Hi ....would like to know whether worth to buy this unit or not? how to calculate the yield?

195k Apartment
rental rm1200, Lease hold, left 60+ year
Condition....might need to polish a bit...

Please advice

how old r u ?born on 88 ?

gross yield calculated as following:
(monthly rental x 12) / property price x 100
in other words:
(1200 x 12) / 195000 x 100 = 7.38%

property guru said can consider if the rate is double the FD rate. in this case which is true.
at the current market, i personally feel anything more than 6.5% is decent, of course the higher the better

another theoretically rule is, 10 months rental should be able to cover 12 months installment in any event that there is no tenant.

all the best

Since TS mentioned about the remaining leasehold tenure, just to highlight here so that people may comment on this also.

Usually some says the bank will not keen to lend for those with very little lease tenure left. If you are buying with 60+ years, should still be OK. but if you decide to keep for say 10-15 years and sell it again, MAYBE it will be harder for the next purchaser to get loan.

but of course, that also depends on what is your game plan. i.e. keep forever, keep for a while, keep for own stay etc...

Also, the yield may seem find, but you need to do your homework to make sure that this RM1200 is a realitic market rental rate and the occupancy rate here is good. Just to be very safe.

Good luck!

how much is the maintenance fee?sinking fund?..

Location? Potential for capital appreciation?

should be on the older development since only 60+ years left, the cap appreciation will not be as great compared to newly VP-ed. So it's more for yield game.

Just my wild guess.

haha...secret...

---

Added on June 11, 2010, 11:14 pmoh.. ic ic thanks sifu ... so in this case owner have to bear the maintenance fees also right?
so in other words is like

(1200+100)x12/195000 x100 = 8%

fd rate 2.5 ...so more than this...mm...good ya.. but consider about the years left make me step back a bit ...

---

Added on June 11, 2010, 11:17 pmmm yeah ...the lease hold left 60+ years make me stay back a bit .. and i need to renovate ...mm...doubt doubt leh ...

if i buy this unit .. i also consider about the fees that maintain the unit... cos is old by years...and also .. i plan to keep it forever cos i think the location is good.. near lrt...

---

Added on June 11, 2010, 11:17 pmaround 100....

---

Added on June 11, 2010, 11:18 pmgood location but appreciation ... mm..i doubt cos its old..
any chances that the older the unit, the appreciation goes up?

---

Added on June 11, 2010, 11:19 pmyou are right!

---

Added on June 13, 2010, 9:12 pmis it still a good buy if left 60+? and this is my first buying... need some advice.. thanks

This post has been edited by mygarage88: Jun 13 2010, 09:12 PM

Hi there, any good bank giving good rates currently? please share. I'm also new to properties here.. I found out that alliance giving good rates for first time buyer.. besides, I was advise that we can always negotiate with the banks upon showing another banks offer to us..

I'm not sure which bank should I loan from as I want fast transaction. .. probably will elaborate further in my thread

why you think so long? i think there are lot of people wont think twice of they get to know this offer. normally, if this morning there is and ad for sale, tomorrow you call, sure it is no longer available.

first timer ma ... scare this scare that lo...sumore the env and condition sucks (althought it can rent up to 1.2k) .. afraid no price after bought...

any advice ar?

if you think about cap apprecation or planning to sell it back, forget the apartment then pass the contact number of the seller to me..
if you eager for the strong demand and steady rental income and want to hold it until you die, just grab it. dont wait until the seller find another buyer.

mm if i buy it, i might spend another 20k to renovate it ler.. the tiles... my god...if 195+20k still consider a buy ?