Cool isn't it? Luxury you CAN afford. A freehold in the South of KL with a starting price of RM 369,00 (bumi units). Not bad. It IS quite difficult to find a a decent luxury property for less than RM 400K in KL.

But, would you buy a property based on JUST the final selling price? Is this property actually AFFORDABLE?

To answer that question, you would have to study deeper.

1. COMPARE
Make an apple to apple comparison.
Is a RM 300K 700 sq. ft. studio unit as cheap as a RM 320K 1000 sq. ft. two bedroom unit?

The best way to compare those two is by calculating it PRICE PER SQUARE FOOT (psf). In this case;
Studio: RM 428 psf
Two bedroom: RM RM 320 psf

Now you can make a better comparison.Although the purchase price of the 2 bedroom unit is more expensive by RM 20 K, in actual fact the 2 bedroom unit is cheaper and offers more value to the purchaser. On top of that, a 2 bedroom condominium would be easier to rent out compared to a studio unit. However, this advantage may depend on location.

2. LOCATION, LOCATION, LOCATION.

A property with a purchase price of RM 1000 psf in the middle of Kuala Lumpur would be considered as cheap. But in Ipoh, a RM 600 psf property would be ridiculously expensive. Thus, find out the exact location of the property.
Are there any boosters in that are?
1. Nearby LRT station
2. An upcoming highway exit nearby
3. International schools or colleges nearby
4. Commercial centers.

The key here is, GO THERE. Observe what goes on in the day. Go there again at night. Are there any economic activities at night? Or is it just a ghost town at night?

3. STRATEGY

What is your strategy? Is it for investment? Is it for own stay?
If it's for investment, how much is the rent? Can you make money from the rental income?

THE AFFORDABILITY ISSUE

Affordability is a hot topic lately. Mainly because of the spirally cost of properties and the ever increasing cost of living. Making ends meet is increasing difficult, what more to have enough savings to pay for the deposit.

However, one needs to look back at what is affordable.
Does affordable mean that you have to live in a condominium with a swimming pool and built in gym? The maintenance fee for all these additional facilities is AT LEAST RM 200 per month.

Is it affordable to have a BRAND SPANKING NEW house? Doesn't a 3 year old apartment provide the same comfort and safety as a brand new house? It could be RM 50,000 to RM 100,000 cheaper to purchase. Furthermore, its completed. You can see it with your eyes. There is no risk of the property being abandoned by the developer.

My take on this, buy SUB SALE properties at good locations. You can get great deals at the current market sentiment.