Ahem.
I still have a lot to learn from you, phoeni and others.

Let's see, RM750 per month non furnish. Partly furnish can push it to RM950.
Maintenance RM132.

Since my sis will be paying the 10% and acquisition cost.
I am not required to put anything down.
Technically my ROI is infinite.
The condition is she own half of the property plus the initial fund she put in, I collect the cashflow and pay the mortgage.
Only need to pay her back when re-finance or sell it off.

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Added on July 15, 2009, 1:04 pmIt's in JB, near Iskandar area.
The exact location hint: See ongkl blog. ;D

This post has been edited by jasonhanjk: Jul 15 2009, 01:04 PM

KIP Park?

jason, assuming ur sis took 90% loan (abt RM98k), ur repayment works out to abt RM443 a mth (based on BLR-2.0, 30 yr tenure). add maintenance fee of RM132 in and it'll set u back RM575 a mth. assuming mthly rental of RM900 fully furnished (conservative abit la...hehe). ur mthly cash inflow is RM325, which works out to RM3900 a yr. if u n ur sis decides to sell the hse after 5 yrs, u would've gotten RM20k in rental yield + cap gains whereas ur sis would only receive the cap gains + her equivalent of d/p back although she paid the d/p upfront!

hmmm...this agreement seems to be loopsided to u la, ur sis is losing out!!

This post has been edited by babana: Jul 15 2009, 03:13 PM

Hehe.

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Added on July 15, 2009, 3:23 pmI see it as a win-win situation.
If we sell after 5 years, with some slight modification to the numbers.

Cost RM110k.
DP RM11k.
Cost of acquisition RM8k.
Sell at market RM142k.
Amortization is ignore at the moment.

Get back cash of RM142k - RM110k + RM11k = RM43k

Return to sis RM19k, balance RM24k.
Sis gets profit of RM12k after 5 years by investing RM19k.
Not bad for getting 13% return on investment every year.
She only needs to fork out the money and I get all the work done, including the mortgage.

Not to forget we have some equity in the armortization.

This post has been edited by jasonhanjk: Jul 15 2009, 03:23 PM

Hehe not bad...

haha, well analysed and said
i have a question though - the cost of acquisition RM8k...what would this payment be for? legal fees, s&p, etc or fees relating to processing for an auction property?

have never dabbled in any auction properties before but RM8k seems pretty steep, considering the property in question is only RM110k.

RM8k is an estimation, it should be around 7~8k.

The break down:

Agent RM3k
Lawyer + tax RM4k
Miscellaneous RM1k

I pay my agent additional RM1k for them to bid on my behalf.
If you can DIY, the price will be 4~5k.

I tried the link again and it is not working. I think that the link is no longer available.

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Added on July 15, 2009, 4:49 pmWow, congrats. How do you manage to find low price property? How to look for auction property? Where to go to auction for property?

This post has been edited by sdas86: Jul 15 2009, 04:49 PM

For me it's ok? Weird.

Any other forumer have this problem?

Hi,
The link is working now. Thanks.

How do you find auction? Where to attend auction?

Thanks.

How to find?
I learn this from Rich Dad 6 steps, look at 20 properties every week.
Remember looking at property is not the first step, that is step number 3.

Low price property are everywhere but you don't want to look at all of them.
Most are in a bad area hence their low price.
Thus need to go back to step 2, finding an area.


As for auction, there are valuable thread in Lowyat about auction.
Some books also do write about it.

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Added on July 15, 2009, 4:58 pmThanks.

How to find?
I learn this from Rich Dad 6 steps, look at 20 properties every week.
Remember looking at property is not the first step, that is step number 3.

Low price property are everywhere but you don't want to look at all of them.
Most are in a bad area hence their low price.
Thus need to go back to step 2, finding an area.


As for auction, there are valuable thread in Lowyat about auction.
Some books also do write about it.

This post has been edited by jasonhanjk: Jul 15 2009, 04:58 PM

Can you give me the link to the thread or auction?

The book you bought is a good book. I read part of it in bookstore but I do not buy it. I always got bookstores to read books. lolx

Try to search for yourself, especially google.

From Ongkl blog.
http://reijb.com/must-know-auction-property/

"free advices are usually very costly.."
.. there's some point to it.

that's why i don't name my examples.. it's a different way of learning, the principles are more important that explicit illustration (accompanied by figures to substantiate.. folks who have high gullibility and vulnerability would look closely for these.. and more so, from a stranger?!? what's the level of authenticity of it?!? what if i'm just a goofball who knows how to work some fancy figures and impress some "wooo,... waaa"?)

This post has been edited by lwb: Jul 16 2009, 11:50 AM

hmmmph......95% of profits I made to date are based on free internet- based advise. Maybe Im just plain lucky

A good advise is a good advise, irrespective of whether its free or not. Bottomline, one needs to know have strong basics to able to appreciate and differentiate good/bad advise.



lwb, specifics are the easiest way to spot a BS. A guys who BS will not be able to provide specifics most of the time.

I found some auctions on TheStar Classified.

specifics ala "copy & paste" ma..

anyway, i'm not into the 'specifics' sort of learning.. because in my other investments, specifics are merely arbitrary..

i earned my bulk of returns over a decade from parental advice(which is also another free form of advices) but filtered through with countless of homeworking and due-diligence..

for example.. my dad won't specify what/where to buy.. but the how/why/when to buy.. and theories are tested there.

Nearby there.
Villa Ros to be exact.

-3
hahaa... censored "specifics"..

More than 50% are in bad area. Searching auction property is not 1st of the 6 step.