Opportunity Found, Opportunity Lost

I have been spending quite some time thinking and planning on buying my 2nd property, appropriately code-named #002. Brief description of #002 is that it is a medium cost apartment, some would even say its a low cost flat because the condition of the place and the number of foreigners staying there. Located in Sunway, close to various colleges, factories and offices, this is one of the properties that i have been targetting since #002 was ever mentioned in my blog. Regardless to what the public may think, as a "self claimed" property investor, i believe that #002 would be a worthy investment to own. The return on investment of this area is around 8%-11% consistently and the rental is between RM700 up to RM1200 depending how i would plan to lease it out.

Sometime in February, a dear friend of mine whom was dealing with one agent in purchasing a unit in Indahria apartment informed that there is currently a unit being sold for around RM105K - which is a bargain! Even 'rumah lelong' starts at around RM90K - RM100K. Reason why its a total bargain is because the market value of #002 is around RM120K-RM140K. Sweet, aint it?

So i hooked up with this agent and went to see the house, currently being rented by a few students studying in a local college nearby. To my surprise, it wasnt as bad as i would expect it would be. Agent told me that the owners are in the process of a divorce and need to let go of the property urgently. There and then i decided, this was mine! Opportunity. So this agent sealed the deal with the owners with regards to my intention to buy the place. Home loan applications were made to several banks and several banks offered me various packages available in the market. Come to think of it, it was only a property of RM105K. There should not be a problem at all. Being an extra careful person about his own credit report, i know very well that i will not have any problem in getting any loan.

What happened?

There were some delays in processing for one of the banks that i was interested. Public Bank offered me 80% where by CIMB havent got back to me in time. So i decided to go with PB first, in which few days later CIMB got back to me and offered 90% home loan package. Yup, this was the package that i wanted. really really wanted. So the plan was to ditch PB once CIMB comes back with a firm offer. Deal is made with CIMB, so CIMB it is!

Loan was approved, what happened then? To be continued...

#002

Hi all, it has been a while since my last post. It has been an eventful past 3 months (hospitalised, shifted office, etc, etc) Just a quick update about my apartment, it has been 3 months since my tenant moved in and so far there hasnt been any issues (hopefully). I like to think that my tenant love the place and will take care of my first ever property (#001).

Referring to the title post, i am right now seriously searching for my second property which i will call #002 from now onwards. The area that i'm searching is around Shah Alam & Sunway as i believe that there are high appreciation in this areas. Surely there are other areas that have higher appreciation than these two areas, but for a newbie like me, these areas suits me just fine.

Question that comes to mind now is whether to buy a yet to be built apartment or a proven good for rental apartment. I have several ideas in mind but i have yet to sit down and really think which one shall i call #002. Till the next post...