Lol. U burn ur hand is it ?

By the way, when we all mentioned about 3-4% of rental yield,
It would be more accurate if we r to refer to latest market value of the property,
Not the purchase price.

For example,

10years ago I brought Apartment in Bkt Jalil for RM150k.
Rental rate during 2006 is RM800/month
Therefore, I enjoyed a rental yield of 7.2% as at Year 2006

Today this apartment is valued at RM400k,
Rental rate is RM1,200/month
The rental yield has been dropped to 3.6% as at today.

From both the above rental yield and return,
We can actually draw some conclusion as below

1) The rental rate has not been increase much (800-1200) for the pass ten years taking into consideration of inflation and time value for money.

2) The capital appreciation for Bkt Jalil apartment is increasing with the pace which is faster than rental yield.
It shown the oversupply situation is getting nearer with lesser demand for rent.

3) The increased in capital appreciation may also indicate increase in demand but more for occupier because the increase in rental yield pace is slow.

But if you plot a graph to compare both variable, you will realise that the oversupply situation is getting nearer due to the capital appreciation is starting to getting slow and constant (also due to 10years apartment).

In overall, I would still keep this property even the capital appreciation and rental yield is getting lower, increase in much slower pace for the following reason:-

1) The upcoming malls will at least keep the "minimum rental rate" been constant for rent to mall workers.
2) The increase in surrounding new property density will keep the capital value of my property when come to a stage of full and or saturated supply situation.
3) Of course, low entry cost (10years ago) and low maintenance fees which relief the pressure for holding....

And overall malaysian income not increase alot or too slow.

Over last 10yrs China infrastruture and property develop rapidly but their fundamental elements also develop very well.

Fundamental of a country come from education, and science and technology. But look at Malaysia... hopeless

Until now, Malaysia still talking about unity among races.... u Cina, I Malay..dia India....
is really sad...

Thanks for writing in full here

Looks like arena green. Agree on positive points what has been well described but some issues must be addressed in tis Aprt.

Bingo, but sadly, I didn't sell and buy and flip....

Otherwise, now would have more cash in hand, or otherwise, higher committed loan to serve...

with today so-called normal expectation of 3-4% rental yield in most of the projects, why don't considered to park your cash money in the FD instead? stably 4% annually...
and no need to deal with the hassle of the renting issue and the tenant problem, when oversupply, each people will undercut each other and war price start to come in, easily can observe from the pricing trend of twin arks...

Yes. You are right if we only looking at rental yield and directly converted into Investment yield (fix deposit),

Also, 3-4% rental yield return is accurate if you buying the entire property by CASH MONEY (free to serve bank borrowing interest) and also assuming zero expenses such like maintenance cost.

But anyhow, I believe those invested in property also looking at Capital application despite rental yield return.

Malaysia house price index is 6~7% increased average for the past 10years records. This may sufficiently offset the borrowing interest serve as this is calculated by compounded basis....

Based on the developer profile, famous malton track record, this project is still a reasonable good buy for investment but is a big NO for ownstay, especially for small unit.

Depending on our individual financial capability and flexibility,

Investing in.property is also the wise choice and more stable (not very high return) in compare to stock market, currency...

Investing property and putting in FD difference.

For example RM 500,000 property, you only need to invest 10% -30% , around RM 50,000 to RM 150,000 then you can get 3-4% rental return.

If FD you need RM 500,000 cash then only to get the 3% - 4% interest rate return.

u r mistake....if u have a loan with bank...u need to repay interest to bank...all ur rental u get need to pay back to bank....unless...u buy with cash

cash also has its opportunity cost and benefit de.....

when calculating rental yields, shouldn't be looking bulat bulat at loan repayment and its interest cost only......

for cf maybe its correct...but to calculate rental yields its wrong.

Ya. Because of inflation which is out of Malaysia gov control. Corrupted racist Malaysia gov only can affect the malaysian income increase slowly but appreciation of property due to inflation and ringgit malaysia depreciation definitely caused the property prices seems higher and higher in malaysia.

Lost decade of Malaysia already started.

Last year, Many big boss, datukdatin, company director, GM bought the Park Sky for their children and look for own stay after retired. With its good residential background Should be not bad for own stay. your children can grow up together with those datuk datin children. Lol. it will be an intergrated development comprising of hotel, office, resi, shopping mall, banking and many just like mid valley concept.

I feel this pavillion mall very hard to fail with its surrounding few ten thousands high rise development. Imagine 1 people spend 1 dollar in Pavillion 2 ... you can know why many taikors mentioned commercial very doable in bk jalil and shoplots sapu very fast bbb. Lol

But for investment of resi, haha..... make sure you hold more than 10years. Dont trust any agents saying this project good that project bad... this one high density that low density bla bla bla... no matter skyluxe , linkz, all in bk jalil will get the same effects facing oversupply, and too many rumawip prima, traffic sure very jam like mid valley . If you dont mind jam in traffic after works then buy bk jalil for own stay.

This post has been edited by ryan@chua: Sep 24 2016, 04:07 PM

When I was in primary school,
Primary school teacher afford to buy Honda Accord to work.
Now, primary school teacher can only afford local car and probably Korean car...
In fact, is not because car price is increase (yes, increase in value but due to inflation).
It's because our malaysia ringgit dropping and directly affected our wages.
Honda Accord price increase in line with Global inflationary standard.
Our salary rate is increase in a very slower pace and worst still RM depreciated.

never see such a "funny" comment
u make my day bro ... LOL


some 1 thought he borrow money from bank doesn't need to pay the interest .....

I know what u tried to illustrate but if yield is 3-4%...this us below bank interest rate...meaning u make nothing out of remtal....plus u need to foot up reno maintenance insurance and perhaps mot and etc....

And hope that capital appreciation will cover your cost later...

Dont hope for investment lar in bk jalil if you not enter market here before 2013. All the property selling prices here hardly give you net profits.

Any agents tell you can gain net profits within 5yrs, go fck them gao gao. Ask them show you in mathematic, statistic proof.

Buy mont kiara will be better if you really look for investment.