Lowyat.NET: Latest topics by Cavatzu

Changes in Refinancing Policies

Cavatzu — Tue, 16 Jul 2024 10:14:22 +0800

[YOUTUBE]pXV9LJSABN4[/YOUTUBE]

Game over for property investors? Multiple lelongs incoming? Developers to lower prices?

Are flat pack cabinetry like Kitchenz worth it?

Cavatzu — Sun, 28 Apr 2024 11:12:57 +0800

https://kitchenz.com.my/

Wondering if anyone have used or considered using them? I know it’s cheaper particle board material but this would be fine for a secondary kitchen area like wet kitchen or breakfast bar.

I did the numbers and it would be less than 2k for about 8 feet of cabinetry inclusive of tall cabinets. Would normal kitchen contractors be able to match this price point? I just want cabinets and don’t need sink, stove etc.

This is quite a bit cheaper than Ikea which I personally don’t think is worth it.

Unit build up size vs function vs price

Cavatzu — Thu, 04 Jan 2024 09:14:54 +0800

In the last 15 years or so, our concept of what is acceptable density and build up has changed drastically. I think we have seen your typical 3 bed/ 2 bath unit configuration that can range from 800 sqft to 1500 sqft or more.

Developers are generally being more efficient with layouts but you sometimes see oversized balconies or yards or wasted corridor space.

The oversized units seem to suffer a larger penalty unless they are in an in-demand atas area yet still fundamentally have the same core function as smaller units.

What is your deal breaker on what not to buy? This is purely around layout and ignoring location logistics.

Property Gurus can be sued

Cavatzu — Thu, 05 Oct 2023 11:39:39 +0800

https://www.channelnewsasia.com/singapore/d...el-fail-3819391

Interesting test case. In SG, they can be sued already. It will be interesting to see what happens here.

The fictional ROI charts can be used as proof of misleading conduct.

Changing main door location for dual key units.

Cavatzu — Wed, 27 Sep 2023 09:52:41 +0800

So I’m sure people understand the atypical dual key layout some of which just have one main door into the space and the rest which you have to partition up and create another entrance into the +1 unit. Some developments have already setup 2 door entrances from the foyer.

My question is in the first scenario you pretty much have to use 2 doors to enter your unit then can you actually remove the original front door and use that as a setback to your main unit entrance thereby pretty much changing the facade and increasing your foyer footprint. I’m guessing it’s a no.

Impact of Deaths on Property value

Cavatzu — Fri, 15 Sep 2023 14:57:16 +0800

Had a somewhat tongue in cheek post about different death scenarios which evidently some didn’t find funny.

I’ll just strip it back to a more generic question on the impact of deaths on property value. I suppose a distinction is to be made between natural causes and violent deaths. Also, if the death was on common area vs specific unit.

Material Offcuts from Developer

Cavatzu — Sat, 09 Sep 2023 09:37:31 +0800

Just wondering if people approach developer particularly those that do partial furnishing like kitchen to source the material to do additional cabinetry etc. Are you able to get this for really cheap since it’s leftover from the project?

Is it the end for partition units?

Cavatzu — Wed, 09 Aug 2023 23:38:34 +0800

Noticed a comment on iherng’s most recent video “Is there future for Malaysian real estate?” which is interesting but once again very one sided in what he supports.

But in the comments, a user shared that DBKL was going around spot checking units for partitions. So is this now an illegal thing? In this country, the laws only come up once they’ve decided that something is wrong/contrary to their interests.

Death to Short Term Stay!

Cavatzu — Sat, 27 May 2023 09:26:43 +0800

https://says.com/my/news/penang-bans-short-...oking-com-stays

Well it’s finally happened. I’ve repeatedly stressed what the hotel industry has been lobbying and it’s starting to happen. Only a matter of time this is seen as best practice even in KL.

Happy Merry Lelong everyone!

Why KLCC property hasn’t recovered?

Cavatzu — Mon, 27 Feb 2023 14:28:51 +0800

Source: https://m.facebook.com/story.php?story_fbid...mibextid=q5o4bk

This was too good an article for me not to share. Credits to Propcafe.

PROPCAFE GPT: Can you share some experiences related to the KLCC property rental market article earlier?

The latest exprience of PROPCAFE in KLCC property was related to one of the properties (near to 10 yrs old building) in a strategic location. Thanks to its low number of unit per floor and density, the small 1+1 room unit able to rent out around rm3800-4300 before the pandemic. The rental dropped significantly due the airbnb activities then Covid MCO period. The management then decided to ban the airbnb activities via the AGM which helped to stablise the rental. Unfortunately, pandemic has made most expats exit our country. This property then brought in many local tenants with lower budget. Due to its location and low density (& privacy), it was well received by local professional from other states. So many agents see great opportunity from this desperare period (landlords) to market it (previously not easy to see avg. or bad agencies or agents get the mandate from landlords here) with the rental price RM2200-2800. This particular unit was rented out at RM2,500 (painful as it dropped from rm4000). With this RM2k+ level, so many KLCC agents wannabe started to come in and the standard of services also declined significantly. Many landlords there have no choice but to entertain this type of agents who have many second or third tier customers, of course with their low ball approach to fish the customers in superb location like this.

Anyway, the extension of tenancy sees the rent moved up to RM2800 when MCO was lifted and life slowly went back to normal. Too bad, the agents continued to try their "pasar malam" way of marketing i.e. cheap and volume game to squeeze desperate landlords and close more deals i.e. to bring in sub-standard & lower quality of tenant to the building. Eventually that tenancy ended recently and of course the agent continued trying to convince the landlord to stick the rent around rm2500-2800 level and provided the same stories by showing all the lowly priced advertisement from the two property portals which clearly filled with the advertisements by two to three agencies with low ball prices. Having said that, there were few geniune agencies with much better prices but their advertisements were pushed to the lower pages in portals.

One should know the game well in property advertisement there!Just few calls could demystify their stories easily and proved not many units were available in the market. Although landlord still receive many inquiries from agents, again mostly were those who want to have a quick deal with low price. Often, no return calls after landlord stated down his price. The landlord decided to stick with the agent who at least tried to set the reasonable rental price in the portal (not those in the first page for sure). After 2.5 weeks from the day it was available, the good agent closed the deal after her first viewing arrangement with the price of RM3600. The tenancy started 1.5 weeks time. It is still not back to its peak back then but it is considered a decent deal as the price has moved from RM2500 (MCO) to RM3600 that translated to 44% improvement from the low.

The moral of the story is KLCC landlords need to be alerted and find out the actual liquidity of the property. The property portal could be misleading and the agencies do it with their own purpose and strategy. While landlords could not do much about the portal and advertisement, landlords can still make test calls on the low price advertisement. The trick is one must also check more and talk to agents who posted higher price too (often they ll share you with the liqudity close to the market). Remember, no agents love to post high price and get less enquiries. 😁 So they will be more trustworthy.

Hope the above case helps! To KLCC property owners - HAVE FAITH! You can always turn the tide! 💪

PROPCAFE GTP: Why KLCC Property's Rental Market Recovery Lagging Behind Other Areas?

It is all about Supply & Demand, Airbnb Operation, Unprofessional Agents, and Ignorance of Landlord.

1. Supply & Demand: KLCC tenant market's demand and supply are yet to reach the right equilibrium point as the supply keep coming in (though much less than 5-7yrs ago) and demand was dropping last two years. "Tthanks" to Covid (Expats number went down significantly), Need for Office (WFH or hybrid becomes norm), City Office Movement (from KLCC to PJ, TRX, and future Merdeka 118) and lastly FDI and economy is not recovering fast enough to bring in more MNCs, better city jobs, and foreigners to KLCC. Policies that attract foreigners like MM2H also altered and became less friendly.

2. Airbnb Operation: While the opening up of countries help tourists arrival and airbnb activities, most of the investors (while waiting for the return of expat) turn to airbnb to reduce their "pain" on installment. Tenants who look for long term lease do not feel comfortable with the chaotic lobby, parties, constant noise pollution, and mis-behaviour of guests in common facilities. Not to say the facilities' wear & tear issues becomes more serious that affect the attractiveness of the property. Tenants become less willing to folk out higher budget for it and they may also want shorter tenancy period to keep their choices open.

3. Unprofessional Agents: COVID/ MCO was the nightmare to KLCC property owners. No expats, no airbnb, and relatively higher maintenance fees & installment. The collapse of demand of KLCC property made the rental fall drasticly which became so affordable (some are cheaper than Cheras, Puchong etc). Because or this, agents bring in more lower tier tenants into this market. While the rent of most of the other areas have moved up 30-40pc from the low, KLCC properties is still struggling to push up 20pc level. Agents are still giving the same comments/ reasons to landlord i.e no expat, plenty supplies and hope for quick deals with low pricing. Many landlords are furious that agents who comtinue to advettise their units at low price and fish the enquiries. Many times, the units either not available or "rented" out when test calls are made. With airbnb back in business to fill up more units, agents should help KLCC to go back to its proper level (easily compare the rent in other areas). Agents should not unethically low ball the landlord and create artificial cheap rental market out there.

4. Ignorant Landlord: KLCC property owners need to be patient and not too panic to simply accept all prices as long as it can rent out. Please in mind that low budget tenant may not be the type of tenant you want to have (trouble x 3 when they move out). If you see the matured market like Desa Parkcity and Mont Kiara, the financially strong owners make the market more solid and sustainable. More so, it bounce back immediately after MCO. So, landlords pls do not just check the listing in two big property portals because there are many "fishing" advertisement. If you are uncomfortable with the quoted low rental, just make few calls to the low ball agents and find out more (for viewing and confirm the rental). You will find many are "bullshit". So, moral of the story is you cannot be lazy when comes to investment, just do more homework and get the right agent to make more investment more worthwhile. When majority of landlords do it cohensively, the property rental market in KLCC surely will come back to a very reasonable level soon!

What are the basic feng shui ID for high rise?

Cavatzu — Wed, 11 Jan 2023 18:29:29 +0800

Trying to work out some of the key feng shui ID which should be fundamentally similar for high rise since the layouts are all so generic nowadays.

1. If entrance looks straight into balcony, put up a partition or something to obstruct the direct path.

2. Sink should not be directly opposite stove. If it is, put in some kind of rug? (Not sure about this one)

3. Whatever quadrant of bagua you’re missing in the layout, you double up on the elements in your decor.

4. Don’t use blue colour or water features in your bedrooms?

5. Don’t have mirror facing entrances or the bed. Conversely, have a mirror reflecting your dining table.

6. Don’t have doors facing each other or the toilet. Fixable with crystals etc?

7. Always adopt command position layout for beds and desks.

8. I see some dispute about having ceiling fans in your bedroom but it’s not possible not to have them in our climate.

9. Use high energy art work in corridors and hallways.

Any other common issues that others are aware of?

Does combining bedrooms destroy investment value?

Cavatzu — Sat, 03 Dec 2022 08:02:11 +0800

With the newer launches nowadays, partition walls between rooms can safely be hacked as in launches from Exsim or Sunway.

I suppose the main issue nowadays is that primary bedrooms are smaller and barely have enough storage for a couple. One of the must haves for millennials is a walk in wardrobe. This sort of can be solved by either converting a spare room into a wardrobe area or more recently to combine this room into the master bedroom.

Question is if this is detrimental for rental/investment value? Losing a bedroom when everyone else is trying to carve out more bedrooms from living area seems to be the norm. I would imagine this is very location and project specific.

Understanding Density

Cavatzu — Sun, 06 Nov 2022 06:06:08 +0800

I’m still trying to find out and understand density guidelines for all the high rises particularly in KV and it seems like it’s all over the place.

On the one hand it says there is a hard cap of 400 units per acre which traditionally wasn’t really breached. Even Singapore doesn’t build at these densities.

Yet we see projects that have over 2k units on 3 acres or average number of units consistently going past the 400 mark. These are all based on Commercial under HDA guidelines. I’m struggling to understand how come all notions of suitable residential living get thrown out the window once the plot ratio calculations come in.

It puzzles me that many astute buyers are not really questioning what the developers have gotten away with. It has of course exacerbated the oversupply and overhang scenario. And unfortunately it won’t help your property values in the long term if there is no proper planning and oversight.

I can see that DBKL has a lot to gain when it’s thousands of units paying commercial rates for parcel rent etc giving them a solid revenue base.

[Home Appliances] Dishwasher for rental property

Cavatzu — Tue, 20 Sep 2022 06:25:29 +0800

Is it a thing to provide dishwashers for rental units now? I’m talking about mid to upper mid range.

Wondering if the plumbing can come from same line as the washing machine in the service yard.

Gila Punya new Visa rules

Cavatzu — Fri, 02 Sep 2022 10:06:10 +0800

https://www.malaymail.com/news/malaysia/202...l-tycoons/25904

Game over luxury high rise and Iskandar. RM 200k for an application fee. Chee sin.

Viability of jumbo units, 2000+ sqft

Cavatzu — Thu, 26 May 2022 14:49:16 +0800

I’ve been researching Aussie property a fair bit recently and found that 3 bed units are rare and anything with more rooms is non-existent. It’s all landed from that point.

The landed property in Oz has seen such a huge boom last 2 years whilst units have languished a bit but still got takers.

Their standards for units are a lot more stringent as there’s minimum sizes and a balcony or external space is a MUST eg. 100 sqm 3 bedroom unit must have 12 sqm unit of balcony. It’s not explicitly quoted in the build up as Aus only looks at internal calculations. I’m sure it’s all costed out.

This got me thinking about the jumbo sized units in Malaysia and how at those price points would it not make sense to just go landed? The maintenance fees are costed by sqft so something huge will just incur so much expense. Why do it then? Units in Oz are seen as temporary housing until you start a family or perhaps if you’re single, or a couple with one kid tops.

TLDR: I’m not confident about the liquidity and viability of jumbo sized units unless it’s to be leased out to expat families.

Are balconies included in square footage?

Cavatzu — Mon, 21 Mar 2022 12:03:24 +0800

Just observing that in Australia that balconies for apartments are generous and not directly used for square footage calculations. They are a bonus space.

Are balconies in Malaysia chargeable at the full psf price of the property? If so, it’s such a deterrent and quite an anomaly for international developer practice.

Does continued buying of property make sense?

Cavatzu — Sat, 12 Mar 2022 18:59:27 +0800

This may be incendiary but I’m one to speak his mind.

I sometimes wonder if the continued parking of assets in this country via property purchase is misplaced or in fact not a good way to build wealth.

There are certainly very pronounced and systemic failures in the current governing regime but everyone seems to just bury their heads in sand and ignore it. Many people who are not of the majority ethnic background own a large proportion of assets in this country which is not adequate diversification considering the very tangible risks here of economic failure and societal upheaval.

Many seem very pleased to own 3 or more properties which may be loss making and not an efficient way to build wealth but yet the cycle continues.

I very simply pose to the greater public the risk of regulatory and taxation as well as currency risks that persist with concentration risk of assets in a dysfunctional regime. There are better ways to get ahead and this sheep like behaviour has led to developers being unaccountable and arrogant. It’s frustrating to see a perception that Malaysia will operate like the US or UK.

Plot Ratio

Cavatzu — Mon, 07 Feb 2022 20:34:10 +0800

Based on a few discussion threads, I read up a bit on plot ratios for new developments.

If you’re classed as a TOD development ie. within 400m of public transport you can build 1:8. This seems to have been the case for developments like Sunway Belfield.

I noted that the much maligned M Vertica has a plot ratio of 1:10 and I can’t really tell with the Skyline project but it seems extremely high dense for a 3 acre piece of land with over 2k units.

The only way I could get accurate information was based on information feed from Bursa. This only works for listed companies. Is there a way to get information for non listed developers?

Why do we build so high?

Cavatzu — Thu, 06 Jan 2022 10:07:33 +0800

I’ve been watching a lot of design videos in Singapore particularly of the HDB variety and I’ve found that most blocks are 20-30 floors. Those higher than this are a relative minority.

It occurred to me that 50+ Floor developments are becoming increasingly common in KV. Question is why is this necessary and will the town planning departments take accountability for flooding the market and creating this property overhang situation? It seems like the density per acre is almost higher than Singapore.