Hello everyone,

First of all, I'm new to this scene, spent around 2-3 weeks to learn this so called property game. Hence, if I sound foolish and naive, please excuse me and please by all means, critically and constructively point out my wrong train of thoughts. Genuinely looking forward to learn from all the gurus and sifus here.

Reason I have created this topic is to humbly ask for any existing owners of Airbnb investment projects within KL City Center area, as I am trying to gather data to see whether this investment project or more so whether this category of projects is feasible or not. One most important question, are you able to cover your monthly instalments, and if so, what are the nett returns after profit sharing and costing with the Airbnb operators? One step further, if you do not mind sharing, could you reveal the nett average returns monthly?

There are so many out there such as the many Airbnb accommodations on the stretch of Jalan Yap Kwan Seng as well as so many Airbnb operators in the market. Scrolling through Airbnb, and taking the Airbnb projects on Jalan Yap Kwan Seng as benchmark, there are a lot of units with a lot of unoccupied days in the month of August.

I am looking to invest in such projects namely Armani Raja Uda, Exsim Hugoz. As per usual, their entries are attractively low with cashbacks and all, basically just 2% MOT and bank valuation fees. My thinking and calculation are as below:

Taking Armani Raja Uda as an example, I've booked a dual key unit and computed a monthly commitment of around RM 4.7k including mortgage payment, maintenance + sinking fund, fire insurance, cukai pintu, cukai tanah, wear and tear.
Total upfront around RM 40k.
Assuming average daily rates across the year is 200 and average occupancy per month is 15 days and since it is dual key the calculation is as follows: 200 * 15 * 2 = 6,000. Operators take 70%, and I would minus another 10% for utilities etc.: 6,000 * 60% = 3,600.
Monthly commitment around 4.7k so that leaves me on a monthly deficit of 1,000.

Are my computations too prudent and too below expectation?

Below is a quick video where I go through Airbnb website to see occupancy rates. Area in focus is IJN, Jalan Tun Razak and Kampung Baru as it is near to Armani Raja Uda.

https://www.youtube.com/watch?v=D7OatE1F6uk

Also, Kampung Baru, being an old Malay neighborhood, still some time to come before it gets more developed.
New development approach for Kampung Baru
Kampung Baru redevelopment to be realised through the latest masterplan

This post has been edited by YoungLad: Aug 3 2023, 03:08 AM

bump collecting more feedbacks