cash-on-cash basis.. it's like 11.8% (nett off bank loan, maintainance charges, taxes & insurance).. denominator is the capital that i put in.
i've been approached a few times, on offered to buy up the unit.. i'm working out a viable model so that eventually, any buyers will still be able to make a decent rental income after sale closure..

on the side, i do have a dilemma.. to sell or to keep it going? my equity buildup is pretty slow.. average about $150/month.. (but i considered it as bonus.. it's like the tenant is contributing additional to the unit for me on monthly basis)

if i let go at the last successful transacted price of a similiar unit.. i shall pocket about $90K(nett) after closing my loan and factoring in 1% about closing cost.. and holding period is 3-years.

if the unit approaches back to its initial developer price.. the nett profit will exceed $100K.. so you can see, it's just a few percent more appreciation to go.. (so the saying "profits are made when you buy, not when you sell" really rings relevant here.. my advantage is not at selling, but at entry to this unit)

the problem with selling is.. i will loose a very good rental income.. but should i hold.. i will have to consider other dynamic factors hovering currently. interest risk and market risk.

anyhow, i will have till the end of this year to decide..
btw, should i sell.. will only then i might consider revealing the unit.. but it's a business transaction.. not some kopi-tiam chatting here.

lwb/vreis

Thanks for sharing the fact about Kepong. I am going for own stay.

What do you think of Laman Rimbunan gated/guarded community with 3 storey (22x75) cost at 500k being develop in Kepong Central.

It comes with plaster ceilling for all floors, fully built using clay brick, wall finishes upto ceilling for kitchen and for all bathrooms. It has 6 rooms and 5 bathrooms. No fencing as all built with bricks front and back. View is Kepong KL Metropolitan Park Lake.

Kepong has all below facilities

govt offices (jpn, epf, pos, tnb, jpj,)
banks (ocbc, hsbc, stanchart, rhb, maybank, alliance)
hypermarket (careffour, jusco)
shops
restaurants (number of food court)
school (3 chinese schools and govt schools)

My place to laman Rimbunan only 5 mins but too bad I can't afford it. As far as I know, A friend bought a unit there, cos he found that a similar unit in DPC cost almost 200-300K more. The 1st phase should be cost around RM400K. Anyway I really love this area as I grew up here & kinda attached to it.
The only downside is the traffic congestion. As you can see further up LR, there are blocks of shophouses still under construction, the traffic is going to be like those shophouses around Carrefour or worse.

i m using similiar calculation tht u r doing oso , rental after deduct all expenses/total capital put in x 100%, but mine only about 7% return , with the option of increasing rental 10% after end of 1yr contract.

haha, tempted to get ur unit if it is within my budget n if u r letting go...hehehe

thanks for sharing...

lwb/vreis

Thanks for sharing the fact about Kepong. I am going for own stay.

What do you think of Laman Rimbunan gated/guarded community with 3 storey (22x75) cost at 500k being develop in Kepong Central.

It comes with plaster ceilling for all floors, fully built using clay brick, wall finishes upto ceilling for kitchen and for all bathrooms. It has 6 rooms and 5 bathrooms. No fencing as all built with bricks front and back. View is Kepong KL Metropolitan Park Lake.

Kepong has all below facilities

govt offices (jpn, epf, pos, tnb, jpj,)
banks (ocbc, hsbc, stanchart, rhb, maybank, alliance)
hypermarket (careffour, jusco)
shops
restaurants (number of food court)
school (3 chinese schools and govt schools)

don't give up(look down) on your current yield of 7%.. rental can be grown and over the pass 3 years.. my rental has grown 18.75% from RM 1.8k to RM 2.1k.. i had a lock-down deal of 2 year tenancy agreement for this RM2.1k. upon expiring.. i'm planning to float it to RM2.2k (that's the on going rate on a similar unit).. the keyword here is.. grow your rental (it's not static)

mate,

let me get this straight, your current rental p/m now is 2.1k, and your monthly nett income from this property is RM150, right?

aahhh... i can sense your passion through your description of this said property.. i believe, even without our answers.. you already have an answer within you, right? 

i can't deny the the fact that the emotional needs can be strong when it comes to our own place to stay.. clay bricks, hhmmnn... how nice.

well, just one question for you dr luv.. that 500 grand is one expensive commitment.. i can sense that perhaps an additional of +/- 100 grand (total 600k) will be added to it.. the 100 is for furnishing.. are you ready for such extensive commitment?

if yes.. i don't see why not.. i'm not entitled to criticized what one's termed as 'home, sweet home'..
what's the build-up, if you don't' mind me asking.. exceeds 2500 sqf?

your conveniency-checklist looks pretty good too.. banks, shopping, eateries, etc.. do you feel safe at that area?
have you tried taking a slow drive at that place at night? or take a walking stroll.. you can see/feel more of the neighbourhood if you do so.. that's one of my due-diligence when assessing a property (don't just rely on printed medias)

i think conjestion is a major problem anywhere in KL. You cant escape this problem even if you are paying 200k more for DPC or SPK properties.

And while the contruction of shophouses may be negative factor TODAY, Im quite sure LR will enjoy a good upside once the commercial area matures 

My place to laman Rimbunan only 5 mins but too bad I can't afford it. As far as I know, A friend bought a unit there, cos he found that a similar unit in DPC cost almost 200-300K more. The 1st phase should be cost around RM400K. Anyway I really love this area as I grew up here & kinda attached to it.
The only downside is the traffic congestion. As you can see further up LR, there are blocks of shophouses still under construction, the traffic is going to be like those shophouses around Carrefour or worse.

mate,

let me get this straight, your current rental p/m now is 2.1k, and your monthly nett income from this property is RM150, right?

well, i didn't exactly said.. renovation.. i specifically refered to furnishing.
+3000 sqf is huge (contributed by the additional level).

just becareful with your furnishing expenses.. alot of people get carried away with it (myself including)

Read your post somewhere, and remembered you mentioned RM150, which doesnt make any sense to me if your yield is 11%.

RM250+- should be the ball park figure I suppose.

Such a huge place, if put in lesser furniture, it'll look empty. On the other hand if put in substandard furniture, it won't look nice. Yeah, it's a delicate decision.

sorry a lil off track. Just wanna know how are the prices for kepong hses. Thanks.

Hello, if you look around the area there, it is one of the freehold land available. All of them of the housing is in high end one. Bandar Sri Damansara next to LDP caltex petrol station have semi-Ds coming, an empty land behind the seafood area in Bandar Menjalara is to be develop to semi-Ds, by SPK. That part of area is next to Mutiara Damansara and Country height Damansara.

Its quite huge. Now I am thinking why do I need such a big place and 5 + 1 room ? when its only and my newly wed wife going to move in.

master room = sleep
bedroom 1 = child 1
bedroom 2 = child 2
bedroom 3 = ?
bedroom 4 = ?
maid room = no maid yet ?

Its going to empty with echo sound each time we converse. Any idea what can I do with the rooms.

---

Added on October 3, 2007, 6:34 pm

New house or 2nd house ? landed property or condo ?  A bit more info can filter our answers.

cash-on-cash basis.. it's like 11.8% (nett off bank loan, maintainance charges, taxes & insurance).. denominator is the capital that i put in.
i've been approached a few times, on offered to buy up the unit.. i'm working out a viable model so that eventually, any buyers will still be able to make a decent rental income after sale closure..

on the side, i do have a dilemma.. to sell or to keep it going? my equity buildup is pretty slow.. average about $150/month.. (but i considered it as bonus.. it's like the tenant is contributing additional to the unit for me on monthly basis)

cash-on-cash basis.. it's like 11.8% (nett off bank loan, maintainance charges, taxes & insurance).. denominator is the capital that i put in.
i've been approached a few times, on offered to buy up the unit.. i'm working out a viable model so that eventually, any buyers will still be able to make a decent rental income after sale closure..

on the side, i do have a dilemma.. to sell or to keep it going? my equity buildup is pretty slow.. average about $150/month.. (but i considered it as bonus.. it's like the tenant is contributing additional to the unit for me on monthly basis)

if i let go at the last successful transacted price of a similiar unit.. i shall pocket about $90K(nett) after closing my loan and factoring in 1% about closing cost.. and holding period is 3-years.

if the unit approaches back to its initial developer price.. the nett profit will exceed $100K.. so you can see, it's just a few percent more appreciation to go.. (so the saying "profits are made when you buy, not when you sell" really rings relevant here.. my advantage is not at selling, but at entry to this unit)

the problem with selling is.. i will loose a very good rental income.. but should i hold.. i will have to consider other dynamic factors hovering currently. interest risk and market risk.

anyhow, i will have till the end of this year to decide..
btw, should i sell.. will only then i might consider revealing the unit.. but it's a business transaction.. not some kopi-tiam chatting here.