I’m a noob in property knowledge and would like to buy a property of my own for the only purpose to RENT OUT.

What are the factors should I look out to?
Unit nearby to college or LRT/MRT? Which is better?

If it’s a new project, how can I determine what’s the rental rate?

Am I eligible for first home buyer purchase if my parents already bought another house and listed my name inside?

My budget is 1M. What’s the best available property should I keep an eye on?

This post has been edited by Zenph: Jun 20 2021, 11:02 PM

With the over supply of residential, rental income is not attractive. More likely you be having negative cashflow .... paying tenant to rent. Property management is too much a hassle. Turnover tenant is high due to plenty of choice in the market.

Terrace industrial is a better option ...those 1 or 1.5 sty. Less hassle to manage and better demand.

To name a few, TOD projects, future developments, job opportunities, infrastructures, location population (isit moving population type? Organic population type? Or move in population type?) and entry price.
You may do some research on the current existing units and their rentals before buying in that area.
Try to look for something affordable among Malaysians, the range of 300k to 500k, so that you will not have too much trouble exiting later. Typically investment properties, size should be around 700sqft to 1100 sqft, 2-3 bedrooms. So that it targets a wider group audiences.

Once you find a few properties that meet the above criteria, do a reverse calculation. Does the rental make sense? Can it cover at least 70% of your monthly loan installment? Or cover the interest payment? The higher ROI the better, 3.5-4% and above.

And no, if already got one property listed under you, you are not entitled for first home buyer MOT stamping fee.

This post has been edited by Michaelbyz23: Jun 21 2021, 01:11 PM

nearby college/uni if your target tenant is students, for overall tenant, access to any lrt/mrt/shops are quite basic requirement
as for rental rate, check the rental range around your selected area to determine rental charge
you are not eligible for hoc since your name alrd tied with a property and check out property for sale since your budget is quite high and definitely you will get something that fits

Hi, if you are looking for a property for investment (purpose to rent out), I am planning to sell mine (direct owner here). Have a ready tenant (family) and will give you a net positive cash flow every month. Tenant will be renting long term, at least 2-5 years or even longer if you wish to continue collecting rental.

Property details;
Selling Price: RM700,000
Size: 888 sqf (3 bedrooms, 2 bathrooms, 1 utility room)
Location: Petaling Jaya (walking distance to Tesco, 1.5km to LRT Ara Damansara, 2km to hospital & polis, 5.5km to bomba, near shop amenities)
Type: Service Residences
Floor: High
Tenure: Freehold
Car park: 2 (right next to the lift)
Age of property: Completed and key handover at end-2018
Facilities: Open Lawn with Amphitheater, Aqua gym, Swimming pool (kids & adult), Jacuzzi, Aqua Gym, Floating cabanas, Barbeque pavilion, Jogging track, Gymnasium, Children playground, MyNews at Ground Floor

Assuming your downpayment is 10% (RM70,000), loan value would be RM630,000. With interest rate of 3.2% and loan tenure of 35 years, your monthly financing installment would be about RM2,495.42.

A quick check from iproperty, current rental range is about RM1,600 to RM2,400. Assuming you manage to rent the unit at the highest price of RM2,400 through a property agent and after deducting 1 month of property agent fees (commission) per year, your monthly rental received would only be RM2,200 (RM2,400 x 11/12).

Also, under the Strata Management Act 2013 (SMA), homeowners are liable for the maintenance fees and sinking fund. For the unit above, the current maintenance fees and sinking fund is about RM341.88.

Hence, rental collection (RM2,200) minus monthly loan commitment (RM2,495.42) minus maintenance fees and sinking fund (RM341.88) equals to negative monthly cash flow of -RM637.30.

However, for the unit that I am letting go, you do not have to pay any property agent fees (commission) as you are dealing direct with the owner. The tenant is also willing to bear the monthly maintenance fees and sinking fund as well as the utilities bill (electricity, water, internet).

The monthly rental that you will be receiving is at RM2,650, translating to a rental yield of 4.54% (which is higher than the estimated rental yield indicated from iproperty at 3.5%). The amount is also higher than the estimated monthly financing amount, which will provide you a net positive cash flow of about RM154.58 per month (after deducting your monthly loan installment of RM2,495.42). This amount could even increase to RM225.44, if you manage to secure lower interest rate, at about 3.0%.

I’m not in a hurry to sell now, let me know if you are interested for more details after you have done your surveys. Other investors reading this post are also welcome.

This post has been edited by Dreamer09: Jun 22 2021, 08:22 AM

Name of Service Apt?

Quite curious, mind sharing about the name of the project?

PM. The rental is for the unit size advertised on iproperty website.

This post has been edited by Dreamer09: Jun 22 2021, 09:44 AM

PM

I'm posting to see if anyone are open to get an investment property in location that is easily rented out and accessible?

We work with investor who wants to get a property within their borrowing limit but just can't find the right one because there are too many choices in the market

And also who wants to easily rent out the property and make positive cash flow but afraid that the agent is over promising them.

Also who wants to never use their own money to cover the instalments but scared that the rental will not be enough to cover it.

Our projects are located at famous area with lots of business and commercial activities / famous tourist attraction destination which means there is a ready and existing potential group of audiences that investor can target on so that potential tenants will not be an issues and investors are having the flexibility to decide if they want to go with short or long terms rentals.

Also, we offer management-free services with property management company which means the company will help to manage all the rental issues such as cleaning, listing, check in and out process, communication and etc so that investor will no need to headache with all these annoying issues.

I'm not hard selling, just sharing the opportunity and not sure if these suit to any of you. Let me know if you are interested for more information.

Very obvious this is H2O Residence.

Anyway, agent fees is bear by the seller. Not the buyer.
And it doesn’t make sense why your tenant is renting at RM2650 for 5 years but in the market max rental is RM2400 (as stated by your post).

Im talking about the property agent fees when the buyer hires a property agent to rent out his/her unit. He/she would have to give up part of the rental as the commission to the agent. By dealing through the owner itself, the buyer would not have to cut out a slice from the rental for property agent fees and also save the hassle to find a tenant.

For example, if the buyer hires a property agent and rents out his/her unit for RM2,400 per month. Assuming 1 month rental fees as commission for the property agent, the net total rental collection for a month would be RM2,400 x 11 /12 = RM2,200. In essence, the buyer are paying RM200 as a monthly commission to the property agent (although the transactions are made from the party whom rent) and he/she will only receive a net yearly rental of RM26,400.

If we eliminate the middle man (property agent), the investor would receive a higher rental of RM2,650 and do not have to cut part of it as commission. He/she would be able to obtain RM2,650 x 12 = RM31,800 in net yearly rental.


The reason of the higher rental rate is because I will be renting it back from the buyer/investor at the price I'm willing to pay (which is higher than the market rate) over the long run and we are targeting to rent between 5-10 years with renewal option every year in case the owner wants to get it back for their own stay or sells it during that period of time. The rental rate is higher to save the hassle of moving out and finding another place.

I will be renting it back for my parents to stay. I won't mind paying a couple of hundred more each month for this issue. We are renting it back over the long run as my parents are comfortable with the current environment as well as the surroundings.

Not rushing to sell it anytime unless there is a serious investor that is willing to take up the offer price.

This post has been edited by Dreamer09: Oct 16 2021, 09:35 AM

respect. once glance straight know about it. you are really a veteran in property

Actually any newbie also will know.

The descriptions are all in there.

Just google 888sqf ara damansara and everything from the search engine on the first page will only point to that particular project.