Agree. I'm not familiar KL market.
Just compare FREEHOLD only in PG island,
*(i will never touch leasehold property coz no banker willing to loan after left only 60 yrs lease)
*(my banker advise me never touch property outside PG island,like butterwork)
For subsale, the middle class condo range about RM600 per sqft
For new launch,middle class condo like ARTE-S range about RM700 per sqft
I hate paying high price except for value buy.
My concept very simple, i no scare paying high $, just scare It's a liabilities(negative cashflow,keep on outflow my $ from my pocket every month)
So my plan for my new booked ARTE-S as below:
Est. Net Monthly Installment bank loan+Management Fees+Assessment= RM2,000 per month.
Hence, for service apartment price per day= RM350 per day.
==> Lease for 7 days=RM 350 x 7 days=RM2,450
==> RM2,450- RM450(misc charges)=RM2,000
==>Break-even every month
it's legally for service apartment leasing since it's commercial title,freehold.
good location coz walking distance to USM, USM convo hot peak season -Apr,May, Aug,Sept
EXIT PLAN: sell after 10 yrs with target min ROI 500%
Area : 610sqft, hill & seaview, 2R2B, RM442k++
My total investment: 5% booking RM22K++
My target selling price after 10 yrs: RM560K to RM 670KScenario 1
Net Profit after 10 years : RM560k- RM442K= RM118K - 8K for misc charges = Net RM110KROI after 10 years
: RM110k/RM22k = 5x or 500%Scenario 1
Net Profit after 10 years : RM670k- RM442K= RM228K - 8K for misc charges = Net RM220KROI after 10 years
: RM220k/RM22k = 10x or 1000%
If u check service apartment rate around that area, u will know with ARTE-S, new condo, new facilities, good location, it's very conservative can lease RM450-RM600 per day at year 2017
But i just desperate want to break-even, so with RM350, i'm very very comfortable can lease at least 7 days per month, or 3 full month per year to achieve RM0 installment for a period of 10 years.
Wow, a very clear calculation and analysis of Arte S. Do you think tourist will be be renting this for short term? As far as I know apps like Airbnb do catered to Penang's homes, but the pick-up rate is still much slower compared to the other develop countries.
I dont think students would be able to rent that place at 2k a month too which filter out the demographic to only professionals working in Penang, those who seek for lifestyle and peaceful environment.
Still abit challenging athough I totally love the concept! Hehehe.