Lowyat.NET: Latest topics by nckiong

Way Froward for Abandoned Projects?

nckiong — Mon, 18 Jan 2016 14:32:37 +0800

Hi:

I want to seek your opinion on abandoned projects, what is the way forward for me personally?

Bank has released ~ RM70K, and monthly interest is about ~RM250.

I'm not here to ask about court case or reviving project etc, but just want to know what to do if the project is continuously being abandoned.

Should I settle all the bank RM70K so that I don't have to pay interest, and consider this RM70K as cut lose to investment failure?

What happen to S&P in long term? Do I still have ownership? Should I cut lose by removing the ownership so that I have nothing to do with this project anymore?

If other buyers are considering to invest more money and find other developer to continue to project, can I not join? If so, what will happen to the signed S&P.

My plan is just want to cut lose and totally leave the project. What do I need to do?

Thanks advance for your advices!

Check Your Fire Insurance

nckiong — Thu, 12 Sep 2013 13:25:09 +0800

This M bank just increase my property fire insured amount without any notice. The yearly deduction used to be RM580 for RM513K for my property. But I was surprised to see deduction of RM663 this year. When I check with bank, they said the sum insured is RM590K now. I ask why they increase, they said because the value of my property has increased.

Can they do that? I don't instruct to increase, and I don't do refinance on my property. The leftover loan amount is much lower than insured amount.

This RM663 deduction is auto-deduct with Standing Instruction. Luckily I check, if not I don't even know they have increased it.

What kind of bank/insurance company is that!!!!

Loan Repayment Strategy

nckiong — Sat, 03 Aug 2013 16:45:27 +0800

Say I loan for RM500k. Every month, I reserve RM3000 to pay loan.

First scenario:
Take up loan package with monthly RM3000 installment

Second scenario:
Take a monthly RM1500 installment package (longer duration compare to first scenario)
Use extra RM1500 to attack the principal

My questions are, will the outcome same? Is there a loan package like second scenario in the market?

Overdraft On Property?

nckiong — Mon, 29 Apr 2013 14:38:58 +0800

Recently there is one SA selling a 2-storey shoplot. The price was about RM400k few years ago when the owner bought it. Current bank value at RM480k and owner is elling at RM550k.

I have agreed to buy it. But the problem now is, the shoplot is bank-overdrafted by owner for his other business that eventhough he sell it at RM550k, he can't settle the bank loan and overdraft.

I asked the SA whether the owner refinance, but the SA said not refinance.

So, what exactly is overdraft? Can the property be overdrafted exceeding bank value?

Currently the owner is trying to transfer this "overdraft" to other property so that he can sell it.

Is there any fishy thing going on here?

Brazil Service Land Plot Investment

nckiong — Tue, 02 Apr 2013 10:22:10 +0800

From my Singapore friend. Will you put money in this kind of investment?

Investment Summary:
■Your investment is 64% returns in 36 months. Developer is contractually bounded to pay investor the promised returns.
■Your 64% returns is broken down into 3 payout. 8% in month 6, 16% in month 24 and 40%+capital in month 36.
■Your investment is of low capital outlay. Minimum investment is only S$10k.
■Your investment is Capital and Profit Preserved. Your profit returns is preserved because the Developer is contractually bounded to pay you the 64%. Your capital is preserved because you hold the title deed to the land. This is your security in this investment.
■Your investment has an assured Developer buy back scheme in place. So your maximum investment period is 36 months. Developer is contractually bounded to buy back the land from you in 36 months. This is the defined exit strategy in this investment.
■Your investment is UK Self Invested Personal Pension Fund approved. Hence strict due diligence has been done on this investment to ensure that it is a viable investment.
■Your investment is in SGD, so you are not subjected to currency risk.
■You invest in the purchase of Service Land Plot in Natal, Rio Grande do Norte, Brazil, one of the high-end tourism destinations of the Brazilians. Service Land Plot is NOT Land Banking. Land Banking has got no clear exit. This investment has a clear exit in 36 months.
■Your investment has no other legal fee, only an additional $100 admin fee.

Project Summary:
■Palm Spring is an exclusive beachside condominium development of 453 Fully Serviced Land Plot.
■Fully Serviced Land Plot with planning Permission on a Gated Development with Roads, Electricity. All plots are connected to drainage & all the Main Utilities
■Total of 453 Fully Services Land Plots on a 100 acre land, positioned just 180m away from the beach at Muriu, Natal.
■Build Density of ONLY 40% to ensure that much of the beautiful natural surroundings will be retained.
■Leisure Facilities within 2 Communal Areas are being constructed to include Swimming Pools, Tennis Courts, Football pitches, Shops, Restaurants and Gymnasium , available to all Owners within the condominium.

Why invest in Brazil?
■Largest Economy within South America and 7th Largest GDP Worldwide and 1 of the 4 Fastest Growing World Economies among the BRIC!
■Foreign Direct Investment of around US$40 Billion and foreigners can own Freehold Land and Property with Full Title Deeds!
■Hosting the World Cup in 2014 and Olympic Games in 2016!
■Middle Class Population growing to 95 Million!
■Brazil’s Government is spending R$958.9 Billion into building Infrastructure !
■Brazil’s bank soundness index (according to the Global Competitiveness Report by World Economic Forum) is at 6.2 (Maximum possible score is 7.0). Singapore’s banks is at 6.5. So Brazil is not too far off.
■Brazil (according to a report by Knight Frank) has the highest increase in Global House Price Index in the world for 2012. This index measures the increase in price of residential properties. Higher increase in index implies higher demand for the properties.

How does the investment work:
■Ritz Property (the developer) own the 100 acre land which has been converted into 453 Service Land Plot.
■Investors are invited to purchase the Service Land Plot and hold it for 3 years
■Ritz Property will pay investors a total of 64% of the invested amount, broken down into 3 payments over the 36 months period. Investors will get back their capital on the 36th month
Investors security
■Ritz Property is wholly owned by DLT International, a UK based property development firm which is a member of AIPP (Association of International Property Professionals).
■Investors money are transferred into an Escrow account .
■Investors hold the title deed of the Service Land Plot.
■Assured 36 months buy-back from Ritz Property

Lock-in period vs. MRTA

nckiong — Sun, 03 Mar 2013 22:54:37 +0800

If my loan has 3 years lock in period with 3% penalty, and if I'm dead within 3 years, does it need to pay penalty if the loan is fully settled with MRTA?

Does the MRTA also include paying the penalty?

Sorry, sounds stupid question but really keen to know. In case I need to save extra money than MRTA for lock in period for my family, to be really peace in mind.

Best Way To Invest In KL Property

nckiong — Tue, 26 Feb 2013 15:46:42 +0800

What is the best way to invest in KL property, if one is not in KL to manage (i.e. Sarawakian and Sabahan)? Also try to minimise the trip to KL, as air ticket is not cheap.

1. Buy property with GRR and lease back to them to manage, sell the property when GRR period is over.

2. Buy new property only, flip it once completed.

3. Buy property, just leave it there for a few years, then sell it.

4. If buy for rental, appoint agent to collect the rental, but agent charge like 6-8% per collecton? (Any number that I can contact?)

5. Buy tenated property, with the hope tenant will bank in to your account in time. But after end of tenancy have to appoint agent to find new tenant.

What will you do?

Some Questions About Property Investment

nckiong — Wed, 16 Jan 2013 09:18:46 +0800

1. When one says positive cashflow return, meaning rental collected more than installment. But isn't it depends on how much loan that you take up? You can buy RM1m property with rental of RM2k, still get positive cashflow by just increase your downpayment to maybe 50% and take loan up to 35 years. Is my thought correct?

2. If I have two perperties and my wife has none. We are going for joint loan for the next property. Can we loan 90% or is cap to 70%?

3. If My first property is residential and second is commercial title. My third property will be reseidential. Can I get 90% loan for third property? I understand that commercial title property is not bound to 70% cap.

4. Does bank allow to joint loan with others apart from spouse?

5. Do we need to declare the rental income for tax paying? I know we should. But if we don't, will they able to find out? Assuming official contract is signed for tenancy.

Thanks a lot!

Must Buy Condo

nckiong — Mon, 10 Dec 2012 10:32:49 +0800

Hi:

What are the top 3 completed condos that you will sapu for investment if economic recession does happen in 2013 and the current market price drop for 20%-30%?

My list: Seri Maya, Titiwangsa Sentral, Maytower

Condo Or Service Apart Leased To Management

nckiong — Wed, 14 Nov 2012 10:15:06 +0800

Hi, I'm new in property investment. I'm looking for condo or service apartment which can be leased to management to manage and get monthly or yearly return. The reason is because I'm from Sarawak and I think this is the easiest way to invest in the KL property, as I can't really fly frequently to KL to manage it.

Could sifus provide the list of properties that I can invest in this way?

Thanks.

[addedon]November 14, 2012, 10:23 am[/addedon]Btw, what are the pros and cons for this type of property?