Wah liao. Why in this forum people love to argue so much one. Worse than politics forum haha. I war with people in the office all day to cut cost now come here war again beh tahan le. Peace guys.
QUOTE(The Jedi @ Apr 16 2013, 08:45 PM)
let's take a simple hypothethical example to see which location will triumph
if one intends to invest (not own stay) in $1mil new freehold condo in MK or SJ or BK and say options limited to Pavillion MK, SJCC Subang and V condo Bdr Kinrara , which will give better rental and capital returns?
assume 1mil-1.1mil can only get the following:
1) Pavillion in MK- 1 unit of 1200sf at 900psf, good location for expats and locals who are rich with 1 or no child
2) SJCC in SS16 (launching in Q3) - 1 unit of 1200sf@800psf or 2 units of 600sf @900psf, good location next to LRT/KTM and malls. suitable for rich students, local medium/high income working group or retirees
3) V condo in BK (launching in Q2) - 3 units of 600sf @ 600psf, good location next to LRT and mall. suitable for local medium income and small families/working couples/single or retirees
most investors focus a lot on rentability and saleability. In other words, the condo must be fluid and easier to rent or flip.
If i were to choose, my priority of choice will be:
1st - V condo BK
2nd - SJCC SJ
3rd - Pavillion MK
just my worthless cents. Different ppl different criteria and one size does not fit all.
If I have RM1m, I sure as hell won't buy property. So overpriced.
Forced to buy? OK la, I buy a terrace in TTDI or two 1-storeys in SS4/SS5, reno and see if got chance to flip for a decent return.
Gun to head need to choose between 1, 2 and 3? Let me go check off one by one starting with the worst choice.
(3). Whoever buy this needs their head examined. Paying 600psf for BK, a chicken coop house as well - are you serious? Now, instead of spreading out your 1m instead buying THREE units, maximizing the risk profile. So far as LRT and mall, they are dime a dozen nowadays - there's no guarantee your mall won't turn into the non-value adding SS2 Mall, Ampwalk or Phoenix Plaza rather than a Tropicana City or BSC.
(2) Again buying 600sf place. Seriously, Malaysia and KL has a lot of land. This is not Sillypore where one can feel like the king of a castle in a 800sf place. At RM560k per unit you need to be renting this place out at the eye-watering sum of RM2.5k a month for a tiny hovel which is fit for at best two people to get a 5% return. Feasible? You decide.
(1) I would choose this if left with no option. In MK, I can be sure that my tenants will be locals or expats. Buying a 900sf place, yeah its not that big but at least suitable for a small family. I can be sure I will always attract only a certain desirable class of tenant.
What's more, with holding power I can always drop my rents to match the ones at SJ or BK - will I get negative cashflow? Maybe, but with a larger floor I know that this property is always more desireable than the other two options, whether in good or bad times. Of course, buying this unit won't be without risk but guess what, its more manageable than the other two which are high risk plays IMO.