FYI, this is just a question. Have no plan in 2-3 years. Just wanna know what expert people will think.

I married for 2 years now, living with a wife and a son.
If I have the ability to get properties (by loan) for RM300K, should I:

1. Buy a house which value about RM300K. And live in it with my family.

or

2. Buy 3 apartment which value RM100K each. Live on 1 of the apartment, rent the remaining apartment to others.

Short term: I dont have any problem staying in apartment. I dont have plan to get more than 3 kid.
Long term: I may not be staying at that house/apartment when I old, as I have plan to sell the properties and buy a house at my kampung (which should be more cheaper)
Personal: I dont have experiance buying house nor knowledge regarding properties. I just start working 2 years ago and never though about buying a house before.

If you can get a flat / apartment, easily can get people to rent to cover your monthly loan payment, then second option is a wise choice..

There are other LYN'ers in here who is in better position to help you out

Btw..where are you staying currently? I doubt that you can get an good apartment below RM100k around Klang Valley except for flats

This post has been edited by Notoriez: Oct 6 2009, 12:19 PM

I'd buy 3 apartments, rent the 2... once i actually need a house for my family i'd rent out the 3rd apartment. Most prolly by that time rent has gone up high enough that I will be able to buy my house financed by rent from the other 3 apartments

Option 2

Option 2 as well. But ensure enough income to pay 3x apartment installment if cannot find tenant at all (worse case). Also the maintenance fee, fix damage items, utilities, asssessment, etc.

Yaa. Thank for the advise.
I didnt think about maintanance thing. Anyone got any experiance on this?
Is it worth it of just waste of money?

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Added on October 6, 2009, 12:48 pmI dono about that but i check, my current apartment price around 90k (with security, maintanance etc). Location Sg Chua, Kajang.

This post has been edited by Kanemochi1oku: Oct 6 2009, 12:48 PM

what kinda return are those apartment generating? Where is the location?

Option 2 but make sure that the apartment u wanted to rent are in a good area such as student area.

Option 2

KL area hard to get apartment which fetch good return below rm100k

owned a flat at RM90k which bring me rental of rm700 per month semi furnished in KL.. very close to LRT and thats the reason that i can get the high rental

Also, try factor in other worse case scenario. If you are the one going to pay 3x apartment loan, what happens if you lose your job/income ? Any secondary income ? Or wife/family/etc. to help pay ?

What if you have dependency ? Do you need to buy insurance if you "go away" first ? That will be additional cost.

The apartment may not be easy to sell or sell at attractive price. You may need to sell below market price if need money urgent. It is not that liquid.

u married 2 years ago.... u start work 2 years ago!!!
where got money to marry & feed ur son? now u want to buy hse also...u must hv extremely high salary..

Why buy three? You can buy one first and use the return on that investment to buy the other two later. At least your commitment is lesser.

Let's say the purchase price is RM100K then your initial investment would be:
1. RM10K deposit
2. Legal fees and stamp duty for loan and SPA- RM3K
3. Renovations and furnishings - RM5K
4. Ads or agent to get tenant - RM1K

So your investment would be RM19K. If you can get rental for RM700 per month and after paying your expenses (mortgage, maintenance etc), you are left with RM200. So your ROI would be (RM200 x 12) divide your investment of RM19K = 12.6%

In 5 years your ROI would have dropped if you do not increase your rental and you have paid off more of your mortgage. Then you should sell and purchase a new property that would give you better ROI.

3 more years to go to increase my rental

btw, for flat, i don't see good second hand value

there is a lot way to get money and get married. And sometime married dont need to use a lot of money haha

how to get married without using a lot of $$?

i want to learn from u

Sg Chua not in Klang Valley leh

If im not mistaken, UTAR is quite near to Sg Chua rite? or Sg Long?

Fren.. Sg Chua is in Kajang.. wat is your definition of KV? is there a definition for KV area? i am curious... Notoriez, please enlighten..

This post has been edited by eugene jk: Oct 6 2009, 10:14 PM

You're married, with a kid.

It's worth to re-evaluate the amount of risk you're willing to take, and lifestyle you're willing to sacrifice as it now involves your family.

Do you have sufficient cash? What if you can't rent out those apartments and you still need to pay maintainance fees?

What about the security of living in apartments, now that you have a family?
Is it better for your kid to grow up in an apartment area, or a housing estate that you're targeting.

When you move out one day, will you be able to re-finance your apartments to move into a place you call home i.e. a nicer building that the apartment you're planning to buy.
Or would you rather secure a decent roof right now first, and a place your family can enjoy a longer term home?

I think the concept of making money work for you is true and lucarative, but beware of the other side! I think those are a few items.
You're no longer single, window of opportunity is over.. hehe..

Hi Kanemochi1oku, I'd go with option 2, but make sure the 2 apartments you buy for rental are easy to rent out and give you a decent return. Would also be wise to search as hard as you can for a motivated seller who will let go at below market value.

There are plenty of RM100k apartments in easy to rent out areas, you just have to train yourself to find them. Typically they are the lower middle cost/middle cost walk-up apartment type (2nd & 3rd floor), no lift, no pool, which also mean lower maintenance fees.

As long as you buy the right place and rent it out correctly, your tenant will pay your bank loan and give you extra cashflow every month.

I would strongly encourage you to seek advise on the property you intend to buy from the right people. Meaning someone you know personally who's successfully making money from renting out their property. If you ask advise from the wrong people (people who have never made money from renting property) then you're likely to get wrong advise, and be given all sorts of worries and doubts instead.

check out this post about property investment solid concept.

3 kids 100k apartment sure tak cukup, trust me, I have 3 kids. even the house (corner unit) tak cukup. but if u don't care then ur kids don't care neither.

since you are not a property investment guy, I would say your choices are 3 apartments. there are a few ways go about it

1. buy one to stay first. staying and renting usually have different criteria but if u don't have requirements on a 'home' then this doesn't matter much. Save the remaining 200k in FD before finding the 2nd and 3rd units.

2. buy all 3 at one place, easy to collect rent, monitor tenants etc. when buying 3 units, get 10-15% big discount etc. This method is usually at resort area where tenants are holidayer.

lastly, u can also buy one apt one house.

apartment usually have higher rental yield buy no capital gain while landed has capital gain (10 years later)but low rental yield

read Robert Kiyosaky's story too ...

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Added on October 6, 2009, 11:29 pmur Qs have flaws, getting married never need $. if you need $ to get married, you will need $$ in everything you do after marriage. If you are creative, u may even make money during your marriage.

This post has been edited by mtsen: Oct 6 2009, 11:29 PM

I'd choose option 1. Apartments at around 100k in Klang Valley may have lots of maintenance issues and could hardly get any cap appreciation in the long run. Whilst a 300k landed property may give you decent cap appreciation while you enjoy the house yourself.

But to be frank, 300k can only get you an OK condominium in hot locations, or an OK DSL in farther locations.

Of course KV has a definition If not why they call KV for no reason

Klang Valley...according to my definition...

KL area
Subang
PJ
Klang
Putrajaya
CyberJaya
Ampang..

Other than that not sure

This post has been edited by Notoriez: Oct 7 2009, 09:40 PM

Thats y i ask lo.. rupa-rupanya its your own definition....

I also dono.
But you should check wiki la.
http://en.wikipedia.org/wiki/Klang_Valley.

Regions

There is no official designation of the boundaries that make up Klang Valley but it is often assumed to comprise the following areas and their corresponding local authorities:
Federal Territory of Kuala Lumpur
Kuala Lumpur City Hall
Federal Territory of Putrajaya
Putrajaya Corporation
Selangor district of Petaling
Shah Alam City Council
Petaling Jaya City Council
Subang Jaya Municipal Council
Selangor district of Klang
Klang Municipal Council
Selangor district of Gombak
Selayang Municipal Council
Selangor district of Hulu Langat
Ampang Jaya Municipal Council
Kajang Municipal Council
Selangor district of Sepang
Sepang Municipal Council


Weh! Why suddenly change this thread topic?!

This post has been edited by Kanemochi1oku: Oct 8 2009, 09:58 AM

ur Qs have flaws, getting married never need $. if you need $ to get married, you will need $$ in everything you do after marriage. If you are creative, u may even make money during your marriage.

[/quote]

marry need no $$$? yes everyone wl need $$$ to do everything after marriage.... honeymoon$$
food $$$ kids $$$ school $$$.......EVERYTHING U NAME IT.... onlY air is free now...WATER ALSO NEED TO PAY

pls advise how to make money during ur wedding . Dun tell me u r gonna spend all ur guest cheap dinner & get anypow.... this wl only work one time only. ur next invite for baby new moon no one wl come & all ur invite wl be rejected.....

This post has been edited by moopok: Oct 8 2009, 10:04 AM

Buy 3 apartments as you will have more income whether you want to sell straight away or renting out.

sharinginfoz
http://sharinginfoz.blogspot.com/2009/10/t...beli-rumah.html

you just need a piece of paper to be able to get married officially. anything after that are just for fancy

Kanemochi1oku,

If you are ASKING this kind of question in lowyat forum, it is OBVIOUS that you do not know HOW TO CALCULATE and make (2) work financially. You NEED to study more before (2) is possible. Hence, (1) is the RIGHT choice for you.


Dreamer