Having Spoken To Investors Of Johor, from All Professions Including Bankers, Lawyer, Housing Agent, High Court Syndicate members, Property Flippers, Ordinary businessmen, Insurance Agents, Building Contractors & Others (From All Walks Of Life); allow me to share their experiences and strategies, Names are withheld unless they have given permission to do so.
1) TAN PAO (THE CHAMPION INVESTOR OF PASIR GUDANG PROPERTIES)
I met Mr. Tan Pao in 2007 – 6 years ago in Johor High Court. He was wearing T- Shirt & Short Trousers. An unassuming down-to-earth man. I told him about the Srategic Location of Taman Perling. He said that he had 3 Properties in Taman Perling, where he is also making his residence there. Then he shared that he owned 40 Properties – bought mostly from auctions. Location? Pasir Gudang Area.
Pasir Gudang is An Industrial Zone where Demand For Rental Properties Exceed Supply. He was a very smart guy to keep buying and buying when nobody is interested. He once bought 13 units from DanaHarta at RM60K each. After about RM10K renovation all the 13 houses were tenanted for about RM900 a month.
RM900 x 12 months = RM10,800 a year. And RM10,800 divided by Purchase Price RM70,000 is 10,800 divided by 70,000 = 15.4%. A yearly yield of 15.4% in rental income. Currently he owned over 70 Properties. Actually More Than 100 Houses If Counting Those That He Had Already Sold Over The Years.
What Was His Investment Philosophy? He said that by vocation he is a building contractor – turned property investor. Over the years, House Prices In Johor Have Fallen Far Below Replacement Costs. For example: A 770 sq ft Double Storey Low Cost House Cannot Be Built Below RM40,000 today.
Since Prices Of Land, Labour & Cost of Construction Materials Have Increased Drastically Over The Years Due To Inflation! Cement(50 kg) was RM5 a bag – Now RM19 (Up 3 Fold). Red Brick was 8 cts a piece. Now 50 cts a piece.
Land was RM5 per sq ft then. Now: Anywhere between RM20 to RM 200 psf, depending on the Location. And Labour Cost was RM20 per Day. Now RM80 for Skilled Indonesian Worker. For Local Chinese Skilled Worker – Be Prepared To Pay Up To RM150 A Day!
To Build A Low Cost House With RM40,000 Price Tag Is An Impossibility! RM70,000 would be more likely. However, he said it is possible to build a Lost Cost Flat, not Low Cost House for RM40K.
He suggested building Condo Apartment Because There Is A HUGE PROFIT MARGIN THERE. He is looking for Joint Venture Partners. I told him that’s not for me. I don’t have the money nor time for it.
So he reckoned that a low Cost house would be worth buying if prices are below RM50,000. And a single Storey 3 rooms 2 baths 1,400 sq ft House would be a Great Buy below RM100,000. In Pasir Gudang, the rental is RM500 to RM800 easily – everyday more than 30 people are looking for a rental house.
When someone put up a sign board “House To Let”. It will Be Taken On The Same Day- sometimes with 2 or 3 potential tenants fighting over it! Demand Exceeds Supply By A Very Big Margin. Mr. Tan Pao is A Big Time Landlord Over Here. And with the Potential Set Up Of Pengerang Oil & Gas & in Tanjung Langsat Oil & Gas near-by. Both Rental & Resale Prices Will Skyrocket in the near future.
NOTE: For Your Information A Double Storey Low Cost House in Taman Muda, Taman Bukit Anggerik , Cheras, Kuala Lumpur, with Only Two Rooms & One Bath Are Going For A Price Tag of RM200,000 to RM280,000. Check it out.
A TRUE STORY!
Let me relate A True Story. 20 Years Ago I joined a Group Of Car Dealers In KL For A Fishing Trip To Kenyir Dam.
We caught many Cat Fishes & Toman fishes. Thomas Tan, a 60 Year Old Expert Fisherman Told Us, “In The Very Early Days Of Kenyir Dam before others discovered fishing here.
Fishing For Toman Here IS AN EXTREMELY EXCITING EXPERIENCE. WHEN A BAIT IS CAST – YOU CAN SEE SCORES – EVEN HUNDREDS OF TOMAN FISHES RUSHING FOR THE BAIT!!! , YOU CAN ACTUALLY SEE WAVES AFTER WAVES CREATED BY THESE BIG FISHES ZEROING IN AT THE BAIT!!
THIS IS THE EXCITEMENT YOU GET WHEN YOU BUY HOUSES IN PASIR GUDANG HERE FOR GREAT VALUE!
2) Ms. Yong (Top Performing PUBLIC BANK Manageress.) OVERALL NO. 1 CHAMPION BRANCH FOR YEAR 2012. TAMAN PERLING BRANCH, JOHOR.
I first met Ms Yong when I needed a Property Loan in 2008. 2 Years Later she told me she booked a Semi D Cluster House in Senibong Cove by Walker For about RM500,000 at the advise of her lawyer.
I happened to see Senibong Cove even before the Coastal Road was Officially Opened For Travel Between Permas Jaya & Megah Ria. It was a Swamp & boy! it smells also. I thought she made a mistake to buy that sewage of a dump.
Lo and behold, in early 2013 she finally got her keys. And Wow – There Is A Wonderful Transformation Of The Whole Place. The smell is also gone for good. It is Now A Highly Desirable Place – Especially For Singaporean Buyers. Prices have now doubled to RM1 Millions. She is looking for buyers. Anyone?
She went on to book a 2 room unit in I MEDINI From WCT. At 1st Phase Prices were going for a song. It was a very wise strategic move. She told me the SECRET IS TO BUY AT FIRST PHASE. At Subsequent Launches Prices Will Be Priced Higher & Higher.
And she is Right On Target! She Hit The Bull’s Eye when AFINITI by UEM/TEMASEK next door were SOLD OUT at A Much Higher Price Lately! I heard that AVIRA (Landed Houses) Will Be Priced Below RM1 Million. If it’s true, then it will Definitely Receive A Far Greater Response Than AFINITI!
There Are Other New Properties Which She Bought – All At First Phase. Some have already been sold. Currently There Is An Endlot 3 Storey Brand New Shophouse in SETA ECO GARDEN. Her Price is RM1,200,000. It’s a bumi lot. Anyone interested?
3) Mr. Lau (Branch Manager Of OSK Investment Bank Tmn Molek, Johor) He is In Charge Of 26 Staff Members ( Including 14 stock brokers & 12 Dealers.) Now Known As RHB Investment Bank. Molek Is The Top Revenue Generating Branch In JOHOR STATE & TOP TEN OVERALL!
Mr. Lau gives very Good Stock Tips For Traders & Investors. But he doesn’t buy any share himself. He says he doesn’t want to get distracted so that he can give Full Attention to His Work.
But Mr. Lau is A Strong Believer In Property Investment. In Year 2001 he bought his First Property in Nusa Bestari Jaya – A 2 Storey 4 rooms 3 baths house for RM180,000. Then he bought his Second Property in 2008 – A First Floor Townhouse in VILLA KOI, Skudai for RM160,000. In those years of Falling Prices, both properties Went Down in value. Prices of Nusa bestari Jaya Came Out For Auction below RM150,000. Town Houses In VILLA KOI Dipped as low as RM110,000 in Court auction!
By March 2009 Prices Started To Rebound Strongly. Today, A Double Storey House in Nusa Bestari Jaya has crossed RM400,000 and A Town House in VILLA KOI is Reaching RM300,000. Both Are Still Moving Upward Even Now! You See – THE NEXT BIG EVENT IS THE OPENING OF PINEWOOD STUDIO. LEGO WATER PARK WILL FOLLOW & EARLY NEXT YEAR – LEGOLAND HOTEL. These Are World Class Enterprizes! THEY WILL LIFT UP THE VALUE OF SURROUNDING PROPERTIES. (THINK OF PETRONAS TWIN TOWERS’ EFFECT ON PROPERTIES IN ITS VICINITY)
Then in January 2012 he purchased a Condo in PERMAS VILLE for RM225,000 (Prices Now: RM270K -RM300K). The Unit is tenanted for RM1,900. After deducting Admin charges he gets a yield of 7% – 8%.
When Greenfield Condo was launched in Tampoi, he bought a Studio Unit at the First Phase For RM119,000. The built up is 476 sq. ft. (At Rm250 psf it’s A Great Buy since prices For Leasehold Condo is at least RM400 psf & For Freehold is RM500 psf Now!) He monitored his investment closely.
And This Year 2013 he bought A Studio Unit in PALAZIO, Austin Area For RM160,000. Unit size is 484 sq. ft. What is his Investment Criteria? He believes that if a property gives a Yield of 4.5% is O.K. since it is 50% better than Bank Fixed deposit interest 0f 3%. I told him, “With such a Low Bench Mark There Are Plenty Of Properties Out There In Iskandar.”
Another Reason he gives is the room rate in a Hotel would easily cost between RM60 – Rm90 a Night. So he calculated that it would be much cheaper and convenient if they rent his Studio for Rm1000 – Less than Rm35 per day. His Investment Strategy Is Very Defensive.
HIS RISK IS LITTLE BECAUSE HE ONLY INVEST IN BREAD & BUTTER PROPERTIES!
4) Matthew Lim (Managing Director Of PENTA PROPERTY , Johor) Expert Real Estate Investor.
“FOR SALE OR TO LET ” Sign Boards By PENTA PROPERTY Can Be Found Almost Everywhere In Iskandar. Mr. Lim has Vast Contacts & Experience As A Property Agent cum Investor.
He own 2 property in Pasir Gudang. The First House he bought is in 3 room 2 bath low medium cost house of 770 sq ft in Jalan Nenas , Pasir Gudang. The price? RM50,000. The house is tenanted for RM350 – about 8.4% yield. Then he bought his 2nd house in Bacang Area, Pasir Gudang. A 1400 sq ft Single Storey house with 3 rooms 2 baths for RM72,000. He bought it through Court Auction & tenanted back to the original owner for RM450 a month – a 7.5% yield.
Then he moved on to Bigger Things. He bought a Single Storey House in Jalan Merah, Taman Pelangi for RM160,000; also through Court Auction.(Current Value has crossed RM300,000 – still moving up till S’pore MRT From Thomson cross over to JB in year 2019 – 6 years more for capital appreciation. His house is about 5 mins walk to VANTAGE BAY – The Upcoming Multi Billion Developement by Peter Lim The Remisier King & Johor Sultan.
As I was interviewing him while driving him home last night he pointed me a double storey house in Taman Sentosa, Johor, which he bought for RM223,000. Currently rented out for RM2,200. That’s over 10% yield. I said, “That’s a very good rental price.” “It has 7 rooms,” he replied.
A few more houses away he showed me a newly renovated house which he sold for a Mr. Ho for RM630,000. Mr. Ho bought it for RM250,000 about 6 years ago. The new owner has tenanted out the house for RM6,000 per month.
A very smart move. Cost of purchase RM630,000. Estimated renovation cost Rm150K Total Cost RM780,000. Tenanted for RM6,000 = 6,000 x 12 months = 72,000 divided by 780,000 = 9.2% gross yield. And he added,”The new owner wants to sell it with tenancy for RM1.2 Milllion. Any interested buyer?” “Most probably” I replied. South Key Johor Mid Valley Megamall is just Across the Road.
And he said further,”YTL Group Is Coming To Iskandar.” YTL Is The “Tai Ko” Or Big Brother who Built The Highly Successful Sentosa Cove In Singapore. Excitement Fills The Air.
Like The Converted Bungalows Along BANGSAR MAIN ROAD in KL, Properties Along MAIN ROAD In JOHOR CITY Are Quickly Snapped Up. Convert The Private Residential House In Commercial Use Will Increase The Value Manifold. Mathhew is waiting for that day for his house in Taman Sentosa, Johor. Meanwhile, he is also getting a good 10% rental yield.
“I bought a 3 Storey Shophouse For A Client For RM190,000 In Taman Selesa Jaya, SKUDAI. ” he revealed. Then he added,”But the Client refused to go through the deal.” “Why didn’t he take it up?” I questioned. “You see China suddenly banned Bird Nests From Malaysia & my customer wanted to convert it into a Bird Nest House. So due to the bad news he called off the deal.” So Matthew The Agent became Matthew The Buyer. He bought it up himself.
And What A Good Strategic Buy. There is a Connecting Road To Gelang Patah Through Taman Melawati Being Built. Also there is a Connecting Interchange Being Proposed Through Lima Kedai To Connect PLUS North South Highway. Someday in the future his 3 Storey Shophouse, Bought By Default, will Cross RM1 Million Mark!
He also bought a Big Detached Factory in I PARC by Mah Sing Properties, located beside PTP SEAPORT. He showed me through Google Map on his Ipad the Unit With The Extra Big Road for the Whole Project. He projected that his particular Unit will enable Big Lorries To Make U Turn unlike other units. When Ready His Unit Will Be Among The First To Be Taken Up By Transport Or Logistic Companies.( See Coming Exciting Post On “CHINA DRAGON MART” In Gerbang Nusajaya.)
Then he went on to Purchase A Half Acre Land In PENDAS. The Land Is Freehold & Just Beside Main Road. A Short Distance to The Sea – And Across The Sea Is CIQ CUSTOM AT TUAS SINGAPORE!!
What A Smart Strategic Move! He Bought It Long Before SUNWAY LAGOON PENDAS Was Proposed. He bought it at RM7.50 per sq ft – that’s cheaper than buying a Carpet! At First he told me wanted to sell it for RM25 psf. Then he changed his mind and suggested RM50 psf. And he changed his mind again. What Is It Ultimate Value? No one knows yet.
I Said,”You Are An Expert Indeed.” He replied, “WISDOM FROM GOD.” Indeed Sunway Lagoon Pendas Will Be A Very Exciting Work In Progress Yet In The Near Future. AND THE FUTURE IS AS BRIGHT AS THE PROMISES OF GOD. AMEN….”
NoteWorthy Note: “YOU DON’T WAIT TO BUY LAND, YOU BUY LAND AND WAIT.”
5) Story No. 5 involve 2 Persons. Shall we call them Ms A & Ms F. One has An A – indicating Outstanding Success, While Ms. F stands for Failure. Both worked For A Bank CDC – where all loans are processed and approved. Since they have First Hand Insider Knowledge their names are not mentioned & only what is legal is disclosed.
Ms. F invested in multiple properties with her husband in the Boom Years of 1990 – 1997 in Johor. But The Asian Financial Crisis Caused the prices to crash below purchase price. They tried renting out the houses but collecting rental is a hassle. Some tenants did not pay up – and even shift house at mid-night to avoid paying house rent.
So they left their houses vacant for many years – while still servicing their monthly bank loan. They suffered the agony of falling property value, non-rental of empty houses & fear of thieve and vandalism.
So when property prices rebounded in 2009 to 2011 – after 2 years uptrend Ms F sold off her 2 Properties. One 18×65 2 storey house endlot house with extra 10 feet land in Taman Bukit Indah. The price? About RM200,000 – still RM50K short of RM250,000 her Original Purchase of More Than A Decade Ago
. She reckoned that it is still better than the RM150,000 she was offered in the worse of time. So sell now at RM200K in case prices weaken again. So she sold another 2 Storey House 22×70 in Taman Daya for RM150 – also below puchase price. She told Ms. A, “House Prices Will Go Into Correction Mode & Crash by Next Year in 2012.”
Time Proved That She Has Missed The Mark by A Very Big Margin. Instead of crashing, similar houses like hers are asking for Rm400K – rm420 in Bukit Indah today in July 20th, 2013. Hers should sell higher because her unit has extra 10 feet land. It should be near Half A Million Ringgit By Now.
And 2 storey houses in Taman Daya has moved up to RM300,000. She waited for 15 years (1996 – 2001). Why can’t she wait for Only 2 More Years For Prices To Double? With the Cash Proceeds From 2 Houses Sold she bought a Brand New Mercedes Benz for RM300,000. Her Boss who is the Center Manager drives a much cheaper Japanese car. So the Boss is only too happy in requesting her to chauffeur him around.
Ms. A says. “Property Cycles Happen Within 8 to 15 years time frame. So In One’s Life Time, There Are At Most 3 to 4 Investment Opportunities in Property Up & Down Cycles.”
She bought her First house in Taman Desa Harmoni is 2005. It was a low cost house bought from court auction for RM55,000. Tenanted for RM450. Seeing the weak trend in JB Prices then, she decided to buy 2 more low cost houses in Kedah. Demand Exceeds Supply In Kedah, unlike JB. From 2005 to 2008 Johor Prices Continue to move lower and lower.
Then in 2011 sensing rebound she bought a Condo Unit in Prima Regency with 2 free car parks for RM151.000. It was the last call. Timing was Perfect. Prices have Doubled Today 2 years later.
Then in Early 2012 During the Chinese New Year. when there are less bidders at High Court (Many agents went back to their hometown during the 15 Days Chinese New Year Period.) She Hit The Jackpot When She Bought A SUPERLINK HOUSE IN BANDAR SRI ALAM, MASAI FOR RM277.000! It Is A Renovted Freehold 26×100 SUPER WIDE & SUPER LONG HOUSE. Currently Worth Over RM700,000 today!
Again This Year In Early 2013 she got another house through Court auction for RM265.000. Place? LA Garden in Austin Area. Open Market Value is RM330K at the moment.
Except for low cost houses. all her Houses are In GATED & GUARDED Locations. Her Reason Is – If she cannot sell it she can use it as her own home. At CDC her colleagues, especially Ms. F, urged her to upgrade her 8 year old Toyota for A New Car. She declined, because she is looking for Good Investment Property.
One Day As She Processed The Loan Application By Property Developers She Noticed That The Cost Of Constructing A Condo Is Around RM110,000. But The Asking Price Is Over RM400.000, Why your cost is only RM110.000 & you are selling for such a High Margin Of RM400K?” she questioned. “Well for 2 reasons. First, to make up for the losses we incurred during those bad years. And no. 2 – to make more during this Boom Time while it lasts.” They explained.
Why don.t you come early to our Office. You will get to choose the better units and also receive 10% Early Bird Discount? Of course. she didn’t as she Is Looking For Undervalued Landed Properties – Especially In Auction With At Least 20% Discount.
6) THE AWNING BOSS
As The Title goes “Awning Boss” Sells Awning Roofing Sheets For Construction. He likes to talk about Share Investment in the KLSE. I told him Iskandar, especially Nusajaya Area Is In Property Boom Time. Why not invest in some good properties. He said that he has no luck in property investment.
Then he told me his side of the story. Like many, during the property craze of 1990 – 1997 he madly rushed into property investment. He says, “MARKET WAS SO HOT THAT I SIMPLY FIRED MY GUN. AND BLINDLY BOUGHT A SHOPHOUSE IN OUT OF THE WAY PLACES
Well, Asking Prices In Taman Perling Then Were Over RM400.000, and nobody is selling. Then I saw advertisement in the newspaper stating that Shophouses were selling for Around RM300,000. The Place? Taman Pasir Putih. “Is it Facing Main Road,” I queried. “No, it was at the back. I rented it for about RM650 for ground floor to car panel beater & paint shop. First Floor tenanted for RM350. At RM1.000 they could hardly cover my monthly loan installment.” So I finally SOLD IT OFF At below RM200,000 – making a Loss of over RM100K. So property investment is not for me.” Anyway, he bought 700,000 Shares In PM Corp (4081). I hope that he will do better in Share Investment.
7) Madam Soh (Queen Of Bak Chang)
Opposite KSL CITY Main Entrance In Taman Century is Chin Tiong Bak Chang (Rice Dumpling). 4 years ago when Lehman Brothers Hit Asia she rented the Corner House For RM1,000. It has over 3,000 sq ft land. When KSL CITY was completed someone offered to rent the Land Alone For RM4,000. She gave the Landlord RM2,000 share. With the extra windfall of RM2,000 after deducting RM1,000 in rental she got the resident converted commercial shop for free rental with RM1,000 extra.
She rented the Corner House to make rice dumpling and sell economical rice and drinks. Her own residence is 270, Jalan Datuk Sulaiman (same road with Holiday Plaza) She bought her partly renovated house for RM220,000 many years ago. A single storey house with 1540 sq ft.
Then 3 years ago in year 2010 her next door house no. 268 (Original condition) was up for auction at a Reserved Price Of RM150,000. Only One Bidder – so the fortunate guy got it at RM150K.
When I met her in 2011, she said that the new owner of house no. 268, her next door neighbour wanted to sell her the house for RM250,000 – an increase of RM100,000 after one short year. She counter offered at RM200,000. I told her that even at RM250,000, it’s worth it. The entire Jalan Datuk Sulaiman will be lifted up by KSL CITY – the Center of Business Activity is shifting here. So she bought the house at asking price of RM250,000.
Yesterday (July 19th 2013) I paid her a visit again. To my glad surprise she showed me an agreement which she had sold both her 2 houses for RM800,000 each; both for a Total Of RM1.6 Million. However the agreement dated 15th May 2013 has lapsed as only 60 days were given.
She has raised her asking prices now for RM3 Millions For Both. Or rental is RM8,000 per month. She told me when she bought the house at RM250,000 2 years back in 2011 she was prepared.
Then she told me the reason. In Year 1996, just before the Asian Financial Crisis she bought a 3 Storey Shophouse in Ros Merah, Johor Jaya, for RM600,000. After that? 15 years crash! No need to elaborate. Then in 2011 when Prices Recovered Above RM600K she SOLD IT OFF. After settling Bank Loan of nearly RM400K, she still has a Cash Surplus of RM250,000.
This is What She Said, “IN TIMES OF HIGH INFLATION LIKE NOW, KEEPING MONEY IN THE BANK IS A LOSING PROPOSITION. BETTER BUY SOME REAL ASSET LIKE HOUSE.”
From the mouth of an almost illiterate woman like her Came Forth Such Street Wise Counsel. Hear Ye! Hear Ye!
LATEST UPDATE: AUGUST 8Th 2013.
Ms. Yong has just sold Senibond Cove For RM950K. And Also SOLD 3 STOREY SHOP (Setia Eco Garden) For RM1.2 Millions. Mr. Lau is contemplating buying REINA Super Link In Nusantara Prima 24 x 70 for RM550K. He sees that Nusantara Prima Will Be What Bukit Indah Was 15 Years Ago. Both went to hear Galvin Tee at Danga Bay. Galvin projected that by 2016 – Malaysian Condo prices might touch RM5,000 per sq ft.
Ms. F who has given up hope on property is now thinking of buying a Condo unit at Country Garden Danga Bay. Awning Boss mentioned that his friend just booked a unit in Country Garden Danga Bay for RM1,200,000. He is also considering investing in a Condo in Danga Bay.
What Are The Views Of Ms. Yong & Mr. Lau? Both attended Galvin Tee’s Talk But Both Are Not Buying There. Why?
No. 1. There are almost 10,000 Units In The Development. Logistic will be a Big Problem. Every Morning there is bound to be congestion when many cars converge at the exit. Will MRT pass here? Do Check Out MASTEEL/KUB Progress. They Are The Planners For Iskandar Train NetWorks.
No. 2. It is widely rumored that The Chinese In China Are Given A Free Unit Of Condo In Danga Bay When They Buy Two Units In China. (One For Two Free Promo In China) If this is true. When the Whole Project Is Completed, These Free Promo Units Might Be Sold Off In A Time Of Glut. Prices Might Weaken.
No.3. Seeing & Sensing A Future Glut In Condo Units In Iskandar, Mr. Lau is concentrating in LANDED PROPERTY While Ms. Yong is switching her attention to Older LANDED PROPERTIES In The City Center – With A View For Commercial Purposes.
From these news, you can see The Different Investment Strategies Between The Wise & The Foolish!
Further Note: (Latest Update 18th August, 2013).
At Country Garden Danga Bay, the Developer flew in 3oo Salesman & Sales Ladies From China. When I made enquiry about the rumor that One Condo in Danga Bay is Given Free For The Purchase of Two In China – They Flatly Deny This Rumor As False.
IMPORTANT ANNOUNCEMENT : 22ND MARCH, 2014
Thank You All For Visiting This Web Page on “HITS & MISSES IN ISKANDAR PROPERTY INVESTMENTS. This Is By Far The Most Popular Article Of All. Every Day Many People Come To View It Here!
The Wind Of Fortune Is Now Blowing East of Iskandar. The Initial Boom Started in NUSAJAYA & MEDINI. Right Now PM NAJIB HAS INDICATED THE RISING STAR OF THE PENGERANG OIL & GAS BOOM TO SPUR FURTHER GROWTH IN ISKANDAR!
As Such Investment Should Be Now Focused On Eastern Iskandar Region While Prices Are Still Depressed. You Can Invest Directly In Real Estate Like Houses, Shops, Factories Or Lands. Or You Can Invest In Iskandar Property Shares.
I Have Discovered That Taman Nusa Damai (MP CORP Stock Code KLSE 6548) To Be The Most Undervalued Property Stock In Iskandar. If you have at least a 2 year holding power – MP CORP IS A GREAT BARGAIN!
Of The 7 Examples Mr. Tan Pao Who Own 100 Properties In Kota Masai Is The Most Successful. His modus operandi is to go for very undervalued properties in JB High Court Auction.
This is his Reasoning. If a particular property’s price has crashed below the existing properties all around it. It is a definite buy. Example: If all the properties are bought by existing owners at RM200,000 per unit. Should one unit goes for auction at RM80,000 just buy it. Spend RM20,000 to do it up & the cost will be
RM80,000 plus RM20,000 = RM100,000. So You Are Buying At Only RM100,000, half the price of all the neighboring houses bought for RM200,000.
So if you were to sell it at RM180,000 you will get a profit of RM80,000 (About 80%)
While All Others If They sell at RM180,000 they will incur a loss of RM20,000 because all bought at RM200,000 from developer in the beginning.
So the person who bought at Big Discount From High Court Auction Made Their Money By Buying Deeply Undervalued Properties.
THEY MADE THEIR MONEY WHEN BUYING – NOT DURING SELLING.
BY THIS SAME TOKEN MP CORP (6548) IS DEEPLY UNDERVALUED. Price now is 51.5 cts. NTA is RM5.28.
THERE IS A WHOPPING 92.5% DISCOUNT WHEN YOU BUY MP CORP AT 51.5 CENTS!
MP CORP(6548) IS NOW THE VERY BEST BARGAIN IN ISKANDAR!
Buy/Sell at your own due diligence and risk.
Calvin Tan, Singapore (22nd March 2014)