Sell (30%) 780,000
rental 171,000
legal (30,000)
assessment (6,000)
maintenance (71,280)
interest (304,377)
property price (600,000)

Total loss (60,657)

please don't remove deflation from your dictionary.

Is my own format only. Can PM me if you like. I can send you by email.

At property price (600,000), you had served your loan over 15 years. Which mean after you sell the property, you only need to pay RM 399,303.93 to bank for fully settlement.
So the calculation should be as below:
Sell (30%) 780,000
rental 171,000
legal (30,000)
assessment (6,000)
maintenance (71,280)
interest (304,377)
Gain before fully settlement = 539,343.
Outstanding to settle with bank = 399,303.93.

Total loss/gain = +140,039.07


The deflation parts, I am aware of it but I not sure how can I put into the calculation.
Any expert to advise on this part?

Repayment to principle is not a expenses for you? Making loss still blur blur..

RM780k for 600 sq ft? wow!

This post has been edited by accetera: Apr 12 2017, 02:54 PM

It's OK, looking for an online tool. Thanks again...

I have made a simple calculation based on assumptions you have using the rate of return evaluation of free cash flow.
It turns out the investment will be at a loss of rate of return 1.23% per annum if the property price is to sell at 30% increase price only after 15 years. The reality is that if the loan interest is at 4+% a year, the increment of capital price should be more than bank interest of 4% and additional of another 3 to 3.5% of inflation to each year, which means increase of property price should be at 7-8% with a quick calculation. Should price increment is less than that, the investment will be at a loss and bank earns the investment returns from that property.
The IRR should be above the inflation rate or the fixed deposit rate or any bench mark % if this cash were to use in another investment which could fetch a certain %, e.g opportunity cost.

Something to share.




Attached thumbnail(s)

I totally agree.

In fact the assumptions used have not catered for the estate agents' fees of 2% of selling price, which would be around 16k, and also the commercial sewerage charge during the vacancy of the property.

Another expense item missing is the refurbishment cost to be incurred from time to time after a tenant moves out.

Just wondering how did u compute the loan settlement value of 399+k?

Icon city

This post has been edited by Asgaard: Apr 12 2017, 04:03 PM


Attached thumbnail(s)

Even few years back i knw tis project super overpriced....but still got people buy..

From 445k total loan repayment, 140k is belong to capital repayment. And total loan is 540k. So 400k to be paid during settlement.

Some happening event happened in Icon City

Noticed this lyn page is very quiet lately. Any good/ bad news?

some of the buyer that enter Icon City maybe bec of the Icon City phase 2 which will have a shopping mall plus office & SOHO units.... sadly until now they is still no news on Icon City phase 2......

spoken to some Icon City buyer alot few let down by MS..... Icon City suppose to be very vibrant development where it had the 30 Jewel (8-9 storey shop) plus the Gourmet Street & the SOVO & Residence

I when to Icon City last Sun, n when to the open park at Lvl 3 if not mistaken..... the overall landscape is nice as what MS mentioned during the project launching but the only person I see is the security guard and no other ppl.... time of visit is 6-7pm.... not a single shop lot open....

on the residence & sovo units i cant say mch on the occupany bec the window is fully tinted dark

really do hope to see this project grow...

Residenz Tower 2 now almost finish handover key.
Waiting commercial component to move in.
Got one mamak stall also good enough under this condition

any shops already open?

ini project mati liao. they wash hand run away liao. shop owners sendiri save sendiri.

sure boh ?

i nampak developer pakai range rover kat sana wei

only range rover? ini macam mati liao loh.
banyak empty. another jialat southgate. this 1 bigger and more jialat