is that unit 3r2b unit? btw how much is the reserve price?
also how is hxbc service? i think jal and lim service not bad la. lawyer name is karen, nice lady..

At today's market, most bank's service are good.
I got to know this banker via my agent.
If they are good, words spread around.
HXBC got a higher property valuation which some banks do not.
I use UXB twice until they say I loan too much from them and start reducing the loan amount to 70%.

Some properties like town house, SXB doesn't want to give loan.

My lawyer is Thian, one thing I like them is they open on Saturday.

The reserve price starting is RM13xk, the last time there is another auction exceeds RM160k.
I don't have the details yet.

Mind to share the HxBC banker's contact?

Hehe.
I'll let you copy the name card when we meet tomorrow.

Sorry to interrupt this wonderful discussion..

I really wanted to invest in real estate however my greatest fear is the tenant

What protection do I have if a tenant damage my property or if the tenant didn't pay the rent?

With all of the respect sifu please help me

Tenancy agreement

security n utlities deposit

So sorry but I'm really new to the real estate world..

how could I make the Tenancy agreement and security n utlities deposit?

Do i need an attorney or something?

Cash on Cash Return vs. Internal Rate of Return
by James Miller

Cash on Cash
Cash in Cash return, or Return on Investment (ROI) is the easiest Rate of return to calculate. It is also the one I use the most often as it tells me what the money is generating with regard to actual cash I can put in my pocket today.

To calculate it you take the amount you are getting from an investment, typically on an annual basis, and divide it by the amount you have invested. Multiply this number By 100 and you have a percentage representing Cash on Cash Return.

For example if I have $10,000 in a property that is netting $100 per month, I am getting $1200 per year on my $10,000.

I divide the $1200 by $10,000 to get .12 I multiply this number by 100 to get my percentage of 12%

As you can see, cash on cash is a pretty simple and straightforward calculation. But what if we want to take into account the amount we are paying down on the loan each month, or he appreciation of the property?


Internal Rate of Return
Internal rate of return (Sometimes called Annual percentage yield) is the total true return on an investment taking into account depreciation, appreciation, and equity gained from paying down the debt.

It is much harder to calculate, as items such as depreciation depend on your taxable income. You also have to make some assumptions with regard to appreciation until a property is actually sold and that number is known.

This calculation is typically done over a holding period of 3 to 7 years. The period is usually fairly short since IRR typically decreases as time goes on.

If we take the example above assuming the following:

1) Home is worth $100,000.
2) I can depreciate 3% of its value the first year,
3) I am in a 35% tax bracket.
4) That property values have appreciates at 6% that year
5) I am paying down $100 per month toward the principal on my mortgage payment.

We get the following:

$1200 Cash on Cash return from above
$1050 Depreciation ($3000 Depreciation X 35% tax bracket)
$6000 Appreciation ($100,000 X 7%)
$1200 Principal Pay Down ($100 X 12 Months)
_______
$9,450 Total Internal Return

As a percentage:

$9450 first year IR divided by $10,000 initial investment = 94.5% IRR the first year.
Keep in mind that this is not spendable cash. Appreciation was our biggest number and it won’t be realized until we sell the home.

I have found that if I am doing well with regard to cash on cash return, my IRR Is going to be a better number. This assumes that there are no deferred maintenance issues and that I am not going to sell the property at a loss.


http://realestategozone.wordpress.com/2009...rate-of-return/

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Added on October 29, 2009, 1:32 pmHow to use Real Estate to get an infinite return on your money.
by James Miller


I am going to start off by pulling back the curtain on the great OZ of “infinite return”.

An infinite return on your money can happen when you have nothing in an investment. While “infinite return” sounds like a large amount of money- after all infinity is a really big thing- the way the math works out, it doesn’t have to be large at all.

For example, if you get a dollar back from an investment that you have no money in, you have received an infinite Return on Investment or ROI.

In fact I really think it should be called a “division by zero” rate of return on your money, as that is what the calculator tells me if I try to calculate it.

We have gotten an infinite return a few times with Real Estate.

Here is an example of one method we used on a property we bought a couple years ago.

We bought a fixer upper house for $50,000. We got the sellers to give us a second mortgage for $10,000 which the bank treated as a down payment. We left the closing with a net of $800 being deposited into our account.

As sexy as that was, it still didn’t give us our “infinite return”.

The house needed to be repaired before anyone could live in it. We spent about $5000 on fixes like new windows, carpeting, and replacing the radiator hose that they had used on the bathtub drain instead of the proper fix – a $2 PVC elbow.

Once fixed up, we sold the three bedroom one bath house on a Lease Option, or “rent to own” contract, we let the buyer in light, allowing them to put down only $3000.

We held the property a year this way, netting about a $100 per month cash flow. After one year, the fist mortgage was “seasoned”, and the value of the property had increased due to the repairs we made. Because of these two factors, we were able to refinance everything we owed into a new first, paying off the original first and second, the repair bills and were able to take out an additional $3,000 to put in our pocket.

While our cash on cash ROI for the first year was only around 60%, $1200 annually on the $2000 we had left in the property, the cash on cash return became infinite once we pulled out the remaining money we had invested in it.

I should take a moment to let you know how that deal worked out:

The tenant buyer we put in the house did not exercise their option to purchase in the allotted two year time frame. This worked out ok for us as he forfeited the $3000 he put own, and became a tenant only. We raised the rent from $600 to a market rate of $650.00 per month.

We would have every right to kick him out, as our intention was to sell and he had two years to get financed, but we don’t like to do that if we don’t have to.

If they so desire, we try to let the person living in a lease option home stay on as a tenant, if they miss the exercise date.

It also very hard to kick a young couple out who have paid diligently over the past two years, and it really doesn’t hurt us to let them stay.

If they ever want to buy the house from us we would honor that as well, but at a new higher market rate and not at the price we would have let have it for a few years ago.

Here are the steps to receiving an infinite return for the example I just described:

1) Locate a fixer upper type property. Make sure that 70% of after repaired value of the property is enough to pay off everything you will invest in it.

Example: Property acquisition cost is $50,000. Repairs and holding costs total $20,000. After repaired vale of the property should be at least $100,000.

Try to get a seller second on the place for a minimum of one year, negotiate for no interest, and no payments if possible.

Make sure the property will net positive cash flow by at least 15% of the monthly income. Monthly income will typically need to be at least 1% of loan against the property in order to just squeak by cash flow wise.

2) Repair the property, put a tenant, or tenant buyer in place.

3) After holding the property for one year refinance the property paying off everything that you have invested in it and possibly taking cash out. Be careful not to take too much out as the more you take out, the more you will cut into the monthly cash flow.

You should have a positive cash flow with now money invested, giving you an infinite return.

As a final thought you should note that you can also have negative “infinite returns” if you lose money each month on an investment.

Leverage works both ways.


http://realestategozone.wordpress.com/2009...-on-your-money/

This post has been edited by jasonhanjk: Oct 29 2009, 01:33 PM

hello guys,

I need your views on penang property... how is the characteristic like and in which way do you think it's prospectful?

A brief intro by me:-

Just started working and started saving. Investing won't come soon to me as I need to equip myself with basic knowledge, some case study from experienced investors and money!

Work based in Sarawak and was in Penang (hometown) previously...

My view is... certain penang property value can rise quite fast and significant but it takes time (5-10 years) and the rental rate is often not sufficient to generate positive cash flow. I see only 3-4% annual return.

Sarawak property? Overpriced..

My horizon is not wide enough. So I accept view and challenges to my statement as well.

Regards..

hi bro,

Need your expert advice here.

I'm currently looking to purchase a home for myself and my GF. We intend to stay at the unit and hopefully when have sufficient cash next time sell of the place and buy a better home in the near future.

The thing is that i've zero knowledge on property.Hence need your advice. At the moment i'm working in cyberjaya and would be transferred to KL Central next year.We are looking for a place that has public transport and convenient. Preferably near by Cheras area.

My budget is RM 220K. I'm interested in areas which are freehold and has at least 3 rooms and 2 bath. The area must not be to congested and has a good resale value "investment".

As for my part i've scouted several developments such as:

1) 1 Petaling
2) Connought Avenue
3) Cheras Intan
4) Desa Sri Puteri
5) Taragon Puteri

which of these developments would you suggest to look into and are there any other developments that i should look into?

really appreciate your help. thanks a million.

i think leasehold might be applicable to you too since you wish to shift to bigger home when you prosper...

a leasehold has 99 years tenure and lets say you will sell the house off after 20 years, the tenure is still 79 years and still seem attractive.

it also depends where you're buying and any future development in the area

_____
am no expert in this but my pov... open...

This post has been edited by EddyHyip: Dec 1 2009, 05:54 PM

been sometime nobody posted here...
calling bro jasonhanjk, pertaining to the auction unit, when i successfully bid is under my name, but when i go for loan might be combining other party name...is it possible?

As long as your name is partly within the loan document.
Check your banker for more details.

thanks. On top of that, we will loose our deposit in Auction if we fail to get any lona in the stated 60-90 days?

Yes and if you scare too late.
Still can apply another 30 day grace period.

thanks jason.

Have anyone purchase thru auction and claim back the money from KWSP account?
is it possible we redeem back our deposit from our KWSP on auction unit?

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Added on April 14, 2010, 12:11 pmInaddition of above question, I had found out that the owner of the unit have outstanding RM3k++ on management fees, are we (new Owner) need to pay off?
or it will be settle by the bank?

anyone can clarify...thanxx

This post has been edited by wahlauyeh: Apr 14 2010, 12:11 PM

Hi all Si Fu out there, sorry if this question some stupid.
I want to buy my first investment property, but when i read around ppl talking bout ROI. Can i know how to calculate ROI?

Many thanks in advance

how to show bank i'm the rental recipient? mean i'm the landlord to my properties? currently i rent to a company. they did provide me rental received acknowledgement, need 2 provide for how many months?

go and obtained stamped duty on your copy of tenancy as a proof of rental.