Rental yield in KL is also rather low. Why people sell Singapore property that was bought years ago and move into Malaysia?
KLCC about RM4-5psf
KLCC about RM4-5psf
Rental yield in KL is also rather low. Why people sell Singapore property that was bought years ago and move into Malaysia?
Just saw today's newspapers, a 4 storey 66 unit Casa del Rio Residences along the Melaka river developed by Spore businessman Ong Beng Seng in his personal capacity is selling for RM1500psf. Malaysian property prices had gone crazy....
Just saw today's newspapers, a 4 storey 66 unit Casa del Rio Residences along the Melaka river developed by Spore businessman Ong Beng Seng in his personal capacity is selling for RM1500psf. Malaysian property prices had gone crazy....
The benchmark yield for my own standard should always be 200 basis points above that designated country's risk free rate ( which we k use their Fixed Deposit rate) as reference at 3% average.
Freehold - 3% + 2% = 5%
99 yrs - 3% + 3% = 6%
This for the extra risk we take in property investment as compared to Fixed Deposit. And for covering outgoing costs like maintenance, assessment and other related costs n fees. Its a rough guide and everyone is free to set their own benchmarks so don't pinpoint on the mechanics hor.
Then once you are invested in a freehold property in a good location (meaning marketable at all times, just a matter of price), you can depend on the property to help you beat inflation over time, must keep long enough to ride through all correction cycles (so freehold is important)
So for the recent buys at RM1300psf, based on 5% yield, you need to get RM5.40psf. It is already higher than KL standards.
Rental yield in KL is also rather low. Why people sell Singapore property that was bought years ago and move into Malaysia?
3 years back, 1 Singapore property sold then could exchange for 4 properties in Johor and these 4 properties is enjoying good appreciation while the price of that property tanked.
Entry and exit points is important to catch the wind in your sails.
I guess everyone has their own reasons to sell a Singapore property and that does not means that Singapore property is not a good investment. I get good rental returns on the Singapore property that I would like to keep.
I would always keep more Singapore properties than Malaysia properties...
I would always keep more Singapore properties than Malaysia properties...
Wa... this is chim leh....
What is 200 basis point above that designated country's risk free rate ? Why 200 ?
Have simiar strategy as Singapore properties had more than 70% of capital appreciation in less than 4 years and rental yield of at least 6% as they are in CBD and city fringe. Foreign Exchange rate and its garment policy are still the main risk in foreign property investment. Got to invest carefully.
I am thinking of investing more in Malaysia but the key risk is actually, like what you mentioned, garment policy.... that is the main stumbling block to allocate a larger amount to Johor investments.....
I am thinking of investing more in Malaysia but the key risk is actually, like what you mentioned, garment policy.... that is the main stumbling block to allocate a larger amount to Johor investments.....
Just curious...why just JB alone? Why not KL or Penang?
Proximity reasons for retirement home, I understand but for investments?
I sold off everything I had in KL and Penang, cause despite having agents and even offering relatives up to 20%
of rental value monthly just to collect the rent is a huge problem, also tenants are constantly moving, late payment,
and lots of maintenance issues you have to personally handle cause the KL / Penang agents, even relatives too busy
to help you. Even if rent our to corporations also same problems arose, so better u get at ZONE B, Iskandar Malaysia,
is best nearby if anything even for invesment u can do it via a day trip, dont forget we here in Singapore each person
already doing 2 persons workload where got time to handle far far away properties ? For "remote control investment"
forget Malaysia, go to New Zealand, Australia is best, so far I dont have any problems at all as my agent handles everything
down to the replacement of a broken cup, chair etc ! Well just my own experience with KL, Penang, Nz, Aus Property "investment".
Iskandar Malaysia Nusajaya Is best.. "Zone B" ! Where else got "whole world in one city " Legoland, Harbour, Hello Kitty, 8 Universities - MDIS,RAS,NMIT,UR,etc etc, Hospital we can use our CPF, Race track, Pinewood TV etc etc...Giant Tesco Aeon Mall Of Medini -
No need waste time look anywhere else liow !
Care to share your nightmares of renting out KL Penang Properties too... Pls do we all want to know ....