Mont Kiara today has about 5x the population VS DPC, but conggestion for DPC today worst than MK.

And I tot' MK is nearer to 1U compared to DPC, no?

u r letting your brain or your heart do the talking here?

jwrx,

At 90% financing, will the Nadia condo still yields u positive cashflow? Else u could get better COCR elsewhere, no?

Actually went to see DPC about a year ago, liked/loved the place and the concept, even checked Nadia, but I walked away due to :

1. Rental yields is low(I use this and COCR as a basic indicator to see if an investment is a viable one, as "positive cashflow" is rather easily tweaked), plus tenant liquidity was an issue back then. No sure how much things have changed in 1 year, perhaps u could enlighthen us.

2. The whole DPC was relatively empty....... and I came away thinking ppl who bought into DPC are mainly speculators. And developments where the huge majority of the purchasers are speculators dont often ends well, unless u have a big pile of reserves to hold the property for a few years. Think this Nadia subsale upon VP was selling at developers price, and it took more than 1 year before price levels actually took off to a respectable levels.


Anyway, good luck in your hunt

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Added on January 20, 2009, 1:28 amMate,

Cash-flow numbers could be "tweaked" as well . Personally would use COCR as the best indicator evaluate any investment opportunity.



This post has been edited by Pai: Jan 20 2009, 01:28 AM

Mate,

1. I never said u did it, im just sharing what I know on cashflow as not many ppl realised that one can always tweak and rationalise cashflow even on lousy investments

2. We r on the same page on COCR. While COCR is the best measure to calculate ROI, again i'd like to highlight that one can always tweak the variables that form COCR. Someone I knew even able to get above 50℅ COCR p/a, and I doubt that this is replicable to everyone who bought the same development.

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Added on January 20, 2009, 3:43 pmI dont live nearby so Im not sure what is the normal day's traffic's condition. I went to DPC from 1U on a weekend a year ago, and the traffic wasnt very smooth. Maybe it was an exception, I dunno.

And FYI, im saying that its more congested VS MK, despite the fact that MK has much more population. Perhaps this is due to MK's better accesibility. Hope this clarifies

This post has been edited by Pai: Jan 20 2009, 03:43 PM

jwrx,

1. The only reason why you r getting positive cashflow is due to the large d/p (aka tweaking cashflow). At 90% financing its a negative cashflow deal. Explains the super low COCR.

2. If the economy tanks, you still think there's ppl who would pay 1mil for a gated DS ini Kepong? If DS in Kepong drops to 300k levels, this Nadia could potentially be worth only 600k, assuming ppl

Well, I stand by my thoughts that DPC is a speculative investment, with strong support by the developer. Real value will prevail once there are no more new projects in DPC, and we'll see if current "market" value holds. You r buying a DSL today for a close to 1mil, with the anticipation that its price will continue to rise over the medium term. Its a very,very risky thing to do IMO, with your odds is just slightly better than playing a high stake poker game.

My 2 cents

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Added on January 21, 2009, 10:40 amMy exact thoughts, altho I would be contented if I could get anything above 15% p/a. Anything above that is a big fat bonus.

This post has been edited by Pai: Jan 21 2009, 10:40 AM

Mark of a true investor.

A sample of calculation involving COCR :





Attached thumbnail(s)

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

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