Mid-Priced landed properties in Klang Valley and Johor – RM600k to RM800k

cimbmortgageWhat is mid-priced property to you? Well, mid-priced property to me is between RM500k to RM650k. The reason is because the typical mortgage per month for a RM650k property is close to RM3,000. This is based on a 30-year repayment period. I assume we are 35 when we are able to buy a RM650k property, paying 10 percent downpayment. For a family with a household income of RM10,000 (both working professionals), this is about just right. They still needed to pay for their cars and other stuffs besides just housing. A calculation extracted from CIMB Bank attached in the image for your reference. Well, that’s me. According to SP Setia, their mid-priced landed properties are those priced from RM600,000 to RM800,000. These would be what they will be launching in both the Klang Valley and Johor. The full article in thestar here.
According to SP Setia Bhd’s President and chief executive officer Datuk Khor Chap Jen, the group is cautious due to a challenging property market but said that some project launches which was delayed last year would be launched in 2017. It has an unbilled sales of RM8.25 billion and total undeveloped landbank of 5,218 acres. It has hit a total sales of RM3.82 billion for FY16 which is above its revised sales target of RM3.5 billion. Khor said it is bullish on Australia, followed by London due to renewed interest from buyers. He added this interesting point as well. “We will possibly look at Singapore as we think the government will relook the tightening measures.” I have just posted an article recently quoting South East Asia’s largest developer saying that the cooling measures in Singapore should last for at least one more year. Read it here:  Cooling measures in SG? One more year at least says Capitaland Ltd
If you believe what most people believe, that landed property is always a safe buy, then I think it’s time to look deeper into some of these landed property launches. As for those intending to buy for stay, then a faster way would be the secondary market. Typically, these offer good value too but don’t think too much of those popular hotspots. For these hotspots, as soon as there is an owner selling at below the market, someone would have snapped it up faster than you. Haha. My ex-CTO told me that he will not buy currently but if the prices drop 10 percent where he was staying, he would get one more unit. If it drops 15 percent, he would buy a few units. In other words, for these places it’s virtually impossible to get a unit way below market price. As for buying FURTHER away, do be reminded that you will have to stay there. If lifestyle came comes easy, then it is a great buy. Please do not buy first and decide later. It’s not a wise decision. Happy buying mid-priced properties, landed ones.
written on 24 Feb 2017
Next suggested article:   Ditching landed for facilities? Perhaps not so soon


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