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This post has been edited by askm3: Aug 30 2010, 02:41 PM

with a household income of 5-6K, there's plenty of choices out there beside the low cost (in theory you cannot buy those because of your income).
try and hunt those with minimal downpayment property to overcome your initial capital of 10K.
best get those with zero downpayment and use the 10K for another project.

zero downpayment?? u mean i can own a property w/o paying any legal fees or etc etc interests??

keen in know more.. btw where can i get those zero downpayment schemes?

i seriously doubt those "zero-down" are readily available nowadays.. (not unless you mindset is still stuck a couple of years back in those property go-go days)..

but i find it scary that one can simply browse a few webpages and then becomes a millionaire landlord.. what happened to all the laborious and tedious homework/due dilligence that will help secure a better purchase than just playing scratch-n-win property game here for TS?

This post has been edited by lwb: Aug 17 2009, 08:01 PM

TS
Don't bother to buy re-sale low cost if your salary is above RM2500 (depend on state).
Or you can buy at private or court auction legally.

so u means that i should keep the property for long term??

another thing.. is it wiser to get a new property or 2nd hand property..

cos for its hard to get a good location for new property.. 2nd hand property higher interest rate uh??

I think what Jason meant to say is you are no longer qualify to purchase low-cost property, since the qualifying criteria is your monthly salary not exceeding RM2.5k, and it must be your first house.

If so that you are able to buy one now, you may only sell it to a person that fit the above criteria too, hence safe to say it will never be a huge capital gain.

Correct me if I'm wrong.

you are corret, if you touch with low cost hse...your gain is small. ( let say 50K hse with return 15% in 5 years time -you get 7.5K as return..and 400K hse with 15% return in 5 years you get 60K as return) . My advice is avoid the apartment which the maintance fee /sinking fund ...etc..alll take up your profit return.
With 5-6 K salary and clean record of banking , you may entitle to hse valued of 400K ? i am not a banker, please check with bank. But don't too rush to dip your head into such low cost apartment. save your money and look for landed terrace hse in another 1-2years (your saving at that time will be enough )...

well said noed

TS, personally I think the best investment you can make with 10k now is to buy books or go to property seminars etc related to MY property scene.

buying blindly wont do you any good now.......

glad to read that you're advocating 'education' here, pai.. instead of asking of "which one? where? etc." and placing numbers like as though it's a given.

azizi ali has written and published lots of good books to be read. milan doshi too..
invest on yourself first.
then do some research.
investing in property is not a quick rich sheme

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Added on August 18, 2009, 12:30 pmbuying 1st hand low cost apartment definiely cannot because your salary has exceed the max 2.5K as the requirement.
but, can buy thru auction.
however, without good knowledge in property, i do not recommended u to blindly buy in in auction. the cash u need for a low cost property can be higher than if u buy a medium cost apartment from subsale or from developer.

This post has been edited by budak_bagus: Aug 18 2009, 12:30 PM

thanks for all advices from you guys..

actually i've been doing research the past 3-4months in property investment.

as u guys mentioned, its no point investing low cost apartment (50-80k).

i've been eyeing in these two location;

1) Location : Palm Spring Condo, Kota Damansara
Price : Rm195,000
Rent : Rm1000
Maintenance : Rm140
Size : 1000sf
3 Bedroom 2 Bathrooms

2) Location : Damansara Tropics Condo, Damansara Perdana
Price : Rm210,000
Rent : Rm1300
Maintenance : Rm150
Size : 870sf
3 Bedroom 2 Bathroom

Do u guys see any potential ROI from any of this investment??

@@@@
about property auctions, i think i'll keep that aside first as i don't have much capitol to play with.. thanks btw,

buy the property for cash for better investment prospect. 1st capital is very crucial.

chief, care to explain what do u meant by potential ROI as per above?

Anyway, 3-4 months research is defo insufficient. Think many of us learned and waited by the sidelines for more than 1 year before making our 1st plunge.

In property investment, your 1st purchase in most case will determine whether how much $$$ you'll make in properties over the next 20 years. So.......learn 1st n have patience....





p/s : I remember when I was like TS...........so eager to buy altho havent learnt enuff. Glad I didnt went in....... else I would not like properties so much now

this is a nice topic, why is it inactive? Time to resurrect it!!

since a few members advocate buying books, any books related to property and finance? e.g. talks about high d.payment vs low d.payment, calculating the loan, yield, net present value, etc.

not a book about opinions.. cause we can argue pros and cons of high d.payment vs low d.payment till the cows come home..but something that can educate us to learn how to calculate it ourselves and draw our own conclusions...

U MEAN BUT PROPERTY FOR RENT?
SURE OK?

Most property guru will go on low d.p as they want to leverage i.e. use OPM to earn $$$ unless a mistake is made and the rental income is not sufficient to cover the monthly outlay (negative cashflow).

This also free up your excess capital to invest on other properties/investment or emergency.

Hence never buy properties with rental income < monhtly cost unless your are gunning for capital appreciation. Thats a different ballgame.

I would not recommend low-cost flats for the cashflow game although the yield is attractive for obvious reasons. Collection might be a hassle and the +ve cash is insignificant vs. your time spent or work to improve the flat (reno or furniture). Tenant might run up utility bills and even 1 month electricity might be enough to wipe out your deposit

This post has been edited by rakyat: Nov 11 2009, 04:55 PM

based on TS analysis over 3-4months, and based on property no 1, even if its a 100% loan of RM195k, (say) 3.3% interest p.a. 20yrs tenure, repayment per month is RM1110 + RM140 maintenance = RM1250.

if manage to get RM1000 as rental quite ok dy la...if TS opts to go for like 30years tenure, repayment is only RM854.00/month + RM140 = RM994...rental RM1000, untung RM6 per month

what TS didnt realize are the hidden charges & other costs which may arise in the duration of rental. repair works, all needs to be borne by the owner..if tenant request for this & that, lagi

not sure if the rental price is fully furnished or basic unit...if its f/furnished unit, then need to invest like RM30-40k (min) in renovation & furnitures...

to me, investing in a property, which is quite affordable to majority working adults....and expecting high yield return is a little bit far fetch.

i actually have a bit of doubt as to the rental figures provided by TS...RM200k apartment can earn RM1000/month in rental..when the repayment to bank is around the same figure...if one can afford to rent RM1000, why not buy the unit & pay RM1000 as loan repayment rather than rental?

moreover, if the yield is so good, why would original owner wanna sell off? why not keep it for investment themselves? i own a unit in D'sara Perdana too...to me, the supply is a LOT more than the actual demand...not to mentioned Tropics' already been built quite few years already, while MSQ is quite new...if i wanna rent, sorry to say this but MSQ will be my first choice..

sorry pour cold water...its just my two cents...

Just curious to know what you guys think. Would it be wise if I purcashed an apartment for investment purposes, but initially I would like to occupy it first?

The downside would be I'd be paying the mortage own pocket (no rental income) but with time (fingers crossed), the ROI would come from the capital appreciation.

Thoughts anyone?

This post has been edited by quiksand: Nov 12 2009, 06:03 PM

how about u occupy it and rent the empty rooms out.

what is MSQ ? kota damansara/ mutiara damansara area is just too many high rise condo now, if fully occupied..traffic gonna be

this is what I am planning to do at the moment.

TBH, capital appreciation will be minimal for apartments. Landed properties tend to appreciate faster. But renting out the rooms will sure ease your load of paying the mortgage. Plus, i guess rent collection will be easier, as you are staying in the same unit