How much can you really made from Investing a property?
I noticed some property that was purchased for RM 350K , a loan tenure of 30 years , RM 1800 per month to pay the banker + monthly maintenance does not justified the earning made from the monthly rental collected from the tenant which can be a minimum of RM 1200.

Eg. Loan payment = RM 1800 per month
maintenance Fee = Rm 150
Misc = RM 500 ( renovation cost, tax, repair,insurance etc)
Total = RM 2450 per month

rental fee (furnish): RM 1600

RM 2450 - RM 1600 = RM 850

Balance to top up some more is RM 850 .

This post has been edited by hackwire: May 4 2007, 04:14 PM

nobody ask u to rent out at rm1600, unless dat is da area market...then no choice lo, wait for miracle to make ur area boom, then u can rent out for rm5k per month

Looks like the problem you listed is actually the rental belongs to your bank for 30 years. Theoretically speaking, why would you buy a property with the intention of renting if your research tells you you'll incur a negative cash flow? Normally, negative cash flow are cases that you are looking to flip the property.

As adrianocy said, rent it for 2450 if possible. If not, sell it. I am not sure if there's a way to refinance the loan to longer duration, like say 50 years.

Well, the rental rate was pretty much control by the market . New property were normally like that and it takes time . Im not talking about those property that is making money after so many years.

Is there any property that worth looking into that will have a good rental income ?

Yes, a project next to YTL in puchong by Am-El holdings, their recent development was Merc Residence off jln klang lama.

Launch price is expected to be @ 400k, 3 story. Compared to their neighbor YTL, which is selling at 500k minimum. Design is far more modern then YTL's and a specially manufactured brick is used to build the house, its 1" thicker then a normal brick, and its stronger and its hollow, therefore reducing heat absorption, just to mention a few advantages of the property.


If your interested pm me so i can keep you updated on it(launch date; info) phase 1 is limited to friends and family @ a cheaper price. So it will not be launched to public unless u know someone from the developer side.

And no, i do not represent Am-El holdings or its subsidiaries, but I know their business development director and am currently working for a good price for its units.

u must know where going to boom
and ur -cashflow is not a good buy
sell the house unless a promising hold is that it will boom in a few yrs time

What about a guaranteed boom within 12 mths of project launch? =)

ps. Unless stock market crash and ecnomy get wiped la


EDIT:info doesnt sound really right =/

This post has been edited by bryanyeo87: May 4 2007, 08:06 PM

Well, all these new properties were really gearing for new materials and sophisticated design but i have a feeling that they don't have the Contingency plan or Future Plan to maintain this Succesful project.

I had personally seen some condos are running out of Cash Flow because a lot of owners can't afford to pay the maintenance fees. imagine those who are still paying and those who can't anymore.

usually the maintenance fee is around how much?

Calculated by the size of ur unit.
Normally like 10 cents per sq ft etc.
Different management, area, facility, different rates.

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Added on May 5, 2007, 1:17 amSome condos management are smart.
B4 they hand u the keys, they request you to pay 24 months maintenance in advance.
That, to some extent, ensures that the condo would be well maintained for the 1st 2 years.

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Added on May 5, 2007, 1:21 amThe correct way to calculate is whether the rental is enough to cover the monthly bank interest incurred (not the monthly instalment).

If the answer's "no", this is a bad investment, the property should be sold (assuming no expected boom within the area) to cut lost.

This post has been edited by scorgio: May 5 2007, 01:21 AM

Usually people chase the market that is popular or hot .... very seldom buy from unknown or far off places, unless got insider information.

Or easiest, just follow the big developers... wherever they build (especially not hot areas), buy buy. Can see examples from YTL, SHC, Sunrise, etc..

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Added on May 7, 2007, 11:18 pmOh, and also now, the govt removed the capital gain tax, lagi better for the market. Lots of buy sell, especially the corporate properties

This post has been edited by murphyslaw: May 7 2007, 11:18 PM

tht's obviously a very bad investment in realestate....

property gain are derived from 2 income. 1 rental 2 capital appreciation. If only count the rental, most of the property in msia are not worth for investment.

Property investment is good but sometimes it is difficult to get GOOD people to rent the property.

Yup, I agree. A friend of mine who rent out to an expatriate, lost all his furniture in his furnished condo. Sad case.

make sure u get all important document from the tenant so tht he /she won't act naughty, best way still, deposit plus passport/ic copy

This is not a simple case of runaway tenant.
This is actually an organized crime.

that's why it's best to find out where your tenant is working. If he's unemployed or working as a low profession jobs, then you have to be careful.
That's why even if you can rent out low cost apartments, you have to be aware these people are highly likely the type that's not going to pay rent on time or not pay at all and keep on delaying it.

hi,

there're positive cashflow/profit rental properties around.. the only catch is, there's alot of research/homework that you need to do to find them..

that was why someone made a quote saying "profit is made when you buy.. not when you sell".
it simply means.. you don't commit to a business purchase when your due diligence telling you that you're making a monthly loss..

that monthly loss is real.. capital gain can sometime be a false rainbow trail.. (that's how some flippers ended up in a mess.. look at the USA)

it's actually a compulsory these days.. if you know how to protect yourself as a landlord.. even for deposit, there're a few types..