For you if you have money, will you invest in RM1000++ per sq feet new launch project or you will buy RM600++ per sq feet old project?

Thanks,

Location will speak for its value whether its new or old :)

For investment, buy when the price is low 

@stanleyhang if same area. for example subsale RM600psf or new launch project selling RM1000psf, 

@freemanwoo 

if same area... will there be such a huge gap in psf price?

I think either the subsale undervalued or the new launch project overvalued?

If it's for investment, most likely i will go for sub sales if the unit condition is still good. It's all depends on age of the building, maintenance, and of course accessibility of the area/building. If the new project worth it, why not?

But i believe that new project RM1000psf might come with small size compared to subsales with RM600psf right? Most of the new project i would say considered over valued and their size is so small. No matter for investment or own stay, I will still consider the size, layout, accessibility. Depends on what you want. First, make up your mind of what you really want perhaps?^^

@freemanwoo if i got money, I will buy both :) 

for smart investor, i will choose 600rm sf one if feature for both unit is same or similar

@domng 

Here is an actual example: Property A, The Greens @ TTDI was purchased around mid-2016 while Property B, The Residence Condo @ TTDI was purchased 6 months later. They are side-by-side to each other and both cater for the upper middle class segment, so we're comparing apple-to-apple.

Property A, a 2+1 bedroom, 3 bathroom Service Apartment unit, was purchased for RM1.37 million (sub-sale but unoccupied since completion around early 2015). This equates to about RM950 psf for a floor area of 1,442 sq ft..

Property B, a 3+1 bedroom, 4 bathroom Residential unit, was purchased for RM1.35 million (Condo completed in 2006, renovated and occupied in 2009 but still in good general condition). This equates to about RM736 psf.

Property A still needed nearly RM100,000 to fit-out and furnish and together with the legal fees and disbursements, the total acquisition cost would amount to slightly over RM1.5 million or about RM1,060 psf for a "move-in" condition.

Property B needed about RM123,000 to renovate, fit-out and furnish and together with the legal fees and disbursement, the total acquisition cost amounted to about RM1.52 million or about RM825 psf for a "move-in" condition..

Hence, Property A is about 28 % more expensive than Property B. Property A has a higher density at 94 units/acre and includes 6 retail lots whereas Property B's density is lower at 86 units/acre and is solely residential.

In comparison, the latest TTDI Segaris (which is leasehold) is going for something like RM1,200 psf for a 1,464 sq ft unit and that's before any fit-out and furnishings!

And there are differences between The Greens and The Residence:

You have an extra bedroom and bathroom plus a larger kitchen for The Residence condo, hence Property B has more comfortable living conditions than Property A, which is smaller by about 22 %.

In terms of facilities, The Greens is heads and shoulders better than The Residence as it has 2 swimming pools and more common and modern facilities. But The Residence has proven management as it has been operating for more than 10 years whereas The Greens has been operating for less than 2 years.

In terms of maintenance charges, Property A is about RM680 per month while Property B is slightly cheaper at about RM623 per month. What it means is that you stay in a smaller unit but will require more funds to pay for maintenance of all those facilities whether you use them or not. Question is, will you really and fully utilise all those extra facilities with our current kind of lifestyle?

All-in-all, I would go for The Residence as it gives you a bigger bang for your buck, unless you need a showpiece kind of property like The Greens. This is for own use investment.

If you intend to invest for rental income, of course The Greens, being newer with better facilities will command better rental between the 2 properties.

For example, a search in iProperty showed that Property A types were being asked for about RM4,500 to RM4,800 per month whereas Property B types were being asked for between RM3,800 to RM4,100 per month. However, there are many, many units for rent at The Greens whereas there are hardly any for rent at The Residence.

It's your call.

@tnflee77 

Thanks for your detailed explanation.

The Greens and The Residence, are they both AirBnB friendly? or the management have some strict rules about it.

@domng

On being AirBnB friendly, I would think definitely The Greens should not have a problem since it is on commercial status (hence "Service Apartment" category) unless the House Rules states otherwise.

For The Residence, as it is on Residential status, the House Rules rightly states that the Owner should not use the unit "for any purpose whatsoever other than for dwelling or residential purposes only". AirBnB could be contentious as I believe there is nothing in the Strata Management Act that does not allow an Owner to rent out on a daily basis. I may be wrong. I don't think this has been tested in Court.

However, if you are a resident there, you would not want to find that your neighbour(s) change every few days, or even on a daily basis. You can check with Henry Butcher who is the Property Manager there.

The other option is to invest in The Plaza, the commercial sister to The Residence. Now this one is situated on commercial status and hence, it's on Service Apartment category. Being within "spitting distance" from the MRT station, it could be quite popular.

Hope this helps.

Wow, hope Mr Butcher is not as fierce as his name...

Spitting distance, first time hear this. That is even closer than a Stone-throw distance... Only a bit father than Touching distance!

So the Greens is just beside The Residence, which mean also without walking distance to The Plaza and the MRT?

@domng

Of course only professional spitters like the older generation and EPL footballers can spit the kind of distances required. Gentle basin spitters like us will only get them on our shirts. :)

Yes, in order of walking distance, they are The Plaza, The Residence and then The Greens. They are siblings.

Over the long term one can't go wrong with any of these properties as they are in the prime location of TTDI, with the bonus of an MRT station within real walking distance AND 3 public parks within, again, walking distance. Apa lagi lu mau?

@tnflee77 

Lagi mau more Affordable pricing...

That I have just one comment. It's supply and demand that determines pricing.

Anyway, all the gurus will tell you that there is no better time to buy now. Just don't take on too much debt.

@tnflee77 agreed. buy within budget and according to own risk tolerance.

I can foresee some investors who buy both projects, in order to even out the risk...

I think the caveat emptor here is to be mindful that the view of the Kiara forest reserve could eventually be blocked by the future 12-acre project next to the old Kiara Green townhouses. Whichever "forest view" that you currently enjoy may be compromised by this future high density development. The ones who paid a premium at The Greens for the view could be off-loading them for obvious reasons.

I think it's conceivable that some who bought The Residence could also have bought The Plaza and 8 years later invested in The Greens.

In prime and mature locations, investing imho, is not a question of risk, but rather holding power. Over the long term one can't go wrong. Just dont mortgage your mother-in-law's house to do all the investing!

yes agree... no matter what magnificent view being promised by the developer... there is a still a possibility of another tall building or structure erected in the future which could block your view. Best to consider all of these factors before you invest just because of the so called "Grand View".  

@freemanwoo Well it all depends... 

if say the 600psf property would require 20% down payment + 15% of legal fee in cash up front and the 1000psf would give you all free spa, loan agreement fee and 110% bank loan guarantee... and up to 38 years repayment with step up loan 

for a new comer that wanted to purchase the property for own stay and do not have 200k cash up front, i do believe the buyer will go for the 1000psf. 

it really depends on the needs of individual and the capability of the individual.

like wise for investors, they will perform more assessment, for instance fit out, furniture, roi etc etc.

@imronaldsoo 

What do you mean by "fit out"?

@domng  an act of providing the necessary equipment for a house or apartment, especially the final decoration and furniture.

@imronaldsoo 

I see, in other words "fit out" is carried out in order for the unit to be a livable place...

@freemanwoo thanks for sharing