May 10 2011, 10:02 AM
QUOTE(mercury8400 @ May 9 2011, 01:23 PM)
Not to sound rude as you are entitled to your own opinion, but while i don't deny that there are other condo's that yield more, you must also take into the consideration the follows:-
1) Timeline. You cannot compare the yield of a condo you bought 5 years ago and the condo now, coz its much, much more expensive now compared to 5 years ago. (Don't believe me just look at the prices of recent launches)
2) Assuming there is, the owners might be reluctant to sell the unit as well because the yields are good
3) Even if the owner decides to let go, he will definately sell at a much higher price and you may not be able to enjoy the high yields.
4) 5.6% is an acceptable return in today's market. I'm sure you will find that most other condo investment only yields an average of 4-4.5% p.a. Of course that's not to say that there are none that yields higher, but its rare and hard to find
5) Compared to other investment class, its very good with lower risk. Just look at FD rates, average bond yields, etc. Meanwhile stocks are high risk.
6) As always, RE will appreciate over time and if you do market survey, all other new development are very,very expensive. In USJ 1 its up to RM 750 psqft.
7) With the new LRT built around the vincity, I think that's why the prices are crazy.
8) FYI Maintenance fees at RM 150 per month. Not very expensive if you compare to condo of similar status.
Thanks
Regards
Mercury8400
To certain extend I agree with your opinions and good to hear the maintenance fees is priced reasonably at $150. Anyway I don't think people will buy the condos as investment purpose if the yield is below 5%, simply because at current situations where there's plenty of choices available and not to be forgotten that the opr has increase and I just called up my banker and she confirmed that all banks in Malaysia will revise the blr by 0.25 (meaning from 6.3 to 6.55% which will further hurt the ROI). For condos or apartments, the preferably return for most of investors are approx. 6% and above based on my discussion with most of members and for anything below 6% can be obtained through the commercial lot that can minus a lot of headaches. Anyway it's up to individuals anyway, new LRT terminal close to your place will be a good call but there's many new terminal coming up soon which buyers have preference to go for cheaper alternative. My comment is Meridian is a better place to stay due to large b/u per sqft but however rental could be improve further in the future.1) Timeline. You cannot compare the yield of a condo you bought 5 years ago and the condo now, coz its much, much more expensive now compared to 5 years ago. (Don't believe me just look at the prices of recent launches)
2) Assuming there is, the owners might be reluctant to sell the unit as well because the yields are good
3) Even if the owner decides to let go, he will definately sell at a much higher price and you may not be able to enjoy the high yields.
4) 5.6% is an acceptable return in today's market. I'm sure you will find that most other condo investment only yields an average of 4-4.5% p.a. Of course that's not to say that there are none that yields higher, but its rare and hard to find
5) Compared to other investment class, its very good with lower risk. Just look at FD rates, average bond yields, etc. Meanwhile stocks are high risk.
6) As always, RE will appreciate over time and if you do market survey, all other new development are very,very expensive. In USJ 1 its up to RM 750 psqft.
7) With the new LRT built around the vincity, I think that's why the prices are crazy.
8) FYI Maintenance fees at RM 150 per month. Not very expensive if you compare to condo of similar status.
Thanks
Regards
Mercury8400
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