Allow me to answer some of the above. EPF is part of your wealth, so why not? I believe you need MRTA more than life insurance, especially with your low cash holdings. I personally believe you need to be more discipline in the next few months to save more and to apportion some into FD as well.
No, you do not need to convert your properties into a Sdn Bhd. The costs involved is not worth the hassle. Plus the act has been changed recently that expenses for that unit can only be deducted against the rental for that unit unlike previous property investments companies. So no tax benefit. The only benefit would for succession but you are still young so no need to think too much about it.
Added on April 10, 2011, 1:06 amWithout knowing your monthly cash flow, it is not easy to work out an ideal but let me give it a try.
Your Condo A installment seemed to be on the high side, you might want to consider asking the bank to reduce your interests (currently the market rate should be BLR -2.3 to -2.5. It is yielding around 5% without taking into account of your management fees and other outgoings, so the yield could be potentially lower. Personally for me, 5% yield is very low. Since you have quite a number of properties, I believe you do want to build up your passive income then you seriously need to reconsider your property investment strategies. An ideal yield should be around 8% or more.
Your Condo B seemed okay but again yield is on the low side.
Condo C, even if it is not fully paid up is yielding good at around 8% (sorry cannot be bothered using calculator.. hehehe)
D, cannot comment since no data.
Being in the sales line a big part of your salary would be commission base, so there are some risks but I am sure you know how to take care of yourself.
Overseas Land banking in my book does not work, so I personally would suggest moving the investment to other more profitable investments. Palm oil I believe would be country heights scheme? coz for RM25k, you cannot even buy 1 acre of palm oil land. It is okay to invest in this for diversification but i won't suggest you into putting more money into it. Wawasan is paying good interests, so it is handy to keep some. UT is something I do not favour as I would personally advise people to buy blue chip shares. You get more dividends and possible capital appreciation.
Info I need: who owns what? condo A, B... so that you can plan your property investment better for future. What is your net cash (income minus all expenses beside your rental income).
In summary from the info I can see, I believe your most important goal is to build up your cash.
When you say yield is low, how do you make it higher if it is already rented out at market rate? Do you recommend maybe fully furnish it to up the yields?
Jan 26 2011, 01:58 PM
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