Sifu-sifu pls advise, any profit made? Regardless of lawyer, loan n maintenance fees paid.

Bought a subsale condo at RM450k 4 years ago for own stay with monthly installment of RM2000. Now sold at RM550k.

Me chinaman, look at cashflow only. How much money you come out when you buy ? include all cost like lawyer, etc

How much you paid to bank during 4 years ? Also expenses like quit rent, assessment, maintenance fees

How much you receive when you sell the house ? (after pay back to bank, lawyer, agent fee, RPGT etc)

Subtract all your cost against what you receive, then you know you make profit or not

Do update us after you have calculated

Actually I don't understand what's the question from him

Ignore him

Don't guess, obviously it is.
Appreciate to share some experiances in selling, pls walk if not willing to share. Tq.

This is very helpful for my calculation. Tqvm bro!

I dun see any problem with this property

Acquisition price = RM450K
Disposal price = RM550K
Cash = RM45K (assume)
Loan = RM405K

Acquisition Cost :-
1. Legal fees + disbursement (SPA 450K) = RM3,700 (inc 6% GST and 30% dis))
2. Stamp Duty (MOT) = RM8,000
3. Legal fees + disbursement (Loan 405K) = RM3,700 (inc 6% GST and 30% dis)
4. Stamping fees (Loan Agreement) = RM2,025
5. Processing fees = RM150
6. Valuation fees = RM900

Disposal Cost :-
1. Legal fees + disbursement (SPA 550K) = RM1,000 (assuming you do not appoint lawyer)
2. Agent professional fees = RM11,660 (inc 6% GST)
3. RPGT = RM7,500
4. Bank total interest = RM69,355

Other hidden cost :-
1. Renovation cost = RM20,000 (for fixture items only, you can't reimburse)
2. Cash 45K FD rate = RM5,400
3. Quit rent = RM120
4. Assessment = RM6,000
5. Maintenance fees + sinking fund = ?
6. Fire insurance = ?

** Early settlement penalty - Any??

Grand Total = RM132,010


You stays for 4 years free, assuming the rental for fully furnished is RM1,800, then you earn (or save rental of) 86,400
Profit / loss = RM (550,000 - 450,000 - 132,010 + 86,400) = RM54,390

This post has been edited by UFO-ET: Sep 14 2013, 02:51 PM

Nice one! COCR how much ah?

This post has been edited by bukithot: Sep 14 2013, 03:44 PM

COCR negative lah
If own stay - cash flow -32,010
Indeed I forgot to factor in the maintenance fees, thus return is lower

This post has been edited by UFO-ET: Sep 14 2013, 02:49 PM

My calculation

Cashflow out = RM45000
Acquisition cost = RM3700 + RM8000 + RM3700 + RM2025 + RM150 + RM900 = RM18475
Disposal cost = RM1000 + RM11660 + RM7500 = RM20160
Staying cost = RM20000 + RM120 + RM6000 = RM26120
Bank installment = RM2000 x 48 = RM96000

Total cashflow out = RM205755 ~ RM206000

Sales proceed = RM550000
Loan balance after 4 years (interest rate 4.3% 30 year loan) = RM376000
Net cashflow in = RM174000

Profit/Loss = RM174000 - RM206000 = -RM32000 loss

Very bad investment especially if bought just 4 years ago at the start of property boom like bro 661188 said. TS can only blame his bad luck if this is really a true case study. Sounds more like a Finance 101 exam question to me

but he said regardless of lawyer fees paid right?

Really SALUTE UFO sifu! Respect!
This give me very clear picture on selling property calculation!
Super thank you very much!

Yes it is a bad investment unless rented out compared to own stay! Tqvm!

It is back to square, if you rent out this unit, you collect extra 86,400 (excl maintenance fees), at the same time you need to rent fr other (for yr own stay)
In my opinion, you are not in the worse situation, during this period of time (2009-2013), I would say 50% of the condos perform better than yrs, 30% is like yr scenario, 20% is indeed worse than yrs

If you calculate like that, then buying car is not a bad investment already. If you don't buy a car, you got to rent a car anyway. If you take rental into account, then buying a car is not that bad after all

For me earn extra RM1 and save extra RM1 is the same.
When we look into profit point of view, rental is definitely part of the P&L element.

I agree rental should be taken into account if the property is for investment (with a view to earn rental). But I disagree if it is for own stay. I don't think we should take opportunity cost of rental into account.

For own stay, it is the same as buying a car for own use. Both are a necessity. If you take the opportunity cost of house rental into account, then you should also take car rental cost into account. If that is the case, buying a car is giving profits because as you said "earn extra RM1 and save extra RM1 is the same"

But I agree to your disagreement

Have you sold your unit? As mentioned by sifu here, COCR is negative wor. Upgrade to a new one?

+1

Please also include value for safety of life and convenience... I think become profit.