Embayu Damansara West Review

Scale Model

embayu damansara west scale model
embayu damansara west scale model
embayu damansara west scale model block A & block B
embayu damansara west scale model block A & block B
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 scale model - pond garden
embayu damansara west scale model – pond garden
embayu damansara west surrounding price per sqft
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

embayu damansara west price list
embayu damansara west price list

Agent Contact

James – 011 3245 9299

Palma Puteri Apartment Kota Damanasara Review

Completion Datefrom Y2001*
Launch Pricefrom RM80k*
Subsale PriceRM330k per unit
RM383 psqft
(median price as of Y2018)
Asking Rental Pricefrom RM900 - RM1,400 per month
Maintenance & Sinking FundRM55 per month
Assessment Rate (Cukai Pintu)RM129.60 x 2 = RM259.20 per year
Quit Rent (Cukai Petak)?
Fire InsuranceRM70 per year
Built Upfrom 850 sqft
Land TitleResidential
TenureLeasehold
Tenure Expiry24/07/2106
Total Blocks4
Total Storey5
Total Units400
Parking per unitMin. 1
FacilitiesPlayground & multi purpose hall
palma puteri kota damansara
palma puteri kota damansara
palma puteri kota damansara
palma puteri kota damansara
palma puteri kota damansara
palma puteri kota damansara
palma puteri kota damansara
palma puteri kota damansara
palma puteri kota damansara blocks
palma puteri kota damansara blocks

Location

Address:

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

Google Map

Surrounding

 

palma puteri kota damansara sun direction
palma puteri kota damansara sun direction

Facilities

palma puteri kota damansara
palma puteri kota damansara

Unit Layout

palma puteri kota damansara unit layout
palma puteri kota damansara 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.

palma puteri kota damansara transacted price Y2018
palma puteri kota damansara transacted price Y2018

 

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

YearVolume of Transaction ('000)Change in Volume of Transaction (%) year on yearValue RM(billion)Change in Value (%) year on year
1990
148.20N/A15.16
N/A
1991164.00
10.7
17.32
14.2
1992168.27
2.6
20.27
17.0
1993178.05
5.8
22.44
10.7
1994217.54
22.2
29.70
32.4
1995251.89
15.8
39.85
34.2
1996270.53
7.4
48.99
22.9
1997274.75
1.6
53.21
8.6
1998186.08
-32.3
27.90
-47.6
1999225.89
21.4
34.42
23.4
2000240.06
6.3
41.31
20.0
2001242.63
1.1
38.63
-6.5
2002231.39
-4.6
38.64
0.0
2003243.38
5.2
43.43
12.4
2004293.21
20.5
59.96
38.1
2005276.51
-5.7
56.78
-5.3
2006283.90
2.7
61.60
8.5
2007309.46
9.0
77.14
25.2
2008340.24
9.9
88.34
14.5
2009337.86
-0.6
81.00
-8.3
2010376.59
11.4
107.44
32.6
2011430.40
14.3
137.83
28.3
2012427.52
-0.7
142.84
3.6
2013381.13
-10.9
152.37
6.7
2014384.06
0.8
162.97
7.0
2015362.11
-5.7
149.90
-8.0
2016320.43
-11.5
145.41
-3.0
2017311.82
-2.7
139.84
-3.8
2018313.710.6140.330.3

Residential Property Transaction by Volume & Value

YearVolumeValue RM(million)
2001176,208
22,199.2
2002162,269
21,136.7
2003164,723
23,011.2
2004195,243
29,295.8
2005181,762
28,407.3
2006182,555
29,446.9
2007199,482
36,490.6
2008216,702
41,304.0
2009211,653
41,848.4
2010226,874
50,654.2
2011269,789
61,831.6
2012272,669
67,762.2
2013246,225
72,060.4
2014247,251
82,059.6
2015235,967
73,469.9
2016203,064
65,574.43
2017194,684
68,463.23
2018197,38568,748.26

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)UnitsValue 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 RangeTerrace Semi Detach DetachHigh Rise Low Cost OthersTotal
Percentage36.67% 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 0679 21,738
RM501,000 - RM1,000,000 6,007 1,772 508 10,958 0 921 20,166
> RM1,000,000809 1,504 411 1,591 034
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
Percentange17.48%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
08,410
0 101
11,251
RM301,000 - RM500,000
315
199
260
2,405
003,179
RM501,000 - RM1,000,000
416
286
02,753
0 32
3,487
> RM1,000,00086
86
22
354
0224
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:

  1. Windmill Upon Hills
  2. Vista Residence
  3. Geo 38 Residence
  4. Midhills
  5. Ion d’Element

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

windmill upon hills genting
windmill upon hills genting
Vista Residence Genting Highlands
Vista Residence Genting Highlands
geo 38 residence genting highlands
geo 38 residence genting highlands
midhills genting highlands
midhills genting highlands

Relative Locations

relative location windmill upon hills - vista residence - midhills - geo 38 residence
relative location windmill upon hills – vista residence – midhills – geo 38 residence

Unit Photos

Windmill Upon Hills
windmill upon hills unit photo
windmill upon hills unit photo
windmill upon hills unit photo
windmill upon hills unit photo
windmill upon hills unit photo
windmill upon hills unit photo
windmill upon hills unit photo
windmill upon hills unit photo
Vista Residence
vista residence genting highland unit photo
vista residence genting highland unit photo
vista residence genting highland unit photo
vista residence genting highland unit photo
vista residence genting highland unit photo
vista residence genting highland unit photo
vista residence genting highland unit photo
vista residence genting highland unit photo
Geo 38 Residence
geo 38 residence genting highland unit photo
geo 38 residence genting highland unit photo
geo 38 residence genting highland unit photo
geo 38 residence genting highland unit photo
geo 38 residence genting highland unit photo
geo 38 residence genting highland unit photo
geo 38 residence genting highland unit photo
geo 38 residence genting highland unit photo
Midhills
midhills genting highland unit photo
midhills genting highland unit photo
midhills genting highland unit photo
midhills genting highland unit photo
midhills genting highland unit photo
midhills genting highland unit photo
midhills genting highland unit photo
midhills genting highland unit photo

Layout

Windmill Upon Hills
windmill upon hill typical unit type a
windmill upon hill typical unit type a
windmill upon hills dual entry type b
windmill upon hills dual entry type b
Vista Residence
vista residence layout dual entry
vista residence layout dual entry
vista residence layout
vista residence layout

Geo 38 Residence

geo 38 residence layout typical Type A
geo 38 residence layout typical Type A
geo 38 residence layout Type C
geo 38 residence layout Type C
Midhills
midhills layout type d
midhills layout type d
midhills layout type c
midhills layout type c

Property Comparison

Features \ CondominumWindmill Upon HillsVista ResidenceGeo 38 ResidenceMidhills
TypeServiced ApartmentServiced ResidenceCondominiumServiced Residence
Land Area5.57 acres1.33 acres3.80 acres5.35 acres
TenureFreeholdLeaseholdFreeholdLeasehold
Land TitleCommercialResidentialResidentialCommercial
Price RangeRM492,000 - RM1,685,000RM889,350 - RM3,442,537RM408,528 - RM1,873,281RM495,000 - RM2,247,437
Size Range362 sqft - 1,523 sqft844 sqft - 3,144 sqft642 sqft - 3,038 sqft557 sqft - 2,450 sqft
Price per sqft RangeRM1,359 per sqft - RM1,106 per sqftRM1,053 per sqft - RM1,095 per sqftRM636 per sqft - RM616 per sqftRM889 per sqft - RM917 per sqft
Maintenance Fee & Sinking FundRM0.40 per sqft inclusive sinking fundRM0.30 per sqft + 10% sinking fund??
Completion DateJuly 2019July 2018July 2019November 2017
FurnishingFully FurnishedFully Furnished??
Location3.386096, 101.7747893.388038, 101.7727293.388104, 101.7747803.387214, 101.784745
DeveloperOSK Properties Sdn BhdFututech BhdPesat Bumi Sdn BhdLBS Bina
Number of Blocks4?13
Number of Levels42 Level for Tower A, B and C and 32 Levels for Tower D33. (1 level Facilities + 23 level Service Residential + 3 level Shoplots + 6 level Carparks)3819
Number of Units 1,108 378 579610
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
WebsiteLinkLinkLinkLink
Facilities
GardenYesYesYesYes
GymYesYesYesYes
Swimming PoolHeated Lap Pool & Kids PoolHeated PoolSwimming pool & Kids poolLap pool, Family pool & wading pool
JacuzziYesYesYesYes
SaunaYesYesYesNo
SpaYesNoNoNo
Children PlaygroundYesYesYesYes
Jogging TrackYesNoYesNo
Barbecue AreaYesYesYesYes
Squash CourtYesNoNoNo
Tennis CourtYesNoYesNo
Games RoomYesNoYesYes. Foosball, pool table, chess, dart, carrom & table tennis
Multipurpose HallYesYesYesNo
Convenient ShopNoYesYesNo
Other FacilitiesSky Deck
Sunken Deck
Celebration Alcove
Changing Room
Reflexology Path
Parcouse
Brooks & Bridges
Private-owned roof-top sky-loungeSky 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:

  1. Shareholders’ funds
  2. Revenue
  3. Profit before tax
  4. Net gearing

and its qualitative attributes as follows:

  1. Quality of product (service, finish, timeliness)
  2. Innovation and creativity (product, marketing)
  3. Value creation for buyers (capital appreciation)
  4. Image market perception (credibility, management style, effectiveness)
  5. Expertise (management, experience)
DeveloperTEPEA 2018TEPEA 2017TEPEA 2016
OSK141618
Kerjaya ProspekN/AN/AN/A
Pesat BumiN/AN/AN/A
LBS1924N/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 HillsVista ResidenceGeo 38 ResidenceMidhills
Location1.01.01.01.0
More Facilities1.10.51.01.5
Less Density0.61.81.21.1
Less Price per sqft0.70.91.51.0
Total3.44.24.74.5

*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.

  1. To Lower Monthly Payment
  2. To Change from Floating Interest Mortgage to Fixed Interest Mortgage
  3. To Cash Out To Use the Money for Personal or Investment
  4. 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

housing loan RM100k
housing loan RM100k
Assumptions:
  1. The current housing loan is already being paid for the last 10 years. So the tenure balance is another 20 years.
  2. 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:-

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

Explanation Of Terms Used

analysis refinance interest spread
analysis refinance interest spread

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.

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:-

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

My Watch List

NoNameSectionAddressLatlong
1SerojaBukit JelutongJalan Arca U8/80, U 8, Shah Alam, Selangor3.110105, 101.537065
2DelimaBukit JelutongJalan Arca U8/80, U8 Shah Alam, Shah Alam, Selangor3.110722, 101.536139
3Sri IxoraShah AlamTaman Bunga Negara, Seksyen 273.027259, 101.567949
4Alora / MediterraneanShah AlamJalan Damai 25/603.030146, 101.538405
5Sri AngkasaShah AlamSeksyen 28 Alam Megah Shah Alam3.004857, 101.567455
6Sri KemuningShah AlamJalan Anggerik Aranda 31/42, Kota Kemuning, 40460 Seksyen 31, Shah Alam, Selangor2.991299, 101.549183
7Pangsapuri JayaTTDI JayaJalan Ilham U2/14, Seksyen U2, Taman TTDI Jaya3.099714, 101.556064
8Mutiara SubangShah AlamJalan Utarid U5/6 Seksyen U53.182917, 101.536082