congratz on your buy, bro!
developer has not made up their mind yet? waited so long already since march/april...

Congrat on your purchase bro.
For own stay or investment?

my original intention is own stay, but this development has a good potential of investment....Z residence ,treez a..but a question to ask tai gorss, does the lease hold as a concern for investment??

Hi Kagawa, such early post don't call me Chris Gor la, looks very old ... hahaha ...

Anyway, congratz to your purchase. Oooh, Type B actually is one of the good choice too, same density as per Type C and a 1,2xx ish size is relatively medium size and quite easier to sell compare to medium-big 1,4xx sq feet ... Facing LRT means premium Tower 3 facing South, I think type B4 only left low floors wohhh. Or you getting higher floor?

Car park, you no need ask SA ... I don't think they know. You only can wait S&P for lucky lottery ... lol ... I guess Type B car park lots shouldn't be that bad since Tower 3 is not sharing with Tower 1 & 2 but just can go through. Higher floor Type B gets side-by-side by low floor Type B gets front and back parking.

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Added on July 25, 2012, 1:37 amIf own stay, it shouldn't be any major issue as long as you like it. If investment, you can compare with ZR due to similar pricing but not The Treez which was at super price with Green Building Index.

For me, nowadays, Leasehold is a minor concern as long the product is quality, pricing is fair and place (location ) is good. Older said, better get freehold and better get cheaper price. We can't have freehold and cheap nowadays. Modern age says better get affordability price.

If this is Freehold, would you buy if the pricing is additional of RM 100 psf ? Some say yes bcz of the FH tag, and some say, better no of the price point is higher by 100-140k ...

Anyhow, the potential is there bcz this is RM 400-440 psf product, still less than RM 500 psf like most area launches at ... For me, pricing is quite fair, affordable, easy entry ... Location, is definitely there and is good ( some do not prefer to stay facing LRT or near it but some who buy for rental investment is praying the LRT is just next to it's main door's foyer ) The final question is product upon completion ...






This post has been edited by Chris Chew: Jul 25 2012, 01:37 AM

LH or FH used to be some concern but not a big issue for nowadays market. The only negative I can think of is it takes longer to transfer the property to new buyer when you decided to sell later. As some people may worried of depreciation in value for LH property, govt is willing to extend the lease for all properties in future for a small premium. Even if your house located at FH land and if govt decided to takes away the land possesion for future development or infrastructure, nothing much you can do as they will compensate you based on your current property value. So in another words, you are not fully protected despite bearing FH or LH title.

the potential of LH FH is market driven IMHO..
I was pretty pantang LH before bcos of the market perception at that time that LH is hassle and investment potential is lower..
Fast forward nowadays with rocket high prices and limited land in prime area, seems market dont really concern much about land tenure (I ask a couple of frens dont mind at all as long as location is good). Location is still the top criteria for a good property, new launch leasehold property are snapped up instantly nowadays.

Having said that, the nature of how LH work cannot be ignored at all. Transferring of name for LH property commonly take longer than FH. LH with lesser remaining years will have some hassle in disposing or acquiring as bank might not offer credit for such property..

As long as lease tenure is still long enough, it will still has potential..

In the other forum, someone brought up an interesting point.

The lock-in period is counted from the first drawdown, and so even for people getting 90% financing, the lock-in period is not yet ending at VP. Worse then for people getting 70% financing, and it is estimated to be about 1 1/2 year after VP. With the fact that all of us are getting BLR-2.3%, we are all tied to paying higher interest to the banks. You could either break the lock-in, pay penalty and flip, or wait for lock-in to be over then flip or refinance. None of these are working towards the advantage of buyers.

Food for thought.

This mainly affect those that is going to flip upon VP and not own stay isn't it. Anyone have news on S&P?

Not exactly.

If you are not flipping, you also want to get the best rate. The
BLR-2.3 will stick to you for a period after VP.

But we don't have much choice isn't it? Since most banks are offering BLR-2.3 and my loan already settled, I'll just have to stick to it. Now only waiting for news on S&P.

This post has been edited by Xccess: Jul 25 2012, 07:18 PM

Yes, lock-in period commence from first drawdown which is during pilling stage. Construction normally takes 3 years for completion. How could we still stuck with another 1 1/2 year? If let say this developer is going full gear, the fastest will be around 2 1/2 years, means another 6 months to go only.

You are assuming probably the case of 90% of financing.

In the case of 70% financing, the buyers will have to pay off
the 20% over a period of time, until the first drawdown at
the very first of 70% loan, which the estimate by the poster
in the other forum, is 1 1/2 year from SPA.

what is the selling price now?

Yes, correct. You take the point here. 90% borrower and 70% borrower has different period from first disbursement, where the latter is commence later due to 30% down payment and the bank loan was first release 10% after the stage of completion reached 40% ( 30% difference sum plus 10% bank 1st release ) where it might be 2nd or 3rd release for 90% loan borrower ( who settled 10% difference sum upon signing S&P and next release was incurred after the stage of completion reaches 20% and developer billing to the bank )

For KR2, as far as I am concern, the construction of earth clearing work is running up. I am sure once the S&P signing is done subsequently from August to September 2012, they can quickly put the piling of the building and make it 20% completion, where it can immediately send the 10% billing to all 90% borrower' s bank and cash buyer. Their lock in period starts here. And, next few months, once the completion reaches 40% ( depends on their schedule, 10% or 15% at 2nd or 3rd stage ), the lock in period begins for the 70% loan borrowers, so their bank lock in period begins here.

The difference could be 6 months, depends on the speed of the project stage and also the developer billing to the bank. Normally, big developers who have financially strong, would claim in one big bulk or later, while those 3rd tier or below graded developer, will claim the billing as soon as possible once their completion reaches a certain stage of their schedule, especially first 50% due to financial back up ...

For strong developers, they can play around, because they had jack up the S&P price by 5% due to DIBS package but their muscle financial can holds till 50% completion to claim your first 10% and pay your absorbed interest to the bank only after the loan released in late late stage, where, for overall development, a month interest could save them over 10k or 100k thousands interest they absorb for the buyers...

But to say 1 1/2 years from S&P for 70% loan borrower, maybe quite long. Probably that project was bought after immediate launched, S&P signed urgently and unit at high level ( if high rise )...

Although an early disbursement is not a major issue since this is DIBS and the early interest was absorbed by the developer but certainly, the 3 years lock in period might be a worry for the upon VP flippers especially those would like to maximize their profit to above ceiling or rooftop.

Whilst, for me, even though I might looking for 1 year rental before flip or flip upon VP, the 3% exit penalty ( approx 14k ) does not bother me as long as the profit of Cash on Capital Return is high enough, say RM 150k profit after deduct all RPGT Tax, Agent Com, S&P Stamp Duty, etc ...

However, it is not a worry-ness for those own stay and rental play investors.

Chris 'ye', i bought lower floor 5th flr..crossing finger on the lrt of the final product..haha

Which tower u buy?

Ohh ic, is that the unit of type B, which u only able to get highest floor at lvl 5? Lvl 13A type B all sold?

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Added on July 26, 2012, 1:08 amKagawa bro mentioned he bought Type B and facing LRT ... means Tower 3. Bcz Tower 1 and 2 only have 2 units type b out of total 16 units per flr, both were facing North / Pool / Highway. Only Tower 3 has Type B ( 2 units each flr ) facing LRT or South.




This post has been edited by Chris Chew: Jul 26 2012, 01:08 AM

We should call you KR2 Bible liao

Good analysis but I still can't agree that it's not a "worry" for those own stay and rental play investors.

The market is going at at least BLR-2.4% or BLR-2.45% right now, whereas KR2 is at BLR-2.3%. Whether you buy the property for what purposes, for 70% loaners or less, they will be binded to the BLR-2.3% for about 1 year or more before they could hop to another rate, or else pay penalty.

I very agree u on this. For loan above 400k, easily we can get BLR - 2.40% minimum, I cant understand why the heck the developer should bother for the rates of thereafter, which 4th years onwards where buyers are the interest loan payees. BLR - 2.30% for us isnt good enough but we force to accept it due to DIBS scheme arrangement by banks and developer. Kns.

I do not mind the loan lock in to be expire one year after VP bcz I cant predict whether market loan interest at then, 2015-16 and unsure whether BLR still maintain or increase.