Hi all sifu's,

mind to share your invest properties experiences, what is call worth investment?

is now the best timing for us to invest a properties for rent? i look all around the sub sales/new launch,
the roi is 3% base on selling price it is a good investment already?

For me, a good investment would be where the rental more or less covers the loan repayments.

For every 100k, I would expect somewhere around 500 in rental.

Based on experience, I would go for lower end properties like shop apartments costing below 150k in the subsale market. Rental for these in a good area would be around 600 to 700 per month.

For some units, I manage to get more than 10% roi.

for property investment:
a) if u go for REIT (real estate investment trust), 3% is OK since u dont have to bear all the risk and its managed by agent
b) if u invest directly by means of PURCHASE the property, u should expect not lower than 10% considering it high risk and long commitment
c) my consideration is:
- anything lower than 4% i should go for fixed deposit
- anything than 4% to 10% i should go for unit trust
- more than 10% i would consider property rental investment

this is my rule of thumb.
up to u if u want to follow or not
different forumer might tend to have differ opinion

I don't like to keep cash and use all my cash as down payment to buy prop. make sure u buy prop which can be easily rent out. at least can cover 80% of your instalment. make sure you have regular income (eg salary ) to pay for the 20% deficit if any.

yes lower cost prop is better choice which easier to rent. many more ppl will come to KL to work and need a roof to stay especially.

Hi,
I'm wonder how could you get a 10% roi? do you mind to share future more and calculation?
it's the property you bought before 2010?

Hi,

so you are not attention to roi from rental, what is your target for investment? appreciation? long term?

I wonder what is in your mind when u mention "property investment"?

Is it flipping or rental?

Hi,

Any, as long as is "investment property"

Then I will answer your question
My properties were bought on year 2012
Low cost house
Monthly about rm300++
Rental up to rm600
The ROI is definitely more than 10%

To add some fact to your statement, once tenant don't want to rent anymore or in the midst searching new tenant. You have to pay full installment.

Another point is if the tenant doesn't pay 2 month or 3 months your property in risk being lelong and you need extra cash yo avoid this.

For low costs, there will be restrictions in purchasing and you will lose out when you will want to sell, prices of low costs properties do not increase that fast as your pool of prospective purchasers will be much smaller.

I will suggest to look for shop apartments in good locations where it is easily rented out.

Right now RPGT rates are high and market is quite stagnant. If you buy to flip it will not be worth it.

Best to buy to collect rent for at least 5 years before you sell.

Even with those conditions, the price now is already double
If sell it now, it would be 120% roi

yup i think this is the only choice...

Was mentioned by someone upstairs, its only enough to pay 80% of instalment from rental.
sometime even less if minus m.fees and repairing.

so my question is, is it worth to invest in this recently (2015/2016), lets said the rental only can tally with instalment in future 10-15yrs?

This post has been edited by applylose: Oct 9 2015, 04:13 PM

In my own view, it is worth it.

Developers giving discounts and even waiving the requirement to pay down-payment. Developers are literally trying to get rid of extra units on their hands.

Also, see how markets work. Everyone say there’s an over-supply and also you can see a lot of unsold units. Whether true or not, I won’t know but the impact can be seen. Developers are starting to clam up, postpone, delay or cancel their projects all together.

Like stockmarket, the reaction is generally very extreme. The sudden drop in supply will result in a “gap”, where demand will start to creep up again but there’s not enough units available in the market. It will continue to get worse especially for developers, however those buyers who have ready cash on hand it may be a shopping spree for you PROVIDED the banks are willing to give you loan.

So have a strategy in mind i.e. rental/flipping, your finances and contingencies, there are interesting times ahead.

Probally the below link is an example:
http://www.mudah.my/20x70sf+Santana+S2+Hei...se-41273753.htm


I think in Season 2015/2016, it is a wait and see. Imagine above weblink such beautiful house with beautiful price tag rent only RM1300.

This post has been edited by Seremban_2: Oct 9 2015, 05:16 PM

To me, there is money to be made whether economy is good or otherwise.

Your statement is too general to comment on but if you are able to find a good deal and you have extra cash lying around, then why not? But based on the assumption that the rental can only tally in 10-15 years time, I will definitely skip such a purchase and look elsewhere.

In a slow market where some are desperate to sell, you will be able to find a good deal. This will be the best time to buy.

As for me, I have totally skipped the higher end market and only focus my search on properties below 300k. Most of the time, shop apartments around 700sqf in good locations fits the bill. Such properties will be easily rented out as it caters to the "needs" market and not the "wants" market. Economy good or bad, people will still need a roof above their heads.

My 2 cents.

yeah that's my hesitation, whether in buying landed, apartment or condo; leasehold, freehold...
putting all the eggs in one basket or buying few more basket...

This post has been edited by applylose: Oct 9 2015, 07:40 PM

apartment always command higher rental vs landed.
LH or FH is not important so long it is in high demand area. KL city is the best where more ppl are coming.

jason is right, focus on need market.

follow the people and infra..cant go wrong..