Buy SP Setia Alam Property for Investment or Own Stay

22 May 2009 | Category: Property Investment

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Attracted to Setia Alam property developed by SP Setia Group? What do you think on the SP Setia Alam project? Invest Setia Alam to make more money or buy for own stay?

sp setia toll highway express

Setia Alam, no doubt it’s a huge township development and selling like hot cakes in Malaysia Klang Valley area. So many friends, colleagues, families and relatives are talking about the project. So many people had visited their showroom too. The credit should be belong to the launching of 5/95 home loan package by SP Setia Group.

tenby international school sp setia alam

Can you imagine how good is the 5/95 financing scheme? You just required paying 5% down payment and nothing more till completion of construction. Save huge interest and nothing to worry about risk of abandon project plus with the good reputation of SP Setia Group for it past record as Malaysia top developer for few subsequent years till today. Basically, it’s a risk-free deal.

sp setia alam chinese school sjkc pin hwa 1 klang

Buy Setia Alam Property for Own Stay

If this is your purpose to buy one and it’s for long-term. Then, I will say, go ahead! It’s a risk-free deal to buy one for your own stay with your family. Why say so? Look at the points on below:

  • SJK (C) Pin Hwa 1 Klang Chinese School – Operating now!
  • Tenby International School – Operating now!
  • Tesco Setia Alam Hypermarket – Operating now! Only 5KM from SP Setia toll
  • Giant Hypermarket – Under construction, located just opposite Tesco Setia Alam
  • Petronas Petrol Station – Operating now!
  • Setia Badminton Academy – Operating now!
  • Business Center – Partly in operating and more are coming soon!
  • Klang Sentral Station – Operating soon!
  • SP Setia toll – Toll and highway done, well planned and access is so convenience
  • Surrounding Environment – Mini Lake, plants, flower, trees, and grass can be found everywhere. I mean greenery environment

sp setia alam setia badminton academy

From the outcome of the current progress status on the whole development, at least SP Setia Group has proven that they are sincere on delivering their products to buyers and highly committed on the projects launched. This is something very unique strength about the developer compares to others. Perhaps that is one of the reasons why SP Setia Group is still remaining as top developer in Malaysia.

Buy Setia Alam Property for Investment

Cash Flow Strategy
Definitely is a NO WAY if you intend to buy Setia Alam property to rent out with a good rental which is greater than your monthly installment and enjoying monthly positive cash flow; unless the whole township is almost fully developed and you are buying the last few phases of the development. Else, who do you expect to become your tenant and stay there?

sp setia alam business park center

Buy and Sell (Flipping) Strategy
Under this strategy, normally the short-term investor is expecting for quick return from capital. Normally, they buy a property below market price and sell it off after a minimum renovation or repairing works. In another words, the strategy is more suitable to be applied at high demanding area with highly populated or high occupancy rates.

Basically, we don’t see any features of the current Setia Alam’s newly launched properties meet the requirements of Buy and Sell Strategy.

tesco setia alam

Buy and Hold Strategy
Generally, Setia Alam is meeting most of the considerations as investment grade’s property for Buy and Hold Strategy. The development is in the direction of growth as it surrounded by Setia ECO Park, Mega high-rise and high end commercial projects within the township, Aman Perdana by Mah Sing Property Group, land bank areas that own by SIME Group and Klang Sentral Commercial Centre. Besides, unique 5/95 home loan package has been introduced for the development due to the current economic downturn situation; therefore, both cost and risk has been lowered to the minimum level. So, it’s make more sense if you are going to buy Setia Alam property as investment purpose by using Buy and Hold Strategy.

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13 Comments

What says you? Drop your opinion in the comment box.

  1. Anonymous
    on July 16th, 2009
    1

    Hey Horlick,

    Prices in SA has shot up quite recently. What’s your opinion on this?

    Noting that SA is probably (now) only 20% it’s full development, quite likely future launches will be priced higher, and older houses will share the same capital appreciation. What do you think?

  2. Investor
    on September 2nd, 2009
    2

    Hi Horlick,

    I’m seriously thinking of owning a SA home, but for investment purposes. Your article actually does make a lot of sense. But I also took note of ‘Anonymous’ comment, whereby SA home price has actually appreciated a lot over the years. I think it’s due to a lot of KLites bought and ‘chau’ the price to go up.

    For an investor like me, if I were to hold-on to the property for 5 or 10 years (if I’m able to survive by renting out), then I should be able to sell off and gain from it, right?

    BTW, SA also has low-cost apartment, which is selling around 100k. Do you think it’s worth to buy for investment?

    thanks

  3. HorlicLim
    on September 5th, 2009
    3

    I do keep an eye on the Akasia Apartment too. It supposed to be launched on last July 2009, but temporary has been postponed to October 2009.

    For me, two considerations on the project:
    1) Identify is there any group of people will rent your apartment at least RM500 rental and above. Because, based on latest CIMB Home Loan package for below RM100k, BLR-2.05%, 30 years loan tenure, loan RM90k, monthly installment = RM404

    2) Be aware, there will be thousand units of medium-low cost apartment to be built at Setia Alam. Get the Setia Alam map by Ho Chin Soon, you may have clearer picture on it. Therefore, i’m very concern on the progress or movement of their whole Setia Alam development espcially the huge business center development.

    Do shares with me too if you have any new updates on it. TQ.

  4. aaron
    on September 18th, 2009
    4

    Pull your horse first before invest in setia alam at this piont. please look at shop lot and the sentral kelang shop property and the bus terminor . Setia alam is the most expenses property in kelang ( actually people do not thinks Setia alam is Shah alam) in term of per square foot rm 230.00 for duoble storey terrace house, compare to bukit tinggi, kelang duoble storey terrace house only Rm 190.00 with better population and full business activeties surrounded.Best still with support from old township surrounding.
    Setia alam still do need to wait for 10 to 13 years for the town ship to develop as bukit tinggi kelang as today. The S P Setia developer are selling the property at future ( 6 years ) price. i do not feel the price now are worth to investing. why dont seach for defualt payer and press for better price.rental rate are bad for the shop lot and double storey, its below the bank installment.Holding your cash and invest in puchong, subang jaya better ROI .

  5. HorlicLim
    on September 19th, 2009
    5

    Agree with your opinion on Puchong and Subang Jaya, the locations do have some good ROI properties. But I will not compare it to Setia Alam, else there will be many more other locations to be highlighted by our other readers here. In another words, perhaps I will say Setia Alam is potentially to be another property hot spot in Klang Valley in future. No Doubt.

  6. enren
    on October 10th, 2009
    6

    Please be careful that SA still being affected by soil settlement problem. The house might drop in value in future.

  7. HorlicLim
    on October 11th, 2009
    7

    You are referring to the previous ‘old’ cases or more and more new units are affected? If that issue keeps happening, it will become a disaster and nightmare for both own staying owners and property investors there.

  8. Adelynn Chan
    on January 10th, 2010
    8

    Hi Horlick,

    just asking ur opinion whether is worth to buy a double-storey house in Setia Alam…

    My family and i went to Setia Alam yesterday… and found out that there are so many units of houses have been sold out… is only left a few houses…

    we actually wanted to buy a unit but price is too high

    20′X70′ double storey terrace house is cost RM 468,800 at minimum

    24′X80′ double storey terrace house is cost RM 588,000 at minimum

    are they worth buying…

    thx

  9. Horlic Lim
    on January 11th, 2010
    9

    Worth buying for own stay? Below are my 5 major considerations to buy a house for my family:
    1. Banks, especially foreign bank (it reflects the successful of commercial activities there)
    2. Hypermarket
    3. Highway
    4. Schools
    5. Quality Environment (many other places do comply the above 4 factors but lack of quality environment)

    Do you realize that the pricing of expensive houses are increasing over the years and become more expensive and expensive? How about the pricing of cheap houses? The pricing for most of the houses are still remaining the same or very minor appreciation after couple years.

    Just my 2cent point of view. Have a nice day!

  10. ally
    on March 4th, 2010
    10

    hie Horlick,

    I’m looking at one of the property at SA.the build up area was 20*70 with 1974sq.Pricing is RM420k.This property is somewhere nearby a school.Is this property worth to invest since is nearby a school or the opposite way?

  11. jay
    on April 5th, 2010
    11

    Hi Horlick,

    My brother would like to buy a unit in SA. but for the pass 4 weeks, the houses there, price increase like rocket. it can jump up 10K per week.. isn’t it ridicurios?

    I just wondering will this be too fast of the price increase and causing bad impart later on..

  12. Brad
    on August 12th, 2010
    12

    I don’t think it is worth to buy in Setia Alam. I bought a house in Setia Alam almost 3 years ago. Once I got the keys, the house cracks seriously. Until now the problems still happen and the developer, SP Setia reluctant to repair for me and I have to bear the costs they created!!! My house is still sinking now!!!The GM, Mr Tan Hon Lim afraid to meet me to discuss my house defect. Isn’t it silly to but a deferior properties in such a high price???

  13. Yong
    on August 29th, 2010
    13

    Seriously, I don’t think it is worth to buy any SA house near setia impian and setia indah. The foundation there is weak. It depends on your luck to get a good one. The developer did not expect additional cost due to the weak soil (tanah gambut), so they decided to risk and give you 3 years warranty rather than spending millions on the soil settlement. You can notice it when you drive along the roads at these places; the road goes up and down. The big water pipes lines and manholes would always crack when the heavy lorries pass by the road.

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