Dear Taikors,

Please help to advice my dilemma as below:

I'm going to work in KL soon, targeting a few areas until I shortlist into these 2:

1. Rawang M Residence Phase 3 (under con)
Type: Freehold
Area: 22 x 80 (plus 5 ft garden become 27 x 80)
Price: RM 697,800
Purpose: Investment
Completion Date: Mid 2015

2. Universiti Tower, PJ Section 11 (subsale)
Type: Freehold
Area: 1300 sqft (3 rooms)
Price: RM 600,000
Purpose: Own stay 1 room & Rent out the other 2

Considering the property market in 2015 (For option 1),

Which of the above is better move?

Option 1 OR Option 2?

Loc pj beta. Prop type landed beta. Pricing rawang cheaper. Value pj beta.

Very hard to say coz u never mention u want rental play or capital appreciation. And hows ur financials? Rental play no need strong financials that much while capital appreciation play need stronger financials. Can u pay without getting any rentals? These are a few questions u need to ask urself.

AMINT gor,

Usually my plan after a new house VP, I can opt for these 3 options: rent out, own stay or sell it.

For M Residence, I not planning for own stay and rent out. The only way is to sell it after VP. (target for cap appreciation)

For UT, I aim to keep it long term (own stay and rental play).

My question: for biggest advantage, should I go for rental play (UT) or cap appreciation (MR)?

Giggs gor,

So Pj wins in terms of loc and value,
Rawang wins in terms of prop type and pricing?

What would u recommend?

To know which is the best for u whether rental or capital play, like i mentioned earlier. Can u pay without getting any rental? If u can, i suggest u go for capital apppreciation but may need to hold longer for the location. If u cant pay and hold for a long period, go for rental play. Honestly i dont like rental play coz it is a waste of time imho for residentials. I rather rent it out just to cater for appreciation to kick in to my desired value. I say this because nowadays ROI% is BS and some more need to pay to LHDN. Rpgt also need to pay but after 3 years, the amount is reduced or better yet, after 5 years, zero rpgt

Hard to judge in ur case. For me as an investor, I ll take pj. But for home seekers, I would advise for rawang due to pricing. And u would not care much in short term bout the capital appreciation. No one ll know if rawang outperform pj in 10yrs due to the lower entry price for landed. On the other hand, who knows maybe pj ll stil grow another 200% due to the gd loc.

If u r really buying either 1 purely for investment, I bet pj is beta for now, at least. Especially when u r stil getting a FH in pj.

Bro 1 of the conservative strategy in rental play is to at least get the installment amount together with all compulsory expenses like tax u mentioned, and maintenance fee etc etc without including bank interest. Tis strategy is used by some who r very strong in holding power. And usually u c those buyers for super prime area eg bangsar, pj state, bkt bintang are doin tis. Try look at the cap appre. It can outdo the rental at anytime.

So easy to sell it and profit after VP?

yeah but it is not easy to find such property. today, many property value increased too fast while rental lagging behind. end up ROI is 3-5% in KV even before minus the tax to LHDN. After minus, we will lose 1-2% somemore. outside KV also some doing better in terms or rental coz value not that high....yet..

My advise, do not intend to sell a prop in 10yrs. Sell it after 10yrs. Unless the offer is irresistible eg 100% in 3yrs.

U can c the diff.

Hi Noblebaby,

That's my concern on property market in Rawang 2015. (though I can keep it for long)

Considering that many projects esp condo will VP in 2014 & 2015, not sure if it will affect landed market.

Wow ...

Under con vs Subsales
Completion mid 2015 vs currently completed
Landed vs Condo
Rawang vs PJ

I think this is too hard to compare unless more definition given for the investment purpose, game play and holding of short or longer term.

Chris kor,

My game play / current situation as below:

I have previously bought an under-construction condo in PJ.
This is my 2nd house, which will be my last bullet (cant afford LTV70 after this )

So wat would you recommend?

(in the sense of diversify, I think Rawang+landed will complement my 1st house PJ+condo, but both also undercon)

This post has been edited by utph145: Apr 14 2013, 12:11 AM

yeah AMINT & GIGGS kor, I've done some calculation that the in (rental - RM 2500) and out (monthly repayment + maintenance fees + tax) will give some slight positive cash flow.

IMO, the positive cash flow will keep increasing, slowly, as the rental can increase over years while monthly repayment & maintenance fees shall remain stagnant.

Yeah, rental may increase over the years. Monthly repayment and maintenance may go up too in the future. (i have also experienced reduction coz more owners becoming responsible and paid)

En. Amint, cantiknya avatar tu.

cilok kat internet. hehe

property investment rule no 1. location. buy the worst house on the best street. not the best house on the worst street.... u do the math.

For rental or capital appreciation play it will both be PJ.

Rawang landed, if cheap then still okay.. but with such high entry price, I don't think you can see some good return in near future. Definitely need to hold for sometime.

Or you can consider Cheras/Sg Long/BMC if really want landed. This side of Selangor have better potential than Rawang. My colleague who bought a DS FH at Sg Long Last year @450k, now his neighbours are asking 560-580k to sell one. 100k appreciation in one year. That's sounds not bad.

I also hunting for one at that area now

Boss,

Anymore options?

Its pro and con to buy a completed with immediate rental vs buying under con and hold further. I ain't that pro in both props you mentioned but I share a bit ...

You can see above, to buy a RM 600k subsales, you need a upfront cash of RM 100k and for under con like MR1, RM 20k now and RM 28k ( within 2 years ) plus MOT ( if TMS does not cover it ), you have set yourself a mode of capital appreciation play, rental + cap appreciation play in lowest modal, cash on cash return.

UT might be a bit old, and since 2009-2012 is a property bull run, most of the good prop had appreciated from min 50% to 100% or even more, but how does this UT performed over the past 3 years? Did it hit 30-50% btw 2009-2012 period? In terms of rental, it looks more solid than Rawang, very certainly, but apple to apple comparison, how much UT can go upon 2015 ( the period MR1 completes ) or 2017 ( 2 years after MR1 completed ) where by 2015-17, the gravity of KV is growing bigger and if the market is going hotter, I suggest any new home buyers would much prefer a new house at adjacent area of say, Damansara, Bangsar South, Puchong, OUG / Kuchai Lama, Bkt Jalil / Sri Petaling as there are plenty of new and good condos available from 2014-15 onwards.

MR1 Phase 3 22x80 is definitely a good house, a new landed is obviously certainly much wow factor than a condo, not to say, an old one. RM 600k+ entry price for a Freehold DSTH bearing the size of 22x80 + 5 is very fair, albeit the location is Rawang / Kundang. I myself personally interested into MR1 previously, but due to timing vs location and catalyst, I did not enter back then. The most tricky way of my found out would be there are total 2 phases of 22x80 within MR1 and Saujana Rawang also has plenty of 22x80, not to say Emerald East and West most houses are nearing / around this size, hence I would feel, the competition of this size houses are huge, the windfall about it would be the location of MR1 is yet to matured by 2015 against Emerald East / West.

The entry price of early buyers for RM 550k ( 22x80 intermediate) is very secured but as a late buyer of RM 697k, you're require to hold. Ex, by 2015, if your the 27x80 is asking at RM 850k, it is a fair asking price based on current trend, but not sure by 2015, I think buyers would weigh in the consideration of what are the options available at such price. In fact, I found not many very good landed of Freehold 22x80 Fenced & Guarded selling around RM 600k, the nearest would be Nukilan 3, Alam Impian from RM 680k. A similar trend of 22x75 new houses easily cost over RM 650k.

IMHO, if you're into good holding power, and look for cap appreciation rather than rental, I suggest landed. MR1 is good, but I predict 2017-18 is a good timing for Rawang to boom off since LATAR Exit should be completed by 2015, MR1 Phase 1 has completed for 3-4 years since 2014, Phase 2 and 3 at 2015, M Avenue in 2015, Corus at 2015, MR2's Phase 1 and 2 at 2016, Saujana Rawang at 2014-15, much elegant Emerald Gardens in 2014, Lakeclub in 2015 as well as Tan & Tan shops at Kundang should be by 2015, BRDB's houses should be by 2016, Sunway - Sunrise high end bungalows at Rawang by 2016/17, SP Setia's Templer JV early phases by 2016.

If you're into cards game, playing with pass and flip at each call, completed property with rental at good location is more decent and looks liquid rather than prediction and forecast game. It offers a call of rental and flip anytime if unable to hold.

For me, I like to mixed both, but much prefer cap appreciation at certain year / target and flip, definitely rent out the prop to protect the cash flow and the unit being vacant horribly. One of my most risky buy, a leasehold condo in Sunway, offers me the best ever rental yield which forms the prop appreciation at certain limit, it's a lot above my expectation. Another so-so location freehold condo offers me a great rental yield but the prop appreciation performance is very slow btw 2009-2012. However, the landed I had, both had difficulty to rent out even at low ROI, but both were the props gave me handsome capital appreciation and power of demand.

MR1 definitely good buy, close to clubhouse, M-Avenue and future commercial development
Agree, 2017 is the good time for Rawang to but 2015 Rawang property is not everyone can afford anymore!
MR Corus very nice and spacious!!!

Corus 68's 40x85 is a truly big size semi-d with built up 3,300 sq feet onwards. The show unit even looks much bigger than 3300 built up with it's layout, high ceiling and design.

It is a good upgrading / choice for the Rawang / it's surrounding folks with the decent price, really envy it. The current location might be a bit tough to attract someone from Shah Alam, Damansara, PJ, Subang or others like me but once the current rapid development in Rawang is matured by 50%, I'd say it could be much different story. Houses here are still affordable compare to the other locations which had the similar distance to KL City, but there were few where the prices had been matching the premium price tag and sold well, I think a Chinese populated area will do well, just in matter of time. It reminds of me old Puchong.

+vely opt 2 is beta...
must thinking hybrid investment...
pj now is better n more better...

+1 still affordable compare to the other locations which had the similar distance to KL City!

Let's patient wait for next quarter, Anggun 3 and Emerald West Bungalow definitely will increase the price tag to another stage!

This post has been edited by 37 Exposures: Apr 14 2013, 06:00 PM

GE is around the corner, wait first?

For property agent, now is the good time for travel!
Japan, not bad!

Hahahahahhaa.. travel for 1 day?

Haha, why property agent? Why Japan?

Go Thailand see ah gua..

Best travel period and yen now very cheap!!!!!

Rest is to prepare for the longer and better journey ahead

Bangkok not bad also, after go there, you will know how cheap is KV property and how easy for foreigner buy property and get loan in msia!!!

Haha.. Later property same like gold price now.. All will wait and wait.. Now WWW first lo.. See ppl SSS or BBB also WWW first.. Gold suppose to be a value item but now also... zzzzz

I viewed the properties ( service apartment / condos ) at Bangkok before, I believe the concept at Bangkok are very good and KV has no fight at all currently.

The only difference would be, most of our condos in KV comes with larger size and larger land with more spaces for the facilities, as well as much cheaper if we using prime to prime location for comparison.

I like the idea of compact land size, say only 1 acre on a prime area with good accessibility, ground floor being as car park and main entrance, facilities at 1st and 2nd floor, and low rise ( up to 10-12 storey ) condo with decent price and very much better quality. This same goes to HK as well. Easy to maintain and security is very well to organize.

Yes, build on a small land which close to BTS or MRT and build up usually <1000sf & 2r2b
Facilities and building outlook just normal but with grand lobby & nice landscaping..
Some even half of the serviced apartment rent for tourist and ground floor rent for restaurant, cafe or social bar

Thanks a lot for sharing yr experience


It was MR2 first week launching, when I kept my eyes on both MR1 phase 3 & MR2.
But due to it was my 2nd and last bullet, I thought I wanted to go for a bigger one = MR1 (beginners' mindset )

Very good points to ponder:
1. Surroundings projects also offering similar 22x80
2. timing and catalyst - Latar completed 2016, MR1 which completed in 2015 required to hold longer to see effect
3. MR2 would seems more affordable with smaller size

Chris kor, more points to add?

I also wonder why TS never consider emerald? Better than M residence imho. Anggun more expensive due to bigger size

wah, brother u also pay attention on Rawang's property?

Boss, hmm, mind elaborate why 2nd unit and wanted to go for bigger one? In terms of size or price?

I think the only point I can add now would be easily ;
4) Timing - The timing of buying now for RM 697k before 8% discount ( or RM 641k ) is a lot higher than early buyers. The timing of completion, early buyers can shout for lower price but you can't. Short term, you require to hold min 2 years after VP.

Your cost would be RM 641k + 5k ( loan stamp duty ) + RM 28000 ( progressive interest of say, 4.5% based on 90% loan ) + RM 15k and above ( potential 2% agent fee upon sub-sales ) + RM 20k ( S&P cost for above RM 750k ) = RM 708k, the cost before recurring cost in bank loan penalty ( if you flip before lock in expired ) and 10% RPGT. I think you must wait for min RM 800k asking price to see some little profit.

I unable to predict RM 850k is do-able or not by 2016, but it just require a matter of time.

yeah but investment wise, i think it is better.

My eyes are always open to search for any good properties bro. Just like you, bro

I agree that EW has a proper and better location. If not, M Residence would sell even much higher due to Mah Sing, with clubhouse, F&G, lake as well as much modern facade.

But for EW, I only prefers premium linked house of Emerald Gardens ( comparable with Lakeclub Residence ) or Anggun, which is semi d and only able to draw a comparison with M Residence 's Corus 88 which price tag is much similar.

Yes, seldom hear people compare between M-Residence and Emerald West project to project...
If compare, MR1&2 should compare to EW which project???

EW is not G&G but F&G
EW no club house but with a big lake at the centre, free of charges, open to public as well

Club house in EW is in the planning stage now, most probably they will announce it in their next zero lot launching.
The club hse is closed to the Zero Lot and Emerald Garden, opened to all EW residences, but not compulsory. The lake in the center, the sales said want to beautify and make it like Waterfront City like in DPC. Hope they not just talk only.

Yeah, Emerald Garden's 26 x80 Type B & C looks very delicious, walking distance to Chinese school, and location much better than Lake club Residence. The latter DA Land is a new developer, heard the owners are in their early 30s, first project, even the name of the company DA Land has been changed 3 times, before it became DA Land. No track records, and outsource real estate negotiators to conduct sales.

TS, university tower. period.

duplicate

This post has been edited by AMINT: Apr 15 2013, 10:43 AM

wah u made it sounds so tempting. when will the clubhouse open ya?

Good. Let's continue it in a new thread open by AMINT.
http://forum.lowyat.net/topic/2774595

Kochin kor,

Why UT leh? Mind to clarify? (e.g. MR1 unable to perform during property market that time? Timing? etc )

On COCR basis, I need to fork out relatively huge chunk of advance money, near to 100k.
By the time I fork out the same amount of cash , I think MR1 will provide greater returns.

Of cuz, my game play would be totally different if I go for UT, most likely that I want to hold it long term.
For MR1 I afraid I'm won't keep it for >2 years upon VP.

i think pj one is safe side

Rawang property boom spreads towards Tasik Puteri >>

http://www.starproperty.my/index.php/artic...an-tasik-puteri

Couldn't agree more. Bigger Profit = Higher Risk

not only calculating profit wise but aso in all aspect with that kinda money pj is sife side..

Thanks for sharing!
Starproperty quite efficiency, hope soon can come out some reviews about Anggun and Emerald West!

Boss, Ascott Hill located at Sg Buloh's prime area of Bkt Rahman Putra, definitely better and much matured location compare to M Residence's Rawang aka Kundang.

But is this 2 1/2 storey or 2 storey only? The attached unit is quite nice based on the huge renovation but seems a little bit old, but major thing could be, smaller foot print if drawing a comparison against much spacious Corus 88, albeit sacrifice location for much newer township and newer house / facade.

I was told by my friend from BRP, it should be worth around RM 720-800k and if reach above RM 800k would be take time to sell. Anyhow, BRP is a good area of Sg. Buloh ...

I bet NEW Rawang will be the next booming area to be considered. With AEON as the catalist, sure this area is the best place yo stay.

Of course PJ better, why still need to compare?

Better to stay & relax environment. Not compare the infra.