Posted by calvintaneng > 2018-12-25 18:44 | Report Abuse

Rental yield in Johor now moving up very strongly due to these factors

1. HUGE FDI CREATED TENS OF THOUSANDS OF NEW JOBS. MANY PEOPLE FROM OTHER STATES HAVE MIGRATES TO JOHOR. LEADING TO MORE DEMAND FOR RENTAL HOUSES

2. SINCE MOST DEVELOPERS BUILT HIGHRISE CONDO THERE IS A LACK OF NEW HOUSES. SO SUPPLY OF HOUSES NOT CATCHING UP. LEADING TO LACK OF NEW SUPPLY

3. AND IN SINGAPORE THERE IS ENBLOC FEVER. MANY OLD CONDOS WITH BIG LANDS HAVE BEEN COLLECTIVE SOLD FOR REDEVELOPMENT. SO LESS CONDOS MEAN MORE DEMAND FOR RENTAL PROPERTIES

4. NOW ONE SMALL ROOM RENTAL IN A HDB FLAT IS PRICED FROM S$600 (LOWEST PRICE AVAILABLE) WHICH IS RM1,800
ROOM RENT IN CONDO IS RM3000
SO MANY MALAYSIANS HAVE DECIDED TO WORK IN SINGAPORE AND LIVE IN JOHOR

5. AND SO WITH DEMAND FROM WORKERS IN SINGAPORE AND NEW MIGRANTS FROM OTHER STATES RENTAL PRICES IN JOHOR HAVE ALSO MOVED UP BY 50% TO 100%

6. WITH STRONG SING DOLLAR NOW ONE SING DOLLAR EQUALS RM3.04 MANY SINGAPOREANS ARE FLOCKING TO JOHOR SHOP, WASH HAIR, WASH THEIR CARS AND OTHERS. LEADING TO EVEN HIGHER DEMAND FOR RENTAL

7. SO THESE ARE THE FACTORS. IMMIGRANTS FROM ALL OVER DUE TO HUGE FDI.
HIGH SING DOLLAR ATTRACTS EVEN MORE WORKERS. HIGH SING DOLLAR ALSO SPUR MORE SPOREANS TO VISIT JOHOR. ENBLOC IN SPORE CAUSE CONDO SCARCITY. STRONG SING DOLLAR CAUSE PURCHASING OR RENTAL POWER TO RISE AMONG THOSE WORKING IN SPORE BUT STAYING IN JB. LACK OF NEW LANDED HOUSES FOR RENT DUE TO MISMATCH OF BUILDING TOO MANY UNWANTED HIGHRISE CONDOS

ALL THESE AND MORE WILL PROPEL RENTAL TO SPIKE UPWARD

Posted by stockraider > 2018-12-25 18:58 | Report Abuse

I thought u can rent a double house in horizon hill jb with rm 1800 per mth with property costing rm 700k giving a yield of 3% pa...i think reasonable loh....!!

Posted by apolloang > 2018-12-25 19:01 | Report Abuse

penang time square 650k rental 2.2k,condo more better rental yield than house.....hehe

Posted by calvintaneng > 2018-12-25 19:13 | Report Abuse

For horizon hill those early birds bought 2 storey houses cheap around Rm300k.

Now sitting on good rental
https://johor-bahru-real-estate.com/2015/02/02/renting-link-houses-in-horizon-hills-johor/

Condos in KL Sri Petaling were rented out for Rm1200 when Cost was Rm150K

Landed 2 storey houses also cost Rm150K but rental only Rm550

That was year 1991 (27 years ago)

Today 2 Storey houses have reached Rm800,000 while Condo price still languish around Rm300K

So short term Condo in KL or Penang performs better in rental. But longer term will lose out on Capital Appreciation to Landed houses always

Posted by stockraider > 2018-12-25 19:21 | Report Abuse

U must take into account of compulsory monthly management maintenance fees to calculate ur return on condo & apartment mah...!!

Posted by calvintaneng > 2018-12-25 19:45 | Report Abuse

Yes there are hidden dangers in Condo

1) High Service fees which could go up year after year in hands of incompetent management. So after deducting fees from rental yield could drop

2) If too many condos competing for rental then it will be a race to the bottom

Mr. Law the Top Boss pf OSK-ISKANDAR Told Me His True Experience

He bought a Condo in Permasville Johor for Rm290K. After spending Rm30k to Rm40K (His cost Rm330K) he managed to rent it out to a manager for Rm1,900 a month or 6.9% gross yield

But then the 1st tenant shifted out and he got a 2nd tenant. A supervisor for Rm1,700. After one year the Supervisor, too, moved out. Now his furniture/fittings already 2 years old. He managed with some difficulty finding a 3rd tenant for only Rm1,400

This is what he said

The Quality of tenents & rental dropped year by year

From Manager to Supervisor and then To Worker commuting daily for work in Singapore

And rental yield also dropped from Rm1.900 to Rm1,700 & then to only Rm1.400

So he decided to sell off the Condo

It was sold off for Rm330K (His cost after 3 trying wasted years(

The New buyer got it valued at Rm370K and 90% loan is Rm333K.

So the buyer is gettting more than his purchase

Both Mr Law & The Buyer were happy

Now the buyer will start to regret as price from Johor High Court auction has fallen below Rm300k and still falling some more

Posted by calvintaneng > 2018-12-25 19:49 | Report Abuse

See this Permas Ville Condo for auction at Reserve Price of Rm255K only

https://www.propertyguru.com.my/property-listing/permas-ville-apartments-for-sale-by-richard-lim-29042041?ref=ls%7C%7C2%7C1

Posted by stockraider > 2018-12-25 20:02 | Report Abuse

This Permas Jaya condo can get rental Rm 1400 per month ??

Posted by calvintaneng > 2018-12-25 20:25 | Report Abuse

Permas ville condo currently advertised in Property guru for rent as low as rm1000 to rm1200 now

Posted by calvintaneng > 2018-12-25 21:25 | Report Abuse

Merry Christmas

Invest defensively

Posted by qqq3 > 2018-12-26 00:50 | Report Abuse

Kl remains a better place compared with Selangor, Johor or Penang

Posted by Choivo Capital > 2018-12-26 09:57 | Report Abuse

If minus off service cost etc. Really is make nothing.


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calvintaneng Permas ville condo currently advertised in Property guru for rent as low as rm1000 to rm1200 now
25/12/2018 20:25

Posted by Up_down > 2018-12-26 10:15 | Report Abuse

Why not looking for fertile land in neighbouring country? Vietnam is a country which would be benefited most from the trade war. Many manufacturers are pouring money into this country. Industrial land prices are getting higher due to huge demand. In HCM, the rental yield for a soho is between 6% to 7% in downtown. The size of soho is about 26sqm to 40sqm but fetching high demand due to prime location. It costs only US 3k to 3.5 per sqm.