Thomas L Friedman in his book "The world is flat" demonstrate the changing world toward globalisation where people from one part of the world could collaborate with another person at another part of the world to achieve something that could never be done before and at such efficiency and low cost which was not possible in an unflattened world. One of the infrastructure that make all that possible is none other than the internet.
It is with the availability of affordable broadband that prompt us to think that more people will eventually use the internet to search for their choice property or to advertise their properties for sale or for rent. It has been more than 2 years since our real estate web site went live and looking back, the flattened world has made all that possible.
Even this particular web site alone is also a form of collaboration between two parties world apart. While blogger.com provided the server, web address & software to make this blog possible, we provided the content. When this blog is up and running, more collaboration take place in the form of pay per click advertising where we again work with google to display the advertisement in our web site, the script of advertising is provided by google and by inserting the scripts into our web site, the advertisement goes into auto pilot where advertisement related to content of this web site will be automatically shown.
The pay per click advertising programme, the Adsense programme allow us to earn a US dollar income to sustain the maintenance of our other real estate web sites , below is a copy of the the very first cheque that we received.
The Adsense programme further reinforced the various possibilities in the process of the world flattening where people from one part of the world such as in Asia or in Malaysia in this particular case is able to earn a US dollar income by collaborating with another party in the America and the astonishing part is that the two collaborating parties have never met in real life.
Sep 25, 2007
Is a flat flat world
Sep 24, 2007
Sep 23, 2007
Penang STAR property fair
Visited the property fair today and before we talk about the real properties, there are quite a number of scaled down models of the proposed properties that were on display by the various developers.
The Paragon by Hunza Properties Bhd:
Penang Time Square by Ivory Properties Group:
Sep 19, 2007
Sep 18, 2007
Up and coming project from IJM - Platino luxury condo, Penang.
3.48 acre
229 (Tower A - 117 units, Tower B - 112 units)
1850sf (171.8 sq.m) - 2850sf (264.7 sq.m) - typical
Penthouse/duplex (3)
Sep 17, 2007
Duta Kiara & D'Kiara Place
YNH Property Bhd plans to launch Duta Kiara & D'Kiara Place late this year and early next year.
Duta Kiara 163 suites consist of 110 units of luxurious condominium with built-up area of at least 3800 square feet and is priced at about RM3 million. That would be approximately RM789-00 per square feet.
D'Kiara place is located next to existing Mont Kiara Plaza and is a mixed development consisting of retail units, service apartments & office block.
Sep 16, 2007
11@Mont'Kiara
So far the highest price recorded in Mont Kiara area must be 11 @ Mont Kiara to be developed by Sunrise Berhad reported selling at RM727-00 to RM802-00 per square feet at recent preview for the registrants.
Sep 14, 2007
Verve Suite, Mont Kiara
Another project on going now in Mont Kiara is the Verve Suite developed by Bukit Kiara Properties Sdn Bhd. Currently they are already into the second block named the Vibe Tower, selling for around RM650-00 per square feet, all suite are fully furnished and very tastefully done. Purchaser would never have to worry about renovation or decoration. Size range from 633 square feet to 861 square feet.
Site plan:
Floor plans:
Sep 12, 2007
Debt is good
Debt is good, how can that be, but debt is really good especially if it is going to be paid back by others.
Debt is good when it is being used to invest in asset that can appreciate and at the same time generating rental income to the investor.
Lets investigate in an example, assuming that an investor purchase a 1400 square feet condo in Mont Kiara from a developer during an initial launch at RM400-00 per square feet and assuming that he take 90% loan from a bank.
Cost of condo = 1400 x RM400-00 = RM560,000-00
Down payment = RM56,000-00 (10%)
Monthly repayment for loan at interest rate of 5.99% for repayment period of 30 years = RM3,018-50
Interest rate of 5.99% is derived from a post of our property forum
Monthly installment of RM3,018-50 can be calculated using our loan calculator
Monthly rental = 1400 x RM3-00 = RM4,200-00
Monthly maintenance charges = RM0-27 x 1400 = RM378-00
Net monthly rental = RM4,200-00 - RM378-00 = RM3,822-00
Return per month = RM3,822-00 - RM3,018-50 = RM803-50
Return per year = RM803-50 x 12 = RM9,462-00
Amount of equity invested = RM56,000-00
Amount of return per year = RM9,462-00
That works out to be = 9,642-00 x 100 / 56,000-00 = 17.2%
Of course there are still some minor charges that have been taken into account such as assessment, quit rent etc but the gross return based on small equity of RM56,000-00 together with leveraging effect of using a bank loan to finance the purchase when planned carefully can bring meaningful return.
On top of that, the purchaser is bound to reap the capital gain over time when the property appreciate, healthy rental income enable the owner to hold the property longer to enjoy capital appreciation
Sep 11, 2007
Legal fees on transfer
When one is buying a landed property from developer before commencement of construction work or during construction stage, it is wise to confirm with the developer whether the status of the land on which the building is going to be constructed is still under a master title of the entire development or is it under a individual title. If the land is still under a master title, then what is normally done during the sale and purchase agreement stage is that there is an assignment of a portion of the master title to the purchaser in relation to the landed property that he or she has purchased. Only upon the completion of subdivision and when the individual title is issued can the transfer be executed to complete the transfer of the property to the purchaser.
In essence, if the land is still under a master title, there will be two legal process which mean two legal fees involved. One for the assignment during the sale and purchase agreement stage and another for the eventual transfer. Therefore if the land come with individual title, there will be only one process where the purchaser will save on legal fees.
In most cases where developer rush to develope their land soon after the purchase of land, the status would most likely still be under a master title, why not negotiate with the developer to absorb the legal fees for the sale and purchase agreement so that eventually one would only need to pay the legal fees for transfer when the individual title is issued after the completion of land subdivision
Sep 10, 2007
Ceriaan Kiara, Mont Kiara
Another condo project that is very competitively priced in Mont Kiara is the Ceriaan Kiara developed by YNH Property Bhd
Link to developer web site
Real estate listing - internet vs newspaper
A very good article that has been posted on our real estate article directory about the advantage of internet real estate listing vs newspaper listing
http://www.realestate2u.net/articledirectory/Article/Real-Estate-Listings---Internet-Vs-Newspaper/1464
If you want to reproduce the article in your web site, the html or e-zine ready version is available at
http://www.realestate2u.net/articledirectory/ezineready.php?id=1464
Sep 9, 2007
Sunway City launched Villa Manja
Location plan:
Floor plans:
Location:Sunway SPK Damansara, Kuala Lumpur, Malaysia.
Type of Property:Villa Manja Twin Villa, 2-storey Semi-detached.
Developer:Sunway SPK Homes Sdn. Bhd.
Tenure:Freehold
No. of Units:196 units
Built-up areas:3,948 sq. ft. onwards, 45' x 90' (5+1 bedrooms, 5 bathrooms)
Discount:5% (Bumiputra); 5% early bird
Selling price:From RM1,878,888
Sep 8, 2007
Property sector get another boost with budget 2008
1. EPF contributors can make monthly withdrawal from account II to settle housing loan.
2. 50% reduction in stamp duty for those buying a property not exceeding RM250,000-00
3. The government has allocated a fund to provide guarantees to the banks to help those in the low income group to obtain housing loan.
