try not to judge a book merely by its cover alone.. alot of people "looked" rich, but they're highly leveraged..
well, when the fat lady sings.. you'll know who played the fool of trying too hard to be rich..

Last time I checked, its KL.

Really BU was converted from KL address to PJ adress? Weird

they're 2 type of property investment category (that i know of).. forgive my simplicity.

1. investment depended on capital appreciation.
2. investment depended on rental yield.

those exorbitantly priced link houses are usually targeted for capital appreciation folks.. which, imho.. is the most riskiest form of property investment.. i mean, at rm 800k.. the monthly outflow is like a monsoon drain.

until someone realized that it's just crazy to sell it for more.. then the whole scheme will start to crumble..

She says BU is near TTDI which is KL, but then the developers applied for it to convert to PJ to increase the value of the property

BU uptown is definitely under PJ or last time Selangor.
Why, because I used to work in TTDI and every time Selangor holiday we would be complaining and commented that if we are situated on the other side of the main road (LDP) wouldn't it be good.

Understood, but how much rental income proposed for RM800k? It's also a very high risk investment IMHO at least not as high as the 1st one purely speculating on capital gain.

Coming back to the rental income for RM800k properties. How many ppl can really afford the high rental thus jeopardising the income flow. IHMO, property that price are bad for investment but one can treat it as a liability by "own stay" if one really really can afford it. I found that in current market or a lot that comes blindly into property market investment doesn't have the skills to evaluate whether or not the property is worth as an investment tool or not. They simply thought that high priced property meaning high values and high appreciations...thus we see a lot of high priced development being sold faster than the low cost properties.
It wouldn't matter to those that are really really rich but like you said, a lot is just "acting" rich and hoping to get rich that way.
A lot doesn't seem to reliase what you've mentioned.
Sad ain't it....

This post has been edited by b00n: Sep 24 2007, 04:31 PM

well said boon.. well said.

part of the factor that determine a high rental is income/salary of the tenant.
like how some of your good advice of not avocating at spending more than 33% of one's income towards housing..

this rule also applies to rental as well.. so, to break it down (pardon my simplistic view again)

a rm800 - +1M rental properties..

expect to rent out at nearly rm10K/month (that ought to put you in the bracket of 6-8% yield)

apply the 33% rule.. a guy paying a rental of about rm10K/month.. he/she ought to be able to pull in rm30K a month.. (don't forget to take into consideration of the rm8K/month tax this sort of salary would draw)

how many of us here earns a salary/income of nearly rm40K/month and yet willing enough to be a renter?!

see how the odds stacks up against such high properties..

for those of you who avocates that capital appreciation will always go up.. think again. it's not always true.. if you want solid example(not those friend's friends stories) i can give you..

a brewing problem/opportunities(depends on which way you look at it).. is KLCC

@Pai,
Actually, by keeping an active lookout for properties, you're just giving yourself more options:-
1) You'll have sufficient time to see / look into the area you're purchasing
2) You'll know what you want in a house
3) You'll be able to ensure the house is suitable to your need
4) You may have more choices to choose from only because you now can afford something you couldn't afford 3 years ago? *grins*

I don't think it's got anything to do with knowing the estimate sale price [unless it's a developed area we're talking about]

@dzi921,
DPC is under the jurisdiction of DBKL. The LDP marks the border between KL & Selangor. Also BU has always been under the jurisdiction of Selangor, not DBKL.

PS: I find DPC maintenance cost a little too pricey, don't u all think so?

This post has been edited by tinkerbel: Sep 24 2007, 06:25 PM

the credit goes to dreamer101 ....not me...

DPC is under Kepong cause my boss bought in DPC and thier home address comes under Kepong address.

He was ok cause he bought SouthLake at rm480 in year 2003 end. A lot of house for sale in Sunway SPK by agents. Infact Southlake also has 40% house for sale at 650k.

Laman Rimbunan is the cheapest the landed property and also sold out with 10% reserve unit. Now available in Kepong is condo's by Metro Prima.

Sunway SPK new launch is Villa Manja Semi D going for 1.8 mil.

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Added on September 24, 2007, 5:08 pmOh ya, dreamer thanks for the advice. Will keep in mind on 33%.

This post has been edited by dr_luv: Sep 24 2007, 05:08 PM

ah.............KLCC, is a disaster in the making. Upcoming supply is way, way more than demand (Marc and Dua residency owners already feelin' the heat now ) and this is before we event count the incoming supplies of high end condo's in Mont Kiara, Sri Hartamas and Bangsar.

dr_luv,
If you really can afford it than kudos on the property that you bought which pai mentioned is a great deal comparing to other properties in the same area.
Nonetheless, some of us still think the price is on the high side.
But you cannot have the expectation of high appreciations, i.e. it's advisable that you don't treat it as an investment tool since you mentioned it's for own stay. Don't think of how you're going to market your property or how much earnings you'll gain now. Just let it come naturally.
My few long winded posts is just to dissect my views on properties treated as liability and investment tools. One has to know the needs.
Before I forgot, congrates on your purchase!

@billytong,
I wouldn't say DPC is the most prestigious development in KL - i have my doubts if it'll even make it into the Top 10. But if compared to other developments within the Kepong/Manjalara/Jinjang area, it probably tops the list.

Also, most new developments today offer guarded community living with a few offering gated community living. New/current launched Challis townhouses by Sunway Damansara is apparently a gated community; and so is Damansara Lagenda by Mah Sing but do developers or the Management really make the effort to keep it secured and safe or is it mere brochure talk? Is Tropicana considered guarded or gated? Or both? And is implementation of total security really possible or realistic?

My advise to all when looking at developments especially those with promises of being secured and safe due to it being within a gated community, is to also look into the real actual implementation of those promises. It really isn't too difficult (or expensive!) to fence up an entire development and build a security station at the entrance just to sell a few more houses.

Unless benchmarked against Sierramas (Tan & Tan) or Valencia (Gamuda), don't talk to me about safety / security of living within a gated community

Boon, thank you very much.

There is no way for me to join the investment team and this house we purchase for real stay in 20 years. We know its expensive as 500k is alot of money. We used our EPF for downpayment and some savings.

To purchase a unit 15 min distance to and toll free route to KL, we have to pay the price.

At least its far better than SPK and DPC costing at 650k-780k for 2 storey.

But there is one think we like DPC is thier town planning is very good, full of landscape and garden and secured environment.

I guess only the rich can afford. A visit at DPC Gallery make you think you are just an ordinary person from the rest.

how much is the maintaince cost psf at DPC? (did you guys include the sinking fund as well?)

some condos at ampang come with a little over 50cent psf in maintainance!!! i'm paying about 25cent psf..

but these are not ordinary supply here.. exorbitantly priced supplies.. at rm2K/sqf.. it's difficult to imagine how many expartriates can the place take in..

rental has not moved so much in sri hartamas.. (abeit a slight improvement on capital appreciation)

tinkerbel,

What is the difference between "gated community" and "guarded community" ?

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Added on September 24, 2007, 6:14 pmlwb, most of them in DPC condo's and strata title are paying RM 350-450 monthly for maintenance expect for individual title.

This post has been edited by dr_luv: Sep 24 2007, 06:14 PM

I think what she meant by gated is the walled up fencing surrounding the development but without the guard and guardhouse.
Whereas guarded community is what the title suggested, with guards.

@dr_luv,
Guarded areas are basically areas where there are guards stationed - notice the guards sitting at makeshift containers along the roads; like in BU, Tropicana, Sunway Damansara, etc.

Gated actually means the entire development is gated/fenced with a proper guardhouse at the entrance (think of condominium living).

@b00n,
With reference to gated, I actually *DO* expect the guardhouse and guardposts to be occupied by proper trained guards with actual/proper security measures implemented, and not merely for the sake of creating sales.

A couple of months ago I visited a friend at her new home [i don't remember the name of the development but it's in Puchong, nearer to Cyberjaya]. I was impressed with the entrance statement and the 'gated living' area but I wasn't too impressed with the security measures. I'll say the security measures at Glenmarie Court's much better.

It being a new development, the drive in was quite long and that wasn't too impressive either but in time to come, I'm sure it'll be better *grins* I don't pay too much attention to developments in that part of town as its location is not ideal to me

ic, I actually prefer the opposite way, ie identify what I want 1st then only monitor their pricing. Will only strike when I've got enough bullets + good deal

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Added on September 25, 2007, 12:19 amto me, the problem is not so much on the pricing. The key issue here is the demand is not there to keep up with the incoming supply.

These flippers will kena big time when they finnally realize that they can only sell their properties to expats, as a local fella usually would rather buy a bungalow or semi Ds.

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Added on September 25, 2007, 12:23 amI believe the key to a sustainable portfollio is to find properties that has high future capital gains potential + decent rental yield enough to cover your expenses while waiting for capital gains to materialize.

Easier said than done, but definitely do-able if one looked hard enough.

This post has been edited by Pai: Sep 25 2007, 12:36 AM

Usually if the management of the security is by the RA (Residence Association), it would fair better than those provided by the developer. Provided the RA is strong and committed.
But I think DPC does provided good security by the developers. They hired Gurkha and came out in the paper once on the residence there commenting on the pros.

Basically, Puchong is a nice place and properties there are really value for money.
Only downpart is because it's currently developing, security around the area are not that good. Also, some part of puchong can be to deep in and far from KL if one is working in KL.
But to those working in PJ, Damansara and Subang.....one can always try living in puchong.

This post has been edited by b00n: Sep 25 2007, 09:34 AM