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. 🫣

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

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

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

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

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.

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

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

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

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