Balik Pulau? Some POTENTIAL insights.

November 11th, 2017 5 comments

stats2by Charles Tan

I still remember the time when I was looking to upgrade to a bigger place from my small apartment of 700 sq ft in Relau. I considered many places and Balik Pulau was one of them. There were a few projects that my wife and I drove to and one of it was Botanica. CT by MTT Properties & Development Sdn Bhd. The price for a terrace home then was below RM300k if I remember correctly. At the time, the construction was going on feverishly. It took my wife and I around 45 minutes to reach the place from our home in Relau via the Bukit Jambul hill road. Frankly, at the time, I love the space that Botanica 1 terrace home was offering, as well as the potential capital appreciation because this is still a landed property and Penang island is still just an island. 🙂  My wife said, ‘It’s far.’ I reminded her that even when we were staying in Relau, it still took her at least 30 minutes to reach her office in Bayan Lepas. Anyway, she won the argument, we did not buy it then and recently, I told her that the price of the same unit we saw has doubled. ‘We should have bought a unit,’ was her answer. Haha.

balikpulautravellingLet’s look at the latest stats about the actual travelling time. We ask our most reliable friend, GoogleMaps. By the way, I do not usually believe what my friend tells me about travelling time because once we are used to a certain area, the travelling time somehow shorten tremendously! Let us look at a typical weekday. We also look at the typical time that my wife used to leave our home in Relau previously. You can see that the time needed for the journey from Balik Pulau to the Bayan Lepas Industrial area is between 35-55 minutes. Please do look closely and you would realise that the JAM is actually within the Bayan Lepas area and not along the road from Balik Pulau. In other words, whether we stay in Balik Pulau or we stay in Batu Maung, we will still face the same jam. Seriously, I think travelling time is not the main reason why we should buy a place.  My old friend who stays in Balik Pulau told me she does not feel the duration because she has travelled the same road for 10 years!

Beyond this, Balik Pulau has a few more POTENTIAL insights. Let’s look at a few of them shall we.

Potential capital appreciation – Balik Pulau is still growing and has lots of room to grow still. Please do not ask me if prices would double again within the next 10 years. Seriously, you should not believe anyone telling you that it will double in price. However, just ask Penangite if they believe that property prices would stop rising and the answer is definitely a NO.

Prince of Wales Island International School (POWIIS)- It is not easy to run an international school if there are insufficient students. There are insufficient students when parents refuse to send their children there, probably because it is not good, too far or even just because they were not staying nearby. POWIIS today? Take a look at it today. https://www.powiis.edu.my/ I think it has grown tremendously and is now very prominent in Penang.

Continuous developments – Balik Pulau has become a magnet for developers who are eyeing developments within the Penang island. Big names, small names and even boutique ones. The reason is a similar one. They are building because the demand is growing. The demand is growing because people are now thinking of Balik Pulau as just another choice within the island. This by itself is an awesome reason.

Penang island is still an island – If we love to live in the island and thinks of mainland as a second choice, then just note that the available land for development within the island is not growing, except for the reclamations which I believe you are also aware of the price per sq ft that is being offered today. In terms of affordability vs size vs duration, it’s obvious that there are just a few choices left currently.

Durians – This is just a funny reason but hey, every year we get access to durians by being closest to the source. Seriously, durians will become a luxury because the Chinese from China are coming here to taste them. This is the reason why it may be tough for the durians to even leave Balik Pulau in the future because there is just not enough to go around.

Additional statistics? From my good friend’s site. miichaelyeoh.com

According to Department of statistic as of the year 2010 the total population in the area are 32,489. Today definitely the figure is much more.

stats2

Source: PenangMonthly.com

 

Happy looking for your home sweet home, especially for a growing family and new couples. This is going to be a long term investment and not just buying a property. Cheers.

>> This guest article comes courtesy of my friend, Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 14 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)

Categories: Balik Pulau Tags:

Government’s affordable houses may pose future threat to private developers

November 10th, 2017 No comments

affordable-suria-1-fThe government’s affordable housing schemes for Malaysians could in the future be a threat to private developers who will not be able to match the lower subsidised prices, Rehda Institute has said.

Datuk Jeffrey Ng Tiong Lip, chairman of the Real Estate and Housing Developers’ Association’s (Rehda) research arm, said that the government’s affordable housing schemes are currently not a threat to private developers.

He pointed out that private developers had in the past decade up until 2014 mostly built high-end and larger condominium units, but had only adjusted in the past few years to rolling out projects in the affordable housing category in order to survive the downturn.

But private developers’ previous disinterest in building affordable housing had resulted in a gap between demand and supply of such homes for Malaysians, he said.

“As at today the gap where PR1MA homes and so many federal, state, local authority, ministry housing schemes have been able to fill the gap where private developers are only starting to adjust

“Even buying land for affordable homes takes time to buy a land, takes time to get approval, so that so-called gestation have then led to this gap, where it was filled up very nicely by the government and participating entities,” the former Rehda chairman said at the Rehda Institute CEO Series 2017 yesterday.

“Now whilst I say that today it is not a threat, but moving forward we cannot say the same thing because as private sector developers start to roll out affordable homes, you will find that public sector developers or housing schemes versus private developers doing affordable homes, we are going to see an unlevel playing field,” he added.

Ng was responding to a question during a panel discussion, on whether developers view government initiatives for affordable housing as a threat and distortion of the property market or if it is considered as a market segment that private developers are unable to serve.

Later when speaking to the media, Ng noted long-term demand for housing will remain strong as the Malaysian population is relatively young and the younger generation are growing their income, adding that the public sector’s affordable housing schemes are “very welcoming”.

“From Rehda’s perspective, we definitely don’t see it as a threat today because the gap are being actually filled up, meeting up the demand. Bear in mind that demand is growing, supply needs to grow,” he said.

But when the gap between demand and supply starts to narrow as the private sector builds more affordable housing, it would result in competition between the private sector and the public sector, he said.

“Hopefully there will not be unhealthy competition, bear in mind PR1MA homes are selling homes at subsidised prices, subsidised by the government. And if private sector goes into the market, tries to sell it at a different price versus the subsidised price, you will roughly guess who is the winner and who are the losers.

“So what we are saying here is no issue today, but moving forward, I think we will have to address the issue as we move along because of this unlevel playing field,” he reiterated.

Ng believes that the government should play a different role instead, and work towards being a facilitator and provider of incentives to grow the market and to bring in new investment, instead of competing with the private sector.

“It’s going to be a zero-sum game because someone has to lose if that continues. I think this is a problem that I think we would like to address in the future, not today,” he said earlier during the panel discussion.

Source: The Malay Mail Online

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Offical Launching of M Vista @ Southbay

November 10th, 2017 Comments off

You are cordially invited to the Grand Launching of MahSing’s latest project – M Vista @ Southbay.

This development will feature a 23-storey serviced residence, offering 237 units of residential suites with unit size ranges from 534 sq.ft. to 1,201 sq.ft.

m-vista-launch

Visit MahSing’s Southbay Sales Gallery to find out more details!

Date/Time
11 & 12 November 2017
10:00 AM – 5:00 PM

Venue
Southbay Sales Gallery
Batu Maung, Penang

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Location Map

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Categories: Property News Tags:

M Tree Hill Condominium

November 8th, 2017 6 comments

m-tree-hill-condo

M Tree Hill Condominium, an upcoming high-rise residential development by M Tree Hill Sdn. Bhd. at Teluk Kumbar. Located off Jalan Sungai Batu, adjacent to Desa Pantai Indah in Sungai Batu. It is about 10 minutes drive to Penang International Airport, under 15 minutes to Second Bridge.

This project was formerly known as Straits View Condominium (renamed to One Tree Hill Condominium) by GTM Group, offering 59 typical and 8 duplex condominium units. Indicative price starts from RM895,000 onwards.

Project Name : M Tree Hill Condominium
Location : Sungai Batu, Penang
Property Type : Condominium
Total Units (Condominium) : 59 (typical), 8 (duplex)
Built-up Area: 1,313 sq.ft. onwards (to be confirmed)
Indicative Price: RM895,000 onwards
Tenure 
: Freehold
Developer : M Tree Hill Sdn. Bhd. (MBI Group)

Register your interest now

(This information may be used by the developer or their appointed agent to initiate follow-up communications with you on the project.)

Location Map:

Center map
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Bicycling
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Categories: Teluk Kumbar Tags: ,

AirBnB vs. Traditional Rental Income: A Creative Way for Investors to Cash Flow?

November 7th, 2017 Comments off

airbnbArticle by Freemind Works

Many property investors do not have a solid exit plan when buying into a property. With so many properties completing and owners getting their keys, they have resorted to swapping their traditional tenant with AirBnB guest, with the assumption that this option will give better cash flow. But, many realized that it’s not that simple after all.

To make more money from your property and get better cash flow, click here to know more
>> http://bit.ly/proptalk17

Let me illustrate.

Let’s say the asking rent is RM2,000 and you plan to rent out your unit at a daily rate of RM200. Assuming a 50% occupancy rate (which is on the high side), you will receive a monthly income of RM3,000 (RM200 x 15 days). This is gross income. You still need to deduct cost such as cleaning, laundry and etc., not to mention time and effort in corresponding with your guest. Assuming cleaning cost is RM80 and laundry is RM10; this translates to only RM110 income per night and RM1,650 per month.

Furthermore, you need to have a lump sum capital (approximately RM50,000 for 1,000 – 1,200 sq ft unit) to renovate your property, to make it AirBnb-able, before you start to collect short term rental income.

Not only these, there are additional challenges you have to face.

Many investors have come back to me and share their grudges and challenges in AirBnB-ing.

#1 There’s more supply than demand

Of late, there are a lot of properties completing and owners getting keys to their units. And many of these owners, not having a solid exit plan for their investment, are resorting to AirBnB. Therefore, many AirBnB units are mushrooming in the same area. So, what happen is that the Host/ Operator become desperate to rent out their unit; they decided to reduce their price and this eventually turns into a price war and asking rate per night will go down.

By following the 15 steps outlined in the Master Key Method®, you can potentially identify a property that fits into all the criteria and will enable you to make money when buying your investment property and gives you positive cash flow.

#2 Challenges of JMB and home owners

Go visit some of the completed properties and chances are you will see a big signage that screams “No Homestay”. This will pose a challenge to the landlord and gives an unpleasant experience to your guest. Which will results in negative comments for you as a Host.

noairbnb#3 Not all properties and location is AirBnB-able
Just because you have an empty property, you think you want to go into AirBnB. Not all and every property is equal. You may end up spending a lot of money on renovating and furnishing your unit but ended up not able to do short term stay.

Stratified residential properties are not allowed to do short term stay. And not all location will have demand.

There’s a better way to do this.

Let’s go back to basic, instead no solid exit plan for your property, do it right the first time.

Using the Master Key Method®, you identified a property selling at RM100,000. You buy this property with only RM1,000 and you make RM20,000 from just this one property. Let’s calculate the returns.

(%)ROI = RM20,000/RM1,000 x 100% = 2,000%

That is a whopping 2,000%.

The best part about using this method is that you still own the property and continue to collect monthly rental that gives you positive cash flow and passive income every single month.

I will be sharing more about the Master Key Method® and how you can invest in Property With Under RM1,000 and make RM20,000 to RM60,000 A Year with high ROI, on the following date:

Date: 11 Nov 2017 (Saturday)
Time: 1pm – 6pm
Venue: Vistana Hotel, Penang

So do block your calendar and reserve your seat.

And now for the good news. For readers of Penang Property Talk, you get to attend this workshop for FREE. But only for the first 17.

As seats are limited, click here NOW to reserve your seat:

>>> http://bit.ly/proptalk17

– Kaygarn Tan

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