I use my simple estimation to calculate the current price of the property and their rental unit . Imagine if i purchase the whole condo with cash and no banking loan. no interest involve . I think we can judge that the current market rate for sales and rental ongoing may not be the true picture of a property investment.

The sales price is too high, the rental rate is too low and for the next 20 years of investment , you just getting a few thousands only .

If any adviser have a better calculator or formula to assist in the purchasing decison, please advise in this thread.

i might have miss something... let's skip the bank loan etc that could not help in finding the real property that is worth investing.

here goes to one of the property i estimated and the rate i use was published in the net except for the monthly maintenance charge and repair cost i estimated.

Punchak Damansara

1st - 10 years

Condo Price:- RM 220,000
Rental:- RM 800 per month
Condo Maintenance : - RM 100
Repair : - RM 50
Monthly Gross Income: RM 650

Net Income (Annual) : RM 7,800

RM 7,800 x 10 years = RM 78,000

capital appreciation of RM 22,000 based on 10% increase @fter 10 years

1-10 year Net Income RM 100,000

11th - 2o years

Condo Price :- RM 244,000
Rental : RM 1100
Condo Maintenance :- RM 150
Repair: 50

Monthly Gross Income : RM 900
Net Income (Annual) RM 10,800

RM 10,800 x 10 years = RM 108,000

Capital Appreciation of 10 % @ RM 24,400

11-20 years Net Income RM 132,400

Overall 20 years Collection @ RM 232,400

Profit generated is RM 12,400

How about you bought then no 1 rent for 20 years ?

i think i misquoted the info of this condo, Punchak Damansara is near to one utama and the price is not RM 220K . It should be around RM 170K if not mistaken.

well, if u buy by cash and no ppl rent, is still tolerable. but if get loan from bank and no ppl rent, sure KO bcoz of the interest rate.

but still, is still worth the investment. just imagine putting 200K into FD per month in a bank, and you only get about RM400. but in this case, u are getting about RM650. Is still consider a good investment. Not to forget, if u get a free hold, it is actually your gold mine which producing income every month subject to got ppl renting the house/condo.

Please take in assessment fee, repairing and maintenance cost and ohers etc cost into the calculation for more accurate picture.

As people often to forget to take in, as over long term, if can be quite big amount as well.

My view, set aside Rm50 for repairing is too little, not realistic.

Renting sometimes will incur more tear and wear due to some tenants may not take care much (this depends on luck to get good tenant). You don't expect a tenant to rent for more than 10 years, (although some does, majority won't), while in between changing tenants, usually as property owner need to reburfish a bit and simply allocated Rm50 per month is way too low figure.

In between you change the tenant you will charge higher and higher. Do you still pay the same amount of rental 10 years ago for the rental now?

Puncak Damansara

Maintenance Fees should be higher as there is a swimming pool there. My guess will be roughly RM150 to Rm250 depends on size.

RM220000 should get you a corner unit for 1150++ sqf

Rental for empty unit is around 850 ++

capital appreciation is very hard to estimate. Pelangi Utama located nearby now have a listed price of 300k ++ which 1 year ago is like 240k ++

the ROI % for that money investment arent seems to beat the commercial/industrial property. I wouldnt call it a good deal as it is just 3-4%.


A general guideline should be.... the monthly rental should be able to almost cover most of a 30 years loan monthly installment.

u no need pay cukai tanah/repair/misc ?

Would you include various insurance like MRTA/ MLTA in the above calculation alongside with various legal fees?

i will put up a new estimation soon but anyone who can help me also welcome.

I expect the surrounding to change and enivronment will be better after 20 years. sometimes new buildings will come up and make the property value increase.

Wow...200k for a mere rm 850? nuts ah? not doing homework man!!
I would say RM120k for RM800. Would be ideal.

If got cash also take a loan lah....at least flexi and then park back all the cash in it is also interest free what? Why buy cash? LHDN your friends?

Don't think so narrow. Think that your 200k making money for you. Your money is actually working.
The days when not tenanted you top up lah. But from my point of view these props sure got tenant one depending on your fussyness.

I take sunway mentari court for example as the benchmark.
Investment purpose not own stay....please don't argue about the quality of the place , i know!

but to choose the place compare to your suggestion i would definately invest here at mentari court.

my 2 cents. pls advice sifu!!

This post has been edited by simplicio: Feb 8 2010, 08:25 PM

TS think you can come JB.
RM100k apartment can rent out for RM1k per month.

seriously better rental rate in JB .
true or not?

Very bad ROI with only 3.5% perannum... putting the amount into Bond fund is even safer, higher, better and hassle free.

In prop investment, you either get prop with good rental yield, or good cap appreciation or both even better, but ur assumption shows its just bad in both rental and appreciation.

my RM138k apartment in SK (no furniture) already fetching RM850 per month..

New project around might create competition and rental of older condos might need to lower down in order to attract tenants.. Tenants might prefer newer and better concept condos.