COCR is not everything, it is only an indication. For example, you can buy a house with only RM10, and loan up to RM150,000 from the Bank. This can be done by buying a below market value house.

And if you rent it out for only a RM1 cashflow every month, your COCR will be 120%, which looks very attractive, but in fact, you have only RM1 to spare every month. When the interest rate goes up by 0.01%, you will be in negative cashflow.

So, is COCR really so important? If not, then how can we judge a good investment??

meejawa,

Because a lot of people are talking about COCR, and put lots of effort in increasing the COCR, but i find that it should not be the only indicator. But i don't really know how to judge a good investment, as i'm still very new to the property market, that is why i posted the question, and hoping someone "SENIOR" could give us a hint

Ya, that is why i'm posting it here, and seeking guidance from all the guru in this forum. I feel that it doesn't make sense to focus too much on the COCR. It only can show the ratio of the money u put in, and take out from the property, but it doesn't shows the actual risk tolerance of that property.

So, for all the gurus, please share your opinion

jasonhanjk,

as shown in my earlier example, u can easily get a ROI of 120% with only a RM1 cashflow. Is there any other criteria to look at to support the ROI?

zzzxtreme, how much is the money down initially?

Ape,

I'm not guru, but would like to give my opinion on your question.

COCR is positive = Positive Cash Flow
Yield is 8% = Much better than current FD rate
High potential for capital gain...

WHY NOT??