i know
some place cost more
some place cost less

on average (if there is such a thing)

if the house has a price of 300k,
renting it for rm 500 per month
resulting in rm 6k per year
or 2% per anum
(does this actually happen)?

is this the average return?
average as in
location not bad but not very good

or does the price of the house effect the return?

i mean
a 100k house, rented at 300 per month
= 3600 per year
that's like 3.6% return
(does this actually happen)?

anyways, i just like to know what's the return on renting a house
pros and cons

This post has been edited by ttwangsa: Jan 5 2008, 03:52 PM

so far current renting return is typically 2-3% lower than BLR, so for now, an average rental return would be 4%. Value property would usually same par with BLR or 1-2% higher.

as for residential, the gap is much bigger because old residential areas with nothing special house can go as low as 1-2% while hot happening areas can get the 4-6% return, higher especially when the developer of that area is keeping that par value .....

hope this helps ...

any real-life data on this?


i mean
8% roi?
is this for real ?
http://www.iproperty.com.my/property/listing.asp?pid=88552

This post has been edited by ttwangsa: Jan 5 2008, 04:27 PM

Yes and no. Well considering the inflation rate of 0.2% per month, I don't think leasing it could increase your income/net worth, dramatically. If you have no other option or investment vehicle than this one, it's better take up the 3.6% return than 100% of nothing.

normally for landed properties, the returns are low

For landed residential property, the return is very low.
You're banging on capital appreciation instead.

Perhaps you can opt for shop houses. Rental is higher.

How's the capital appreciation for shop houses?

In average, apartment in Penang with RM 140K can rent out for RM600 per month. The ROI is ~5%. Some other apartments are even higher.

some apartment in kl with 100k cna rent for 1k. its how u create the demand.

when investing with properties, rental return is not the only factor, it is only a 'substaining' factor ...

so far commercial units have been better than residential's .... however, in the up coming 10 years, you will see more and more reports about the uptrend for residential comparing to commercial.

lastly, all those reports don't mean much neither .... property invesment is one of the few where one can make tons of money while most others lost terribly, the key term is 'value'. If you have a value property that your surrounding ppl dun have that uniquness, u r bound to get big fish. its not everyone's rice bowl thao ....

My current apartment in Subang E-Tiara has a 10 over% yield per year. 1 month 1850 rent, base price is 180,000. You need to do speculations before going into an area.

roi ? based on my personal experience, theories are still theories, it on many occasions cant be applied on reality. we cant compared the roi to blr as well. if the property is aimed for investment or what we usually said, money make money, my theory regarding this matter is - buy the property, rent it out, regardless the roi, for some periods, and wait for the property to appreciate and SELL it.

lastly, baring a property is not an easy task, financial backup is very essential.

I wouldnt take it as speculating, its more of a proper analysis + risk managment.

Btw, superb deal man U must be getting at least 20% COCR p/a now?