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> SUNWAY VELOCITY | V RESIDENCE 2, [MRT PROPERTY]

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HereToLearn
post Dec 26 2020, 09:07 PM

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QUOTE(cy91 @ Dec 26 2020, 08:39 PM)
2.8% is still a good number considering the interest rate is only 2.95% nowadays.. As long as the property appreciate 1% u are still good
*
IF it appreciates, it is still downtrending now bye.gif.

Also with other better and highly liquid investment opportunity out there, most people would choose to rent instead of buying one at a 2.8% yield. Other investment out there can easily beat this yield.
AskarPerang
post Dec 26 2020, 10:01 PM

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Here's the lelong unit details.
Drop from 1.1M.
Now at 3rd round auction.


VR2-03A-12, V Residence 2
Reserve price 🔥🔥RM 891,000🔥🔥
Freehold
1211sqft
2 car park lot
Auction: 06-Jan-2021 (Wed)


Anyone able to get the layout of this unit? Coz stated 2 bedroom unit in the POS. 1200sqft come with 2 bedroom only?
Or is duplex?
ryan@chua
post Dec 26 2020, 11:09 PM

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QUOTE(HereToLearn @ Dec 26 2020, 07:23 PM)
Agreed, rental 2.1 psf, maintenance fee .35 psf.

Net rental yield = (2.1 - .35)*12/735 = 2.8%. RIP investors console.gif
*
Rip
Property investment already not a good investment in Malaysia for many yrs. Tesla share up how many % a Yr.
Still no count in opportunity cost. Lol
DesRed
post Dec 27 2020, 10:07 PM

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QUOTE(HereToLearn @ Dec 26 2020, 09:07 PM)
IF it appreciates, it is still downtrending now bye.gif.

Also with other better and highly liquid investment opportunity out there, most people would choose to rent instead of buying one at a 2.8% yield. Other investment out there can easily beat this yield.
*
Could you explain how yield factors into purchasing a property for your own-stay?

Or is the yield between other investments vs investment property?

This post has been edited by DesRed: Dec 27 2020, 10:08 PM
michaelchang
post Dec 27 2020, 11:07 PM

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QUOTE(HereToLearn @ Dec 26 2020, 06:23 PM)
Agreed, rental 2.1 psf, maintenance fee .35 psf.

Net rental yield = (2.1 - .35)*12/735 = 2.8%. RIP investors console.gif
*
Good calculation, many young investor takes maximum loan and some even took compressed loan for investment property.


Every month yield 2.8% but need to pay loan interest above 3% (long term) + risk of not being able to rent out + paying income tax for rental

most of them are bleeding every month, it's just a matter of when, they bleed until dry while waiting for that elusive 1% increase in value that property agent promised, when in actual fact, property price is on the decline

in 5 years, it will be very lucky to be able to sell at 90% of purchase price given the high entry price of this property
HereToLearn
post Dec 27 2020, 11:20 PM

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QUOTE(DesRed @ Dec 27 2020, 10:07 PM)
Could you explain how yield factors into purchasing a property for your own-stay?

Or is the yield between other investments vs investment property?
*
For own stay, if one is not in a hurry to buy a house for wedding or whatsoever, one would be better off renting than buying at current condition due to the low rental yield.

Why? Because one can get better return elsewhere, and use the return to pay for rent (with additional cash).

For example, ASB and buying this lelong unit
ASB just paid 4.25% this year.

Return from ASB = 42500 (RISK FREE)
Rental = 28000 (2.8% net rental yield using the lelong unit case above, non-lelong units will be worse at the moment)
Net earnings = 14500

If I had the money (e.g. 1m) to choose between buying and renting, I would all-ined into ASB, and use the return to rent instead of buying (please keep in mind we havent include the miscellaneous cost e.g. lawyer fee, stamp duty, MOT, wear and tear into consideration).

People keep saying property investment is for long term. Yes, I agree, but if our entry price is fcked up, it is not a wise investment decision.
Property investment is no longer attractive because of too many 'gurus' in the past selling the quick-to-rich dream to the public and indirectly jackuping the market prices so much. But again, the market price is the price you pay not the value you get.

To get value properties,
- for cash buyers, the net rental yield would need to be AT THE VERY LEAST higher than risk free investment like ASB. So in this case, 4.25% (after including all the miscellaneous fee mentioned above + furnishing). To simplify, a property is a value buy if the gross rental yield is 7% - with the assumption that the rental rate doesnt drop further from here. According to my case studies, rental rate in my studied area has been decreasing since 2016. So, to be more conservative, what a value investors should aim for is a minimum of 8% gross rental yield.
- for loan buyers, god bless you if you are highly leveraged

PS. I do not include capital appreciation into account because there are more supplies than demand now in the market. Overhang issues are getting worse, I do not foresee property to appreciate in the near future especially when most property investors (flippers and landlords) are feeling the heat.
- flippers cannot flip due to prices inching downwards (when they cannot flip, the only way out is to rent or dispose it at lower price, most people would choose to rent if possible, and if thats the case, all flippers become landlords; this increase the supply to the rental market, and further reduce the rental rate and yield)
- landlords have to topup to cover the gap between the loan and the rent
HereToLearn
post Dec 27 2020, 11:23 PM

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QUOTE(michaelchang @ Dec 27 2020, 11:07 PM)
Good calculation, many young investor takes maximum loan and some even took compressed loan for investment property.
Every month yield 2.8% but need to pay loan interest above 3% (long term) + risk of not being able to rent out + paying income tax for rental

most of them are bleeding every month, it's just a matter of when, they bleed until dry while waiting for that elusive 1% increase in value that property agent promised, when in actual fact, property price is on the decline

in 5 years, it will be very lucky to be able to sell at 90% of purchase price given the high entry price of this property
*
Yeah, after researching here and there, I have decided to keep renting until
- property price falls until the rental yield is sensible OR
- rental rate rises until it is no longer worth it to rent
Since there is no short of rental supply, option 1 is the way to go
Babizz
post Dec 28 2020, 07:57 AM

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QUOTE(HereToLearn @ Dec 26 2020, 04:23 AM)
Agreed, rental 2.1 psf, maintenance fee .35 psf.

Net rental yield = (2.1 - .35)*12/735 = 2.8%. RIP investors console.gif
*
Still wonder how u calculate RM2.1psf rental in velocity. Can show or refer me to any agents with ACTUAL units renting at 2.1psf? Please post the link here AFTER confirming with the agent that such units exist.

Kamsiah.
HereToLearn
post Dec 28 2020, 08:48 AM

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QUOTE(Babizz @ Dec 28 2020, 07:57 AM)
Still wonder how u calculate RM2.1psf rental in velocity. Can show or refer me to any agents with ACTUAL units renting at 2.1psf? Please post the link here AFTER confirming with the agent that such units exist.

Kamsiah.
*
Morning, I did not call the agents to confirm the prices, just a rough calcs from the available listings online
I simply just searched property guru website and arranged it from low psf to high psf, and chose the lower ones
I clicked into this https://www.propertyguru.com.my/property-li...-leong-31424615

Apart form the link I sent above, there are still a lot of units with psf close to 2.1
- V suites has one at 2.25 psf fully furnished (2.25-.35)*12/735 = 3.10%
- V residence 2 has 3 listings at 2.27 psf partially furnished (2.27-.35)*12/735 = 3.13%

There are more at 2.35 psf, which gives 3.26%.

Unless all of the above are fakes, then the rental yield will be higher than 3.26%

panda@KL
post Dec 28 2020, 12:35 PM

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QUOTE(HereToLearn @ Dec 28 2020, 08:48 AM)
Morning, I did not call the agents to confirm the prices, just a rough calcs from the available listings online
I simply just searched property guru website and arranged it from low psf to high psf, and chose the lower ones
I clicked into this https://www.propertyguru.com.my/property-li...-leong-31424615

Apart form the link I sent above, there are still a lot of units with psf close to 2.1
- V suites has one at 2.25 psf fully furnished (2.25-.35)*12/735 = 3.10%
- V residence 2 has 3 listings at 2.27 psf partially furnished (2.27-.35)*12/735 = 3.13%

There are more at 2.35 psf, which gives 3.26%.

Unless all of the above are fakes, then the rental yield will be higher than 3.26%
*
Just my 2 cent, usually iproperty or property guru listing rental are marked up price. The final price is usually 10 - 15% lower.

Of coz, some ppl who dont know can nego, will follow the price only.

Thus, may put that into consideration for your uncertainty.
HereToLearn
post Dec 28 2020, 01:14 PM

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QUOTE(panda@KL @ Dec 28 2020, 12:35 PM)
Just my 2 cent, usually iproperty or property guru listing rental are marked up price. The final price is usually 10 - 15% lower.

Of coz, some ppl who dont know can nego, will follow the price only.

Thus, may put that into consideration for your uncertainty.
*
Thanks for sharing smile.gif

Then the calculated rental yield should be lowered by 10-15% as well. More reasons not to buy any properties now. The overall property market is too overvalued
ZackQ
post Dec 29 2020, 02:17 PM

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QUOTE(HereToLearn @ Dec 27 2020, 11:20 PM)
For own stay, if one is not in a hurry to buy a house for wedding or whatsoever, one would be better off renting than buying at current condition due to the low rental yield.

Why? Because one can get better return elsewhere, and use the return to pay for rent (with additional cash).

For example, ASB and buying this lelong unit
ASB just paid 4.25% this year.

Return from ASB = 42500 (RISK FREE)
Rental = 28000 (2.8% net rental yield using the lelong unit case above, non-lelong units will be worse at the moment)
Net earnings = 14500

If I had the money (e.g. 1m) to choose between buying and renting, I would all-ined into ASB, and use the return to rent instead of buying (please keep in mind we havent include the miscellaneous cost e.g. lawyer fee, stamp duty, MOT, wear and tear into consideration).

People keep saying property investment is for long term. Yes, I agree, but if our entry price is fcked up, it is not a wise investment decision.
Property investment is no longer attractive because of too many 'gurus' in the past selling the quick-to-rich dream to the public and indirectly jackuping the market prices so much. But again, the market price is the price you pay not the value you get.

To get value properties,
- for cash buyers, the net rental yield would need to be AT THE VERY LEAST higher than risk free investment like ASB. So in this case, 4.25% (after including all the miscellaneous fee mentioned above + furnishing). To simplify, a property is a value buy if the gross rental yield is 7% - with the assumption that the rental rate doesnt drop further from here. According to my case studies, rental rate in my studied area has been decreasing since 2016. So, to be more conservative, what a value investors should aim for is a minimum of 8% gross rental yield.
- for loan buyers, god bless you if you are highly leveraged

PS. I do not include capital appreciation into account because there are more supplies than demand now in the market. Overhang issues are getting worse, I do not foresee property to appreciate in the near future especially when most property investors (flippers and landlords) are feeling the heat.
- flippers cannot flip due to prices inching downwards (when they cannot flip, the only way out is to rent or dispose it at lower price, most people would choose to rent if possible, and if thats the case, all flippers become landlords; this increase the supply to the rental market, and further reduce the rental rate and yield)
- landlords have to topup to cover the gap between the loan and the rent
*
I am pretty sure those who had 1m cash will not all in ASB
HereToLearn
post Dec 29 2020, 02:38 PM

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QUOTE(ZackQ @ Dec 29 2020, 02:17 PM)
I am pretty sure those who had 1m cash will not all in ASB
*
Just a case study showing, how no brain needed investment like ASB can easily beat property investment now IF the entry price for property is bad

Of course, no one will all in ASB, ASB return is so low. There are much better ways to make money. There are a lot of relatively risk free investment that give you a return of 6% out there wink.gif

This post has been edited by HereToLearn: Dec 29 2020, 02:41 PM
Jagalat
post Dec 29 2020, 03:45 PM

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QUOTE(HereToLearn @ Dec 29 2020, 03:38 PM)
Just a case study showing, how no brain needed investment like ASB can easily beat property investment now IF the entry price for property is bad

Of course, no one will all in ASB, ASB return is so low. There are much better ways to make money. There are a lot of relatively risk free investment that give you a return of 6% out there  wink.gif
*
Care to give as many examples (relatively risk free with 6% return) as you can think of? Thx
HereToLearn
post Dec 29 2020, 04:52 PM

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QUOTE(Jagalat @ Dec 29 2020, 03:45 PM)
Care to give as many examples (relatively risk free with 6% return) as you can think of? Thx
*
Buy undervalued stocks with more than 6% upside (dont follow analyst TP, do your own homework) or buy counters with consistent 6% DY?

Try not to go for those that are actively discussed because it means that there's already a lot of attention on tjem (most prolly they are already fully valued due to crowded trading.
AskarPerang
post Jan 6 2021, 06:45 PM

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QUOTE(AskarPerang @ Dec 26 2020, 10:01 PM)
Here's the lelong unit details.
Drop from 1.1M.
Now at 3rd round auction.

VR2-03A-12, V Residence 2
Reserve price 🔥🔥RM 891,000🔥🔥
Freehold
1211sqft
2 car park lot
Auction: 06-Jan-2021 (Wed)

Anyone able to get the layout of this unit? Coz stated 2 bedroom unit in the POS. 1200sqft come with 2 bedroom only?
Or is duplex?
*
Unit sold at reserve price 891k just now.
Single bidder won unchallenged. thumbsup.gif
Babizz
post Nov 4 2021, 05:53 PM

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QUOTE(AskarPerang @ Jan 6 2021, 04:45 AM)
Unit sold at reserve price 891k just now.
Single bidder won unchallenged.  :thumbsup:
*
Another units same price.good deal.
Babizz
post Apr 21 2022, 09:25 PM

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https://propcafe.net/propcafe-review-sunway...wer-c-d-part-1/
ycamanda P
post Sep 29 2022, 05:08 PM

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Hi , I just found this VR2 chat room. I am owner of VR2, if got private group to discuss VR2 issue, can add me into the group ?

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