just a certain note here to everyone, I have actually thought of buying a unit of condo for rental purpose, one unit in kelana jaya easily brings in about 200-300 extra cash every month after deducting everything.

the market value for a condo there is about 250k max, and rental up to 1.5k, whereas the repayment for 90% loan is probably 1.1k or so.

but someone once told me this, its all about the risk we may encounter, like some said, blr may rise, bear in mind that condo price do not appreciate much, so there isn't much gain.

on top of that, it also depends on whether you will be able to get a tenant to stay in, for long term, lets call it a bare minimum of 5 years, thats when your loan lock in period expires. If unable, we are risking of paying the repayment ourselves, which will further burden you if you're not earning sufficient enough to cover that cost

so, you got your tenant, what if he is those donkeys that don't pay, or don't pay on time, it further frustrates you. and here comes the worst part, being the owner of the unit, you are liable to most major repairs, leakage of ceiling and bathroom areas are very common in condos, I've stayed in 3 different condo, 2 of which have leakage problems. either mine or neighbours leaking to ours, which we share the cost of repairing at the end.

and bear in mind, tenants don't give a damn on your house condition, to them, its just a place to sleep in, therefore they will not take care of your property like you do for your house, when they move out, you might have to repaint the house, patch up certain holes, a lot of rusty areas to cover before u can even dare to show it to your next possible tenant.

these are all the hidden cost behind the rental yield you may get. not always so negative but, chances are, u may get people like this, and this is true especially in our beloved country where no one actually cares.

sorry for being lengthy, just want to voice out my opinion, thanks

My point would be, to go for it if your financial is stable and strong, which is, in worst case scenario, you will still have your minimum savings or at least it doesnt burn into your savings.

If you already have a house and servicing a loan for it, I recommend that you pay up your current house loan before purchasing another unit. afterall, you only gain after you take away all the negatives (interest)


as for me, I have an outstanding loan of about 400k still, long way to go, I will stay on the safe side, to reduce the interest first, incase gov decide to increase our blr.. cause to me, its no point risking so much for a mere gain of probably rm300 a month. it takes just one bad situation to burn at least 1 yr of your gain, thats what i think..