Saw a shoplot at Kepong Baru asking for 4M plus...

If one were to put that amount in EPF, with 5% per annum dividend, easily 16K a month...No headache and no hassle...

Tis assumption is for someone buying it in cashi

Even so investors r banking on the fun of rental play while having dopamine when the value appreciates

Most ll go with loan so there shouldn't b a fair comparison of having 16k a mth fr epf

M2c

Rental play can be a nightmare....it aint fun...sometimes rosy, sometimes not that rosy..

If only you can transfer that amount in and out easily from EPF. But in reality, you cannot.

If you got RM4m, why pay for a shophouse and hope to get rentals?
It is only you got RM500k, borrow from bank to buy and hope rentals can cover payments. Many people forget the money they borrow from bank to buy is not their money. Their actual money is the downpayments, so returns shld be based on that.

how many rental should owner charge only can cover the loan?
crazy

Property investments seldom suits the "faint-hearted". The 'good and far sighted' will turn shit to gold and vice versa.

How a well known far sighted developer turn a remote land some where after Kajang to gold for himself and took majority to Holland. 🫣

Industrial and commercial property investments are for those with strong holding power. Stick to residential first before jumping into the ocean. Many big sharks out there.

why so many fail to understand this? Property is one medium of investment where you can actually get credits/loans for it. They fail to understand, the person who had 4m most likely paid a 800k (commercial requires at least 20% DP) down payment took a 3.2m loan for these kind of investment. why using your cold hard $$$ to pour all in?

This post has been edited by kidmad: Aug 18 2025, 07:10 AM

Everyone can borrow to maximum. Wait till one have to pay monthly payments when there's no tenants. It is not RM2k but RM20k per mth. If brave, by all means dive in.

If you meet certain criteria, you can withdraw..of course it wont be as easy as your savings account...

Yupe, this is solid advice....especially industrial property....I have seen owners asking for the company profit and loss statement before agreeing to lease it out....We are talking about rental exceeding 15K a month ...

Think can only for 1 housing loan only but not commercial property loans.

Many unexpected expenses in factory investments:

Factory repairs (often factories are not built like houses). Roof leaks or roller shutters are common problems.

Tenants usually got partners. It is not tenant company not making money but partners quarrelling resulting in no payments. Sue also no use. You don't spend good money to chase after bad money unless it is mega sums.

Tenants usually do modifications to install their machineries. Repair cost to factory floor cost a lot more than just utilities deposits.

Shophouses also have similar problems.

Headache....

This post has been edited by funniman: Aug 18 2025, 07:48 AM

As posted earlier, only for those with 'stainless steel balls' 😅

Industrial property only have four sides, 1 or 2 toilets and a roof 😂

Most new tenants of industrial or shoplot will take tenancy condition as it basis. Tenant will do whatever reno and to comply with local authority guidelines.

Husband and wife don't quarrel or divorced resulting in no rental payment ? Residential tenants dont lose job, hence no rental payment ?

This post has been edited by mini orchard: Aug 18 2025, 08:20 AM

"Most new tenants of industrial or shoplot will take tenancy condition as it basis. Tenant will do whatever reno and to comply with local authority guidelines."

And after they left, who is going to clean grease floors, pull out all wires or fill up holes? Or redo industrial floor coating? And it is not cheap at RM50k easily.

Security deposits will depend on tenants renovation, not just the std 2 + 1 ya. Knocking down shared wall will require more deposits.

Industrial, commercial and residential rental are not the same. Don't lump them as one.

Why only think of grease floor just because is industrial ? Cannot use as showroom ? Warehouse can boh ? Don't know how to choose tenant ?

Old tenant leave, new tenant go in ... same as it condition !

Landlord touch up or repaired, new tenant tear it down !

Haizzzzzz 😭

This post has been edited by mini orchard: Aug 18 2025, 09:31 AM

I am saying you can withdraw the EPF dividends from yr account if you fulfil certain criteria....

Commi n ind tenants ll hav an additional clause in deposit under restoration. The amount depending on how much the rental is. Some x1 some x2. Genuine biz ll not argue. Those who argue can just filter out. Not a serious issue here.

However, under landlord part it's a massive amount to do up if the structure is facing some issues eg leakages. Yes just 4 walls but the height depth is a killer if doing up waterproofing which is pretty common.

Industrial and commercial property rental yields already cannot justify the cost/loan. This also applies to landed residential. There are better investments out there. In the past, it used to be that residential condos rental could cover instalment (in the early 2000s the yield could be 8% p.a.). Nowadays general rule is rental yield cannot cover loan instalment (for all types) unless you put in bigger downpayment.

The benefit of property investment is that you can control an asset worth much more for just 10% - 20% downpayment of your own money and leverage with loan. Like a youtuber said, property investment will not make you rich, but its for wealth preservation.

Totally agreed. No need be greedy. Just build steadily.

Good advice...agreed with you...basically property is totally overpriced now for investment....seriously, take 1M - 2M loan for what ?

Take Taipan USJ 10

Current asking corner lot 4 mil ono, Let's say agreed at 3.8 mil
Current asking rental corner lot 28k. Let's say agreed at 25k.

25,000 x 12 ÷ (3,800,000) / 100 = 7.89%

La Cocina left one corner and went to rent top flr in the same area. They were tenant for more than 5 years.

Current unit occupied by S11 chap fan. Easily rental is above 20k selling chap fan.

Tis investment is next level for super landlord. Not for kecik moyang wannabe level and forumers drooling their saliva 😂

Maths don't lie .... 🤑

This post has been edited by mini orchard: Aug 18 2025, 06:36 PM

I was talking to the HK roast duck next to 7-11 along same row as S11. He said, there's no shop for rent, that's why he ended up in such location but still doing good business.
Having said that, investment in shophouses is tough. Grd floor very easily rented out with good price but upper floor all rented out at pittance price. Frontage and which side of road it is located also important. It is cut throat investment.

The Ampang YTF corner lot also cannot tahan when landlord raised the rental. They were the first few pioneers in Taipan, I think easily more than 15 years. If not mistaken, landlord asking close to 18k that time.

Landlord bery confident ... U don't want, others will take. The rest is history.

This post has been edited by mini orchard: Aug 18 2025, 07:03 PM

Now the YTF shifted to opposite Caring Pharmacy. From corner to middle shop. I find their quality ok nia. Nothing to shout about.

My take is if you are in business and need the place, just buy premises instead of paying rentals. You will pay through your nose but at the end of day, it is wealth accumulation as other say. Before you know it, you have unknowingly accumulated a decent portfolio.

But if you invest for rental collections, then better don't unless you have good contact with developer and managed to get a super located one.

There are reasons why people rent instead of buying. Well the obvious is expenses claim for business. U can't do it if the co buys the property. Can only claim for depreciation.

Is balancing between tax payment and capital appreciation.

It's more like they can leave when biz u turn fr gd to bad 😜😜

Based on USJ 10, Taipan example .....

If loan sum is 2,660,000 (70 %), for 20 years @ 3.5 % pa .... monthly installment is 15,427 per month.

25,000 - 15,427 = 9,573

9,573 x 12 ÷ (1,134,000) ÷ 100 = 0.10

1,134,000 is the down payment for the shop. His dp ROI is 10%..

Any reason why the landlord should invest his cash elsewhere or are there better alternative investments ?

Property investment is about LOCATION. Do your homework and don't follow the herd. The more 'investors' don't go in, the more one has to do the maths. Just dont look at RM4 mil and say why so pricey, tak faham, UNLESS maths says otherwise.

Don't say rental cannot cover instalment B4 doing the maths.

Maths Don't Lie. 🤑



This post has been edited by mini orchard: Aug 18 2025, 10:02 PM

Other than tax considerations, cash flow and liquidity is very key in running business, especially those business involving holding high amount of inventory or receivables. Commiting to illiquid assets could mean make or break to the business especially during difficult time.

can get 20k rents?

Now I do a rough maths for S11 to check whether the business is sustainable in the long run ?

Opening hours .... 9.00am to 9.15 pm = 12 hours daily ( according to google search)

Assuming collection per day is 3,000. Per month is 90,000.

3,000 ÷ 10 hours = 300 per hr assuming early morning and closing time will have less customers. BTW, their daily promo is 50% off after 8.00 pm but I am not sure of the crowd because I don't eat late.

300 ÷ 10 average per plate = 30 customers. (Reasonable ?) But most of the time, my price for meat and 2 non meat dishes are average 12. Also depends on portion.

Total operating cost per month (rental, ingredients, salaries, elect, water, gas, epf, socso) is 75,000. Reasonable ?

Nett profit > 90,000 - 75,000 = 15,000. Achievable ?

Their competitor is at the endlot along the same row, T23 which operate much earlier and from unverified market sources, both are same boss. Will leave that aside.

U think 15k is worth the investment ? Can they sustained to pay the 25k rental ?

From google search, S11 is operating in 19 locations.

So 15,000 x 19 = 285,000 per month group profit. (Good or Excellent ?)

285,009 x 12 = 3,420,000. Would U buy a shoplot to replace a branch or rent to others or cont renting existing ?

This post has been edited by mini orchard: Aug 18 2025, 11:31 PM

I believed you are a negotiator and can check market advertisements for asking rental. Corner are premium lots esp if facing main road and landlord would want the tenant to take the entire block. Take it or leave.

But if maths doesn't add up, then is a no go.



This post has been edited by mini orchard: Aug 18 2025, 11:39 PM

buyer will think can get rental exceeding 25K per month kua.

Agreed maths dont lie and this is assuming you can generate a consistent rental return for the next 20 years.....

Consistent for next 20 years....that's crucial.

Loan repayments is consistent. Rental income is subjected to market conditions, not forgetting about the empty months between new and old tenants. If cash flow not enough to cover these vacant weeks or months, then big problem. Good or bad tenants also another issue. They pay on time, it is great. They esok lusa..then headache.

Not many individual investors will keep for 20 years but if is parked under a company, then is possible.

By then, investors grow old or children are overseas and cannot manage. Or some children prefer other form of investments and decide to cash out.

Some investors may need the money for family related matters like education, medical or even sell the unit to distribute cash to children before passing on. It is easier to divide cash than properties because every child wants the best income generating or high capital appreciation property. Not many children are happy to be given a property in not 'ong' place unless he is the only surviving child.

Investors not only must know how to invest but must have an exit strategy.

Property is only brick and mortar. Don't fall in love with it. If investor don't sell, the spouse or children will.

This post has been edited by mini orchard: Aug 19 2025, 08:03 AM

Pretty much agreed with tis as I have seen many kids rushing to sell when the parents no longer around.

Having said tat I have been telling my kids to let me know if they r willing to learn n manage the props. I have half props in my portfolio more than 20yrs. Best part of doin so is to max the potential rental roi.

If kids r not interested then sell 1 by 1 n let them reinvest elsewhere even abroad. Tis oso to minimise the process to handle probates later.

Prop game is an asset if one knows how. It's a liability if one doesn't wanna learn.

Back to the topic. A 3m 4m corner shop is not excessively expensive for today's standard especially if the loc is top notch. A simple smd fac nowadays oledi has a starting price of 3m within 20km fr kl. Or 2m n above if further away. A detached one is much higher. Wats a 3m 4m corner shop is if giving gd rental in gd loc.

An extreme example ll b telawi. The price nvr giv in n the rest is history regardless with laughter or tears.

Agreed. We do not want to give our kids problems like mortgage repayments. Or they fight over who get the better ones.
If we want to give them properties, the least we can do is make sure all debts had been cleared with clean title issued.

Also make sure overseas properties are properly handled as for eg. UK inheritance tax is 40% and property gains tax is separate. Title is absolute or still needing loan servicing. Different level altogether.

True...and managing tenants is a real PITA.
Nothing but problems, more problems and continuous stress.

Commercial or industrial tenants are less troublesome compared to residential. Not that they don't have problems but their objective is to make money than default on rental. If business is losing money, not will landlord chase for rental, so do suppliers. Can 'siam' the landlord but not the suppliers. In the end, he willing gip up the tenancy to 'siam' suppliers 🤭

This post has been edited by mini orchard: Aug 19 2025, 01:09 PM