Just curious why are we need to sell at this price in terms of "Return of Investment"

Assumption here:
Selling price RM380K, Purchase price RM220K, Profit RM160K
minus Bank penalty RM5K, minus Agent cost @ 1.5% RM 6K
Net estimated RM 150K

Keep the money with low risk interest savings @ 5% return = RM150K x 5%
RM 7,500 @ year / RM625 @ month.

However now peter giving us 18 months free hassle free instalment, @ 5% on initial purchase price (please correct me on the % of max coverage)

RM220K x 5% = RM 11,000 @ year / RM916 @ month.


**Property price 2010 (220K) 2013 (380K), with average of 50K appreciation annually, with potential of 2016 (500K) based on price push factor and material inflation cost.

**So the question here is, justification of why sell so soon? Surely is cool to have 1 big lump sum of money to spend. However look at the interest return, in comparison to property appreciation price.

**When supply is limited, with huge demand, price will further move up. Guys, hold the ground. Don't simply let go, surely unless you need the money.

Cheers!

IMO, pretty good analysis. Simple calculation. Thumbs UP!

Good analysis but you did not factor in the risk factor and opportunity cost. You are doing it merely from financial accounting which is not so accurate.

figure and words looks very promising. how about look at the 2 sample statistic at below?

1. Viva residency,jln ipoh f/h, 420k, rent out 1.8k
2. Vista Komanwel,bukit jalil f/h, 410k, rent out 1.8k
3. PV3, Melati, f/h, 410k, rent out 1.7k

then compare again to this area, how you think PA1120 rental market? if you feeling easy on rental market, then definitely will fetch higher price else vice versa.



This post has been edited by mingyew: Dec 5 2012, 12:25 AM

respond for rental over 1000 is very very slow in sri manja n sri sentosa,this my experience

In this case, you are referring to how many sqft?

no la..not the size problem but budget,tenant there mostly budget not over 1k...

THIS PLACE RENTAL AROUND 1K-1.2K ... NIA

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Added on December 5, 2012, 10:20 pmpeter is giving 7.5% back. and lump sum upon VP
once VP there is 1120 units. from what i see during showroom. more than 50% purchaser is to flip.
very little for own stay. worst is 2nd phase. more than 70% is for investment. so just imagine how many units up for sale. not to mention lelong units coming in. price in the 1st year might not go up. and second year, if infested with ME, Afr then big problem. venice hill now selling 100psf onli

material price is going down since launching of this condo in 2009



This post has been edited by 106127: Dec 5 2012, 10:20 PM

what I want to say is if u think want to flip till 400k, good luck to u, outside I have a lot of better choice.

however no one know. maybe u can did that

[quote=106127,Dec 5 2012, 10:14 PM]
THIS PLACE RENTAL AROUND 1K-1.2K ... NIA

i mean most of the tenant there budget not over 1k,sure there r some aprt rental over 1k example manja court but very hard to get tenanted,wat i scare is they rather rent other apart like 1A,1B Pinang but not pa1120 b'coz rental too high for them n there is too many choice to let them choose in this area..somemore we cant easy get chinese tenant in this area...


This post has been edited by bebe82: Dec 6 2012, 01:40 AM

material price going down since 2009? are you sure? can provide some facts? why new launches in PJ making new high since 2009? (psf wise)

how u know 70% is flipper?... now its too early to tell la... don't make your own assumption.

For other condos/apartment in that locality, is there any signs of ME/African currently? Anyone can shed some light?

Not at all about this. This place is peace.

The 7.5% is payable over 18 months after VP and not a lump sum payment.

Please refer to the Official Website of The Department of Statistics Malaysia and show me where it is indicated that the material prices have been going down since 2009
http://www.statistics.gov.my/portal/index....mid=111&lang=en

Ask any man-on-the-street and he would probably curse that everything has gone up since then. I have this feeling that either you are so wealthy that you are not affected by inflation or you are not living in this part of the world.


+1

Anyone letting go Type M 1020sqft here? I'm interested about it .. serious buyer here .. please let me know.. Thanks!

This post has been edited by clown: Dec 10 2012, 06:47 AM

when they come. they come BIG

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Added on December 8, 2012, 2:09 amclarified with peters. yes its monthly. total 7.5%

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Added on December 8, 2012, 2:13 amsince 2010
http://www.steelonthenet.com/pricing_history.php

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Added on December 8, 2012, 2:14 amhttp://www.mongabay.com/images/commodities/charts/chart-index_rawmat.html

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Added on December 8, 2012, 2:16 amhttp://www.steelonthenet.com/price_info.html

This post has been edited by 106127: Dec 8 2012, 02:16 AM

Thanks for the information.

If you look at the overall trends from 2009 to 2012, steel has gone up and still above the 2009 price level. Steel prices peaked in 2011 when 1120PA was accelerating constructions. In 2012, the steel prices started to dip this year due to slow down in China which accounted for about 48% of the global steel production. But generally in Malaysia the steel prices (which are controlled) are about 20% higher than in China and that is why there are allegations of dumping (wire rods) into the Malaysian market.

Steel only makes up a small percentage of total construction costs and as reported by Bank Negara, the overall construction costs (which included, amongst other things, cement, aggregates, labour, plastic-related materials, etc) had trended up since 2009. This is evidenced by the increasing prices per sq foot for new launches todate since 2009 and even unsold units are priced higher than their launch price.

If the material price in 2013 should succumb to supply pressure from China it would only benefit the developers (not buyers) as their launch prices before 2013 would have been based on historical price trends. Cheers.

1020sqft is M type.

Pmed u anyway

How much your target price? Any market transaction done? Bank value?