How to invest property in Kuala Lumpur - Part 6

There is a common strategy investors used, I wont invest if the property not suitable me to use. How this say actually? For example, some buyers will never buy a condo if they feel they don't like the layout or design of the project, or some buyers will just buy a shop that they can always use for their business without thinking if the shop is strategic enough for tenant to use. What is the logic here if cant find a tenant, then you will move there and use and rent out your existing house? I will rather find the investor like this and offer him my flavor rental and buy something I can rent out at my flavor rate instead. You may curious if this investor will accept such a low rate? Yes, he will, people just don't like to move their house simply.

My suggestion, put aside your own taste and your preference when you want to invest something. Get something designed with as many unique selling points as possible. Most important, will tenant like this? Can you exit after you enter? How to make money if you cant exit? I think no one will just like to see value on paper but cant see hard cash in pocket.


Part 6 - case study 1
I take this condo as a case study here, lets go through facts I found, perhaps you find a gem here as well. This Ampang Hilir new project called XXXX (restriction by developer on any public media). Smallest build up of this project is 3500sf. A unit with KLCC view easily cost you 4.5m.

1) Jalan Ampang vs Ampang Hilir. Just front and back, front is the main road with lot of commercial building, back is residential area with many landed and low rise luxury condos. Front likely will be mass luxury high density commercial title integrated project whereas back could be low density luxury residential title project.

2) You may ask why no small unit? I believe if you live in One Menerung today, you will not like to mix with studio, 1room, 2room or less than 2000sf unit. This is the reason you cant see small unit in condo like "10 Mont Kiara, One Menerung, Avare, dedaun and ..."

3) You may probably ask why so expensive? I can get something similar in Jalan ampang. I can only say sorry, this project not designed for you, you really need to accept the fact 2 above.

4) There is a 10 storey high rules in Ampang hilir. Since this is a new project, we use some moderate new projects as reference U-thant residence, Cinta, Sastra Uthant, Katana II, Dedaun, Seri Hening, Seri Ampang Hilir. All of them are similar high whereas this project is 17th storey. Just like any other business, you need to differentiate with your competitors, lets most of the competitors fall in 10sty league.

5) KLCC view. View is always non promises, however, if looking at surrounded condos, your view above 10sty is quite secure. People may still argue future can still have higher building in front. This argument subjects to many uncertainties, just like if economic full with uncertainties, share market hardly perform good. When your competitors full with uncertainties, your risk is relatively low. What kind of uncertainties here 1) Condition that allow exemption from the 10storey policy 2) future project future costing, if you ask for salary increase, supplier also ask for higher fee, same go to raw material and land cost. 3) future project future price, who want to sell cheaper is he can sell higher? Even today everyone say market slow, you only see new launching psf is higher than those launched 3yrs ago. Developer also need future profit to support their next future opportunity.

The following photo took from level 12.

The following notes will need you come for site visit and we explore further

6) Green designed building. This is part of the reason this project can get above 10th sty.

7) Quality material use. All projects said quality, so how quality if compare with others?

8) Amenities around. One of the most important factors that drive property value. I can only say the whole area ampang hilir and jalan ampang are much different from last time, you really should look at subsale market here, but, be careful, competition are always nearby. Do you really know what tenant want?

9) Sport car parking. You will understand if you own a Ferrari, Bugatti, Aston Martin, Maserati. Again, this project designed can support these brands owners, they really don't target investors who compare value between mass luxury studio, 1room 2room condos nearby.


Unsure what is mass luxury, contact k y wan 0196529886 for site visit.