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..

Hi, will you consider to sell your shop apartment next time? do you think shop apartment got appreciation?

Yes, why not. For the right price, I would definitely consider selling it.

I know for a fact that shop apartments appreciate in value as well. How fast will depend on location.

I bought a unit at 100k in 2012 and the last transacted average price now is about 170k. In one case, a borrower even managed to get it valued for 200k.

i have been to many countries and never see shop apartment can appreciate higher than normal resident units. but nevertheless shop apartment is an easy rental investment as it is easy to rent out due to near to the amenities/shops etc. but many dont like due to the poor hygiene /cleanliness and noise

i would rather invest in medium cost apartment if it is a matured area with lot of amenities.
this apartment also easy to rent out since the rental is not high. the future appreciation also good. the rental can easily cover major part of the installment

Hi Sir, what about shop/retail office (shop upstairs) or pure office investment? how is your opinion? is it good appreciation?

Hi All Sifus,

let's said we buy an unit cost 350k apartment and rent it out as 1000-1100, maintenance fees around 150,
30yrs LOAN with 90%, is this a good investment?

shop/office is ok. they are always a demand in this type of prop but expected lower rental compare to newer office with lift
but residence will be less demand after the unit become old and aged.

Hai,all sifu,
Saya dari johor bahru,baru masuk forum ini.harap dapat
Tunjuk ajar daripada all situ.sori sbb x pandai sangat
Tulis bahasa english

my rule of thumb for 30 years loan:
- 350k, divide by 2, become 175k
- change the "k" into zero, 1750
- your monthly commitment to the bank is about rm1750

considering maintenance fee and rental quantum, its not worth

apa mau tau?

Saya ingin membeli sebuah rumah medium low cost untuk disewa,
Apa yang sy perlu buat?tq

I am not concerned with the poor hygiene/cleanliness issue as I am buying it not for own stay but for renting it out. Based on what I see, these type of properties provides the highest ROI due to low maintenance charges etc.

due to cleanliness, i think shop apartment forever difficult to attract good income tenants (end up only foreign labours would stay) and difficult to resell to good buyers. the rental roi maybe good at the beginning but definitely fetch lower appreciation rate.

maintenance fee for mid cost apartment is also not high, mostly do not have facilities eg pool, gym, landscaping etc.

I agreed with on this, getting in is easy, getting out is not so easy as many local buyers will hesitate buying it if it more and more foreign tenants around which is a norm now since the low rent attracted them.

1. Find the right house for sale

2. Make sure you are eligible for a loan of said amount

3. Get in touch with the seller/agent

4. Make sure the property, if old, has a strata or individual title (important for loan application process)

5. Pay the booking fees usually 2% of the house price, apply for a loan

6. If the loan is approved, sign the letter offer and SPA - pay the remaining 10% deposit (after deducting the booking fees)

Is there a good rule of thumb to choose between good rental vs good appreciation?

You can do this with gold too. Prices are climbing now. it's called hedging, a form of diversification.

Terima kasih banyak2 panduan anda,tqvm bro☺☺☺

Nak tnya skit,ade siape sifu yg tnggal j
Kat johor ye?

Oh ye,lupe tnya forum ni ade de x rekamen rmah2 kat johor?

u duk jb mana? range arga?

Sori,lmbat blas.sy duk johor jaya,awk org jb ke?

Hi Jason

Is buying shop apartment need to pay 6% GST since it is under commercial land right?

Thanks

Hello guys, sorry if i'm tumpang-ing in the tered

I wanna ask for some advice from dearest sifoos here, was wondering as a first time buyer, i'm really anxious and scared if anything goes wrong. I paid a booking fee for a 538k condo in BJ. base price is 640k. I was wondering if it's worth the buy for a first time buyer? Not sure to either stay at the place, sell upon completion, rent or make it a homestay.

Our household income monthly is roughly 6k. I just started working on contract for 4-5 months, and planning on to stay permanent. Let's say if i were to get increments in 2 years time before the property is completed, will it be a good idea to invest in this property? Thanks

Yup, 6% GST is required. But depends, there's lot of promotion, some of the developer absorb it.

The general answer to that is definitely worth. But (there is always a but) is the location good? is the developer OK? Is the price around that area similar to your condo price?

As for affordability, it solely depends on your lifestyle, assuming you have no other loans, your mortgage will be around RM2500 to RM3000 which is about 50% of your household income, should be no issue.
I do advise to plan your housing loan based on your current salary and lifestyle and not based on future increment

As for the usage, as this is your first house, then usually the purpose may not be as important, every family should have its own house. But if this is your 2nd or third then the purpose becomes important.

Hey thanks for the reply, yeah quite good i suppose, quite noob in these but i can 'see' and 'feel' that the area will be developed to be an elite residential area. it's Bukit Jelutong, you agree on this? It's quite a prime location as it's connected to 4 diff major highways. Developer is well-known for other projects.

Well-noted on tips given. Thanks a lot!

For GST, it is based on usage of property. Even though it is a serviced apartment built on commercial title, as long as it is meant for and used as a residence, it is exempt from GST. Easy way to check will be to have a look at the principal SPA. If it is under Schedule H of the Housing Development Act, it is meant for residential and if used as such, there should be no GST charged by the vendor on the purchase price, regardless of whether the vendor is registered for GST or not.

see page 12 on usage of land. http://gst.customs.gov.my/en/rg/SiteAssets...5%20%281%29.pdf

How about investment in Hotel Suites?
Anyone mind to elaborate how this works?
Some agent is stating Guaranteed Rental Return for 9yrs.

But what happened after the 9ths yrs?
Does this Suites easy to be sell out in later years?

While typing the question, I feel like not a good investment....

Certain banks are a lot more conservative.They would prefer less than 30 percent of your income going to pay for your monthly investment. My first apartment was just about 35 percent of my income.