www.mbe.com.my

Thanks for sharing your examples. Those are indeed good investments you've made. Your examples also bring to mind what someone once told me that you can get very good return from 'cheap' properties.

From this forum I've also learned to evaluate my investments using COCR. Some questions relating to your examples above: (i) should the cost of furnishing be included in the COCR calculation?, (ii) similarly what about other one time costs incurred like lawyer's fees for loan & SPA plus stamping duty?

Anyway, one example from me: 20'x75' shophouse in Ipoh (new). Price 332K, loan taken 90%. Rental = 2,900 Mortgage = 2,000. Gross COC return = 32%.

This post has been edited by jchong: Jan 22 2009, 04:54 PM

when opening? i go there DPC twice last week, didn't see any yet.

might need such service.

targeting mid march open, next to dhobi, sry for off topic

A sample of calculation involving COCR :





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Mr. Pai - thanks for the teh tarik session! Next time on me, ok? It was good to learn a few tricks from you....

I think your spreadsheet is comprehensive. I use a similar template, but with just some slight differences in format.

Jchong - thanks for sharing too.

Just to recap on the formula

1. COCR = Annual CF / DP of your property + One off Expenses.
2. Annual CF = Net Operating Income - Debt payments.
3. Net Operating Income = Gross Rental - Operating Expenses.

I normally go for ZEC packages and buy fully furnished.

However, if using strictly COC perspective - IMO, it is a must for your capex and one-off's like S&P Costs to be included together with your DP as acquisition costs.

Again - if we are running this like a typical P&L - we then have the luxury to depreciate the capex over a period of say 4 years, to "smoothen" out the impact.... But no point in kidding ourselves. Has to be taken as part and parcel of your DP.

By the way, how's the Ipoh market in general? Any signs of stress?

This post has been edited by Phoeni_142: Jan 24 2009, 03:26 AM

Thanks! Glad to know the spreadsheet I'm constructing is on track.

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Added on January 24, 2009, 8:12 amYup, fully agree that we should have as low outgoings as possible to maximize COCR. So, zero cost packages are your friend Buying fully furnished is also good. One thing about shophouses is that the tenant doesn't care about furnishing (since they will have their own plans) so that's one less item to worry about.

Ipoh market is slower. Fewer people eating out. Slower property sales. Car sales down. Not that people don't have the money, but I think they are more cautious in spending. Given the right deal or bargain, you'll see the money coming out.

This post has been edited by jchong: Jan 24 2009, 08:12 AM

No prob, learnt few new things as well.

Btw, can show a copy of your investment analysis sheet? Wanna see the diff between our tempates

har? got TT session wan ah??

I missed it cos I haven't been following this forum for sometime..

although most of the time i follow this thread invisible style, just reading and adding knowledge, hehe

can i join for TT session as well?

sorry - file messed up, and will upload soon

This post has been edited by Phoeni_142: Jan 25 2009, 09:06 PM

Can I have a copy of the Investment Spread Sheet please?

In return I upload a pic taken from DSP condo

i didnt know u guys have TT session for property discussion...

when's the next one? may i join?

Regards,

Merce Chua
Mortgage Sales Executive
OCBC Bank (M) Bhd
019 - 913 1127
ChuaCChie@OCBC.com
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FREE OCBC Mortgage Loan consultancy.
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Dpc appreciation rate is phenomenal. I think it's overated and I am not sure how the developer would market their new launch. Start at 800k? 1.2mil? Are we Malaysian that rich? How many of us can afford a house close to a mil house? It's certainly good for investors but what about ppl who are looking for own stay? At the price close to a mil, how many of us could afford it? When it gets too expensive, are there still room for cap appreciation? If I am one who hav transacted 2 years ago, I would sell it now for sure. Would I buy it now? Very unlikely. Would you?

I heard that even bank having problem in evaluating the market price in DPC when buyers want to buy 2nd hand units. Anyone manage to get a 2nd hand unit in DPC?

if its too good to be true, then it usually is.

We saw what happened in KLCC and MK

This post has been edited by Pai: Jan 27 2009, 12:42 PM

In general, banks are already squeezing valuations in so called "mature" areas like TTDI and Damansara.

Not suprised if DPC may be affected by this as well.

my relatives are staying there. 1 word.. superb.

well if you buy that house for retiring purpose where you wana enjoy your life with your husband or wife then it is recomended. As for investment I dont think it is a wise choice because no one gonna rent at that place and with the expensive price.

@chicaman,
There will always be people in the market for 'expensive' products. My neighbour recently rented her home for RM18k p/month unfurnished [well, her tenants received a RM2k discount because she'd wanted to leave some of the big bulky furnitures in the house]