Put the rental house under a company if you're paying >20% of income tax.
The company will re-imburse the money back as dividend to share holder at a tax rate of 20%.
RDPD: Collecting houses for rent, Under company. Need details.
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 Nov 25 2008, 11:48 AM
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Nov 25 2008, 07:07 PM
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And here comes another RK basher whom have no experience in RE dealings. Oh well.
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Nov 26 2008, 08:10 PM
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8% to me is below average.
10% to 20% is average. 21% to 50% is good! 51% to 99% is very good! Infinite is best! Which is attainable. |
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Nov 27 2008, 09:42 PM
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Normally I base on startup price, which always used by Robert.
Also known as ROI, Return On Investment. |
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Nov 28 2008, 06:26 AM
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#5
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QUOTE(getsmart @ Nov 28 2008, 12:08 AM) His calculation is based on RM invested. I guess it could mean borrowing 100% (RM0 invested), so RM1 rent over RM0 invest is infinite Yes and that's how the super rich make their money, also known as the 10/90 rule. But I got a question with this .... Bank lend 100% becoz house value is high enuf from house price. If the bank valuation is correct, then we actually have (house value - price) RM invested, coz if we sell it, we could use that money to invest else where. So infinite doesn't apply here? Infinite is only true if the bank valuation is wrong i.e. we could not REALLY sell at the higher valuation but get the RM from bank to invest anyway.  10% of the people makes 90% of the money. On the bank part, please read more and keep your eyes open. I am not willing to explain more without you getting ready to accept it. |
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Nov 29 2008, 10:04 AM
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QUOTE(ttwangsa @ Nov 28 2008, 02:07 PM) i'm lost The key word is value, can the price of this house gives you a good rental return.if we get 100% loan, hell 105% loan (covers SPA and Loan Facility Docs), then we have (house value - price) invested? what you invest is how much money you put if you put RM zero, then you invest RM 0. if you put zero and get RM 1, that good, but please factor in effort and time. i mean if you are working for RM 2k per day and have to get 1/2 leave to arrange for the thing, then... erm.. might not be worth it. My rule is to find a house where monthly rental is 1% of the purchase price. I also found someone in Melaka bought a "house" at 160k with a rental of RM3300. |
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Nov 29 2008, 11:06 PM
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#7
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QUOTE(Pai @ Nov 29 2008, 01:50 PM) wow' thats 12% gross per anum. Still searching for a second property. btw, what "house" is it that rents for 3.3k p/m yet only cost 160k?  First one is a low cost unit. Century Mahkota. It's a condo. Post 105. It's in Chinese though... http://cforum3.cari.com.my/viewthread.php?...page%3D1&page=5 |
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Nov 30 2008, 10:01 AM
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QUOTE(Pai @ Nov 30 2008, 12:21 AM) Didnt know Melaka properties can give such high yields. Is this an exception or the norm rental rate for this Century Mahkota? An exception.Initial launch 340k. It's listed back to hotel. Low occupancy rate, owner sell to this guy at 160k. Currently price gone back to 220k. His tenants are foreigners working locally. This post has been edited by jasonhanjk: Nov 30 2008, 10:02 AM |
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Jan 29 2009, 11:26 AM
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QUOTE(Pai @ Nov 30 2008, 05:24 PM) Cool, 'lucky' dude. Whats the average rental rate for other units? Well I am not sure.From his post, his properties are normally mark-up higher. |
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