Dear Property Investors/Real Estate Experts/Bankers,

Recently, I have known about this property which is located in Batu 13 Puchong. Heard that Sentral City (M) Sdn. Bhd. is under Jentrikon Perunding Sdn. Bhd. Anyone can confirm this?

This is the detail:
http://www.iproperty.com.my/reviews/zenres...e/coverpage.asp

The purpose of this thread is for me to know more about this property and also owners of this property to share comments and reviews.

I have just reserve a unit yesterday, and now preparing documents for applying the loan from RHB Bank with the BLR of -2.2% for 38 years.

Alright, my main concern now is, if the developer run away, what will be the worst case scenario? As the developer says, we will only need to pay our installment once the construction finishes, so does it mean, if the developer ran away, and the construction does not finish, I will never need to pay although the loan is approved? Or is still like previous cases where I still have to pay if the developer runs away.

Thank you.

This post has been edited by vincent_ng86: Mar 3 2009, 02:56 PM

38 years re-financing period? Do you mean 28 years instead?

Is 38 years that I am applying, RHB has the longest repaying period as I know currently.

Have you been to the actual site?
I don't know about you though, but I don't like the area.
If you ask me, I felt that it's quite secluded with the kampungs nearby.

But than again who can predict what's more development over that area.

For me, that area is quite far away. Make sure you survey first, really kinda kampung..

But I like the lanai and big bathroom

What's the financing amount which you're looking at? I suggest you to re-calculate carefully before deciding on such long repayment period. Longer repayments might get you RM100-200 a month lesser from the installment but you pay a lot more in interest. The loan is calculated based on the amortization table and for the first few years, our installments are used to knock off most of the interest payment instead of principal amount. In the long run, it's a lot of money involved Unless you're on full flexi loan then it makes a bit more sense having 38 years of repayment.

I went there with a couple of friends, we like the place, or maybe I should say it this way, we believe that this area will be developed in the near future, so this might be an opportunity for investment with yummy returns.

I think its ok for 38 yrs as long as the bank allow you to write in to do prepayment every year.. But be sure to do the prepayment with the correct method.. You can seek the independent financial consultant for help..

I do agree with what you are trying to say, if we are going to buy it for own stay. I am sorry I did not mention about I am going to buy this for investment. So, I think the only think I need to worry is about early repayment of loan (and only if the developer does not run away).

So, if the developer runs away, do I need to still be attached in paying the loans?

how much is this n what is the expected rental?

Hi Pai, am happy that you joined in. Appreciate your views, as always.

Around 320k, and am looking at around 1.4k rental. What do you think?

I'm only going to answer from a mathematical viewpoint, as Puchong is not within my target area.

I'm going to assume that u took a loan at 90% by the way. 288k?

your mort installent should be about 1,100 taking into account the 38 yr tenure. Well, at best case you are looking at breaking-even every month from a Cash Flow perspective (once u include in your maintenance, utilities, etc) - considering your rent is only 1,400. At worst case - you'll be bleeding cash every month. I'm not too sure what maintenance fees you're paying.

If you took a 100% loan - it's a very high chance that you'll be bleeding every month already.

Your COCR is very poor though - considering u are not realising any return from your Downpayment in the first year.

Is 1,400 basic or fully furnished? Suggest u find ways to quickly increase your rental vs capex - to salvage a decent COCR.

This post has been edited by Phoeni_142: Mar 3 2009, 04:31 PM

Alright, to share the current situation of mine,

Developer wants RM 6k for downpayment, and they assume that RM6k is 10% of the property. I will get a 90% loan from the banks, and sell it off once it is being built. And in the construction period, there are no installments needed from buyer, but the developer will have to pay the interest. From what I understand, the developer only get my loan from the banks in a progressive timetable, 10% - 15% at one time.

So if my capital is RM6k, and after 3 years, I sell it, I will be less likely to make a lost, IMO.

So again, back to my question, if the developer runs away during the construction period, do I need to bear the loan? As in the S&P, buyers only needs to start paying after the construction finishes.

It's not the same really Why not you download your own amortization calculator and do the calculation. When you drag the repayment period, the amount of principal knocked off from monthly installments are reduced quite a bit. The method of calculation is different from car loans, etc.

If it's for investment then it wouldn't be so bad because if you intend to sell it off fast then the additional interest and years of repayment isn't a major concern. If the developer runs then I'm afraid you'll have to continue paying

Hope you are wrong, but I think you are right, sadly.

Any other Zen Residence owners would like to share some thoughts and views? Really hard to decide.

Chief, looking at this alone, think the new Zest in BK9 will beat this hands down be it capital gains or rental yields. Units only cost like 230k, and its located next to Giant BK9, better chance for appreciation IMO due to lower entry cost

If future LRT materialise walking distance to Zest, 1.5k p/furnished for Zest is highly do-able, IMO

The amount is very very substantial and let me give you an example (something similar to my case):

Total loan amount = RM405,000
Interest rate (assumption) = 3.8% per year
Repayment period = 28 years

Monthly installment = RM 1959.97
Total payment after 5 years (60 mths) = RM 1959.97 x 60 = RM 117,598.20

It means I have paid RM 117,598.20 for the past 5 years but the amount I owe the bank would be RM 360,311
Hence, total interest I have paid for the 5 years = RM 360,311 - (RM405,000 - RM117598.20) = RM72,909.20

You could imagine how much more it would be to drag a loan re-payment for a longer period. As I've mentioned before, the amortization calculation is totally different compared to other loans like personal, hire purchase, etc.

But the main concern now is, I do not have the amount of downpayment as other developers need, at least RM20k for most the properties I am interested.

I was interested in Zest, but too bad, they need at least RM20k as downpayment, and sadly, I do not have that amount of money.

Did you try to see if your EPF Account II would be able to help a little and if there are higher margin of financing options? I know some local banks can go up to 95% but the interest rates might not be so attractive.

chief, in today's market time is your fren, not enemy. Zest has over 700 units, it will take them min 1 year to sell off all units.

You have ample time to save, and trust me they will throw more freebies in the future to move all 700 units. When all developers r doing only 5% deposit, they'll have no choice but to do the same. Just wait