Dec 12 2017, 09:26 PM
I have a photo taken from just a few years ago.
170 double-storey terrace houses in Rawang, build cost RM17 million.
So that means, each house cost RM100,000 to build.
Do you think the houses will be sold for RM100,000? No, right?
Going by market value, it's at least RM500,000 per house. So that's a 5x increase in price.
That means, they only need to sell 20% of their houses to break even.
What makes you think any property launch ... only sells 20% throughout the lifetime of the property?
They're still making lots of money, and are just trying to bamboozle people by saying they're not.
QUOTE(pearl_white @ Dec 11 2017, 09:34 AM)
I remember the days when working with the construction and property industries years ago.
The profit then were phenomenal. Companies were giving free floors away to heads of states for supporting the work.
300%-500% was the norm. And mind you, this was the time when developers were selling the stock at way less than market value, and hence flipping was a sure thing then.
Today all developers know that if there is no IRR of 20%, they wont go near a project.
What is your IRR? And that all depends on the NRV at the end of the day.
The developers NRV has always been the market value which they dispose to you.
Your NRV is way less than that. No matter how good the income during the intervining period, your IRR is going to be less than that, way less.
Have a go.
The profit then were phenomenal. Companies were giving free floors away to heads of states for supporting the work.
300%-500% was the norm. And mind you, this was the time when developers were selling the stock at way less than market value, and hence flipping was a sure thing then.
Today all developers know that if there is no IRR of 20%, they wont go near a project.
What is your IRR? And that all depends on the NRV at the end of the day.
The developers NRV has always been the market value which they dispose to you.
Your NRV is way less than that. No matter how good the income during the intervining period, your IRR is going to be less than that, way less.
Have a go.
Quote
0.0688sec
0.56
7 queries
GZIP Disabled