ok la, to many sifu here... i'm reading regarding investment in properties, i got read the book recommend by alot of ppl here, azizi ali "how to bcome millionaire lardlord" (or similar name)

1 big question puzzle me, let say rental bringing positive cashflow (minus loan repayment, repair cost, maintenance fees and every misc fees/cost) is just rm200-300. thou it is +ve cash flow but however is still not good enough to cover my monthly expenses. even like sifu Pai he menage to rent his properties to a international student @ 2.2k but i guess it just bringing cash flow like +800, i believe that one is rare case. i wodner even i rent out 10 properties, i still only getting like 5~6k max mai 8k rental per month. i still think it is pretty risky when fail to get tenant and 9/10 properties is under mortage...

First of all, I'm not sure whether you could still find things at the RM 220k range with "public transport, freehold, 3BR, not congested and good resale value".
You might wanna look for auction units, the 2nd best chance for "good resale value" (or good capital gain to be exact) - apart from buying new launches.

If you're buying for investment, you can look up for feedback in forums.
But now you're buying for own stay, suggest that you do more site surveys and reading, try to shortlist down to 1-2 options, then get forummers to give comments (in terms of maintenance, rental etc).

that is why there is a saying that leverage is two edge blade.

location is very important here, you dun wan to have many properties that is on hard to find tenant location.

1. Fail to get tenant - if you buy the right property (not some abandoned condo block), I do not believe in "fail to get tenant". It's always the matter of how much rental you're demanding. My personal view - I'm willing to go low as long as I can rent out. Worse case you'll have to bear half the monthly cost (instalment, maintenance fee etc), and it won't be for long.
2. Rental is not the only source of profit. The fact that somebody is helping you to pay instalment is already a type of profit. Plus capital appreciation.
3. Nobody would tell you that property investment is risk-free. There are people who think that properties are high risk and share market is lower risk. But personally I believe the otherwise. So it's your risk appetite that counts. I lost money in stock market because I'm not passionate about it (therefore don't do enough homework, and don't really bother to monitor). But i'm doing fairly OK in property investments - because I put in effort to do homework.

but izzit getting like +200, +300 +ve cash flow is consider average?? i believe some might can get >500 +ve cash flow per rental, but it is rare, right?

agree with above post, as long as my location is good, i not worry about getting tenant, just worry about getting the right/decent tenant

OK is an understatement, spectacular is more appropriate.

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Added on July 29, 2010, 7:52 pmJam, what your big picture? Why invest in properties?

This post has been edited by Pai: Jul 29 2010, 07:52 PM

Im a student and i want to start investing somewhere near PJ area. My budget is around 10k. Should i invest in lands? Where should i start ? Should i wait till im working?

1. You can't get a loan without income unless your dad becomes your guarantor.
2. You need at least 15% of the house price (subsale/auction) as capital investment. So with 10k capital you're looking at properties around the range of RM 65k.
3. Or go look for low/zero down payment new launch projects - but again back to loan issue.

Maybe you should just start by investing on books and seminars...

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Added on July 30, 2010, 8:18 amI think you need to readjust your "benchmark criteria" from "amount" to "percentage".
If you buy RM 2 mill property, +ve cashflow only RM 200 - super bad deal.
If you buy RM 110k property, +ve cashflow RM 200 - that's a fairly good deal.

Go pick up some books, punch some calculators...
Property investment is a combination of rental yield and capital gain, and there are so many variables (interest rate is one that you can't control).

This post has been edited by Backkom: Jul 30 2010, 08:18 AM

i wanna build my passive income > my expenses, in 10y

So whats the magic number?

at the time being, it is around 1k ~ 1.5k

Pai, hows your passive income status? Good?

Good luck to you!

oh, that's my expenses la, passive = 500 sajer
i still dun have my own stay properties (currently staying with parent)

Ed, havent reach my 5 figure monthly property passive income target yet........ hopefully within 2012 lah

Jam, so u r targetting 1.5k monthly passive income only per month?

current objective is passive > expenses
alot of short term goals = long term goal

so Jam, besides properties, any other way you know that couldd give you passive income of rm1.5k per month?

Frankly speaking, other than properties I do not have other passive income (exclude FD).
I've not yet really invest in paper asset. Currently holding a little share in stock (for the sake of my friend who ask me to invest with him).

Hi all Sifu,

Mind to share with newbies like me what is your investment strategies? from your point of view, will you go for diversity of your passive income?

i tried forex only, very risky
so i scare of share/blue chip
and was thinking about buying bonds

I'm not into paper asset, but you've tried forex and yet you are scare of blue chip shares? Ain't blue chip shares more stable than forex?