Scale Model

embayu damansara west scale model - swimming pool and planned block C — embayu damansara west scale model – swimming pool and planned block C

embayu damansara west scale model - pond garden — embayu damansara west scale model – pond garden

embayu damansara west surrounding price per sqft

Show Unit with 3 Bedrooms

embayu damansara west show unit - living room 2 — embayu damansara west show unit – living room

embayu damansara west show unit - living room — embayu damansara west show unit – living room

embayu damansara west show unit - dining area — embayu damansara west show unit – dining area

embayu damansara west show unit - third bedroom — embayu damansara west show unit – third bedroom

embayu damansara west show unit - second bedroom — embayu damansara west show unit – second bedroom

embayu damansara west show unit - master bedroom — embayu damansara west show unit – master bedroom

Layout of Type A1

embayu damansara west show unit - layout — embayu damansara west show unit – layout

Price List

Agent Contact

James – 011 3245 9299

Palma Puteri Apartment Kota Damanasara Review

Completion Date	from Y2001*
Launch Price	from RM80k*
Subsale Price	RM330k per unit RM383 psqft (median price as of Y2018)
Asking Rental Price	from RM900 - RM1,400 per month
Maintenance & Sinking Fund	RM55 per month
Assessment Rate (Cukai Pintu)	RM129.60 x 2 = RM259.20 per year
Quit Rent (Cukai Petak)	?
Fire Insurance	RM70 per year
Built Up	from 850 sqft
Land Title	Residential
Tenure	Leasehold
Tenure Expiry	24/07/2106
Total Blocks	4
Total Storey	5
Total Units	400
Parking per unit	Min. 1
Facilities	Playground & multi purpose hall

Location

Address:

Jalan Cecawi 6/6,
Section 6, Kota Damansara,
47810 Petaling Jaya, Selangor

Google Map

Surrounding

palma puteri kota damansara sun direction

Facilities

Unit Layout

Pricing

Asking Price vs Rental Analysis

As of July 2019, average asking price is RM285,000 and average asking rental is RM1,100. (Based on mudah.my)

If take loan of 30 years with 4.5% interest and 10% downpayment, loan installment is RM1,300.

So if buy this property it is negative cash flow of RM200 per month. If include maintenance cost, quit rent and cukai petak, the loss is much higher.

The purchased price for this property is RM240,000 to have break even vs asking rental (only includes loan installment cost).

Transacted Price

For Year 2018, the median transacted price is RM330,000.

Malaysia Property Transaction

I compiled the property transaction by year and subsector for time being is only for residential as I personally only invest in residential property.

Data source is from JPPH.

Total Property Transaction by Volume & Value

Year	Volume of Transaction ('000)	Change in Volume of Transaction (%) year on year	Value RM(billion)	Change in Value (%) year on year
1990	148.20	N/A	15.16	N/A
1991	164.00	10.7	17.32	14.2
1992	168.27	2.6	20.27	17.0
1993	178.05	5.8	22.44	10.7
1994	217.54	22.2	29.70	32.4
1995	251.89	15.8	39.85	34.2
1996	270.53	7.4	48.99	22.9
1997	274.75	1.6	53.21	8.6
1998	186.08	-32.3	27.90	-47.6
1999	225.89	21.4	34.42	23.4
2000	240.06	6.3	41.31	20.0
2001	242.63	1.1	38.63	-6.5
2002	231.39	-4.6	38.64	0.0
2003	243.38	5.2	43.43	12.4
2004	293.21	20.5	59.96	38.1
2005	276.51	-5.7	56.78	-5.3
2006	283.90	2.7	61.60	8.5
2007	309.46	9.0	77.14	25.2
2008	340.24	9.9	88.34	14.5
2009	337.86	-0.6	81.00	-8.3
2010	376.59	11.4	107.44	32.6
2011	430.40	14.3	137.83	28.3
2012	427.52	-0.7	142.84	3.6
2013	381.13	-10.9	152.37	6.7
2014	384.06	0.8	162.97	7.0
2015	362.11	-5.7	149.90	-8.0
2016	320.43	-11.5	145.41	-3.0
2017	311.82	-2.7	139.84	-3.8
2018	313.71	0.6	140.33	0.3

Residential Property Transaction by Volume & Value

Year	Volume	Value RM(million)
2001	176,208	22,199.2
2002	162,269	21,136.7
2003	164,723	23,011.2
2004	195,243	29,295.8
2005	181,762	28,407.3
2006	182,555	29,446.9
2007	199,482	36,490.6
2008	216,702	41,304.0
2009	211,653	41,848.4
2010	226,874	50,654.2
2011	269,789	61,831.6
2012	272,669	67,762.2
2013	246,225	72,060.4
2014	247,251	82,059.6
2015	235,967	73,469.9
2016	203,064	65,574.43
2017	194,684	68,463.23
2018	197,385	68,748.26

Malaysia Residential Property Overhang Statistics for Y2018

Residential Property Overhang for Year 2018 categorized by type of property and value.

Residential Property Overhang By Price Range Y2018

Price Range (RM)	Units	Value RM(million)
Total	32,313	19,861.93
Below RM200,000	4,692	570.02
RM201,000 - RM300,000	7,566	1,829.21
RM301,000 - RM500,000	7,517	2,915.25
Above RM500,000	12,538	14,547.45

Residential Unsold Units Under Construction as of Q4, 2018

Price Range	Terrace	Semi Detach	Detach	High Rise	Low Cost	Others	Total
Percentage	36.67%	7.21%	1.71%	49.74%	1.81%	2.87%	100.00%
Below RM150,000	2,101	291	0	2,754	1,459	279	6,884
RM151,000 - RM300,000	11,932	614	116	14,486	0	399	27,547
RM301,000 - RM500,000	8,735	1,633	344	10,347	0	679	21,738
RM501,000 - RM1,000,000	6,007	1,772	508	10,958	0	921	20,166
> RM1,000,000	809	1,504	411	1,591	0	34	4,349
Total	29,584	5,814	1,379	40,136	1,459	2,312	80,684

Residential Unsold Units Not Constructed as of Q4, 2018

Price Range	Terrace	Semi Detach	Detach	High Rise	Low Cost	Others	Total
Percentange	17.48%	6.80%	1.42%	71.29%	1.21%	1.80%	100.00%
< RM150,000	303	393	0	240	240	0	1,176
RM151,000 - RM300,000	2,353	387	0	8,410	0	101	11,251
RM301,000 - RM500,000	315	199	260	2,405	0	0	3,179
RM501,000 - RM1,000,000	416	286	0	2,753	0	32	3,487
> RM1,000,000	86	86	22	354	0	224	772
Total	3,473	1,351	282	14,162	240	357	19,865

Malaysia Residential Property Overhang

Trend of Malaysia Residential Property Overhang year on year from Y2014 in term of number of unit and value RM(million).

Details Statistics:

Residential Property Overhang Statistics for Y2018

Source:

JPPH Residential Property Overhang Q4, 2018

Debt Service Ratio (DSR) Tells How Much You Can Borrow

What is Debt Service Ratio?

Debt Service Ratio (DSR) is a way for banks to determine whether you are eligible to get a property loan from them.

DSR formula as follows:

DSR = Commitment / Net Income.

Net income is your gross income after deducting EPF and income tax portion.

Allowable DSR

Income	Bank maximum allowable DSR
< RM3000	60% of Net Income
< RM6000	70% of Net Income
< RM10,000	75% of Net Income
> RM10,000	80% of Net Income

Notes: Different banks have their own allowable DSR. Above table as guideline only.

DSR Calculation

For new loan application the DSR is calculated the same for all banks but for refinancing the DSR is calculated differently.

New Housing Loan

Let say:

Monthly Income:

Gross Income: RM10,000
EPF Deduction: RM1,000
Income Tax Deduction: RM1,000
Net Income: RM8,000

Monthly Commitment:

Credit Card: RM200
PTPTN: RM100
ASB Loan: RM200
Personal Loan: RM500
Car Installment: RM1,000

Total Commitment:RM2,000

DSR (without new property loan) = RM2,000 / RM8,000
= 25%

Assuming you apply new property loan with monthly installment of RM2,000.

So the DSR would be:

DSR (with the new property loan) = RM4,000 / RM8,000= 50%.

Based on the table allowable DSR, you are still eligible to apply for the housing loan.

Refinancing Loan

Most bank will use similar DSR calculation as the new loan except for Maybank. According to Maybank for the cash out portion they would calculate based maximum tenure of 10 years and the original amount can go to maximum tenure either 30 years or maximum age of 70 years old.

The cash out calculation is only for DSR calculation but if Maybank approves the refinance, you still pay your monthly installment based on maximum tenure.

Calculation Example:

Outstanding amount of the original loan: RM100,000
Refinancing loan amount: RM200,000
So cash out = RM200,000 – RM100,000 = RM100,000

New Refinancing loan interest: 5%

The cash out monthly is calculated on RM100,000 based on 5% interest for 10 years which come to: RM1,061

While the outstanding amount of RM100,000 will be calculated based on 5% interest and tenure of 30 years which come to: RM536

So the monthly loan amount for DSR calculation is RM1,597

DSR (for Maybank) = (RM1,597 + RM2,000) / RM8,000 = 45%

Other banks will calculate RM200,000 based on 5% interest for 30 years which come to: RM1,074

DSR (other banks) = (RM1,074 + RM2,000) / RM8,000 = 38%

So other banks give lower DSR so easier to qualify for a loan. However usually, Maybank gives lower interest rate.

Genting Highland Condominiums Review

New Condominiums At Genting Highlands

Thanks to the Genting Integrated Tourism Plan (GITP) plan, especially the expected 20th Century Fox Theme Park (now cancelled), 5 new condominium being constructed and completed at Genting Highlands. It actual location is at Genting Permai.

The new condominium are:

I would like to do analysis on the first 4 condominium as they are nearer to each other. Which condo is the best to invest in? What unique value the condo can offer vs its competitor?

The Condominium Buildings / Scale Model

Relative Locations

Unit Photos

Windmill Upon Hills

Vista Residence

Geo 38 Residence

Midhills

Layout

Windmill Upon Hills

Vista Residence

Geo 38 Residence

Midhills

Property Comparison

Features \ Condominum	Windmill Upon Hills	Vista Residence	Geo 38 Residence	Midhills
Type	Serviced Apartment	Serviced Residence	Condominium	Serviced Residence
Land Area	5.57 acres	1.33 acres	3.80 acres	5.35 acres
Tenure	Freehold	Leasehold	Freehold	Leasehold
Land Title	Commercial	Residential	Residential	Commercial
Price Range	RM492,000 - RM1,685,000	RM889,350 - RM3,442,537	RM408,528 - RM1,873,281	RM495,000 - RM2,247,437
Size Range	362 sqft - 1,523 sqft	844 sqft - 3,144 sqft	642 sqft - 3,038 sqft	557 sqft - 2,450 sqft
Price per sqft Range	RM1,359 per sqft - RM1,106 per sqft	RM1,053 per sqft - RM1,095 per sqft	RM636 per sqft - RM616 per sqft	RM889 per sqft - RM917 per sqft
Maintenance Fee & Sinking Fund	RM0.40 per sqft inclusive sinking fund	RM0.30 per sqft + 10% sinking fund	?	?
Completion Date	July 2019	July 2018	July 2019	November 2017
Furnishing	Fully Furnished	Fully Furnished	?	?
Location	3.386096, 101.774789	3.388038, 101.772729	3.388104, 101.774780	3.387214, 101.784745
Developer	OSK Properties Sdn Bhd	Fututech Bhd	Pesat Bumi Sdn Bhd	LBS Bina
Number of Blocks	4	?	1	3
Number of Levels	42 Level for Tower A, B and C and 32 Levels for Tower D	33. (1 level Facilities + 23 level Service Residential + 3 level Shoplots + 6 level Carparks)	38	19
Number of Units	1,108	378	579	610
	Tower A (266 units), B(267 units), C(262 units) and D(313 units)	378 units of Serviced Apartment 31 units of Retail Lots + 11 kiosk		Tower 1 - 192 units Tower 2 - 251 units Tower 3 - 167 units
Website	Link	Link	Link	Link
Facilities
Garden	Yes	Yes	Yes	Yes
Gym	Yes	Yes	Yes	Yes
Swimming Pool	Heated Lap Pool & Kids Pool	Heated Pool	Swimming pool & Kids pool	Lap pool, Family pool & wading pool
Jacuzzi	Yes	Yes	Yes	Yes
Sauna	Yes	Yes	Yes	No
Spa	Yes	No	No	No
Children Playground	Yes	Yes	Yes	Yes
Jogging Track	Yes	No	Yes	No
Barbecue Area	Yes	Yes	Yes	Yes
Squash Court	Yes	No	No	No
Tennis Court	Yes	No	Yes	No
Games Room	Yes	No	Yes	Yes. Foosball, pool table, chess, dart, carrom & table tennis
Multipurpose Hall	Yes	Yes	Yes	No
Convenient Shop	No	Yes	Yes	No
Other Facilities	Sky Deck Sunken Deck Celebration Alcove Changing Room Reflexology Path Parcouse Brooks & Bridges	Private-owned roof-top sky-lounge	Sky Garden and Multi Tier Security with Access Card Laundrette TaiChi/Yoga Deck/Reflexology Path Exercise Pole Park AV/Entertainment Room Library Kindergarden Meeting Room	Aqua Wall Reading Nook Waterlily Pond Hammock Deck Reading Room Kick Boxing Spin Cup Fun Zone Air Hockey TV Room Kiddy Bowling Chilled Out Area Sky Aerobic Yoga Deck Hopscotch Social Corner Reflexology Path Reflection Corner Gazebo Zen Deck Aqua Deck Open Air Messamine Fitness Station The Plaza

Property Developers Reputation

When choosing a property, we also must evaluate its developer as it will tell whether you will get quality workmanship, deliver on time and as advertised. To evaluate that I compare based on The Edge Property Excellence Award (as it is easy to find info and the award relates on property quality as well).

Besides I try to find the developers QClassic Scoring. Unfortunately not easy to find information for the correspondent developers.

The Edge Property Excellence Award

The Edge Property Excellence Award (TEPEA) is an award given to property developers based on their quantitative attributes:

Shareholders’ funds
Revenue
Profit before tax
Net gearing

and its qualitative attributes as follows:

Quality of product (service, finish, timeliness)
Innovation and creativity (product, marketing)
Value creation for buyers (capital appreciation)
Image market perception (credibility, management style, effectiveness)
Expertise (management, experience)

Developer	TEPEA 2018	TEPEA 2017	TEPEA 2016
OSK	14	16	18
Kerjaya Prospek	N/A	N/A	N/A
Pesat Bumi	N/A	N/A	N/A
LBS	19	24	N/A

QClassic Scoring

Quality Assessment System in Construction (QLASSIC) is a system or method to measure and evaluate the workmanship quality of a building construction work based on Construction Industry Standard (CIS 7). QLASSIC enables the quality of workmanship between construction projects to be objectively compared through a scoring system.

The accreditation is done by CIBD.

So far I can only find OSK QClassic for Emira Shah Alam Project scored at 80.28%. It means that OSK already doing QClassic to ensure that their property development follows high standard.

Conclusion

	Windmill Upon Hills	Vista Residence	Geo 38 Residence	Midhills
Location	1.0	1.0	1.0	1.0
More Facilities	1.1	0.5	1.0	1.5
Less Density	0.6	1.8	1.2	1.1
Less Price per sqft	0.7	0.9	1.5	1.0
Total	3.4	4.2	4.7	4.5

*The higher the scores, the better it is.

The best condo is Geo 38 Residence while Windmill Upon Hills scored the lowest.

Windmill Upon Hills has good facilities but more dense and more expensive.

Vista Residence has less facilities.

Geo 38 Residence has good facilities, most affordable pricing among other condos.

Midhills is less dense and has good facilities.

References:

Windmill Upon Hills Price Min & Max
Vista Residences Price Min & Max
Geo 38 Residence Price Min & Max
Midhills Price Min & Max

Refinance Mortgate Rule of Thumbs

I want to refinance one of my properties. I want to know what is the differential interest rate that worth it for me to refinance. I read few articles some articles suggest to refinance if the interest difference is 2%. But sometime it is acceptable if 1%.

Without getting firm rules of thumb from reading few articles. I decided to calculate myself what would be the good rules of thumb to refinance mortgage.

Reasons to Refinance Mortgage

First let say what would be possible reasons to refinance.

To Lower Monthly Payment
To Change from Floating Interest Mortgage to Fixed Interest Mortgage
To Cash Out To Use the Money for Personal or Investment
To Shorten The Mortgage Tenure

In my case, I want to cash out and use the money for investment. My intention is to park the cash out money into ASB (Amanah Saham Bumiputra) earning yearly dividend of 7%.

Refinance Analysis

Below is the scenario that I use to do my analysis.

Initial Loan Amount (Before Refinance): RM100,000
Loan Tenure: 30 years
Interest Rate: 5.35%
Monthly Payment: RM558

Assumptions:

The current housing loan is already being paid for the last 10 years. So the tenure balance is another 20 years.
The interest is fixed during the tenure even though it is a floating interest.

Refinance Mortgage Costs:

When refinance, there will be cost as follows:-

Legal fee for the loan documents.
MRTA or MLTT (I use MRTA and wants its to cover the loan for 10 years only)
Legal fee on strata title or MOT as to charge to the new bank
Property valuation fee.

Explanation Of Terms Used

Interest Difference
The difference between the current loan interest rate vs the refinancing loan @ new loan.

Effective Rate
Interest of the refinancing loan.

Tenure (years)
In the analysis, I use the remaining 20 years to refinance the previous loan balance.

Monthly Installment
The monthly payment for the refinancing loan.

Total Interest Paid
Total interest paid for the refinancing loan over 20 years of tenure

Total Saving Over Tenure
Total saving from reduction of interest paid (the difference between previous loan vs refinancing loan) plus total monthly installment save from the previous loan vs refinancing loan over 20 years of tenure.

Net Saving
Total Saving Over Tenure minus out the refinancing cost.

CAGR Net Saving / Financing Cost
CAGR is over 20 years. The bigger the number the better.

Opportunity Lost @ 7%
By how much the refinancing cost will grow by putting it into ASB and earning 7% per year over 20 years.

Conclusion

The acceptable return is when the interest difference is 1.25% as CAGR is 6.60% and Total Saving / Opportunity Lost is 113.70% means total saving can cover the refinancing cost with dividend 0f 7%.

Important to notes even at 1% interest difference the CAGR is at 5.16% and Total Saving / Opportunity Lost is 92.43% which I think is commendable return.

References:

Excel used to calculate, you can download and do your own conclusion.

Palma Puteri Apartment Kota Damansara Selangor Leasehold Expiry

Palma Puteri Apartment is medium cost apartment located in Kota Damansara. It is a leasehold property expired by 24/07/2106. The tenure is 99 years.

This leasehold information is important if you want to sell or refinance your property.

Investment Properties Criteria – Shah Alam Area

I have few properties and mostly of them at Kota Damansara. Kota Damansara is leasehold area so all my properties in Kota Damansara are leasehold.

Now, I want to find potential freehold properties nearby my house.

My Property’s selection criteria as follows:-

Nearby house within 30mn drive
Price range for B40 refer to previous post
Freehold
Neighborhood is well maintained
Nearby jobs opportunities
Low rise apartment not more than 5 levels
High occupancy
Level: 1st or 2nd
Parking at least 1, better still ample parking
Size around 800 sqft

My Watch List

No	Name	Section	Address	Latlong
1	Seroja	Bukit Jelutong	Jalan Arca U8/80, U 8, Shah Alam, Selangor	3.110105, 101.537065
2	Delima	Bukit Jelutong	Jalan Arca U8/80, U8 Shah Alam, Shah Alam, Selangor	3.110722, 101.536139
3	Sri Ixora	Shah Alam	Taman Bunga Negara, Seksyen 27	3.027259, 101.567949
4	Alora / Mediterranean	Shah Alam	Jalan Damai 25/60	3.030146, 101.538405
5	Sri Angkasa	Shah Alam	Seksyen 28 Alam Megah Shah Alam	3.004857, 101.567455
6	Sri Kemuning	Shah Alam	Jalan Anggerik Aranda 31/42, Kota Kemuning, 40460 Seksyen 31, Shah Alam, Selangor	2.991299, 101.549183
7	Pangsapuri Jaya	TTDI Jaya	Jalan Ilham U2/14, Seksyen U2, Taman TTDI Jaya	3.099714, 101.556064
8	Mutiara Subang	Shah Alam	Jalan Utarid U5/6 Seksyen U5	3.182917, 101.536082