Oct 7 2014, 12:15 AM
QUOTE(ixus @ Oct 6 2014, 10:18 PM)
Dear all the Taiko's,
I would like to seek for your advice on the investment strategy for this property. This is undeniable that this property is very attractive due to its low entry price compared to market value in Bukit Jalil. I am a short term investor and prefer to sell the condo upon completion.
The following is my simple yield calculation, please advise and correct me if i am wrong.
Investment Option 1: Park Hill Bukit Jalil
a) Value Gain
Purchasing Price: 550,000
Selling Price at 2018: 750,000
Gain = 200,000
Investment Cost
Downpayment: 80,000
Progressive Interest: 10,000
Total Cost = 90,000
Investment Yield = (Gain - Cost)/Cost = 122%
Investment Option 2: Symphony Residence Kajang
a) Value Gain
Purchasing Price: 330,000
Selling Price at 2017: 400,000
Gain = 70,000
Investment Cost
Downpayment: 5,000 (approximately 10% rebate)
Progressive Interest: 9,000
Total Cost = 14,000
Investment Yield = (Gain - Cost)/Cost = 370% !!!
So from the calculation above, I feel that we should go for investment with downpayment rebate. Yes it is true that nowadays goverment has been banned the developer to offer downpayment rebate, but yet you still can see that there are alot of such rebate offers available in the market.
Hope for the advice from all the sifu at here. I am just a new potato in property investment
Hmm, I reckon u r using my way of Cash on Cash Return or COCR. Some investors used COCR or some using ROI. I used both anyway. I would like to seek for your advice on the investment strategy for this property. This is undeniable that this property is very attractive due to its low entry price compared to market value in Bukit Jalil. I am a short term investor and prefer to sell the condo upon completion.
The following is my simple yield calculation, please advise and correct me if i am wrong.
Investment Option 1: Park Hill Bukit Jalil
a) Value Gain
Purchasing Price: 550,000
Selling Price at 2018: 750,000
Gain = 200,000
Investment Cost
Downpayment: 80,000
Progressive Interest: 10,000
Total Cost = 90,000
Investment Yield = (Gain - Cost)/Cost = 122%
Investment Option 2: Symphony Residence Kajang
a) Value Gain
Purchasing Price: 330,000
Selling Price at 2017: 400,000
Gain = 70,000
Investment Cost
Downpayment: 5,000 (approximately 10% rebate)
Progressive Interest: 9,000
Total Cost = 14,000
Investment Yield = (Gain - Cost)/Cost = 370% !!!
So from the calculation above, I feel that we should go for investment with downpayment rebate. Yes it is true that nowadays goverment has been banned the developer to offer downpayment rebate, but yet you still can see that there are alot of such rebate offers available in the market.
Hope for the advice from all the sifu at here. I am just a new potato in property investment
U forgot to add in the cost of
1) Progressive interest is diff for a 3 v 4 years project. Same goes to low floor vs high floor.
2) You didnt stated ur loan amount but I assume 90% bcz u looking for project with rebates. If this is the case, RM 10k progressive interest is quite low for a 42-48 months highrise.
3) Cost of S&P upon disposing the property
4) Cost of agent fee upon disposing the unit
5) Cost of RPGT, the most important figure if u r the type of flip immediatelt upon VPed.
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