Let's talk property

[chrisyen]

higher return higher risk = buy commercial u get higher return so as the risk...

commercial property investment
shops
story no1
- most good corner shop, easy to access, more road frontage
- developer will keep it
- if developer cant afford to keep, the higher level staff and consultant will keep
- if the high level staff cant afford to keep, their frens and relative will buy

story no2
- many investor who buy commercial propoerty, are buy in buck, they can be a single person or a group of rich
- buying alot mean they can control the rental around.... if you dont believe me, check Bdr Bkt Tinggi 1 & 2, Bdr Botanic, Bdr Puteri, etc

Story no3
- Celcom/Maxis/Digi, Proton, Maybank, Perodua.... pay high rental to rent
- Answer = Yes. But provided you are related, you control all the good property around, etc

Story no4
- commercial property depend on good road system = yes!
- do you understand how the road system can help?
   - the eye level of the car driver determind the actual frontage u have in msia, msian dun walk, all drive
   - if driver can c but no access or access to far..... Si!
   - one way / 2 ways traffic make hv impact? yes!
   - car park, side parking, 90degree parking, 45d, 60d..... all make a different if you hv narrow drive way

story no5
- populations surrounding vs supply of shops
- attraction to draw attention from far, how far

sorry... too long gas

above are jus stories.... i got many more stories... believe it or not? up to you!!!

many ppl do not listen to story but they make alot of $$$ in investment - especially in commercial properties
some lost in the beginning but make alot later, ask those who bought berjaya shopping lot and see....
some bought and make alot in the beginning but lost it later when they buy more.... ask those who bought bkt sentosa
many ppl believe and learn alot from stories but still they burn their hands....

so investment can become speculative and gamble if you do not hv the knowledge and jus follow the wind....
luck can on ur side..... who knows? i only know when u think too much u never invest.... never make it!!!

[Fairy Oly]

when u think too much u never invest.... never make it!!!

YEAP~!! so just do it~ lol~

[hanz079]

If investment in property is much like gambling... then I prefer gambling... 
Banker or Player? 50-50 
Sumore if high roller, can get alot of freebies... Paiza Club members should know lor... 
But if wanna invest in property, better do the due diligence... if not, sure to get burned...

[wslee]

higher return higher risk = buy commercial u get higher return so as the risk...

commercial property investment
shops
story no1
- most good corner shop, easy to access, more road frontage
- developer will keep it
- if developer cant afford to keep, the higher level staff and consultant will keep
- if the high level staff cant afford to keep, their frens and relative will buy

story no2
- many investor who buy commercial propoerty, are buy in buck, they can be a single person or a group of rich
- buying alot mean they can control the rental around.... if you dont believe me, check Bdr Bkt Tinggi 1 & 2, Bdr Botanic, Bdr Puteri, etc

Story no3
- Celcom/Maxis/Digi, Proton, Maybank, Perodua.... pay high rental to rent
- Answer = Yes. But provided you are related, you control all the good property around, etc

Story no4
- commercial property depend on good road system = yes!
- do you understand how the road system can help?
   - the eye level of the car driver determind the actual frontage u have in msia, msian dun walk, all drive
   - if driver can c but no access or access to far..... Si!
   - one way / 2 ways traffic make hv impact? yes!
   - car park, side parking, 90degree parking, 45d, 60d..... all make a different if you hv narrow drive way

story no5
- populations surrounding vs supply of shops
- attraction to draw attention from far, how far

sorry... too long gas

above are jus stories.... i got many more stories... believe it or not? up to you!!!

many ppl do not listen to story but they make alot of $$$ in investment - especially in commercial properties
some lost in the beginning but make alot later, ask those who bought berjaya shopping lot and see....
some bought and make alot in the beginning but lost it later when they buy more.... ask those who bought bkt sentosa
many ppl believe and learn alot from stories but still they burn their hands....

so investment can become speculative and gamble if you do not hv the knowledge and jus follow the wind....
luck can on ur side..... who knows? i only know when u think too much u never invest.... never make it!!!

Chris Sifu

Thanks for the sharing. I wouldnt mind to hear more stories from your side if you don't mind to share. Those story definitely will be useful for all of us.
Love to hear more from your side. 

[chrisyen]

i'm not sifu.... but this is my profession (from uni time till last yr)...  dun worry, in MWF i talk with hearts...

if on other official occasion, i will tell u Buy Buy Buy....
no property developer tell u bad time coming... pls read top ten developer spoke persons in malaysia statement.....
anytime is good time to buy property.... all their property is at good locations.... price will keep going up...

besides that, nowadays so many sifu giving talk and teach ppl how to invest. those who keep asking u all how to invest, how to calculate....
thats for his own personal brand building.... in the end, ppl will put money into his fund... robert kyosaki make more money in investing? or in selling books and giving talk? i bet the later.... he said invest into passive income... if need time and effort monitor = working not investment...
then why he sell books.... giving talk? he shd enjoy the sun rise and sun set in a private villa.... while waiting for money flow into his pocket!!!

invest into properties need alot of studies and time.... jus like invest into watches... not every patek and rolex got investment potential right?

[Sid Vicious]

I agree it needs time and commitment

Thanks Chris for the advice

[Rayvonwoo]

Sifu Chris thanks for your info and very fruitful to me after reading your post,before this I just blindly invest in property and never think about the rental yield and ROI,but recent property price really heading to high price,especially those commercial units double up the price and rental yield below 6% really terrible,worse is under table money for a good project.   

[chrisyen]

Analysts advise caution on property market
Jul 6, 2011 - HomeGuru.com.my

Two research firms have advised caution in the Malaysian property sector, which has recorded good performance for two years.

Kenanga Investment Bank and RHB Research Institute recently rated the sector from “overweight” to “neutral”, warning clients that the up-cycle property trend usually lasts around two years.

“We believe now is appropriate to be watchful of property stocks as well as the sector outlook as we are now almost two years into the up-cycle,” said RHB in a statement. “If what we project is true — that the property upcycle will gradually come off in 2012, though the physical market is likely to remain strong until year-end.”

RHB said the anticipated softening of the property market next year could be offset by worries over a greater risk profile, due to liquidity-driven credit growth, rising inflation, more regulatory and monetary tightening measures and the depressed outlook arising from downgrades on regional property sector.

Kenanga Investment noted that smaller developers like Eastern & Oriental Bhd (E&O) and Hunza Properties have shown lower sales year-to-date (YTD). Larger developers like IJM Land, Mah Sing Group and S P Setia are eyeing strong revenue growth of between 15 and 35 percent in 2011.

Meanwhile, RHB said it is cautious about developers engaging in massive landbank expansion. “Land prices are getting more expensive now, and the window to launch and rapidly sell property products is getting shorter, thereby slower landbank turnaround time and higher holding costs,” it said.
 
The result could be a price war, as developers undercut each other to sell their inventory, said RHB.

“In a worst case scenario, take-up rate could take longer to achieve a satisfactory level,” it said, thereby reducing its target prices.

It also speculated that there will be a slight up-turn for the Kuala Lumpur Property Index, as the price-to-book value is approximately 0.86 times, more than the five-year average of 0.77 times.

[chin]

He said that if buy condo in Sg Long, can rent out to students wor...
KK property I know la... KL property I dun know jack... 

if he work out can get > 6% per yr then ok loh
other wise buy REIT, mostly paying > 6%, less headache but less capital appreciation

Property can leverage i.e. use (other ppl money) OPM to earn rental yield. REIT need cash; margin financing is more expensive then housing loan

[chin]

higher return higher risk = buy commercial u get higher return so as the risk...

Agree on that statement, infact commercial is only for seasoned investors with deep pockets.

The reason is margin of financing is lower, higher initial d/p, longer gestation period and higher risk of no tenant.

For small timers or 'part time landlords' studio units or high rise in matured town centre close to LRT/MRT/colleges is the way to go.

But beware as most ppl will tell you the property market is frothing already

[chrisyen]

story time

why so many developers suddenly into building studio units in service apartment development these 2 yrs?

1. this are commercial land, commercial development area limited by plot ratio.... the max gross floor area that you can build!
    (except MBPJ, control the maximum area of service apartment by Density (no. of person/unit per acre)

2. small unit = lower per unit price, tailor made for investor (who attended alot of property investment talk).... its easy to sell a < rm500k property than above..... (generally)

3. in terms of price per square ft is higher, hence higher return to developer in total

Before you start calculating the ROI, IRR, MIRR, etc

before you invest into this service apartment, pls do the basic market survey

1. Where is this apartment located?
2. who is your potential tenant? student? foreigner? soho?
3. where the demand come from? quantity? any college nearby, the college provide hostel? any multinational company there?
4. total supply in that area?
5. are they willing to pay for your asking? other choices? landed property?

besides that, spend some time to learn strata title legal and practise in malaysia

bcoz the property invesment guru teach you how to calculate the return.... he professionally telling u some hidden cost...

but did he tell u the risk of service charge can b raised as soon as 1st AGM for forming JMB. 1 yr after VP?

[Sid Vicious]

I just came off a launch at alam impian. All sold by noon!!!!!!

I was amazed by the volume of people wanting just a few houses available and also i was surprised by the amount f money that they can spend!

[chrisyen]

I just came off a launch at alam impian. All sold by noon!!!!!!
I was amazed by the volume of people wanting just a few houses available and also i was surprised by the amount f money that they can spend!

Sime properties is banging on their new direct access from KESAS. so they price on top of Kota Kemuning.
Ppl who wanted to buy from Kota Kemuning, Kemuning Utama..... this is the better choice, its new and better access....
bukit rimau and bandar puteri, bdr parklands is too far.... buyers been waiting..... so when this pop up...
waited buyer is fighting for a better lot
investor is hoping for developer increase price in 2nd and later phase.... so that they make paper gain at least!!!
so i wasnt supprise with the sales now.... let c it can achieve same sales in later phase....

Some banker said the current properties market price been jacked up to an unrealistic value by developers & agents, totally lost touch with the average working class. But, as you said all gone at 1st launch, ............. I wonder where does all the money coming from? Margin trader?

banker been saying this since last yr.... they been pulling handbrake as well.... most valuer in their panel list said the price is speculated.... but in the end they still want business.... they told me how they can help investor to get 90% loan for the 3rd loan application as long as they are happy with the applicant financial situation....

[chrisyen]

@Sifu Chris: Thanks, did you mean bank can close one eye & give 90% loan for 3rd house also? That will be great news, but, will BNM interfere?

No. they cant break the law. the details is not good to discuss here

[chrisyen]

Thanks, sifu Chris. Wil meet up sometime over the next gtg. Btw, your co project is mainly around Kajang, is it right? Any up & coming(Not those already eaten baubau by others) one closer to KL? Can pm your co contact or not? At my age, really need to get something solid to hedge against inflation, children education & other unforseable medical expenses lah.

my company have a project in Melawati, along MRRii and Jalan Kolam Air, so right across MRRii is TAR college. Very strategic location.

another is in Kepong, JV with some1, big semi D....

if you interested pls pm me ur number, i get some1 to call you, i'm no longer handle any property project....

up n coming is one near Bangsar South (we all used to call pantai dalam).... condo + villa....
maybe end of this year.

another under planning is near serdang lama.... beside sungai besi highway.... but plan not finalise....

in Kajang Semenyih, yes. got few project planning for next yr!

[Sid Vicious]

Zitan: Back for holiday and leaving this weekend. 2 weeks is too short and need to get some stuff sorted before i go :p
Looks like you investing heaps 

[Sid Vicious]

zitan 

hahaha everybody will have their strengths and weaknesses 

[outlander2005]

the property in KL is definately kena goreng big time by the rich... one of my client bought 40 units of the Jaya One Residence... All you need is a handfull of such rich ppl... no wonder it is sold out on day 1.

[outlander2005]

haha... one of those ppl standing nearby feeling so jealous that i cannot afford even 1!!!!!

[Watchnewby]

Not only rich man investing, but sometimes the developer themselves or their staff also "sapu" a couple of units with the hope of selling them at a higher price.

Hopefully the property market has reached its zenith and on its way down. Then maybe the property price will be fairly reflected rather than at this moment.

[outlander2005]

fingers crossed!!!!

[chrisyen]

Not only rich man investing, but sometimes the developer themselves or their staff also "sapu" a couple of units with the hope of selling them at a higher price.

Hopefully the property market has reached its zenith and on its way down. Then maybe the property price will be fairly reflected rather than at this moment.

half true... property boss not that stupid.... if staff sapu mean the pricing proposed by staff is too low... n  they planned for their on interest!

[Watchnewby]

Not only rich man investing, but sometimes the developer themselves or their staff also "sapu" a couple of units with the hope of selling them at a higher price.

Hopefully the property market has reached its zenith and on its way down. Then maybe the property price will be fairly reflected rather than at this moment.

half true... property boss not that stupid.... if staff sapu mean the pricing proposed by staff is too low... n  they planned for their on interest!

I know of a few property developer's staff do that. The staff can be called rich but kept a very low profile and make their money in future new property sales. Some of them has been working for the developer > 13 years already.

[outlander2005]

yes.... the new project by YTL at sungai Besi, the project sold out within few hours. I registered my name hoping someone will drop out due to loan issue. The next day, the sales agent call me that someone willing to let go but hav to pay RM50k as token to change name.... it is registered by one of their staff!!!!

[Watchnewby]

yes.... the new project by YTL at sungai Besi, the project sold out within few hours. I registered my name hoping someone will drop out due to loan issue. The next day, the sales agent call me that someone willing to let go but hav to pay RM50k as token to change name.... it is registered by one of their staff!!!!

Imagine RM50K per house, if sell 10 houses, become a 1/2 milionaire already.
The lower end property, the rate is lower from RM20K-RM30K, others between RM50K-RM80K.