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Is property investment still worth it?
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autodriver
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Jul 1 2025, 08:27 AM
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In KL Selangor we can still rent an empty condo at RM1000 for 900sqf. After 10 years maybe rental go up to RM1200. Imagine if total 30 years renting a house and total payout is RM432k. And among 30 years if we put RM1500 into our KWSP account, after 30 years with compounding interest the amount will be RM 1.3m.
During the tenure of renting house, we do not need to pay any maintenance fee, cukai tanah and most important is saving huge interest from bank loan. A property of RM 500k the total interest payout is similar like RM 500k for 35 years, whopping RM1m paying to bank. But after 35 years the property especially condo may worth less than the purchasing price because the condo age is "old" while there are other newer condo at affordable price.
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autodriver
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Jul 1 2025, 10:35 AM
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QUOTE(rayeonlee @ Jul 1 2025, 08:35 AM) Your calculation is RM1.2k/mth for the next 30 years. That's interesting. My friend got a house at Damansara Damai double storey and rented out for RM900 for pass 15 years and rental amount remain same until today. Setapak PV old condo (PV2 PV5) more than 1200sqf, the 2nd hand market value at once went up to RM550k but now around RM400k. The rental once reach RM1700 for bare unit last time but now the rental goes down to RM1500. Because this area got too many new projects and newer condo. If you don't believe you can go survey around the area. I stay nearby Setapak and Sentul and I know the movement of these areas. I strongly believe even in 2035 you can still get the RM1200 for a unit less than 1000sqf and 20 years old condo because too many vacant unit by then.
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