1 Year Review

It has been a year since i received the keys to Indahria and it has been a joyful ride being a home owner, well an apartment owner. Less postings to the blog now as i am awfully busy with work. Hehe. Everyone is! With regards to #002 (my second investment apartment), its on the way. More updates on #002 very soon. Now its in the bank loan application part. I believe there shouldnt be any problems there.

There was also the Joint Management Body Meeting @ Indahria on 28th March 2010 which i wasnt able to attend to. Any owners/tenants went to the JMB? This should be a good way to meet and communicate with everyone.

I have also managed to pursuade a friend to get a unit @ Indahria and he has also bought it and received a bonus (tenant ready). More stories soon.

Adios 2009, Hello 2010

So, that was 2009.

Hopefully it has been a great year to all of you. It has certainly has for me. Fruitful experiences in 2009 which also includes worked like a dog, being hospitalised for 2 weeks + medical leave for almost a week, worked like a dog, shifted office, became a home owner, became a landlord, worked like a dog, went to see lots of crappy movies and dreaming everyday to buy Kawasaki ER6-N (haha). Highlights for the year was in fact receiving the keys to my apartment in late March which was an extremely good feeling.

Check out this mashup of 2009 #1 Hits based on Billboard by DJ Earworm. This pretty much sums up my year! =)



As for #002, i'm afraid i'm still not able to find the right and the best apartment for my next project so #002 will be the #1 priority for my 2010 resolution along with a new job! ;) more update on this soon.

Happy New Year Folks! Make sure no regrets and hope you find what you are looking for this year. If you dont know what to find, then think of something to find yeah?

Adios 2009. Hello 2010.

Indahria Residents Association (IRRA)

I was just googling Indahria and i have managed to find that Indahria Apartment Resident Association has an online blog Well done to the residents! I'm very sure that this is one step closer in creating a better living community of our own. Its unfortunate that i am not living there myself but i'm glad to know that residents of Indahria has its very own residents association and also a blog! Well done! I have also included the link on this site, and on the blog there is also an email address that any residents can email with regards to anything about Indahria eg. feedbacks, complaints, etc. I would believe that all owners/tenants/residents of Indahria are welcomed to participate in all activities of this community.

Browsing through all the articles inside IRRA's blog, there is a very concerning article which was rightly named Apartment Safety ! What Say You ? A must read for all residents/owners/tenants of Indahria. A very very concerning article and i must say thank you to the folks who had the time to point this out. Now i want to know what the management going to do about it.

#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...

Why Should I Invest in Real Estate?

Original article can be found here

I have been doing lots of thinking (more like calculating) lately regarding as to how can i own and manage more properties of my own and why i should be doing it in the first place. I even asked myself, why bother & why should i invest in real estate? Then i found this article over at about.com. Have a good read!


Most of the 1990's, The Standard & Poors Index posted earning yields of 5% to 6% on average. At the same time, the dividend yields of the S & P were only around 2% or less. Since dividend paying stocks tend to be much less volatile, the gains on the appreciation side would not normally be a significant factor.
At the same time, bond yields taken as a composite, showed only around 5% returns. Better yields were riskier, while safer bonds returned lower yields.

During the same time period, real estate investors were realizing much more attractive returns due to the multiple income streams from real estate investment:

Rental yield - This is the percentage yield from direct rental income, and can be calculated as either gross or net. Experienced investors prefer to calculate the Net Rental Yield, which takes the expenses, taxes and other costs into account, and divides by the property value/cost. It could be a negative cash flow, as it doesn't take mortgage payments into account. For this reason, many investors prefer to look at Cash-on-Cash rental yields. The example at the link shows a 6.4% example return on cash invested. Though the investor can purchase and manage for a yield on this single component that exceeds average stock or bond dividend yields, it is only one of the ways in which real estate returns on your investment.

Appreciation - Rental properties normally appreciate in value with inflation. Increased value can mean sale and reinvestment in higher value properties, or provide an equity line of credit to use for other investments. This is the second, and a historically proven value component of real estate investment return.

Inflation is Rent-Friendly - Rents usually increase with inflation, while mortgage payments on the property remain stable. This increases cash flow, with more rent income without increased expense for holding the property. When inflation is up, it can also mean more renters, as the affordability of homes can be negatively impacted by inflation. More renters increases demand, so rents can escalate.

Leverage - Using leverage, while being careful to buy properties with good rental yields, provides greater returns. Using $100,000 to purchase three properties with down payments, instead of one for $100,000 cash, can greatly increase returns. Of course, all leverage involves risk, so the successful investor must understand how leverage impacts their real estate investments.

Paying down the loan - Amortization, or paying down the loan, frees up more investment resources to increase leverage. Some investors use increased equity in one property to free up funds to invest in others.

Property improvement for equity - Many investors intentionally purchase properties at a value because they lack some feature or could use some improvements in condition or amenities. They have calculated that the value of the improvements will exceed the cost, resulting in an immediate increase in equity.

Slowly but Surely

I guess its time for me to look for new projects and new development. A lot of good developments around in Shah Alam coming up.. As we all know, currently we are experiencing some sort of an economic downturn but the property market is still flourishing in Malaysia and to anyones surprise, people are still buying new properties. Just have a look on your daily newspapers! Theres tonnes of new housing development and all are offering affordable packages and people are still buying. Economic downturn? Theres something for everyone! You just have to look carefully. Indahria will be coded (#001) from now onwards for my future reference. Hopefully by the end of year i can add up a new property (#002) to my listing.

Moving forward, everything is looking pretty good. The tenancy agreement is all completed and will be given to my tenant to be signed. Didnt even manage to become a resident of my own home but i believed i made the right decision by renting my place out. My passive income column is growing, slowly but surely.

Simple Kitchen Cabinet Installed

Managed to get the kitchen cabinet installed last week. Although its nothing great (compared to the previous showrooms) but to me it is definitely better than the what the developer gave initially. I actually wanted to build doors for the cabinets but i postponed the idea as i think this might actually work without using doors. In the event that i'm renting the place out & the tenant wants doors to the cabinet, it can easily be done. In the middle of the cabinet, there is a roughly 1 inch hole to fit gas tubes in the event it will be used as a cooking area.

It has been a while since i last posted anything here. Anyway, here are some pics:

New Name, New Address

Guess what i found in my cute mailbox in Indahria. A notice/letter by management informing me that Pos Malaysia Bhd has given the final approved address of Pangsapuri Indahria & here is the full address now. Update!

Pangsapuri Indahria
Persiaran Jubli Perak
Seksyen 22
40300 Shah Alam
Selangor Darul Ehsan

Haih, first the name change from Indahrisa to Indahria, now the address is also changed. Can the developer change the location to perhaps somewhere in KLCC?

LOL!

15th Floor Showroom

I envy this 15th showroom @ Indahria. It shows how you can utilise tiny space into a comfortable living home. See for yourself!

Welcome to Indahria Apartment

Dear Sir / Madam,

Re: Delivery of Vacant Possession

We are please to inform you that the construction of the above stated property has been completed and the Certificate by the Architect in respect of the same has been obtained, a copy of which is enclosed herewith for your easy reference. Pursuant to Clause 27 of the Sale & Purchase Agreement we hereby deliver vacant possession of the above stated property with water and electricity supply ready for connection subject to the following terms:

• bla bla bla
• bla bla bla
• bla bla bla

We take this opportunity to welcome you to Indahria Apartment.

This was one of the best letters that i have received in a long long time. In fact, the last sentence of the letter was the shortest and sweetest statement in the letter. So folks, it shows that i have been waiting to get this letter for a very long time and i am proud to say that i am one of the owners of Indahria Apartment & this is the chronicles of the Indahria Resident. Enjoy!