Hi all sifu,

wonder if i buy apartment/condo cost RM130k and get 100% loan and for 40years. Monthly repayment is RM700+ if the interest rate is 5.99%

and i can rent the house RM650-RM700/mth

Do u think can work r? need advice (sorry i`m new here)

Your proposition sounds like paradise..

Get your tenant to pay for your mortgage and you get the apt for free at end of the laon term

However, be forwarned.. Please build in some buffers in your equation.

...factor in management cost for your apt
...also expenses like quit rent, assessment, insurance, repair and maintainance cost
...be prepared for fluctation in BLR..if it goes up, so does the installment
...allow for 'down time'...when the unit is not tenanted ...eg between tenant moving out and next tenant getting in.
..is your rental estimate of RM700 /mth a reasonable figure for a RM130k apt?

thank you for advice, ya... RM650-RM700/mth coz the house near to college...

It won't work.

You very sure that for the whole 40yrs you gonna get a tenant?
Renting it to student? Ever wonder what kind of miracle they will make?

If it is a completed unit, getting 100% loan?
Unless the vendor sell it to you cheaper then market value as bank only loan 90% of the market value.

I also had a new apartment rent out recently.
Please consider the time & maintenance you have to pun in.

Currently, I am losing RM50 / month. Not including Quit Rent + Assessment.

Investing property is long term investment. It will not be so wonderful as u imagine it.

TS r u planning to stay in the aprt/condo in future? students will whack your house

If you think of renting to students, you need to prepare a lot of things for them.
Facilities like Streamyx, furnitures you also have to provide.

Thank you all for information and advice

May i know where u bought ur new apartment? and rent to student or family ? do you facing any problem? hope can share your experience




Nope planning to stay in the aprt/condo, just rent to people...and 5 , 10, 20years later only sell it out?




Ya, i also know this...Closet,bed,fan....

For the there is some better option which rental can actually higher than the monthly repayment.

1. Think u can aim higher. I know someone who bought a property in Kelana Jaya for 150k then rent it out for above 1.1k.

2. Never take a 40 year loan. Max loan tenure should not exceed 30 years. Ask for a quote for both 30 and 40 years loan tenure and you'll see how much loses you'll make from a 40 yr loan.

3. Will it work or not depends on how well you did your research. The key here is to find undervalued properties.

Good luck

Agree, my geting undervalued properties, it is already a gain by itself.

As gor 40 years loan, not all finance company doing it and i feel it is too long, I'm looking at around 20 to 25 years loan, max 30 years.