If you can only manage 70% margin then the profit yield will be somewhere around 20-25% instead of the initially calculated 60-70% based on 10% downpayment. If you think 20% is reasonable and you can sell it off at RM500k (which I think so) then it is not as risky. All investment has its own risk..
And why do I think RM500k is doable:
- If you think upon completion end lot (35x75) can sell at RM600k onwards, then intermediate at RM500k is reasonable
- RM500k is the minimum entry cost for foreigner to own a property
- most of the NI buyers in older phases are buying for ownstay so subsale units are very limited (do a quick search from internet) so competition with the cheaper units is lesser
- newer precinct has its own selling point; 7A, 7D2 and 8.
Personally I think that now the most desirable NI precinct are precinct 7A and precinct 8... precinct 8 selling point is the lake whereas precinct 7a is on top of the hill and lowest density because it is sharing the G&G access with only 155 units (precinct 7A) and around 50 semi-d units (precinct 7D2).
To put my words into action, I bought 2 units in NI too.