Property details as below:
Property Type: Low cost flat
Area: 654 sqft (3 room and 2 bathroom )
Level: 3 (Walk up flat with 5 storey)
Selling Price : $49,900
Market Price: $70,000
Rental Market: $500
Bandar Bukit Raja is a self-contained township in Klang by Sime UEP Development, neighbouring Taman Klang Utama and SP Setia's Setia Alam. Launched in August 2002, Bandar Bukit Raja spans over 5,300 acres of freehold land consisting of low-cost apartments to terrace houses.
Location Analysis:
Distance to the following area:
- 1.2 km to Klang Utama Shopping Centre
- 8.1km to Setia City Mall
- 25km to Sunway Piramid
- 38km to Mid Valley
Number analysis:
-If based on the information, the unit is 28.7% below market value.
-Rental yield is 12% (Buy at $49,900), 8.6% (Buy at $70,000)
It is obvious that's priced way below market and the Rental yield is high.
Occupancy rate need to be there to check it out.
Strategy:
Strategy 1: Buy and hold since the rental yield is high,positive cash flow
Strategy 2:- Buy->renovate->Sell at market price, approximate profit margin?
It is at the established area, nearby there is Shapadu Highway.
Down side:
This apartment needs renovation due to bad condition below.
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