hi sifus, i have recently placed a small booking in a new condo launch (Condo A). the price is 210k. i'm getting a 100% loan, all fees are paid by developers, free kitchen cabinet, only have to fork out interested during construction (however my plan is to get a flexi loan and dump in my extra cash, so not too much worries about the interest). my objective is to get rental rather than flipping it. story part 1 ends.
today i saw a unit (Condo B) just across the street of the condo i've booked. it's going for 168k (asking price). the rental can up to 1.3k if fully furnished. this unit has no kitchen cabinet, no air condo. just some furniture. very basic one.
so let me put this in point form of the pros and cons, let sifus advice which is more worthwhile for consideration:

Condo A
=======
pro:
- got 100% loan
- developers paid all fees
- free kitchen cabinet
- room for appreciation
- got amenities at ground and 1st floor
con:
- under construction
- rental might only break even in first 1-2 years

Condo B
========
pro:
- almost for sure to get positive cash flow
- completed, rental income come in immediately
con:
- not much room for appreciation compare to Condo A
- need to fork out a lot of money for the purchase
- no amenities

both properties are very identical, freehold condo, just across the street, 1 min walk (i guess). so which one worth investing more?

This post has been edited by vdfoo: Jul 8 2010, 04:18 PM

IMO, this depends on:
- how much savings u have. r u short of cash; hence u go for the 100% loan? u can ‘discuss’ with subsale seller for u to get full loan.
- going for yield or cap? Looks like u want to target both, but trap between the 2.

Price is quite cheap; location must be KL outskirt? if u know the location inside-out, no prob.
No harm targeting strictly for yield; but then it depends on ur p/folio. lots of KL condos have good yield. for your budget (below rm300k I assume), try to check lanai gurney, gcb court, melur apartment sentul, palladium jln gurney.

Still got so cheap condo??? May I know around which area??

as sifu moonh said, it's kl outskirt, most people are not interested. 16km from sri kembangan, 20km to cyberjaya, u guess

eat satay one la

This post has been edited by eugene jk: Jul 8 2010, 08:43 PM

[quote=vdfoo,Jul 8 2010, 04:17 PM]
hi sifus, i have recently placed a small booking in a new condo launch (Condo A). the price is 210k. i'm getting a 100% loan, all fees are paid by developers, free kitchen cabinet, only have to fork out interested during construction (however my plan is to get a flexi loan and dump in my extra cash, so not too much worries about the interest). my objective is to get rental rather than flipping it. story part 1 ends.
today i saw a unit (Condo B) just across the street of the condo i've booked. it's going for 168k (asking price). the rental can up to 1.3k if fully furnished. this unit has no kitchen cabinet, no air condo. just some furniture. very basic one.
so let me put this in point form of the pros and cons, let sifus advice which is more worthwhile for consideration:

Condo A
=======
pro:
- got 100% loan
- developers paid all fees
- free kitchen cabinet
- room for appreciation
- got amenities at ground and 1st floor
con:
- under construction
- rental might only break even in first 1-2 years

Condo B
========
pro:
- almost for sure to get positive cash flow
- completed, rental income come in immediately
con:
- not much room for appreciation compare to Condo A
- need to fork out a lot of money for the purchase
- no amenities

both properties are very identical, freehold condo, just across the street, 1 min walk (i guess). so which one worth investing more?



If your goal is to Rental rather then capital appreciation, go for condo B,
furthermore, i doubt that in full flexi loan bank will let you dump your money to save interest before full disbursement of loan amount, (double confirm with bank)
Cheers

go for condo B