Friday, 11 July 2014

OPR up 25 basis points

If you are cash rich, then your interest income from fixed deposits will go up.

If you are paying off loans, actually you won't feel much because your repayment amount stays the same but the interest portion is now slightly higher.

So what you should do, if you have some money in your EPF account 2, is to use that to pay down some of the principle of the loan to ensure your tenure is not extended unduly long.

From the human psychology perspective, the rate hike will make house buyers nervous for a while so sales will go down a bit. Eventually though, they will get over it.

This means that property prices will stabilise for a while then begin to pick up again because there will be housing pressure from a growing adult population.

I believe now is a good time to look for distressed sellers and pick up a good bargain. Some people were very aggressive in buying properties during the boom, with "no money down" using inflated sales agreements - well, think that is going to come back and haunt them very soon.

See, try and cheat?

Anyway, lets keep an eye out for good deals :)

Thursday, 3 July 2014

28 Boulevard in Pandan Perdana

Friend of mine who is a real estate agent sent me this - seems interesting..

Project Name : 28 Boulevard
Location : Pandan Perdana
Land area : 5.23 acres
Tenure : Leasehold
Components : Four 45 storey towers with Studios,1,2,3 and 4 bedroom units
Size (Sq ft): 450, 710, 904.
Pricing : from RM600 psf to RM650 psf
~Lakeside living
~Affordable pricing
~200,000 Sq ft of facilities
~Sky garden terraces
~Lakefront retail and alfresco dining
~Brought to you by the same people who developed Marc Residence KLCC by Best Boulevard Sdn Bhd

My take:

  1. High density - don't like.
  2. Leasehold - don't like
  3. Lower middle class area - well, usually the food choices are more and better :)
  4. Relatively affordable as it starts from under 300k - but for such a tiny unit.

Reckon it's a buy call if you have the cash to put down a large chunk and rent it out.

I wouldn't buy it for staying nor do I expect the value to appreciate much - oh it will, of course, just not at the level we have been seeing the past few years, that's all.

Still, it would be popular with the younger crowd or lower income earner because a 710sq ft unit is in the low 400Ks - that would translate to a 1,600+ repayment per month. So if a family where dad earns 3K and mum is at 1.8K - take home is 4K+, this is okay.

Working class can afford but don't know about the maintenance fee and the quality of maintenance in future...

Buyer beware, is all I'm saying.

I was just thinking, if one had about 300K+ and bought the smallest unit outright for rental,how much would you be able to charge?

If you are expecting at least 4% return, you'd have to charge a rent of almost RM1,000 a month. Seriously, in Pandan Perdana? That is unimaginable.

Then just a quick scan of an alternative - Dorchester Sri Hartamas has units sized at 410 sq feet for around RM350K.

Wouldn't you rather stay in Sri Hartamas even though at a slightly higher cost? Similarly, renters would be willing to pay to stay there.. hmm.. unless the developer is very bullish on the property market when the project is completed.

I dunno, my bet is still on "posher" areas... they've proven to be more resilient in hard times.. and they stay better maintained too.

Monday, 23 June 2014

Buying another property

I'm thinking if the inner part of Taman Melawati is going to appreciate.

But not cheap leh! My goodness, asking about 550,000 for a single storey terrace. Which wouldn't  be so bad if the width was the normal 22 feet for Melawati but it was only 20 feet wide...