bkt beruntung kut?

@wodenus,
If it's a planned low-cost unit, developers do NOT lose $ on it!

How do they not lose money on it ?

@wodenus,
siGh.. trust me lah... no developers will do it if they lose $.. have U ever come across a businessman who'd be willing to lose $ in his biz?! And we're talking about these china-pek property tycoons here in MY!!

Firstly, low cost units are generally small in size so the quantity of materials used is less.

Then, lower cost materials are used. Example: use pre-cast concrete slabs as walls (cheaper and also faster to erect, so save on labour as well). Or if bricks are used then sand bricks instead of clay. Similarly, cement roof tiles instead of clay. Cheaper paint. Grade B tiles. Etc...

I think it is possible to break even for low cost houses.

@jchong,
Bear in mind developers purchase in bulk. The prices they get for raw materials are much much much much lower than what we can get. Therefore.....

If that was possible, we can say that the baseline cost of a livable house is 22K, which can't be possible can it? land + materials + labour for 22K?

@wodenus,
I'm telling U it IS possible!! I'm not going to be able to show U actual P&Ls but take it from me that it is possible.... though it's not something I want to be living in

Wow. Of course you live on Elitist Road (maybe literally LOL ) but where can I find someone who can get land and build a house for 22K ?

I thought low cost housing is priced not exceeding 42K.

@wodenus,
There's a reason it's called LOW COST! And how on earth did U know I lived on Jalan Elitist - U haven't been stalking me, or have U?! hAHahAHhaHAhahA

There were press reports of approval of rising the price for low cost houses up to 42k or 45k; esp in big cities
But in practice the prices are controlled by the state govt. I've yet to see any LC houses going for the max price.
Anyone aware of any of these schemes?...if yes, probably under the jurisdiction of DBKL??

Whether developer can actually make money from low cost houses depends very much on land cost.
There are schemes where developer makes a small margin.
Most times, low cost parcels are loss making , where the non low cost houses are priced to absorb the subsidy in the low cost houses.

One more thing is the way low cost housing is treated in the books of developers.
Land cost for LC is usually given a very low weightage. In practice , the acquisation cost is the same, whether it is LC or otherwise.

My assumptions already factor in the bulk factor of developers.


Firstly, why do you work on the figure of 22K? Low cost housing is 42K and under.

For materials + labour the cost definitely can be much under 42K. You can build a house for under 42K but it would be a small house and using the cheapest building materials around. But is that the kind of house you want?

The wild card is land cost. In established areas the land cost will make low cost housing impossible and impractical (the land cost would exceed the building cost).

sabah sarawak, in the middle of the jungle lol!

I've not looked into low cost housing in the big cities so I don't know how they are priced out there.

Yeah, you're right that land cost is a major consideration. In Klang Valley, I suspect that low cost parcels are loss making but subsidised by the non-low cost units (unless the developer got the land cheap/free from the state govt ).

Yup, in practice acquisition cost is the same. Developer purchases a large parcel of land at a given cost. In the subdivision, they are then asked to allocate lots for low cost. Up to this stage, I'd say the price per sq ft is the same. However, when it comes to payment of land premium then the low cost parcels would be charged less.

oKie.. the next time I meet up with the group of developer friends of mine, I'll ask them if they make $ from their low cost parcels n will report back here `k?

I still believe they do!

Our Govt like to think that developers can make $$ from LC.

Some developers have even offered to state govt.."I give u the land free lah, u go and built and take the money as well"..that's how bad the situation is for some developers.

If we want to discuss about low cost housing in m'sia, tak boleh habis bincang.
Rehda has been in discussion with authorities for ages but no concrete results.
For political reasons, the govt will want to maintain status quo

Someone said 22K earlier... so it's 42K ? actually I've half a mind to do that.. get a small piece of land in the middle of nowhere, build a small toilet. Then set up one of these :

http://www.dezeen.com/wp-content/uploads/2...far-wal-016.jpg

hohoho.. thank you all for joining this discussion...
btw I didn't disappear, I thought this topic was dead since only 3 people replied after a few days I posted it.. it seems now i have to go out to see how can I make more money so can I have a bigger house.. hoho

anyway I just downloaded the ebook 'Build Your Own House' from www.byoh.com .. perhaps my last resort to save money is by start building my own house...

It's up to 42K maximum.

Interesting picture you have there. What kind of structure is it? Will it survive long in our tropical climate?

Regarding getting "a small piece of land in the middle of nowhere" I think the problem is getting the "small" piece of land. Out in the middle of nowhere, land is usually sold as big lots - think in terms of acres. So while the price per sq ft is very low, the total amount will be high when you multiply by the acres.