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Sunday, 31 August 2014

Taman Casa Maya Deal

Taman Cassa Maya - New Sungai Dua Gated & Guarded House Project

Taman Cassa Maya, a gated and guarded housing scheme by Streamsville Sdn. Bhd. within Sungai Dua township in Butterworth, Penang. It is strategically located with easy access to schools, markets and eateries.

After Taman Seri Merbau and Taman Pasir Indah, this is another new project within Sungai Dua Butterworth area. Taman Cassa Maya by Streamsville Sdn. Bhd. This is a new developer, and the company registered in Johor Bahru (reference).

The project consist of 115 units of double storey terrace and 12 units of double storey semi-detached. It a freehold land just beside North-South Expressway. The selling price for two storey terrace houses are from RM508k to RM943k (corner unit with very big land). Semi-detached price from RM798k to RM1115k. The facilities for this G&G include lounge, swimming pool, gymnasium, entertainment room, spices garden and more. Another attraction for this project is all double storey terrace houses backward will be a four seasons linear park. Project completion date projected to be September 2016. 
Taman Cassa Maya, Sungai Dua Butterworth, Penang location map:
Taman Cassa Maya's project overview:

Two storey demi-detached house's floor plan:

Double storey terrace house's floor plan:
Streamsville Residence

    Type: 2-storey Terrace
    Land Area: 20′ x 75′ / 20′ x 79′
    Total Units: 115
    Built-up Area: 2,248 sq.ft.

Streamsville Exclusive

    Type: 2-storey Semi-detached
    Land Area: 39′ x 85′ ‘
    Total Units: 12
    Built-up Area: 2,860 sq.ft.

Property Project : Taman Cassa Maya
Location : Sungai Dua, Butterworth, Penang
Property Type : 2-Storey Terrace & Semi-detached
Tenure : Freehold
Total Units : 127
Developer : Streamsville Sdn. Bhd.

How you can make $200K in one hour deal?

One and half month ago, I was offered the following:
Double storey terraced Priced at $633,000.
Below is the available unit with detail pricing in July.
 I did not grab it as still hesitate.

Now,the price is increased from previous $633,000 to current $673,000.
The down payment also increased to $20,000

There are still $633,000,but required to pay $30,000 down now.

That means,if 45 days ago,we booked all the 8 units at $15,000 each unit.
The cheque will not be bank in, and we sell it for $10,000 additional, we can pocket in $80,000 in 2 months.
Yesterday sharing is as below how to make $200,000 with Taman Casa Maya:

It is indeed a superb deal!!!

Interesting property details index in Malaysia

Today i got this information in my mailbox.
I posted it here so that for future reference.

Penang Major Infrastructure Improvement

While in the Queensbay mall,i managed to attend a talk organize by the ZEON.
The title is Penang major infrastructure improvement. How these improved infrastructure can boost the property price in Penang.

So far the major infrastructure improvement are:

-Penang International Airport
 Phase 1 - Upgrade and expansion existing passenger terminal
 Phase 2- Business class hotel
 Increase terminal capcity from 3.5 MPPA to 5.0 MPPA

-completion of Penang second Bridge
-Electrified double tracking Project
-Expansion of North Butterwoth container Terminal
-Fiber route network

Penang international airport has a huge connectivity internationally as well as domestic.
Penang International airport recorded 15% growth in 2013 from 4.8 il i 2012 to 5.5 mil passengers in 2013.
Penang second bridge "The Sultan Abdul Halim Mu'adzam Shah Bridge" is longest bridge in South East Asia which has 24km long. The bridge is open in Q1 2014. With the opening of the 2nd bridge, both side of the island and mainland has better connectivity. The direct impact is the both side of the property's price has escalated significantly.
 Let's take a look on the island. A terrace house at Southbay residence is $795K in 2008.
In 2013, the price has increased to $1.45 mil. It has increased 82% in 5 years!
 How about in mainland? At Batu Kawan which is the first township after coming out from the bridge, the price also escalated from $180K to $430K in 6 years.
The growth is 139%. It seem that there is huge room to grow in the mainland.
 Penang undersea tunner and major road projects are undergoing in the pipeline.

 Penang undersea tunner and major road projects proposed timeline
 Singapore is mirroring Hong Kong and Penang is mirroring Singapore.Property price in Hong Kong is enormously high.
In term of the total area, Penang and Hong Kong are comparable. Singapore is the smallest.
Singapore also reaching the same high standard now. Penang will be the next one.

 Population growth rate in Hong Kong, Singapore and Penang.

Hong Kong Singapore Penang
5752000 3135100 1064200
7187500 5399000 1647700
1435500 2263900 583500
25.0% 72.2% 54.8%

StarHill luxury residences at Bukit Gambir

At the Queensbay mall property fair, I purposely stop by STARHILL booth to check out the price.
It is selling at $650 per square foot. In the fair they are selling at $530 per square foot in conjuction with Merdeka celebration.

Below are the four type of sizes available and up to date has sold 60%.

I am comparing this with the Arte S which is selling $700/sqft.
Arte S is on commercial title whereas Starhill is residential.

Below are the basic information of the project.

Starhill Residences is located at Bukit Gambier, Penang, a project by Aroma Development Sdn Bhd. Starhill Residences comprises 506 condominium units, 29 bungalows and 2 semi-detached bungalow homes. The 35 storey condominium houses 506 units with built-up area ranging from 1,503 sq.ft. to 1,753 sq.ft. and 10 units penthouse with built-up area ranging from 3,049 sq.ft. to 3,668 sq.ft. at the highest floor.

The facilities at Starhill Residences include swimming pool, BBQ area, sunbath area, sauna, fitness center and more.

Property Project : Starhill Residences
Location : Bukit Gambier, Penang (Property for sale & rent in Bukit Gambier)
Property Type : Condominium, Bungalow
Tenure : Freehold
No. of Blocks : 1
No. of Storey : 35
Total Units : 306 condominium, 31 bungalow
Built-up Area : 1,503 sq.ft. - 3,668 sq.ft.
Developer : Aroma Development Sdn Bhd

Prominence Merdeka Promotion at Queensbay mall

In the Merdeka day, I brought my family to the Taman Negara Pulau Pinang. We hiked to Monkey beach and take a boat ride back. We start hiking at 9am and reach Monkey beach at 11.30am.
We took 2.5 hours to hike 3.5km.

The boat ride cost $50 from Monkey beach to the Jetty.
However, we shared the cost with another 3 persons.

After hiking at Taman Negara Pulau Pinang, I went to Queensbay Mall for Property Fair.
Bionic Booth is huge this time and only has 1 project which is Prominence.

I check with the sales person and below is the one I figure out.
All Type are selling at around $350 per sqft.

Type A:1508 sqft will be selling at $527800

Wow, a year ago booked with $440880

It is 19.7% increased in just 12 months!

Saturday, 30 August 2014

Revisit PROMINENCE Bandar Perda Project

Exactly 1 year later, I revisit this project again.
The reason is due to the deal is not bad.

This project I booked with only RM5000 down and pass it to my brother inlaw.
The unit is Type A with 1508 sqft with RM388K (aft rebate 10% price).

 Also recommend to another 3 friends and all of them bought it as well with slightly higher price.

That time the Promotion:

Price (after 10% rebate)  RM388000.00

Booking =RM5,000.00
Effective PSF= RM257
Free all complete legal for SPA, Loan agreement & Stamp duties
No other freebies available at that time ( Sept 2013)

Prominence new package ( Aug 2014)

Best deal avail : #B23-8
Price= RM469,000.00
Car park=2

Superb Facilities - see their link

Price (after 8% rebate)  RM431,480.00
90% loan= RM422,100.00
Booking =RM5,000.00
DP balance (SPA)= RM4,380.00
Initial Cash Layout= RM9,380.00
2nd stage Cash rebate= RM8,629.60
Effective PSF= RM332.17

Freebies :
Kitchen Cabinets (L-shape)
Kitchen hood & hob
4x Aircon

Free all complete legal for SPA, Loan agreement & Stamp duties
Free 1 year maintenance Fee

Another friend bought in this week.

Below are some of the snap shot from the Sales Kit Brochure

Developer Details:
Bionic Development Sdn Bhd
TIngkat 15.01 Bangunan KWSP
38 Jalan Sultan Ahmad Shah
10050 eorgetown,Penang


My opinion on this project:

This project has slightly edge over other because it will be the higher end in the mainland.
Bionic is the premier developer in Taiwan, similar prestige as SP Setia rank.
THis is Bionic 1st project and it is high end,but selling at normal price.

Sungai dua near the mainland, the condo selling price is RM350/sqft now.
That area even is out of the populated area.

For all new development, it is for flipping.
The fall back plan always to rent out.
At the same time look for buyer.
In the event that rental cannot cover,we have to top up as usual.
Rule of thumb, keep 12 months installment as emergency fund.

Exit Plan for Prominence
Below is the projection of the this project in 3 years time @ 2017.

Monday, 25 August 2014

Critical Financial Ratios to Value Property (Intrinsic Value)

In the real estate market, the situation is not so simple. Investors are never sure of the value of a certain property until the point at which they are about to sell or rent it.
Property valuation methods are needed for estimating the most probable value of a property on the market. Yields are important in a number of contexts:
  • Property valuations can be made by analysing price and yields 
  • The returns from property should be compared with other forms of investment, and with other properties
  • To evaluate whether property is overvalued and if a price bubble might be forming

For example,
Net Rental Yield (NRY) is used to compare the performance of property A versus property B versus property C.

Return on Investment (ROI) is used to compare the performance of Stock A versus Property B versus Bond B versus Gold.

Internal Rate of Return (IRR) is used to compare the Risk/Rewards of different types
of investment classes versus targeted returns.

         Table from SPW 170 issue

Wednesday, 20 August 2014

How to Get back your Credit Card Tax $50?

Do you know that now the Government Tax $50 on your crdeit card can be waived?

When this tax imposed few years back there is no one in the industry able to come out something creative to waive this Tax.
It is indeed a heavy burden to the card holder. Of course it is a way that Government want to cut down the bad debt caused by the credit card.

This week I received my credit card bill. It is my RHB card renewal month.
In the statement the Annual Membership fees is $70 and $50 for Tax.

As yearly event,I called to the customer service hotline to waive my Annual Membership fees.
It was done in 30 seconds.

This year want to try my luck on asking how to waive the Tax charge to me.
Below is the brief conversation:

Me:"I would like to request to waive my $50 Tax also, can you help?"
Customer Service Officer:"You may use your reward point to offset it"
Me:"But I do not have enough reward point to offset, any other way"
Customer Service Officer:"Ok,We will able to waive the Tax provided that you fulfill the below condition"
Me:"Okay, can you let me know?"
Customer Service Officer:"From today till the next 60 days, you need to use your card 3 times regardless of any amount. The $50 will be reverse in your 3rd month bill.You still need to pay the $50 for this bill first"
Me:"Okay,that is good and appreciate that, Thank You"

Moral of this,we need to ask and keep asking to find out more.
It also depend in what question to ask in order to get the right answer.

Good luck.

Friday, 8 August 2014

Which one is more important "Loan margin or Interest rate"?

When you buying your property, which one you are looking at, the total loan margin or interest rate?
It still depends, no definite answer.
Let me refine the question as below:
If you are investor,which one you are looking at, the total loan margin or interest rate?

Clearer question now? And should have better answer?
Let us do a math before answering it.

Compare the scenario below for a property price of $500K and loan up to 25 years.

Which Bank you will take?

Let me extend the table to few more scenario for your future perusal as below.

Normally at the initial stage, we try to get the lowest interest rate as possible.
This will help in term of cash flow. However, as u acquire more,u will find that bank will reluctant to give you higher loan margin.
At this stage,any bank can give you loan with higher margin even slightly higher 1% interest rate, I will take also.

Compare the scenario below for a property price of 500K and loan up to 25 years.

So for me, the loan margin is the concern and not so much on the interest rate.

My reason behind this is, the price increase higher than the interest rate given.
The property price increase 20% in 3 years compare 3% higher in the total interest rate charge to you.
I believe you know how to do the math.

Monday, 4 August 2014

Is Park View rental stable?

I was asked if Park View rental can fetch consistenly at $1500?

I assume that everyone aware that the rental is depend the condition of your house, renovation,furnished etc. The price $300K and Rental $1500 is the latest transacted price at that area.

Exactly 12 months since last year, total 6 of my friends own 8 units there. We bought at the price range from $225k - $293K.. $293K is the latest acquire last month. Rent out $1500 also rent out last month with the price she bought at $260K. You may do your own math.
Our rental range from $1000 - $1500.

Details of my viewing of Park View done in May can be found here.

There are 2 more units under SPA procedures now. I believe there will be more units acquired by my network of circles.

Another Great area is Pangsapuri Widuri. Details can be found below link

Last Friday,my colleague share with me that his brother bought $70K at Kulim Kelang Lama double storey terrace, Reno for $10K and rent out at $800 per month. It is not at superb location but just so so.

The questions is 我们看得起这些产业吗?

Everyone keep mentioning the property price is high, damned high. Wait for bubble to burst, I want to wait, I want to buy cheap etc……Because all of us are looking at the high price property which good marketing is done for the public. For those no marketing and required a LOT OF WORKs no one to look at. 我们人都是懒惰的.
Do not do homework and just keep complaining.

Every now and then,I been ask for advice, can buy this property or that property or not? I only can tell them 2 phrases:

1)      Very expensive ler (I do not do much study and only comment like public)
2)      Is there any other better options? (I do not know the surrounding as no study)

I cannot comment Good, go ahead to buy. Because when the project failed to be complete or did not get good capital appreciation, I will get blame. If price increased, then I am safe.

I also cannot comment Bad, do not buy. Because when the project complete and price go up 30% when it is ready, I will be blamed because asking them not buy. When the project did not do well, no one will thank me also.

So it is tough situation. I only can tell the area that I bought into and I had done some survey.

Currently studying into Seri Mutiara Bandar Seri Alam at Johor. Possible no money down and cash out RM32K upon completion of the SPA.

Bear in mind,there are a lot of JEWEL surround us.

Which one give you the best return?

My dear friends just having some discussion whose have a better return among their property in KL.
This is just for fun and practicing my brain in this late hour after long hectic day.

Question 1:
Among the 3 person below, whose has the highest rental yield?

Question 2:
Among the 2 person below, whose has the best yield?

You may do some research on how to do the calculations......
Otherwise scroll down for answer.......

Answer 1:
B achieve the best rental yield.
If A can increased the rental, can achieve the highers yield.
C is just merely slightly better than the Bank FD rate

Answer 2:
Very clearly that E is doing excellent in this case.

Scared of Compounded Interest

Over the last hectic weekend, having some debate and discussion on the compounded interest rate with newbie property investor.

Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn’t ... pays it.” - Albert Einstein
Sometimes, you just overlook the compounding interest to your loan when there is increase of interest rate. Remember, you are going to be paying for it.

With the hike of interest from historical low in 2009 of 5.5% to 2014 of 6.85%, which is the highest since 2000.
Or maybe in future with the hike of interest in following:

2014 6.85%
2015 7.00%
2016 7.55%
2017 10.25% (economy crisis)

What is your risk management on the investment properties, assuming you are not selling:
A. Increase monthly repayment
B. Deposit lump sums to reduce outstanding principle amount
C. Do nothing, continue monthly repayment as in letter offer
What is your thoughts?

For me I will choose "C" and increase my rent to match my current cash flow.
Because at that time, people only willing to put their money in their bank to generate higher interest.
Any other investment will be not attractive. No one will buy into property and need to fork out more interest rate to the bank.
So the demand for the rental properties will rise.

Other may say What about choose "A" and increase the rental at par to the monthly repayment?
There is no right or wrong. The most important is WHY you choose each of those option.
For me, since the tenant is paying the interest, why need to fork out more money from my own pocket?
Why not use the excess money to buy more investment property?
If you are choosing this, u must be still calculative on the interest charge by the bank.
You are not very familiar with the strategy of "OPM" and not applying well. You have to get out of this thinking.

A lot of people are scared by the compounding interest shown in the above articles.

My advice is you have to used the compounding interest to your advantage. not to unfavourable to us.
If interest can be compounded, why the return cannot be compounded?

So are we saying that we must targeting high CAGR?
YES and NO. It depend on the each strategy. If you buy and hold, then the cash flow is important. If for flip, cash flow and CAGR is the 2 primary index.

Scenario 1:
I invested in RM30K, monthly cash flow is 0.Exit in 5 years and cash out RM60K, what will be my CAGR?

Scenario 2:
Invested in RM30K, monthly cash flow is -RM100, exit in 5 years with RM60k (exclude monthly cashflow),what will be my CAGR (Include monthly cashflow into calculation)?

Scenario 3:
Invested in RM30K, monthly cash flow is RM50, exit in 5 years with RM60k(exclude monthly cashflow),what will be my CAGR(Include monthly cashflow into calculation)?

Which scenario can you keep doing every month by your own or with a team?
Which one is more favourable?

Answer for the above 3 scenario:
Scenario 1: 14.87%
Scenario 2: 12.47%
Scenario 3: 16.00%
Scenario 3 is the most ideal?

Of course Scenario 3 is the BEST follow by Scenario 1 and Scenario 2.
Scenario 2 isvnot bad, but must have strong holding power.Otherwise, cannot buy more.
When buy more under Scenario 2, it will be under very high risk category.
During economy slump,if 1 person no holding power,the property will be auction off.
However, if with team effort, then we can do more on Scenario 2.

Say 1 property is on scenario 2 but the -ve cash flow is shared out by 5 person.
Each team member can afford to pocket out Rm200 per month in any conditions without going into deep pocket.
That means the whole team can afford to have negative cash flow at RM1000 per month.
In another words, the team can acquired 10 properties under scenario 2.

With CAGR 12.47% after 5 years, you sell 8 units and free 2 units.
Can you repeat now with greater and faster rate?

At the end, it is the strategy that make it work and how do we employ.

Do it alone,it is slow and not much to play.

That is the reason,why need to buy each unit for 1 month.