Botanica 3 @ Balik Pulau, Penang

Project name:          
Botanica 3
Area:            
Botanica CT, Bandar Baru Air Putih, Balik Pulau
Developer:               
MTT Properties Development Sdn Bhd
Type:                      

3 Storey Terrace House
Tenure:                   
Freehold

Price range:             
from RM629,969 to 1,157,140 
Size range:              
from 2,680 to 3,650 ft2

Price/ft2 range:        
from approx. RM235 to 317/ft2

Total Units:              

32 units

*Above info @ Sept 2011 

 

You can get more info from the following websites:
http://www.botanica-ct.com.my/
http://www.iproperty.com.my/developments/2203/Botanica_3_-_3_Storey_Link_House

The developer: 
MTT Properties Development Sdn Bhd [Website] incorporated since 1963 (48 years in business).

Their main business is shipping. logistics, trading etc.

They have also formed The Prince of Wales Island International School which is Malaysia's first British-style boarding school. [Website] 

Location:

This development is far away from the prestigious George Town. This 300-acre Botanica.CT garden township development is currently planning to be completed in 9 years.





Price:
Compare with other developments in Balik Pulau:

• Clove-Taman Titi Heights ~ price from approx. RM235/ft2 (price info @ July 2011) ~ same as Botanica 3
• Orchardia ~ price approx. RM235/ft2 (price info @ Jan 2012) ~ same as Botanica 3

My View:

The price/ft2 is same when compare with two other developments, Clove-Taman Titi Heights and Orchardia, in Balik Pulau as shown above.

Based on 90% loan for RM629,969, say BLR6.6%-2.2% = 4.4% interest per annum, for 30 years. The monthly repayment is approx. RM2,839. If you are planning to buy & rent for investment, you need to take these into consideration: Will ppl willing to pay more than RM2,839 per month to rent a place in Balik Pulau?

Don't forget the approx. monthly repayment of RM2,839 excludes following items:

a) Maintenance fees

b) Assessment tax

c) Quit rent

d) Interest rates increased for the loan (this is the main risk as BLR still low at the moment)

For buy & rent market, this is not really a good investment opportunity. Most of the shopping malls, restaurants, offices, transportation etc. are concentrated on the east sides of Penang Isalnd (George Town). Will people willing to rent a place far away and travel to George Town all the time?

If location is not an issue, for own stay you can consider this as it is difficult to find similar property in George Town for less than RM300/ft2.

For own stay & hoping to sell it with profits in the future, you might need to wait for at least 5 or 10 years?? Until Balik Pulau fully developed??

Other developments with similar RM/ft2:

• Tiara Residences @ Bandar Baru Selayang
• Sutera Residences @ Kajang by Modal Ehsan Sdn Bhd
• 228 Selayang Condo (Aveda 228) by Mahumas Sdn Bhd
• Calisa M @ Puchong by Masteron Sdn Bhd

Key ASIC ~ Value drop around 84% ~ will you consider?

KEYASIC (0143) [Website]

Background:

• Key ASIC Bhd founded in 2005 (approx. 6 yrs in business) and listed on the main-board since Jan 2008.
• Key ASIC is a leading ASIC design company focus on communication and consumer electronics applications.
• Aug 2009 - Key ASIC bought up 100% of Gateway Silicon Inc. in cash. Gateway Silicon Inc. is a professional IC design service company in Taiwan.
• Key ASIC have offices in Malaysia, Taiwan, Singapore, Japan and US.

Current Share Price:  0.13



My View:
This share has dropped around 84% from 0.80 (Aug 2009).

The IPO price for this share is 0.40 in Jan 2008 ~ in less than two years time it reached 0.80 in Aug 2009. That's  100% increased ^_*

The reasons I consider this share for investment are as follows:

• Value drop around 84%
• Net asset per share is 0.14 ~ similar to current share price.
• Major shareholders are Khazanah Nasional Berhad with approx. 27.49% and CIMB Group with approx. 6.81%
• Share price steady around 0.15 since Oct 2010
• Key ASIC started shares buy back since Aug 2010, currently hold approx. 0.25%, assumed they bought with the minimum price, average cost is approx. 0.173 ~ higher than current share price. 

Keep an eye on this share. It might go up again once Key ASIC plan to buy another company like in Aug 2009?? Will the major shareholders willing to cut loss selling all shares at this point??

If you are not risk taker, you should consider put it in the bank for FD and get around 3% interest per annum.

For similar price, you might consider my previous posts:

1. HUAAN ~ started to provide dividends
2. IRIS ~ drop approx. 62% ~ will you consider?

2012 - Malaysia Property Market Gonna Sustain?

December 2011, Singapore announced:

1. Foreigners and companies will have to pay an extra 10% stamp duty on residential property purchases.
2. Permanent residents buying their second property or subsequent residential units will be required to pay an extra 3% stamp duty
3. Citizens buying their third or subsequent residential units will be required to pay an extra 3% stamp duty

When this happened, many people said this is a good news for Malaysia Property Market as foreign investor will seek alternative and move towards Malaysia properties.

Is this really the case? I don't really believe this in its entirety. The reasons are as follows:

a) Mortgage rate in Singapore is much lower compare to Malaysia (assume the exchange rate is 1 to 1)

• Say getting 400k loan for 30 years, based on current interest rates
• In Malaysia, your installment will be approx. 2,000/month (BLR-2.2%)
• In Singapore, your installment will be approx. 1,340/month (0.9%+SIBOR)
• That's 33% less compare to the monthly installment you pay in Malaysia.

So do you think investor will willing to pay extra just b'cos of the 10% stamp duty imposed by Singapore?

b) No capital gains tax in Singapore. Will investor willing to absorb 10% or 5% capital gains tax imposed by Malaysia for real property held less than five years?

Now come back to Malaysia Property Market - price has increased dramatically in the last few years after the so called "Recession" in 2008. How much longer can it stand?

Jan 2010 - Disposals of Malaysian real property held for less than five years are subject to real property gains tax (RPGT) at a flat rate of 5%

Jan 2010 - Each principal credit card holder will pay a service tax of RM50 and every supplementary credit card will pay a service tax of RM25

Nov 2010 - For third and subsequent property, maximum housing loan-to-value ratio of 70%

May 2011 - BLR increased from 6.3% to 6.6%

Jan 2012 - Loan will be based on net salary, not gross salary anymore.

Budget 2012 - Disposals of Malaysian real property held for less than 2 years are subject to real property gains tax (RPGT) at a flat rate of 10%. Remains at 5% for properties held and disposed within a period exceeding 2 years but not more than 5 years.

Feb 2012 - Hong Leong Bank, Citibank and AmBank increased interest rates for outstanding balance as well as late payment charges starting 1 March 2012.

Mid- 2012 - Government will hold discussions about the implementation of GST (Goods and Services Tax). Planning to introduce this after election to get more cash???

Malaysia has continuously imposed new rules and regulations to reduce investor profit and limit their easy access to loan/cash.

Based on the above, I don't believe Malaysia will STOP creating more rules and regulations to harm the property market.

More to come, especially after the 2012 election. What do you think??

Puncak (6807) ~ Up 99% ~ Power of The Rich Guy

On 9 Feb 2012, it reached up to 1.89 ~ that's 99% increased ^_* since posted in my blog (5 Sept 2011) [Click here for my previous post].




99% increased in 5 months ~ that's a shocking profits!! Power of The Rich Guy ~ Tan Sri Rozali Bin Ismail ??

It is difficult to wait and sell at the highest price. We shall take profit once it reached our target ~ To me, as long as the net profit of my investment is higher than the FD interest, I'm more than happy :)
[Saver or Investor??] 

Please note that on the next day, 20 Feb 2012, it dropped approx. 12% ~ many ppl is taking profit ~ 
Good luck in your investment!!

Related posts:
[PUNCAK drop around 63% ~ potential share for investment?]
[Puncak ~ Back to Similar Price]
[Puncak (6807) ~ Oops!! It Did It Again!! ]

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