EPIC

Why majority are considering compression for undercon, but not subsales? Besides the high entry price, subsales are far more sustainable with unbelievable below market offer.

In the older days people flip after vacant possession. So it makes sense to do it with under construction projects.

They don't have to worry about rental can sustain the loan payment at all.

But now to you can't flip easily.

You do it with subsale you definitely must calculate properly if you could sustain the loan payment. Can't calculate based on 100% tenancy.

Even pure subsales properties are still cash flow negative.

Only cash flow positive subsales properties are auction units. That also must choose correctly. Can you synchronise all these consideration factors together to perform compression ?

Doubt so.

Please keep us posted with your story. any plan for your 6 digits cash out? buy new car, watch, holidays, stocks or more properties?

This post has been edited by icemanfx: Jan 4 2019, 01:37 PM

how do you plan on using/investing that cash?

Everytime people talk about compression i feel like waiting at auction hall. LOL jus kidding

Subsale still need lots of upfront cash. Yes you can mark up to bank valuation but still you need cash first to lock the unit with booking fees. Then the legal fees, stamp duty as well.

Undercon unit is easier entry. Legal fees all developer borne. Stamp duty for MOT can wait upon VP only do. Booking fees 1k for example. 6 units compress = 6k only.

How much upfront cash do you need if you try this 6 units compress via subsale method?

Assuming property around 500-1mil, then average to 70k each unit.

> 400k cash for 6 units.

can buy one deep sea, one bmw 430i, 4 weeks holiday in france, italy and spain, etc.

That's what worrying me because majority doing it nowadays without realizing flip is almost impossible, not to mention with the new rpgt

I will probably buy a new car, watch, holidays.....
Just joking

Definitely will attend stocks investment class and more properties to keep the money flowing. Worst just throw 100k in FD and get 4k+ next year, better than waiting for company bonuses.

My case is only 100k+, each of my units is less than 400k and my dear lawyer advance my legal fees. So i just pay for stamp duty, and I negotiated 5% deposit.

Question, while you have 100k+, but it's actually from the higher loans, which mean higher installments.

are you assuming all the properties will be rented out, at breakeven, hence the 100K+ is additional capital for other inestments?

Oh damn, I am screwed!


Just joking


I am not saying I gonna use ALL my cashout for reinvestment.

Anyway, let's take one of my unit as example:

Projected cashout: ~RM80K

Monthly installment: RM1.4K
Monthly maintenance and miscellaneous cost: ~RM600
Total monthly commitment: ~RM2K

Current planning (disclaimer: estimated figures)
Option 1, Rent by dust: RM0
Option 2, Rent by unit: RM800-RM1K
Option 3, Rent by rooms with partition: RM1.5-RM2K

Deficit annually (disclaimer: estimated figures)
Rent by dust: RM24K
Rent by unit: RM12K-RM14.4K
Rent by rooms with partition: RM0-RM1.2K

Deficit after 5 years (disclaimer: estimated figures)
Rent by dust: RM120K
Rent by unit: RM60K-RM72K
Rent by rooms with partition: RM0-RM6K

I am opting for option 3, will personally manage all the units.
So, if i gone rouge and decided to use ALL the cashout for new car, watch, holidays stocks and more properties, does the figures make sense?

This post has been edited by freedom8901: Jan 4 2019, 04:14 PM

ok, thanks for the information. seems like option 3 is best case scenario and if it works, make sense (but quite risky for me ).

not to say option 1, even option 2 will make it not so much worthwhile.

still, all the best to you

True right, basically I am stuck with option 3

Lots of sifus out there are promoting option 1 and 2. Burn the money while wait for CA, then either sell or refinance. Super risky for me

This post has been edited by freedom8901: Jan 4 2019, 04:13 PM

i believe each time you driving, you will read car manual? each time go toilet wash hand, must read manual how to gosok hand with soap

Yes, signing loan agreement is like eating fillet o fish, everyday affair.

subsale need to sign spa and pay 10% first, if hiccups(bank retract or slash margin) the 10% hilang. Also, need more capital lo if compress - few 10% ..
unless markup- but legal and stamp duty still need to pay first only get reimbursed back after bank drawdown

option 1 and 2 need to see property live longer or you live longer dy
buy 1 okie la, if compress many units.. can u imagine?

well, someone go casino prefer play baccarat, win or lose easy game. some others play roullete 36+0 number to buy, harder to win but the reward is bigger

diff people diff risk appetite, high risk high gain.
make sure got backup plan, at least can u-turn

I am query abt ur figures in 1st part.
If installment is 1.4k yr property likely to be around 300k.
For 300k popety yr monthly maintenance is 600/mth???

Yr projected cash out of 80k is for 1unit or 6 units???