I'm at a stage to choose to maintain my fully paid low cost flat for below 800 rental, or sell it for 200k to service another multiple decades mortgage, higher yield rental condo.
I know low cost flat is easier to rent out, but selling it at good price require almost 50 to 100k to renovate it.
Getting a better rental yeild condo means talking risk of non performance, high fees, and worst exit strategy.

Anything else I have missed?

This post has been edited by samftrmd: May 5 2026, 09:44 AM

Just note, a low rental flat will get you tenants from the lower end of society and the problems that come with it.

Its up to you to decide if its worth it.

I am the lower end of society. So, the tolerance is build-in. Rental for decades already. Yes, the unit has worn out in some places by the previous tenant (an university lecturer that some might consider "high end" ), but the current tenant don't mind to live in.

if the low cost flat is no longer appreciating, then sell it to finance the higher mortgage.. a RM500k loan at 4% for 30years.. interest you're paying is roughly around 1.6k per month.. top up 200k, your interest drops to 900+ per month and its progressive..

200k as is? or do you mean after that 50k reno to increase it up to that price? i would just do basic repairs and repaint the unit white.

why would you spend up to 100k to renovate your low cost flat just to sell it? do you think it's worth spending that much to get a higher price which is not guaranteed? the rental you got over the years would be wasted as it's being channeled for the renovation. just do a basic make over, make it presentable and sell it at a reasonable price. competition is very high; there are plenty of units available for buyers to choose. To be honest, the rent you receive from your property is being spent on repairs, maintenance fee etc. You get practically nothing. Once the property has appreciated up to it's ceiling, and provided you have fully paid for it, better just sell it and put the money into FD to generate a steady stream of "rental" without all the headache associated with owning a physical property.

This post has been edited by abhipraaya: May 5 2026, 10:31 AM

Not that easy to find condo with rental can cover the mortgage nowadays. If rental is that good, owners won't sell. Unless you pump in a lot of cash in the beginning, but it would be pointless given the current property market stagnation.

How much is high end?

I now target only expatriates. So far these group of tenants they are very discipline, no money issue and take care of you property well. Some even have maids so when returning the unit it looks sparkling clean

200k put in epf, gives you around 1k/month... passive, don't have to do anything. and the COMPOUNDING GROWTH FROM THE 6% PER YEAR...

buyer doesn't always appear. when they do, you need to make the right decision.

low cost flat is for b40 people which to me is a headache in rental property market.

i won't use it to service the other property,,, loan rate is cheap. EPF is always the smarter way...

be wise.

My place can get between 5-5.6% net (after deducting all expenses including taxes) and as high as 6.3% if lucky. Left with 48 years lease with most basic facilities (including lifts) broken but very good location.

What is the cost of your condo, maintenance fee? How much is the rental you get back nett?

Rm500k condo can get rental RM 3000 a month , minus maintenance fee ?

I have nett rental return of 8-10 % but only from low end lelong properties...condo 500k , maintenance fee rm450 , want to tent out rm1800 pun susah.....how lah?....La Vista Condo Puchong.

This is ~$300k. LHDN valuation $320k. Median rent $1800. Expenses (everything including cukais) $300.

Low cost flats look good on paper...

But it's actually not...

The people you get is hell...

Managed to get 1 around 80k years ago.... Around 10 years of suffering..... And another few years of recovery... Just sold it for around 150k & closed the bitter experience.... Looks great especially you see profit but it's actually not.

If you heart is steady & strong. Please go.
If weak. Better don't...

This post has been edited by theevilman1909: May 9 2026, 08:14 PM

My rental unit I bought over 70k decades ago. I won't say it's pointless. During the first few years when there are no tenants, it was hellish when bank calls for payment, but once the area is occupied, tenancy is no longer an issue. Just that the rental income is nothing to shout about, but RM600 to 700 plus is not nothing also.
I'll say if, a big if, you don't need to use that money for sure. EPF could almost be an equivalent alternative when considering you don't have to worry about damages, fees, tax...

Used to own low-cost units for rental. Oh boy, the hassle in renting is so not worth it. For one, having to deal with lower-income, lower-class 'mentality' people. I have nothing against lower-income people, but as for renting out my unit, I am staying far away from them.

Decided to sell it off only at a slight profit. Decided to never again be bothered into buying low-cost units for rental income.

Have family member who previously own low cost flat...

Ohh my... the level of issues is so long. From the usual delay of paying monthly rentals... damage the units until cannot recognise... then disappeared overnight locking the units. Needs to cut the grill & break the doors... to gain entry....

Ahh not forgetting accumulated unpaid utilities bills...

No more touching anything low cost rest of my life... Enough of suffering...

EPF is one of good option.... ASM funds too...

Some mentioned REITs... But change in tax on dividend is biggest game changer....

Low cost flat is not for rich people with high expectation to begin with. You bought the wrong product.
I think lcf is good for 1 or 2 decade investment before moving into epf or upgrade to better unit. It's for poorer people to begin with.

I have almost same averaged out prices properties like yours , rental at 600-700 is considered very good already....

In % return... EPF dividend is not any better , best is it beat EPF in appreciation!

At the beginning in 2012 the lowest I bought was RM32k,..then it kept going up till 100k I stopped buying by 2014 I sapu 25 units already....EPF no fight...my nett rental ,min 5%, mostly higher than 6 % quite a few above 10%...the best part is I sold 5units I got back more than 60% of my total cost.....EPF mana boleh lawan ...

Of course the caveat is those units were all with ready tenants hardly vacant ...many with owners inside becoming tenants some still stay until today... Quite a few units I just paid deposit only and already collecting rentals!

My best portfolio so far I would say....had I put that 1.6M in EPF it wouldn't have grown half also....

I only can afford to buy 1, not 25. With only one rental, it initially beats epf, but in a couple of more decades, epf would compound past it's performance