QUOTE(analaiser @ Nov 14 2012, 09:31 AM)
Sifus,
If I were to service loan RM3k per month, to breakeven 500 birdnest is required in the BH assuming birdnest selling price is RM3K per kg. Every month harvest 500 bn X 0.2 equal to 100 bn per month which translates to RM3K. In short so long there are 500 bn in e bh, i can get RM 3k per month which will enable me to service BH loan. Is the calculation correct? But then again is it easy to get so many bn given that there are 66BH constructed simultaneously in that particular area? Sure got stiff competition.
Let help you to include the worse case scenario factor in your feasibility working paper to help making a more accurate decision.
Assuming your BH fail to generate income, below are the costs you need to bear.
Loan Interest rate: 7.6% p.a.
Loan amount: RM380k
Cash deposit: RM250k
Loan interest cost :RM29k per year.
Loss of FD interest income : RM10k per year
Total cost of holding each year if no income from BH : RM39k
Total cost incurred if no income for 4 years: 630k + (39x4) = RM786k
Can the shop sold for rm786k if you decide to give it up ?
The above excludes initial internal setup cost, maintenance, overheads, traveling, AES summons

, your executive time loss, Panadol and Dormicum, Cukai pintu, etc etc ...