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When choice location and pricing matters
Published on: Saturday, June 22, 2019
By: Larry Ralon
Sponsored by: Guocoland (Malaysia) Berhad

Kota Kinabalu: Sabahans thinking of investing or buying a home to stay in Kuala Lumpur may well consider The DC Residensi @ Damansara Heights for its price and location, besides Lonely Planet listing it as the world’s fifth coolest place to live in.

“This development is fantastically priced and, over and above that, the developer is going to give discounts,” said Nixon Paul, a winner of three National Real Estate Awards.

Showcasing the property organised by Guocoland Malaysia with its sister company Hong Leong Priority Banking Customer at a Customer Appreciation Night at Hilton, Thursday, the founder of Carey Estate Sdn Bhd with 37 years experience in real estate said definitely there will be long-term capital appreciation. 

 

 

An evaluation on developments within Damansara Heights showed DC Residensi @ Damansara Heights has an average selling price of RM1,500 per square foot, cheaper than other new developments like The Serai where the smallest unit is 4,000 square feet but selling at RM1,800 per square foot. 

Another development, The Aira Residence, where the smallest unit is 2,600 sq ft, is selling at RM1,700 per square foot, while The Pavillion Residences is selling at between RM1,600-RM1,700 per square foot. 

“So we are looking at value for money. These are developments  located within the same vicinity. But they do not have the same accessibility that DC Residensi @ Damansara Heights enjoys. In terms of location, everything is within 15 minutes from DC Residensi @ Damansara Heights. 

 

 

 

“DC Residenci offers various types from 904 square feet up to 2,982 square feet to suit the budget, an infinity pool, a salt water pool, concierge services which many condominiums don’t have, five-minute walk to the MRT station, close to various types of restaurants, coffeeshops as well as private clubs,” he said.

Paul said there had been a lot of negative news about the property market lately, making buyers very cautious about investing in properties. 

 “The market is going through a difficult time and there has been a bit of an oversupply situation. But during good times and bad times there is always an opportunity. It is how you seize it. 

“I have been running my company for 37 years. I have been through the 1986 downturn, the 1996-97 downturn, I have been through the 2008 downturn. I have seen it all. 

 

 

“In every time and in any cycle, a small percentage of people have always benefited from the downturn. It is a question of how you identify your opportunities and kind of risk you are willing to take.” 

He said the million dollar question always is whether this a good time to invest.  “Good times, bad times are actually no difference. It is whether you find the right opportunity. Because if you are going to become an investor, you are definitely going to put your money there because you want to make money. 

“People can make money during good times and sometimes during bad times. If you want to invest the first thing to do is leave your heart at home and operate with your brain.” 

Nixon said many make an emotional decision and end up with an investment which  doesn’t work out. If you are going to invest and actually make money, it cannot be an emotional but a very objective decision. 

The first thing is to decide your exit strategy, i.e. when are you going to sell and take your profit, or are you going to leave it for your children, or are you just going to keep this as a trust,” he said.

He said many buy a property without thinking how they are going to ultimately realise their profit.  “Your ultimate goal is to make money. There must always be an exit strategy, unless you are buying for own stay, which is a different story. 

 

 

Paul said Sabahans wanting to buy a property in Kuala Lumpur probably do it for investment, to make money out of it.

“The exit strategy is something you must always keep in mind, how are you going to get out of it and realise your profit. Most investment gurus will talk to you about the five to seven year period, with the reason being that after that your real tax property gain will reduce. If you sell within the first five years, then it is a different story,” he said. 

According to him, people also need to consider changing trends. “What worked previously may not work now. What is going on now in all the major cities is Transit Oriented Development (TOD), where due to rapid urbanisation the government will need to focus on public transport infrastructure to improve the quality of life.  

“Traffic congestion is a real problem. Accessibility to public transport is a critical factor. All developments close to public transport stations have a better upside in comparison to those further away.” 

He also underscored the need to know who the developer is, whether it has been around or reputable. Secondly, is the property rentable, can I actually get a tenant for the property, what kind of rental will I get. 

“Thirdly, will it appreciate in value. Fourth, who is managing the property? Will it be well managed?  What kind of service charges am I going to be paying? 

“These are real issues. When you make a decision to invest in a property you must also assess your risks. Only after making that assessment should you make your decision,” he said. 

Paul said in Kuala Lumpur there are plenty of properties for people to choose from but many are tak boleh pakai (of no use). 

Touching on supply and demand, he said if there is too much supply it is not good, because there would be plenty of options. 

“When you want to exit, the purchasers also have plenty of options. The price appreciation of your property is limited. If you want to rent it out, you will also have a problem because there is plenty of availability,” he said. 

According to him, right now in Damansara there are many international business organisations like the British American Tobacco, Manulife, Dentsu, Hewlett Packard (HP) and so on. 

 

“These big companies are there, not in the KL city centre, because the staff don’t want to stay there. It is expensive to park your car there, it is expensive to have your lunch. So today employers need to be sensitive to issues like these. 

He said it is the suburbs that are actually doing well. In this development we are promoting there is a tower building which has 100 per cent occupancy. So that is why before making your decision you need to assess what works and what does not,” he said.

 

 



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