161% Return In Less Than A Year
On 7th August 2008, a vacant land divided into two equal areas of 2.0867 hectares each were bought by two of our investors. Each piece of land was purchased at a price of RM325,000.
A few months after purchasing the land, the Malaysian government proposed a high-speed rail project that connects both the city of Kuala Lumpur and Singapore. One of the possible sites for the high-speed rail station is proposed to be somewhere near the purchased land. On 10th March 2009, which is less than 6 months after purchasing the land. An investor offered to buy both lands at a price of RM850,000 each. The total amount generated from the sale of both lands is RM1,700,000.
The total value of both lands acquired in the beginning was RM650,000. And it was both sold with a total value of RM1,700,000 in less than 6 months.
Therefore, the Return On Investment is:
Acquisition Cost: RM650,000
Sale Price: RM1,700,000
Annual Return: 273.8%
Compounded Annual Return: 410.14%
Investment Period: 0.59 years