THE INVESTMENT APPROACH OF CALVIN TAN

SRI PETALING IN KUALA LUMPUR & TAMAN PERLING IN JOHOR. Compare & Contrast (Calvin Tan)

calvintaneng
Publish date: Sat, 14 May 2016, 10:59 AM
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Hi Guys,

I have An Investment Approach I which I would like to all.

Sri Petaling to continue to enjoy growth

 
Translated by Google Translator:

Sri Petaling

PETALING JAYA (May 14): Sri Petaling’s property market is expected to continue to enjoy growth on rising demand from developers looking for land beyond the city centre, said property consultants.

“I think landed properties in Sri Petaling will continue to enjoy appreciating values while the shopoffices will be able to generate good rental yields in the medium to long term,” said JS Valuers Research and Consultancy Sdn Bhd director Chan Wai Seen.

He also noted that terraced houses are popular, while semi-detached homes and bungalows will find it harder to change hands in the current market.

Landserve Sdn Bhd executive director Tan Kim Seng noted that prices of landed homes have risen by 5% to 25% per year over the past five years, propped up by more expensive properties in neighbouring residential areas.

For instance, typical 1-storey homes with land area of 1,733 sq ft and built-up of 976 sq ft were going for an average of RM500,000 last year, up from RM390,000 in 2010, while average prices of 2-storey units with a land area of 1,755 sq ft and built-up of 1,360 sq ft rose to RM850,000 from RM500,000.

Meanwhile, 2.5-storey terraced homes that cost RM800,000 in 2010 are going for RM1.1 million today, while average prices of 2-storey detached and semi-detached houses are RM3.5 million and RM2.5 million respectively, up from RM2.5 million and RM1.1 million five years ago.

Tan also noted that there is high demand for shopoffices in Sri Petaling’s thriving commercial district in Jalan Radin Bagus.

However, there are many newer shopoffices that have come onto the market in recent years and occupancy levels are slow to pick up, although consultants believe that the situation will improve over time.

The rental yield of an intermediate 3-storey shopoffice is about 4% to 4.5%, which is comparable to similar commercial properties nearby.

Start your search for a condominium of your choice HERE.

For the full report, read the May 16 issue of City & Country, the property pullout of The Edge Malaysia.Subscribe here for your personal copy.

Calvin comments:
In 1990  Taman Sri Petaling 2 storey houses were tenanted for Rm550. My landlord bought it for Rm100,000.  After staying there for 6 years I moved to Singapore. Since then with the opening of KESAS Highway Sri Petaling became a Very Prime and Accessible Location.  Today these 2 storey houses are worth Rm800,000 to Rm850,000 each. And there have only leasehold titles.
So let's calculate:
Cost of purchase: Rm100,000. Today's appreciated value Rm800,000.
Gain Rm700,000 in 26 years or Rm26,923  per year or 26.9% yearly gain for 16 long years.
Wow! That's more than 33% profit a year (if you include rental of Rm7,000 (7%) a year.
In the latest Bershire Hathaway Meeting in Omaha the compounded gain is just about 15% yearly for the last 25 years. So investing in a house in Sri Petaling, KL for 26 years beat Warren Buffet by  more than 2 times! Amazing indeed!
I don't think Sri Petaling houses can give a compounded growth of 33% per annum from now onward even if it is located only 10 minutes from Bandar Malaysia. Its leasehold status will cause the decrease of loan margins for future years. So where else got another SRI PETALING?
INTRODUCING TAMAN PERLING, JOHOR
Of course there is! The Equivalent of SRI PETALING in KL is TAMAN PERLING In JOHOR!
Like SRI PETALING in KL TAMAN PERLING Has A Superb Location
SEE MY WRITE UP
 

TAMAN PERLING – A SINGAPORE-CENTRIC LOCATION FOR EASE OF ACCESS.

TAMAN PERLING is located almost equidistance to WOODLAND KASTAM AND SECOND LINK CIQ AT TANJONG KUPANG. There is a natural Circuit encircling Singapore  TUAS – PIE – KJE – BKE- WOODLAND (On Singapore Side) And CIQ KASTAM JB – DANGA COASTAL HIGHWAY- PASSING THROUGH TAMAN PERLING – LEGOLAND VICINITY –  SECOND LINK HIGHWAY to SECOND LINK CUSTOM.

For the residents of TAMAN PERLING there is a dual choice. When there is traffic jam on WOODLAND SIDE they could travel to SINGAPORE BY SECOND LINK & VICE- VERSA. Either way it only take 10 – 15 minutes.

TAMAN PERLING was developed by PELANGI BERHAD many years ago. There are about 10,000 houses here. Almost fully

built up over the years.  Very few pockets of land are available for development. Many young people have moved to Bukit Indah, Horizon Hill & Nusa Idaman because they are new and trendy. Moreover, there are better amenities like AEON BUKIT INDAH, TESCO & THE NEW SHOPPING BELT of INDAH WALK  and  NUSA BESTARI.

BUT FOR LONG TERM PROSPECTS we believe TAMAN PERLING will EMERGE THE OVERALL WINNER.

Passing South of TAMAN PERLING is the 6 LANE DANGA COASTAL FREEWAY (No toll here). And passing North beside PERLING MALL is the 8 LANE SUPER HIGHWAYS (after having removed 5 traffic light junctions in year 2009!)

TAMAN PERLING WILL THEREFORE, BE THE MOST CENTRAL AND CONVENIENT PLACE IN THE FAR FUTURE : FOR SINGAPOREANS & ISKANDARIANS.

And for amenities. PERLING MALL is now going through a Multi Million dollars refurbishment to make it A Modern Shopping Mall.  As mentioned earlier, PERLING 3/4 STOREY SHOP HOUSES called PERLING FORTY FIVE are all SOLD OUT (non-bumi lots).

And will be ready by end 2014. The 4 storey Shophouses are Corner Units equiped with Lifts.   There is also a Bus Interchange beside PERLING MALL for CW3 buses   from Jurong Point, Singapore.

PERLING ATTRACTIONS

For restorants there are Yew Cafe , NONYA  Restoran,  Italian Restaurant, TAXISI for its famous Dim Sum (Come early between 8am -12 noon} Usually the food is sold out by 2 p.m. Prices are very reasonable and very fresh. Hardly any left for sale over-night.

For our muslim friends (and non muslims too) there is RESTORAN MANA ADA  LAGI?  which opens from 7p.m. to 12 midnight. As the name implies “WHERE ESLE?” can you find such good food at such low prices. The place is usually packed with diners. And buy and takeaway too (cheaper than cooking your own food, sure? Come and find out for yourself)

After that do your shopping at GIANT PERLING MALL if you are travelling back by Woodland way or you can do your shopping at MYDIN HYPERMARKET near LEGOLAND  before going back by TUAS.    ” BON VOYAGE!”

 

Note:-

Upcoming Property Launches In Taman Perling

Two blocks of 25  storey Condominiums near Perling Mall. Total 564 units.  Prices  starting from Rm625 psf.

Super Link Houses 26 x 80 feet. Prices to be confirmed: About Rm768,000 per unit  in a Gated & Guarded Enviroment. (These are all fully sold out and occupied.)

Last phase of 2 Storey 24x 80 feet  at D’ serambi –  price starts at Rm 680k.

 

ADDITIONAL INFORMATION

There is a Huge Piece of Land Beside PERLING MALL.  Slated for a Multi Usage of  SHOP-CUM OFFICE-CUM APARTMENT Complex  for MAXIMUM USAGE. This will be a Very Strategic Piece of Future Developement in ISKANDAR.

Correction: According to latest report the 6 acre land will be slated for the construction of LULU HYPERMARKET. Opposite Perling Mall will be the opening of AMERIN HOTEL (17 Storey Tall) soon. In Perling Forty Five a New Budget Hotel called NEX Hotel has just opened for business. (May 14th, 2016 update for i3 Forumers)

Latest Update: March 1st, 2014.

The Land in Taman Perling is now Valued at RM170 psf. And its Prime Prime Location Can Only Get Better & Better!

Further comments from Calvin:

The single storey houses in Taman Perling are now priced around Rm350,000 a unit. They are all freehold units. 2 Storey Houses are priced between Rm500,000 to Rm600,000.

As TAMAN PERLING Houses are expected to double in price of those in SRI PETALING in 10 years time I think there are no better buys anywhere in Malaysia. In some sense TAMAN PERLING IS EVEN BETTER THAN SRI PETALING AS IT IS FREEHOLD AND LOCATED NEAR SINGAPORE (In Both Directions). With the Connecting Bridge from Danga Bay Area TAMAN PERLING'S ACCESS HAS IMPROVED TREMENDOUSLY JUST LIKE THE CONNECTING BRIDGE FROM TAMAN DESA TO THE FEDERAL HIGHWAY.

Regards,

Calvin Tan

Jurong West, Singapore

 

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Discussions
Be the first to like this. Showing 12 of 12 comments

kk123

Property is not all that easy as stated...
Buying a house need to pay bank loan interest..6% per annum..insurance and maintenance fee~ 2-3% and inflation 2%-3%..plus other cost like taxes, maintainance etc.terrace house gets old and wear and tear..easily can cost 5 to 10%..so the net increase is not much as there is always holding cost etc.

2016-05-14 17:26

kk123

Jb is a weekend destination.. monday to friday it is a ghost town...

2016-05-14 17:27

calvintaneng

kk123 Jb is a weekend destination.. monday to friday it is a ghost town...
14/05/2016 17:27

Jb not a ghost town lah.

You see, every day 200,000 or more people from Johor enter Spore for work. After 5 pm they all return to Johor.

Between me and my Johor Buddies we have fully rented out more than 100 houses. And there is not enough house for rental now. Demand is far more than supply for single and double storey houses.

2016-05-14 17:40

moneySIFU

Beware of buying leasehold property. Many may not know it will be very difficult to get loan to buy property with lease period less than 50 or 40 years.

As it is difficult to get loan, you will technically be unable to sell your property since buyers can't get loan to buy your house, except those who are cash rich. After all, price will drop dramatically since no buyer market.

One more thing, if the leasehold property is about to expire, you will need to pay land premium to extend the title, it may cost RM50k or more.

http://www.starproperty.my/index.php/articles/investment/how-to-extend-the-lease-for-leasehold-properties/

Freehold property will have no expiry issue as leasehold property has.

2016-05-14 17:42

moneySIFU

Even though I am staying at PJ, but saying JB is ghost town is way too unrealistic.

------------------------------
kk123 Jb is a weekend destination.. monday to friday it is a ghost town...
14/05/2016 17:27

2016-05-14 17:48

Apollo Ang

625psf for taman ering,i better buy at penang times square at 650psf.in the middle of the town.so convenient no need a car also

2016-05-15 22:17

calvintaneng

Apollo Ang 625psf for taman ering,i better buy at penang times square at 650psf.in the middle of the town.so convenient no need a car also
15/05/2016 22:17

You must think longer term like 5, 10 or 20 yrs down the road.

Tmn Perling is like Queenstown of Spore.

The First HDB Flat to cross $1 million mark is from Queenstown.

So Tmn Perling will overtake all of KL or Penang longer term

Longer term?

Apollo Ang?

Hmmmm?

The First Rocket that flew all the way to the moon was named Apollo.

So Tmn Perling prices can also fly higher than all others?

2016-05-16 00:20

Jonathan Keung

between Sri Petaling and Sg Besi ( Salak South/Kuchai ) i believed growth potential and linkages for the latter ( i.e. Sg Besi area ) is better. Sri Petaling growth is fairly prize in whereas Sg Besi ( Salak South ) is the last available freehold land near the city. The close proximity between Bandar Malaysia and the proposed LRT station will benefit the economic development of that area. Last but not the least, Leafz Condo, Midfields, Central Residence, Aquaria, Maju lands are the upcoming developmentys in around Sg Besi area. This is my personal view

2016-05-17 09:35

valueinvestor

I used to stay in Seri Petaling and my parents still live there. Before investing, consider the following:

(1) Seri Petaling is on leasehold with most existing properties left with only about 60 or 62 years left before expiry. Most banks would not want to finance properties with 50-60 years left on the lease.
(2) The commercial area accessibility is very poor due to bad planning and developer's profit maximization by building lots of shophouses. The traffic jam and parking problem during office hours are really bad.
(3) Most of the houses there are built in the 1970s and 80s. My father's double storey house have termites problems, leaking pipes etc. If you pay RM800-900K for a terrace house, be prepared to fork out at least another RM100K just to make it liveable...

2016-05-17 13:30

Apollo Ang

never buy properties in hul area. 20-30 years ago people said butterworth going to be develope and there cheaper than penang but until now penang price up 100% there only will rise 10%. always buy what the majority want

2016-05-17 15:04

Apollo Ang

bank always lelong only bad properties when bad times,very seldom heard good area properties being auction

2016-05-17 15:05

Jonathan Keung

this reminds me of Rawang in the 70-80 where people was gung go on the development. Kepong was then frown upon as ulu or cowboy area. Look at the connectively before you invest. Whether for your own stay or investment (rental income)avoid those that are too far apart from the urban centres.we still need to work and travel daily from house to office. majority of young people will be renting (too expensive) for them to buy unless they get their help from Mama or Papa. location, location, location is the mantra

2016-05-17 15:10

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