My house will be ready by next year

This is the house that I bought last year. It costs about $280K. It is located at Sungai Petani (A very small down in Kedah, Malaysia). This place is called "Bandar Laguna Merbok" - www.blm.com.my

We are expected to move in by early next year (Jan 2007). The estimated money spend to this house is around $80K (i.e. renovation, furniture, lighting, air conditioner, ceiling fan, electrical wiring, kitchen accessories, LCD TV, and many more).



This means now the value of my house should be $280K + $80K. Opss… I forgot the loan interest that I pay to the bank every month. This is also most people make the same mistake too. As per today, the total interest that I have paid is $10K. Ok, let’s calculate my house value again. $280 + $80K + $10K = $370K. So, I need to sell at lest $370K to make the profits. I checked the value of my house now, it is around $310K. So, I’m losing $60K at least for this year. :(

Having say that, is this true? No way, this is for stupid seller. If I were to sell, I will able to sell at least $400K. You know why? Because the market value of $300K doesn’t include the “Upgrade” that I made to my house. I’m selling my upgraded house but not the original house. If I'm able to sell 400K (already a very conservative value), I’m earning 30K which is around 8% of my orignal house value. Hmm… 8% a year, not bad but I’m expecting to be 14% appreciation in my house value. I want 14%!!! I will evaluate the house value again next year 2007. Hopefully the appreciate value goes up to 14% in a year!!! Possible? Wish me luck! Merry Christmas!