upon completion (i.e. 2014) and 2015 is bearish, due to tightening of borrowings
d. LRT is yet to complete, normally when completed, it fetch another appreciation of 10-15% p.a. at least.
BASED ON INSIGHT
I believe, the potential is great. Most launches near LRT is valued around RM700 psf to RM900 psf (TTDI, Tropicana Garden, etc). Of course PP is lower mainly because it is on leasehold vs freehold.
PP is selling around RM600psf on completed unit today. Like Solaris Dutamas, people will say you are CRAZY (2 years after completion selling for RM600psf, up from RM430psf since launch).
But today, Solaris has Publika, many shop lots and offices, best restaurant in town. Whether you believe it or not, they are selling today selling at RM1,000 psf (for the 1200sf apartment). The studio (RM1100 to RM1400psf). CRAZY right?
Taking into account PP, once the LRT, Shopping mall, shoplots, and good F&B is up, couple with better borrowing policy in the next few years, I believe it can move up to RM750psf from today RM600 psf. Of course, these will take a couple of years when the LRT is completed, the shopping mall great, F&B is aplenty, the price will move up from today RM560k to RM690k.
It is hard to find prices WILL double or triple like the 2011-2014 situation.
Of course, we must thank the government which cause INFLATION to a new norm after GST. So, property price will grow even faster later.
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Discussions
1 person likes this. Showing 24 of 24 comments
The so called market value nowadays are set by the agents and developers. Only desperate "investors" are buying properties now. Don't forget first 3 years RPGT is 30% from your profit. Once you buy, you will get trap. Those buying properties for investment now will share the same fate like those who bought Sumatec at 0.60 last year. Same theory applies here. Be careful
2015-04-10 11:46
This article is so misleading. those are just asking price. there is very little or no demand at all. You can ask whatever price you want to sell. but if there is no one want to buy at your inflated price, there is no market ! many are and will trapped in the coming months. many property agents are so desperate that they resort to create fake or dummy transaction to justify certain selling price at certain location
2015-04-10 11:53
This price rise in KL is nothing compared to Iskandar.
I bought 30 properties for 5 JB & Singapore Investors. Both new launches & from Secondary Market from Johor High Court Auctions.
Minimum gain is 100% & Maximum gain is 600% so far. All are looking for 1,000% gain just by sitting tight for the Iskandar Boom to continue.
How to sit tight? Why not? Rental yield is from 10% to 28% monthly. Any time better than investing in Other Parts of Malaysia & even KLSE.
This is for real.
2015-04-10 12:13
Is 1,000% gain possible?
Yes!
In Bangsar my neighbour bought a 2 storey house in Lorong Maarof, Bangsar Park for RM18,000 in year 1970.
Today a similar house is worth a cool RM1.8 millions.
Or 10,000% gain.
So 1,000% gain is very possible.
2015-04-10 12:19
misleading lo. calc should based on full purchase price and sold price or market value.
if based on c-o-c, many already made more than 1,000%.
2015-04-10 12:22
very hard to find 100k property now and sell it at 1.0mil in the next future of 30 years.
2015-04-10 12:23
didn't I said there are property agents have to resort to create fake or dummy property transaction so that price could keep at inflated level even though there is no actual demand. No need go far, here you have one already !
2015-04-10 12:23
for the solaris dutamas, yes...i would say quite high demand la. but the sales slow in 2014 compared to 2013 as the price escalated to 1,000psf now.
2015-04-10 12:25
I don't agree that demand for property is higher than ever. NO ! most developers are screaming of weak sales now ! Maybe you are referring to demand of property of RM100,000 price range. Then ofcourse demand is high la. Who don't want to buy brand new property at RN100,000 per unit. But it is not feasible to sell at this price ! Maybe possible in 1990. not now
Posted by fortunebullz > Apr 10, 2015 11:55 AM | Report Abuse
Demand for property higher than ever! Question is how many developers willing to forgo exorbitant profit for mass medium range consumers! The few who do will ripe extraordinary market share!
2015-04-10 12:30
Fongkh, unless you have a lot of money to buy many property units and money is like toilet paper to you, then buy as you as your heart's wish. But if it is your first or second purchase, it is stupid act to buy at 1,000psf either it is for investment or self stay
2015-04-10 12:35
Very Hard to find undervalue property today?
Yes! Today in JB High Court there are many bidders. Price no longer cheap. In those depressed years of 2005 to 2009 very few people were found in JB High Court. Many days not even one single bidder for houses. And frequently you are the sole bidder.
Sure get it if you submit the cheque. And sometime seeing no other bidder we withdrew from participating. Wait for 3 months & auction price will readjust downward another 10%. And every unsuccessful sale will cause another 10% mark down!
Not today. Many people fight for the few available auction properties today.
But There Are Great Value Buys In Other Places.
Near Sepang Airport Right Now!
1,300 Acres of Very Prime Lands Are Going For Only a Song of RM2.70 psf
Ringgit two & seventy cents Per Sq Ft? Cheaper than a low quality mosaic psf? Unbelievable but True.
Go and Check Up The Value in KARAMBUNAI CORP 2014 Annual Report.
Just Buy KBunai to secure your interest now.
Buying KBunai at 6.5 cents IS JUST LIKE BUYING JOHOR HIGH COURT AUCTION PROPERTIES IN YEAR 2007 to 2009 when nobody want any.
Ha! Who knows? Someday you will also make 100% to 600% profit!
2015-04-10 12:36
land price at Tanjung Rambutan area is also very cheap. quick. go there and grab a piece
2015-04-10 12:39
Frankly, I think RM1000 psf is high based on rental yield. Imagine, you own a unit now, RM1.2million for 1200 sf. In order to get a rental yield, i.e. 5%, you need a rental of RM5,000, less management fee, RM420, your net rental yield is RM4,580, your yield drop to say 4.58%. (not to mentioned quit rent and assessment)
Who would pay for a RM5,000 rent for long term? If he can pay such a rent, he can afford a loan of about RM800k. So, it would be hard to sustain for long run. Mont Kiara, Palma, rental is only RM2500 per month.
Of course, one may ask, how many sold at RM1000psf?It is a no-no for investor at this price. Please don't compared with Penang island condo rental yield, I know that 2% is common (gross yield).
2015-04-10 12:42
Kukuman
If got just email me at calvintaneng@gmail.com
You will get a commission when I get ready buyers for it.
2015-04-10 12:42
Kukuman property should also see the quantum price which is less than 1.0mil per unit. for solaris dutamas, the average circa 1,000psf in 2014; it was an average at 800psf in 2013. 2015 --- should be edged up alil if not will be kept unchanged.
2015-04-10 12:44
If you think employees can get a pay revision of 100% or more, just like our MPs, then you can even grab at RM1200 psf. Otherwise do be very very careful indeed. Everything has a limit. And dont think there are so many people who can practically print money all the time.
2015-04-12 10:56
Good morning,
I have been into Property Investments for the last 30 years. I want to share some ideas here.
The First American Millionaire was a Property Investor. His name was John Jacob Astor. In early 1800s Astor got rich by trading furs, tea, silk & fine China porcelain. But that was not where his real fortune was made. Eventually he invested his profits into something more concrete & stable. He invested in Real Estate of New York long before he was known as the "Manhattan Landlord"
Before he died Astor said, "Could I begin life again knowing what I know now, and had money to invest, I would buy every foot of land on the Island of Manhattan."
Astor passed away in year 1848, leaving behind USD 20 millions to his heirs. Adjusted to today's value in year 2005 USD458 Billions (Over RM1 Trillions). His wealth far exceeds the combined total of Top 3 Richest guys Warren Buffet, Bill Gates & Carlos Slim.
This shows that Over a longer term Real Estate reap the Highest Reward compared to all other investments.
But only if "YOU KNOW" like John Jacob Astor did who could foresee the Future of New York City in being the Financial Center of USA when Wall Street is located.
Where & what to invest in Malaysia now would be the Million Dollar Question?
To be continued...
2015-04-12 11:16
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Fong Kh
please do more comparison for similar type of developments. it would be great for us to know the findings. thanks for sharing
2015-04-10 11:33