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> Rental Income can Cover Loan Installment, to share any property in current market

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chrisw
post Oct 16 2018, 02:47 AM

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New project next to university

Instalment 1200-1300
Rental 1600-1700
gld998
post Oct 16 2018, 07:39 AM

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QUOTE(AskarPerang @ Oct 15 2018, 01:36 PM)
Yup just like ppl who only taking 50% or 70% loan only. Confirm can break even rental with loan installment.

Or spend 100k++ to do ID full furnish. Rental confirm can rent higher and able to cover the 90% loan installment.

Better calculation is not whether rental can cover loan installment. But by judging by simple rental yield calculation.
1 year total rent divide by initial cost (price of property + cost to furnish). Take note that this is just a simple calculation not taking into account maintenance fees, cukai, etc.

E.g. Mirage By The Lake lelong unit as an example.
Rental 2200. 1 year = 26,400
Cost = 420k + 20k = 440k
Yield = 6%. Still worse than ASB. But property can bank on capital appreciation also.
*
ASB limit only 200k. How much can u buy? Most of my bumi colleagues already max it out. Need to find alternative.

This post has been edited by gld998: Oct 16 2018, 07:51 AM
BEANCOUNTER
post Oct 16 2018, 11:22 AM

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QUOTE(gooberhock @ Oct 15 2018, 10:56 PM)
I can't comment. All mine at the moment covers all installment and fees. But if you ask me... if i would buy a property that only covers 85-90%. I would say no lo.
But then....  how would u know how much the rental covers until u actually buy it and put it out to rent?
*
one of my properties can cover kau kau...even infinity....bcos it was a cash buy...……..
BEANCOUNTER
post Oct 16 2018, 11:25 AM

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if you guys only look at can cover or not....you guys are not looking at the bigger picture,

you guys should look at the cost of fund and opportunity cost and gain analysis.

by this, most if not all properties sek sai.

but the saving grace is, one can still bet on capital appreciation.
gld998
post Oct 16 2018, 11:31 AM

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QUOTE(BEANCOUNTER @ Oct 16 2018, 11:22 AM)
one of my properties can cover kau kau...even infinity....bcos it was a cash buy...……..
*
rclxms.gif rclxms.gif rclxms.gif

This post has been edited by gld998: Oct 16 2018, 11:32 AM
BEANCOUNTER
post Oct 16 2018, 11:33 AM

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QUOTE(gld998 @ Oct 16 2018, 11:31 AM)
rclxms.gif  rclxms.gif  rclxms.gif
*
I hope each one of your 10 properties worth at least 2mil each, and not 200k. devil.gif
gld998
post Oct 16 2018, 02:21 PM

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QUOTE(BEANCOUNTER @ Oct 16 2018, 11:33 AM)
I hope each one of your 10 properties worth at least 2mil each, and not 200k. devil.gif
*
If yes then what? If no then what? whistling.gif
Hofmann33
post Oct 16 2018, 03:40 PM

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QUOTE(newsongfashion @ Oct 13 2018, 01:12 AM)
To share any property in current market that the rental income can cover the loan installment or at least can cover the interest (> 70% of monthly installment)
*
At 70% financing, plenty of decent opportunities for Short-Term Rental out there.
BEANCOUNTER
post Oct 16 2018, 04:22 PM

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QUOTE(gld998 @ Oct 16 2018, 02:21 PM)
If yes then what? If no then what?  whistling.gif
*
if yes, you super duper ultra rich loh.

if not, you are still rich, and you qualified to be THE 3% of population in Malaysia according to our inhouse economic consultant. You should be very proud of yourself.
leodinouknow
post Oct 16 2018, 05:02 PM

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QUOTE(gld998 @ Oct 16 2018, 03:21 PM)
If yes then what? If no then what?  whistling.gif
*
actually how old are you? your advise people buy low cost at first, rent out then fully paid it asap,after that use rental to buy other property... quite like very long run. and now u own more than 10pc property? teach me more sifu
gooberhock
post Oct 16 2018, 06:09 PM

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Property is a very long term game. Gone are the good old days of flipping. Even so... flipping only really lasted from the late 90s to the 2010s.... (maybe the situation may return, who knows.) I think we should not look at low or high cost properties. I share my own experience. A few years ago I had a shoplot that was fully paid off and rented out. My tenant was a veterinary clinic so I saw that as a long term tenant. After a couple of years of collecting rent... I realised I was paying income tax for the rental of the prop where I did not need to.
What I the decided to do was to 're finance the prop for 70% of its value where the instalment was about exactly the same as the monthly rental. Then I guess I was at the right place at the right time.i came across a person who was desperate to sell his semi d which was fully furnished. And I mean really fully furnished. All I bought for that house was a TV and a water filter. He was a trusting guy, and gave me the keys to the house when I have him the 2% deposit. And I rented it out 1 week after i signed the snp..... the utility bills were still under the previous owners name.
And the rental was double of what the instalment was. The surplus cash from that property helped me purchase another 2 condos. Of which today are also rented with a small surplus after deducting instalment and maintainece.
So.... what I am trying to say is.... how you manage your properties. Y settle with 1 when u can have 4.
Not trying to show off ya. Just showing how I personally did it. Not sure if it can be replicated in today's economy.

QUOTE(leodinouknow @ Oct 16 2018, 05:02 PM)
actually how old are you? your advise people buy low cost at first, rent out then fully paid it asap,after that use rental to buy other property... quite like very long run. and now u own more than 10pc property? teach me more sifu
*
gld998
post Oct 16 2018, 06:36 PM

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QUOTE(leodinouknow @ Oct 16 2018, 05:02 PM)
actually how old are you? your advise people buy low cost at first, rent out then fully paid it asap,after that use rental to buy other property... quite like very long run. and now u own more than 10pc property? teach me more sifu
*
40 plus. Aiya..its very simple. u already in sg, earn sgd, just find a good job at sg.Pls get your SG PR.Target Monthly RM30k. Yearly buy 1 hse. If ur wife in sg, ask her to invest in sg stocks and buy hdb. Ask her get citizen. Rent out hdb after 5yrs MOP, easy RM10k.if both of u pr,cannot rent out, plus u can only buy resale. SG citizen can buy in new zealand and australia as well, without restriction.

You will know what to do once you reach a certain stage in your life.

This post has been edited by gld998: Oct 16 2018, 06:49 PM
gld998
post Oct 16 2018, 06:51 PM

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QUOTE(BEANCOUNTER @ Oct 16 2018, 04:22 PM)
if yes, you super duper ultra rich loh.

if not, you are still rich, and you qualified to be THE 3% of population in Malaysia according to our inhouse economic consultant. You should be very proud of yourself.
*
I wish i am ultra rich, but i am not. sweat.gif

This post has been edited by gld998: Oct 16 2018, 06:52 PM
BEANCOUNTER
post Oct 16 2018, 06:59 PM

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QUOTE(gld998 @ Oct 16 2018, 06:51 PM)
I wish i am ultra rich, but i am not.  sweat.gif
*
Its ok.

You are still the rare 3% of malai population.

But try not to compare w singappreans ok....

You vould just be middle income nia.....haha
zfc
post Oct 16 2018, 08:27 PM

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If most of the cases, rental can't cover installment, I don't understand why nowadays ppl buying property like buying vegetable? In addition, we need to pay income tax for the rental income. Is this still called "investment" or burning money games?

When we buying new phone or new car, do we want to let other people use it first? The answer is no. But why when we spend hundreds K buying property, we are ok to rent it to strangers and let them enjoy our new house?
David_77
post Oct 16 2018, 08:38 PM

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QUOTE(zfc @ Oct 16 2018, 08:27 PM)
If most of the cases, rental can't cover installment, I don't understand why nowadays ppl buying property like buying vegetable? In addition, we need to pay income tax for the rental income. Is this still called "investment" or burning money games?

When we buying new phone or new car, do we want to let other people use it first? The answer is no. But why when we spend hundreds K buying property, we are ok to rent it to strangers and let them enjoy our new house?
*
because when we buy property, there are few elements which do not exist in buying car and phone.

1. rental paid by tenants covers 100% of the interest and partial (very little in the beginning but increases slowly as loan decrease)
2. potential capital appreciation, based on the market value (but then, if buy dead chicken, this one kills very fast too)

just on 2 cents point of view
raw7118
post Oct 16 2018, 08:43 PM

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QUOTE(gld998 @ Oct 16 2018, 06:36 PM)
40 plus. Aiya..its very simple. u already in sg, earn sgd, just find a good job at sg.Pls get your  SG PR.Target Monthly RM30k. Yearly buy 1 hse. If ur wife in sg, ask her to invest in sg stocks and buy hdb. Ask her get citizen. Rent out hdb after 5yrs MOP, easy RM10k.if both of u pr,cannot rent out, plus u can only buy resale. SG citizen can buy in new zealand and australia as well, without restriction.

You will know what to do once you reach a certain stage in your life.
*
Why get SG PR?
Any benefits?
I dont see CPF as a benefit i would rather invest those money in Malaysia props...
Kindly Enlighten
gld998
post Oct 16 2018, 09:03 PM

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QUOTE(raw7118 @ Oct 16 2018, 08:43 PM)
Why get SG PR?
Any benefits?
I dont see CPF as a benefit i would rather invest those money in Malaysia props...
Kindly Enlighten
*
When u sg pr, u get extra 16% cpf on top of your 20% contribution. You lose 16% employer contribution every month.

If your wife is citizen, u can buy new sg garment subsidized hdb. Do you know that u can use cpf monthly pay your own hdb rite unlike msia epf.
Subsided hse, subsided payment for hdb.

SG PR for Job security as well. Your EP must renewal every year. SG garment can reject if they hit their quota.
Yes there is quota for EP and work permit.

Do you know your ex employer can sabo you rite? They just report to MOM u cannot enter sg anymore.
One of my ex tenant kena.End up relative come to collect her stuff because ex employer complain her to MOM, and was barred entry to sg, was force to take a flight home country.

Do you know on EP you have only 2 weeks to find a new job once you tio fired by your ex company and then go on visitor pass?
Once on visitor pass, you will have to go thru the entire process again. PR dont have this problem.

I have australia PR as well. But decided not to go, too far for my old ppl in Penang.
Do you know that sg pr will help your pr or visa application to other countries. It does help!


Plus many others. Lazy to list but u get the idea

This post has been edited by gld998: Oct 16 2018, 10:18 PM
gld998
post Oct 16 2018, 10:02 PM

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QUOTE(BEANCOUNTER @ Oct 16 2018, 06:59 PM)
Its ok.

You are still the rare 3% of malai population.

But try not to compare w singappreans ok....

You vould just be middle income nia.....haha
*
Yes, i am middle income only. nod.gif nod.gif nod.gif
aspartame
post Oct 16 2018, 10:19 PM

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QUOTE(gooberhock @ Oct 16 2018, 06:09 PM)
Property is a very long term game. Gone are the good old days of flipping. Even so...  flipping only really lasted from the late 90s to the 2010s.... (maybe the situation may return,  who knows.) I think we should not look at low or high cost properties. I share my own experience. A few years ago I had a shoplot that was fully paid off and rented out. My tenant was a  veterinary clinic so I saw that as a long term tenant. After a couple of years of collecting rent... I realised I was paying income tax for the rental of the prop where I did not need to.
What I the  decided to do was to 're finance the prop for 70% of its value where the instalment was about exactly the same as the monthly rental. Then I guess I was at the right place at the right time.i came across a person who was desperate to sell his semi d which was fully furnished. And I mean really fully furnished. All I bought for that house was a TV and a water filter. He was a trusting guy, and gave me the keys to the house when I have him the 2% deposit. And I rented it out 1 week after i signed the snp..... the utility bills were still under the previous owners  name.
And the rental was double of what the instalment was. The surplus cash from that property helped me purchase another 2 condos. Of which today are also rented with a small surplus after deducting instalment and maintainece.
So.... what I am trying to say is.... how you manage your properties. Y settle with 1 when u can have 4.
Not trying to show off ya. Just showing how I personally did it. Not sure if it can be replicated in today's economy.
*
Actually, when u refinance and get back cash, the interest of the refinanced loan is not deductible against rental income. It's different from if you already use loan when u first purchase it.

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