QUOTE(safewatch @ May 22 2016, 12:15 AM)
Sorry samkps bro. The 750k calculation is inclusive of the capital outlay too if u get what I mean.. cuz given the situation where u wanna dispose in 5 years time.
First 10% = 50k
550k (90% ltv) = 500k
5 years holding = 2500 x 60 = 150k
Misc cost (furnishings, lawyer fees and stamp duty upon disposal) = 50k
Take home profit = 50k (may be adjusted accordingly to individual preference)
Total = 800k
*I revise the figure to 800k now. Forgot to include the first 10% of 550k
Of cuz that's assuming if the unit is not rented based on the current near term supplies. I may be wrong but the scenario above sets as a very simple reference only.
Do you have any idea when I seh 1 phase 2 commies or ew silver square commies gonna launch? Wanna que for it this time. Tq
SPA price: 553k
Downpayment: 55.3k
Loan (90%): 497.7k
Let say you get a loan for 35 years with a loan rate 4.5%, monthly installment is 2355.40.
You service the loan for 5 years: 2355.40 X 60 = 141,324 .
Out of this 141,324, interest charged is 108,488, while 32,836 will be used to pay the principle.
The outstanding loan after 5 years is 464,865.
Total investment you have put in: 55.3k (downpayment) + 108, 488 (interest charge) + 32, 836 (loan principle) = 196,624
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After 5 years upon completion (~ 7 years), you decide to sell the property at 750k.
So, the gross profit: 750k – 464,865 (loan) = 285,135
Misc charges incurred: 50k (this is assume you pay the MOT (not absorbed by Setia), otherwise normal charges would be only legal SPA (~ 10k) + agent fees (~15k). Assessment, quit rent, utility bills sum up should be less 3k)
The gross profit after misc charges = 285,135 – 50k = 235,135
The net profit: 235,135 – 196,624 (initial outlay) = 38,511
This assumes you let the house vacant for 5 years without any tenant.
By the way, not sure about when the next phase of commie in SEH 1 is going to launch, but the ecohill walk plan definitely already in the pipeline.
This post has been edited by samkps: May 22 2016, 01:19 AM