medium range apartments
[QUOTE=andyk2;74011]Reasonable point, but if one shops around carefully, net returns of 3%, 4% or even 5% can be acquired. Not great, but at least there is a solid exit strategy with the strength of the domestic market. Also you donīt need to aim for just the high end.
Example - Berjaya Times Sqare Serviced Apartments. 600 metres from the Petronas Twin Towers, freehold and fully furnished. Purchase Price around RM 350.000 (c.$100.000) 20% deposit required and the balance on finance (I think this is what you are advocating - the figures are much better if you borrow a lower %).
Rental income on a long term let - RM 3.000 per month* = RM 36.000 pa.
Take off 2% of the purchase price for allowable expenses and multiple the rest by 28% (base rate for income tax). That leaves you with a net annual income (after maintenance, management fees, insurance and service charges) of RM 20.880. Take off mortgage repayments of RM 17.200*, and your net income in a year is RM 3.660 (c.$1000). Like I said, itīs not great, but represents 5% on what one has actually invested ($20.000 deposit).
That might seem like a good deal in the next 12 months compared to some other locations around the world.
Be lucky
Andy
Hi Andy,
Can you please send me details about this project and any other projects that you recommend in the similar price range.
Thanks,
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