I assume u know KD well enuf. What kind of rental yield are the current launches experiencing now (in percentage)? I mean those higher end condos. I dont know so im asking. Im asking for the general yield of that condo not just one off tenants.

Having a matured discussion and raising valid points for discussion is called 'attack'? Do u know what a 'forum' means?

An interesting article:

http://www.propertyguru.com.my/property-ne...erty-sees-slump

Another interesting article. Seems like the situation in KL is very similar to Penang:

http://www.starproperty.my/index.php/prope...-or-going-down/

Not very sure about your calculation. I think it would be max 60-70% of your nett salary (assuming you dont have other commitments). I know someone who only recently obtained a 650K loan from Maybank with just a take home salary of 5K. So with this calculation, to qualify for a 1 mil loan, your take home salary would be about 8K only. Gross at about 11K.

But the real question here would be how many of those investors in TG are buying their first property? Assuming you need a salary of 11K (min) to qualify for a loan, im sure quite a number of them would have already invested in a property before this (especially if they are Chinese). They wont be waiting for their salary to reach 5 figures b4 they begin to invest. So if they are already paying off 1 loan, their available credit for loan eligibility drops significantly. But assuming, they have other means to purchase e.g family support, group buys, etc, what percentage are we talking about? But owning a TG unit now was made possible mainly because of the DIBS scheme.

This is the affordability now but how would the affordability be in 2016 when TG is completed? How many ppl would be able to purchase >1.2 mil properties without DIBS and still be able to fork out RM 120K cash for downpayment, 30K for legal feels and maybe spend another 10K to furnish? That's a whopping 160K cash!

This is not just an issue affecting TG. Its a concern for all other higher end properties everywhere in Klang Valley. I feel that the current property price boom is mainly fueled by speculations and assumptions rather than being backed by hard facts. How many of the investors in TG and other condo developments in KV actually looked at the income levels in Malaysia before assuming that their properties can be sold at much higher prices in 2016?

The average monthly income per capita for Malaysians derived from the Household Income Survey 2009 came up to RM1168, only a slight increase from the figure of RM1028 in 2007. The average income for the top 20% of Malaysian households in 2009 was RM 3124 only with only 3% earning 5 figure salaries. Wages in Malaysia grew at the rate of 2.6% per annum for the past 10 years while the official average inflation rate is 2.77% which we all know is crap.

The household debt is rising yearly at the rate of 11.1% per annum. The ratio of household debt to disposable income is 140.4 % for Malaysia, one of the highest in the world; above that of Singapore at 105.3 % and USA at 123.3 % in 2009. This means that the loans taken by each household in Malaysia is on average 1.4 times more than its household income in 2009. Imagine the condition in 2013. These figures indicate that Malaysians are at higher risk of not being able to service loan obligations.

Thats why i say we should be a smart investor. Get all the neccessary information, study the risks and then make a qualified decision. Dont merely bank on salesman talk at property launches to make decisions which will affect you and your family in the future. if after considering all these factors, you feel ure making the right decision then go ahead with confidence. Never ever have the herd mentality when it comes to investments.

Just my 2 cents worth!

Cheers!

Is your interest genuine in Phase 1 or just an effort to try and back up your earlier prophecies?

If ure sure ure making an informed decision and ure sure of the future capital appreciation of your intended purchase, then i dont see a need for any foul language. Your usage of foul language just indicates some form of frustration. If ure not prepared to deal with the comments, then u shouldnt have posted that advert rite? So since uve confidently posted it then learn to deal with the comments. Plain and simple.

Best way to silence us would be to actually purchase a unit in Phase 1 and post the proof here for all to see. Im sure that if your offer is serious, there would be quite a few Phase 1 buyers willing so cash out. Like you said, its 400 psf return on their investment rite?

Allow me to share some insider info which u clearly dont know about. JoeBlows does not have a unit at TG but i can tell you that his finances are far stronger than most ppl on this thread....if only you knew his investments you would think twice before disrespecting him. There is also another frequent contributer on this thread (whom i cannot name) who owns 11 properties in and around KL but would not touch TG even though he has the cash reserves to easily buy 2 units at TG. Some of the seasoned LYN members in the property section would know who im refering to. The point im trying to make is, its usually the 'quieter' ones on LYN which are actually the big timers while the noisier ones are quite often...err...tin kosong?

Cheers!

This post has been edited by cybermaster98: Mar 14 2013, 01:20 PM

If u were as smart as you claimed, you would have done some research before commenting. And if u had done the required research, u would know that i have never invested in anything above 500 psf yet. Pity me!

So to answer your question, no i am not an ultra desparado investor of any property. I have not even seen 5 Stones.

But for someone willing to invest in properties >RM1 mil, you surely dont sound very educated although you are educated since ure on LYN. May i suggest a more mature approach in posting your comments which might give some credibility towards your statements? Maybe then a 1,800 psf price claim in 2016 might become more believable.

(P/S: Although you hide behind a nick on LYN, did you know that some of the forumers here actually know you in real life?).

So yes, let's get back to some mature discussions after this shall we?

This post has been edited by cybermaster98: Mar 14 2013, 01:09 PM

Nope. No guarantor or JV. Single applicant.

Well, why dont you speak openly and directly to avoid confusion instead of expecting ppl to read in between the lines? Much easier rite?

Suddenly Happyman has gone silent. I wonder why?

Exactly my point. Seems like the typical herd mentality. Just because they see a large crowd at a launch, then the automatic assumption is that the investment is good and will appreciate 50% in 3 years.

For ppl like us who have looked at numerous new launches, it seems to be the same salesman talk that ive heard so many times. Every single developer has similar words and predictions for their property but one thing i do know is that in 3-4 years when the property is done, none of these salesmen are around to backup their earlier claims.

Ppl keep overlooking the fact that price predictions can only come true when there are buyers willing to purchase at that price. U can predict 1,800 psf in 2016 but if buyers are not willing to pay more than 1,300 psf, then what happens to that 1,800 number? Up in the air. Ppl also fail to understand that even if there are ppl willing to buy at 1,800 psf in 2016, why would they be buying subsale? If prices have surely increased to that level by then, many of these would be investors would have already bought their own property hoping to sell at 2,200 psf in 2020 for instance. The cycle just keeps going on and on and on and the only benefactor will be the developers.

Thats the reason why there are ghost cities in China already. All units bought by the 1st gen buyers but no subsale after that cuz all those that could afford to buy at that price have already bought their own units before that.

This post has been edited by cybermaster98: Mar 15 2013, 10:57 AM

He said a FEW YEARS AGO. A few years ago is not the same as NOW. Thats all salesmen talk and thats wht they use to sell their new launches. They all use the past few years as examples. Why dont they use 1998-2003 when prices in general were quite stagnant?

The potential of TG is only for Dijaya to make more money from investors who invest with the herd mentality.

Ive always been bearish towards properties which were priced too high. If ure talking about 1200 psf in KLCC area, yes i think thats sustainable but not in Kota Damansara especially at a location which is almost at the border of Bukit Jalil. The area just after TG is almost like kampung area. Totally different from the area near the underpass.

The value of the property is not important. The price psf is most important and in which location. U can't just put a blanket rule that everything above a certain price is risky. Property investment is about LOCATION. U cant compare 2 separate locations and have the same blanket rule.

My rule of thumb is i will never invest in a property that sets a new benchmark price or similar for that area. If the surrounding area is only 700 psf and your intended investment is 1000 psf then it becomes a very risky investment.

TG like most other investments will see capital appreciation in the long term not upon VP. How many of those who bought TG have the financial strength to hold on to it paying 4-5K monthly without being able to sell or rent upon VP? Thats the danger. Cuz when these ppl cant afford to hold, they will throw the price and thats when the domino effect starts.

If they can hold it beyond the expected slump in 2015/2016, then yes they stand to make good money.

Your 'other' investment was in a different time frame. The crucial period is NOW and developments coming online in 2015/2016. I too made investments in 2008/2009 and ended up getting 80% capital appreciation but i know that was then and it would be foolish of me to expect the same for investments now.

I dont think anybody is doubting TG's plus points. The issue most of us have is the launch price and if it will be sustainable in 2016. TG has surely set the benchmark for KD at prices which is clearly above the surrounding developments.

I think that for a new development to be sustainable or have good margin for appreciation (for investors), it should have the following amongst others:

1) Launch prices to be set in accordance with actual market values of the area (not based on other developers offerings) as this will make it easier for subsale owners to get loans through favorable valuations from banks. This will also keep rental rates to an affordable level.
2) Have at least 60% own stay buyers as this will help stabilise prices instead of having majority flippers who sell upon VP and turn it into a price war aka buyers market.
3) To be located at places which actually justify the price & rental required. Not all lcoations with a LRT station nearby has appreciated simply because not everybody takes public transport. Same fate could befall the MRT project.
4) Development to have special features which buyers are prepared to pay for and add long term value to the development not features which are good 'eye candy' only.
5) These features should not have been duplicated at other cheaper locations nearby which would undervalue your investment here.
6) Residences that come with retail can either be very lucrative or a complete failure. Its a more risky type of investment so knowing the retail tenants/target groups are particularly important. Sadly, this info is rarely available during purchase. And sadly, developers use this lack of information to provide empty promises of reputable tenants merely to push sales.
7) The developer should have a good track record in quality offerings instead of merely expensive offerings where there's a disconnect between the perceived value and actual market conditions.
7) Other planned developments in the area which are priced much higher than this despite offering similar features.

I was refering to condos. Developments like Desa Parkcity, TTDI, Bangsar, Bandar Utam, etc are different ball game altogether. TG is not the same. TG is just part of an existing development which has expanded from the Curve area to move southwards.

Developer influence is limited. Market forces are far stronger. TG will not be able to withstand a property slump IF it happens in 2016 just like many other high end developments. Its common knowledge that higher end condos will be the first to be hit.

Does anybody have any opinion on Solaris Dutamas? 1148 sq ft bare unit facing mosque selling for RM 900K.

I actually think investing in Casa Indah 1 and 2 now would be a better choice. Might as well take advantage of TG.