Hi, I recently have some tea time with "property guru" for rental properties.

I had been told that Landed properties is difficult to rent out and the rent is low . Compare to condo and high rise, easier to rent out and the rent is high. He also added if sell , landed will untung more compare to high rise. pros and con. (property in Klang Valley)

to all landlord and forumer, i just curious about how true is it?
if yes , people nowadays dun wanna rent landed? dun wanna live in landed house?

Truly understand if ppl rent condo because near to MRT station, near the city, university area etc etc.

i heard paper folded house roi better

i rent condo cause got kakak help me swap the floor, throw rubbish, maintenance the greenary, clean the facility
got security jaga my car, jaga the visitor, jaga my parcel
got free facility to use
no need see neighbour face.....

but if i wana own a property, i will buy landed and all the above i willing to do it myself cause, its mine.....

This post has been edited by shaoching: May 25 2023, 02:32 PM

This is true, you do get higher ROI from high rise. But for wealth preservation or as a hedge against inflation, landed is better.

Younger people singles or young couples prefer high rise because of facilities and security.

Generally true. high rise easier to rent out and ROI is better. Unless you buy landed near Uni or college and partition the place into many rooms, then the ROI is better. I have seen some houses which do that, my goodness, feels like hostel

New condo, few years down the road, become old condo. Facilities all become outdated.
If lucky got good management, will have enough sinking fund to maintain and refurbish.

This same applied to landed too..after few tenants if no refurbish, the whole house will become cacat.

Landed refurbish is own effort. Condo refurbish need to depend on condo management. And we all know if want to depend on other people, is menang susah one.

True, to rent out highrise resi is easier, higher rental because higher catchment demand. Easy access to public transport and comes with facilities living within. Highrise resi is in or nearer to commercial/ work/study/play zone. 14th floor also made easy

Sell landed better appreciation value due to limited supply (good location)

Either way, its location that matters

This post has been edited by jojolicia: May 25 2023, 03:21 PM

Only kids will choose

your statement reflected 90% of buyer are kids.....

I see,....but that is outside right? Maintenance paid by land lord? sorry as Im a noob here.

jaga parcel i heard got lot of cases kena curi...even grab food kena taken away by other ppl downstair.


Dear all ...sorry...im not arguing anything as I just share whatever i heard... im noob. Im not supporting landed or condo here..just wanna gain more insight and knowledge

I see.... just wonder why younger ppl dun wanna stay in landed? landed also got shops nearby ... this is why i wonder =)

but condo lot of units right... supply and demand and condo definitely more supply..no?
last time i got think wanna buy condo for investment and then...takut...didnt buy

Most landed in good locations are old. Imagine you are in your 20s are you are renting an old PJ house with the old toilets and kitchen.

Of course you can find renovated landed properties but they will be expensive.

So in the end, most people go for new new high rises in good locations as these are usually modern looking with new this new that and all the facilities that come with it.

How about renting out landed at Subang Jaya?

For rental, landed difficult to rent out if you're entering the market right now, unless you're lucky and inherit a landed house in central areas.

Land with residential status within central business districts (CBD) are in very short supply and finding a new house to buy is difficult. Subsales will be very expensive and/or are so old that extensive renovation is needed to make it comfortable within modern standards. Landed new will be even more expensive than subsales because value of land area has ballooned so much that developers will up the price gao².

The high entry cost means you'll need to demand higher rent to cover rental instalments (or if you no ethics, you partition the house to dangerous and potentially illegal levels of small rooms and sublet the rooms), which makes it expensive and/or unattractive to potential tenants.

Landed that is affordable are usually extremely far or difficult to travel to CBDs (not easily accessible to public transport), and this makes it unattractive to younger/lower income people who are the bulk of renters, as they'd prefer convenience to work and amenities over the time needed to travel.

Most entry level jobs also demand higher working hours/commitment to work, so they have less time to afford the work commute.

High rise, which are usually built nearer to CBD and/or public transport, are cheaper to invest in because of plentiful supply. You can lower your rental price, which in turn attracts a broader market of tenants, making it easier to earn via renting.

Younger people typically don't have much savings or income, so they'll prefer cheaper rent and/or shorter distance to conveniences to reduce travel costs/time costs. This makes landed an unattractive option because of the distance from CBDs and/or asking prices.

Landed sales/rent usually will only attract retirees or matured workers who have the finances available to buy/rent, and don't mind or prefer the distance from CBDs.

This post has been edited by DragonReine: May 25 2023, 07:58 PM

SJ rental demand very stronk. Been renting out each at SS17, goodyear court 10 since early yr2000

Depending on location and asset class.

Can't remember from which year, pure condominium big land size /w facilities on ground dev (residential title) became very rare, then came the wave of podium facilities deck tower condo/ service apartments (both residential/ commercial title).

KV/Sel service apartments development landscape underwent 2 major policy transitions. If you are a free market investor, you know when you need to stop investing.

I stopped investing in highrise after the intro of 1st policy transition except for one (in 2016) which i found with exclusions granted (obligation fulfiled)

1st policy transition, I think around early 2010s. JP introduced fix price apartment block (rwip/rsku/prima whatever they named it) to be built within same plot of land with free market blocks and launch under a DO by the developer.

2nd transition in 2017 onwards, with the integrated living concept where said units are integrated with the free market dwellings within the storey/blocks with shared facilities but different set of jmb under a DO

So to say, if you are not buying for 1st home own stay (free market units) after yr 2012 onwards, i am in view that you may have made the right decision then (specially service apartments).

This post has been edited by jojolicia: May 26 2023, 08:17 AM

Most landed now is far away from city centre unless you are very rich.

Highrise don't hold value la. The value of landed is in its namesake, land. All properties just deteriorate overtime in condition and value but its the land that is getting more prime each passing day.

Highrise mana ada land.

But, higher ROI is at the expense at long term gains.
Its like the question, do you play stocks for dividends, or for capital appreciations?

landed is more easier to rent out.

the reason why the rental yield is lower is because the capital (house price) is higher. also most of the landed is bare or partly furnished. Unlikely highrise, are mostly partly or fully furnished.

The repair or renovate after each rental for landed can be substantial , I once spent 20k just to restore to previous state for next rental

u rented to foreginers/ workers ?

my landed rented house, normally tenant stay for few years, and every time change tenant, just need to repair (interior). cost like 2K-3K. other is just minor repair.

Landed is a CA game.
Highrise is a CF game.

If you gain both CA and CF, jackpot.

People said landed is good for appreciation, yeah I am agree with it. But rain volume, flood, is the game changer, yeah but this is depand on location (high or low). I stay at klang area, don't compare to kl pj or Subang. But most klang area before never been flooded area, feature will be unknown.

For landed house appreciation talk, it's increase value based on inflation. If you sell your inflated value landed 2 sty house at Bandar utama, you earn 500k from appreciation, but with your current selling price, you can't efford the same area if let said new project 2 storey at Bandar utama. So either the people stay at Bandar utama will never sell the house, then it's appreciated, but not money go to your pocket. If you refinance get the cash, then you are loan with market value, almost same with buy your own house at market value also. My two cent for people very proud to landed house appreciation talk.

This post has been edited by Aldo-Kirosu: May 26 2023, 11:42 PM

Landed property appreciation bulk purchase compass loan game is the only one ready can say benefited from appreciation. So now, I doubt about landed property appreciation talk.

Landed property hard to rent because it hard to fit the tenant need, but mostly satisfied owner need. A lot senior was answered with excellent answers already.

Rented to foreigner

My strata landed are working fine. Both can rent out at decent price. But of course with heavy renovation.

good to know, how much did you spend on the renovation?
I am contemplating to get a old 30 years old Taman desa landed, and intend to rent out first.
The house is well maintained but in basic condition, wonder how much i have to renovate

Around Rm75 to Rm85 psf for both house.
And rental yield can be 4.75% and 5.3%
Renovation cost is included in the yield calculation

Condo and service apartment are far more demand to rent while landed rarely have complete facilities.

Some landed owner thinks their house should rent high price. Big mistake

I learn a lot form your reply. great insights...

wanna ask further.... does landed good to rent to those ppl with family?

how about rent to family, landed?

or most family dont rent house.?

no la... old house not expensive .. but reno cost a bomb

how about those with family? condo or landed better for them?

people own landed normally inherit to children or grandchildren... "Ah gong 's house " (grandfather house. ) they will not sell and buy another house at the same area...unless migrate or move to other place.... like ppl sell house in bandar utama move to Semenyih

This post has been edited by BboyDora: May 29 2023, 10:15 AM

deleted-

This post has been edited by BboyDora: May 29 2023, 10:15 AM

CA and CF means what?

im noob

for family or single?

CA = Capital Appreciation, with the intent of hoping that you earn via market value price increase in future, so you can sell for a profit.

CF = Cash Flow, with the intent that a steady supply of rental income gives you a constant flow of cash.

Simple: Debatable, depends on location and demand.

Complicated answer:

In the past this would easily be a "yes", but in current market for Klang Valley where

- supply of new property is plentiful due to constant high rise developments entering the market
- families in general are smaller, with less children
- people are marrying later, or not at all
- population in general is turning into an ageing society
- median income has not kept up with higher cost of living and higher property prices

trying to rent out a house to a family is only possible if the family really likes the location, wants the space, don't have home inherited from older generation, and don't mind the higher overall cost of renting a house.

This means the target market of landed home rental is fairly narrow, since a household that can afford the market rate of landed rent for the whole unit, can also easily afford to buy a high rise and/or rent a fairly luxurious high rise, and high rise typically have the benefits of being nearer to CBD + near to amenities + have facilities. Many families with young children also don't like that landed usually difficult to get good security unless the area is affluent/landed is gated strata/the neighborhood RA is very strong.

A lot of houses end up being partitioned off and rent room by room, if market for whole unit rental is poor or it's more profitable to rent by room (to students/fresh grad workers). The older houses around Sunway/Monash University and UTAR area is prime example, because it's much more profitable to rent as student housing.

This post has been edited by DragonReine: May 29 2023, 11:16 AM

Depend, but it seem nowadays Condo more favor to new family.because the size of family getting smaller usually 1-2 childrens and some certain extend maybe up to 3-4

normally rented out to family. if you rented to company staff especially those f & b, few years the house will koyak..

Mine so far ok, had 2 landed and both are rented with good rental. You may refer to my 2 siggies.

This post has been edited by Michaelbyz23: May 29 2023, 08:29 PM

Based on my experience, when renting to families, especially those with children, the house tends to incur more damage. Even minor issues such as a clogged sink, likely caused by tenant, would require you to handle the repairs.

However, when renting to companies for employee accommodations, they usually have a regular maid service to clean the premises, and the company will cover the costs of minor repairs due to the benefits provided to their employee comes first

This post has been edited by goodchong: Jun 1 2023, 06:18 PM

my wife told me she isn't choosing after she shortlisted some expensive bags.