QUOTE(kbandito @ Sep 9 2009, 02:50 PM)
Hi all, I have did a little of return analysis based on the information I acquired on Faber Ria studio.
Please check the attached PDF file for my COCR analysis.
Personally would like to ask master Phoeni, the at least 35% COCR claim seems difficult for me.
Based on my analysis, I can only get 20% COCR with rental of RM1,100 and maintainance fee of RM150(I don't know the real rate
And that is based on below market price purchase.
Mind to entertain me master Phoeni and master Pai?
( 175.13k )
Number of downloads: 436
Life is about variables. Depending on the changes in the variables, you'll get a different outcome. Same goes for your analysis.
1. My acquisition cost is RM 123K. I bought it fully fursnished from a motivated seller. It didn't have the latest high tech stuff - but the necessities like fridge, aircond, dining tables and all the rest were there. In other words, your acquisition cost of 130K unfurnished is relatively higher.
2. My furnishing / reno cost - is only RM 3.9K - for a basic paint job, and changing the toilet seat and taps. You're spending 18K on furnishing? this obviously causes your COCR to be diluted.
3. My monthly installment to the bank is RM 523 per month. Yours is RM 559. I'm sure u can get a better rate that 4% at ZEC.
4. Maintenance fees + Sinking fund there is RM 160 per month. Not Rm 150.
5. Why are u paying for legal & facility fees? I pay none. Suggest u consider a ZEC package which will enhance your COCR.
6. I'm extremely particular about the demographic of my tenant. My rental is RM 1.2K per month, fully furnished. (unfortunately, I had to lower this down from 1.3k - economic crisis...sigh) Oh, I spiced up the place with some cheap but tasteful art and home decor items which my wife sources from Bali and Thailand. Sometimes, cheap but tasteful aesthetics go a long way. About 1K? Have to ask wife
You input in the variables above and i guarantee u a COCR of more than 35%.
By the way, units there at fair prices there shld go for a COCR of at least 24 to 25%. U can trim down your cost for a better return. I suspect I was "lucky", and got a good deal at point of purchase. That's all.
Nice PDF presentation, by the way. Learned a few things from your template.This post has been edited by Phoeni_142: Sep 9 2009, 04:25 PM