I want to analyze just in case if I could buy RM750k worth of property, how should I invest. Lets say I want to invest in:
1) One terrace house worth RM750k
2) 3 units Medium cost apartment worth RM250k each
1) The investment is for rental play
2) No problem on Loan to value (LTV) of 70% on third property as if I could use my wife name.
3) I don’t include MRTA cost because can’t find MRTA calculator online
4) I don’t include property valuation report fee in the calculation
What Factors I need to Consider?
1) Profit – of course
2) Risks – which investment give me less risk?
Scenarios to Do the Calculations
1) Terrace house is located at Bukit Jelutong
2) Apartments are located at Kota Damansara
Terrace House at Bukit Jelutong
From mudah.my, average selling price for a standard terrace house is more or less around RM750k Assume, after negotiation I manage to purchased the property at RM750k.
Again from mudah.my, average asking rental is RM2,200 per month.
Apartments at Kota Damansara
From mudah.my average selling price is around RM270k. Assume, after negotiation with the owners, I purchased all three properties at RM250k each.
Average asking rental price is RM1,200 based on listing at mudah.my
1) Profit – Apartments x 3 produce less loss vs one terrace house
2) Risks – put all your egg in one basket is riskier. If the terrace house is vacant, loss of income is 100%, while if only one apartment is vacant out of three, at least still can get 2/3 of rental income.
To invest in RM250k apartments (3 units of them).
Of course all these analysis is based on numbers only not considering other factors, like JMB of the apartment. Sometime apartment degrade quickly if JMB doesn’t manage well the apartment.