a 4 story shop located at taman melawati near zoo negara and giant. Selling for 1.5million. all 4 story are rent. income from renting is RM10k.

2 bunglows (side by side ) each 4000sqf (cobined total 8000sqf). Selling both for only RM700,000. located at gombak. a peace neighborhood and away from traffic. But only 15mins to KlCC. Near LRT gombak. Too bad only for bumi...

is this too building worth to buy ??
if anyone interested do pm me ..

Erm u wanna buy or u wan ppl to buy?

actually im here just to discuss.. since I know the owner so I help him to find buyer.. lorh..
do u think the 4story shop worth to buy?

If you got 500k, that means you have to borrow 1M.

You get 10k x 12month = 120k

You lost 500k x 3.7% fd interest = 18.5k

30years loan (Im not expert, just use my own understanding to calculate this)

1,000,000 + (6.75% x 30years x 1M) = 3.025M

Monthly installment = 3,025,000 / 30year = 101K

Thats mean you just got enough to pay the monthly installment if you got 500K to dump into it and wait 30years before it become yours and start collecting the rent for yourself. This doesnt even include any maintenance fees (if any) or in case the tenant run away or something. If the price of it went up during the 30years, got profit lor.

dont think it correct...

borrow 1mil... monthly installment 101k... saving 10month also can buy cash..

btw.. I detect few wrong calculation..correct if im wrong to..

1,000,000 + (6.75% x 30years x (loan balance<1M)) = 3.025M

Monthly installment = 3,025,000 / 30year x 12month = RM8402

so monthly u profit almost rm2k.. so it worth to buy rite?

BTW, do you ever think how you are going to get loan of 1M??

mousepad87,

No, you are WRONG.

You forgot that the 500K down payment that could earn at least 3.7% in FD. So, you lose 18.5K per year because you buy this house. This is OPPORTUNITY cost.

2K - 1.5K = RM500 per month.

And, we have not even factored in quit rent and so on...

Dreamer

Rental = 120,000
F.D lost from 500K = -18,500
Gross rental income = 101,500
Yearly instalment for 1mil , 30yrs, interest 6.75% = 6485 x12 = -77,820

Nett rental income = 23,680 ( excluding other fees like quit rent, fire insurance...)

Just based on cash on cash return , 23680/500000 x100% = 4.736%

for all the hardship u go thru and hasle and a 30yrs tight up, u get a 4.736% return on ur 500K capital, probably lower after deduct the fees, do u still call this a good investment ?

an increment of 0.5% in BLR would burn ur return down even further.