Property as a Good Investment

[Behappyalways]

with only 55% core population by 2030, expects volatility.....

When a deep economic crisis strikes, the foreigners will leave, part of the 300-500kk PRs too will leave......and with 200kk flats by 2016 and 700kk flats by 2030......many house owners will 'cry'

I am kinda bullish on Johor's properties though......If the election in Malaysia goes well, might be a good look.....If DAP does well in Johor.....or even win....can they replicate their good job in Penang?

With 6.9m population, i bet many Singaporeans would try to find their quality lifestyle in Johor.....I WOULD

[lavue]

Hi Temperament

Shoeboxes are considered more risky because you are leasing it out to single expats/students. They generally do not renew their tenancy after 2 years, so you have to go and find new tenants, which leaves your apartment not generating cash flows in the interim period. They may also be called away to regional postings/student exchange, so they may terminate the lease on short notice and willingly forfeit the deposit. Also, the pool of tenants is highly correlated to the state of the economy. If the economy takes a turn for the worse, then you may find your target group of tenants returning home. When that happens, who will you find to rent a <500sqft space from you?

Finally, the following is just my personal observation.. But if you lease it out to single male tenants, they tend not to take very good care of the apartment, e.g. leave coffee stains on the marble, blackened spots on the worktop, grimy walls, etc. So, if these terms to protect your own interests are not stated clearly in the contract, you might have to incur costs to make good the apartment.

As a rough rule of thumb, the yield on a property generally reflects the riskiness of the property type. But generally, so long your apartment is located within close proximity to CBD, a MRT and amenities, you should be able to attract tenants.

Congrats on your property purchase. Hope you Huat Ah!

[Temperament]

Hi Temperament

Shoeboxes are considered more risky because you are leasing it out to single expats/students. They generally do not renew their tenancy after 2 years, so you have to go and find new tenants, which leaves your apartment not generating cash flows in the interim period. They may also be called away to regional postings/student exchange, so they may terminate the lease on short notice and willingly forfeit the deposit. Also, the pool of tenants is highly correlated to the state of the economy. If the economy takes a turn for the worse, then you may find your target group of tenants returning home. When that happens, who will you find to rent a <500sqft space from you?

Finally, the following is just my personal observation.. But if you lease it out to single male tenants, they tend not to take very good care of the apartment, e.g. leave coffee stains on the marble, blackened spots on the worktop, grimy walls, etc. So, if these terms to protect your own interests are not stated clearly in the contract, you might have to incur costs to make good the apartment.

As a rough rule of thumb, the yield on a property generally reflects the riskiness of the property type. But generally, so long your apartment is located within close proximity to CBD, a MRT and amenities, you should be able to attract tenants.

Congrats on your property purchase. Hope you Huat Ah!

Thank you very much.
Same to you; Huat Ah.

And also many thanks for everyone who contribute their ideas.
As i am going to be "landlord" for the first time, can ValueBuddies share a bit more on how to relate to or "manage" housing agents (rental specialists) and the potential tenants they bring.
And how to or where to advertise to try to rent out the property as quick as possible. Who should liase with Utilities-like PUB, Telcom, etc.. Authorities?

i have read some books written by real landlords from Malaysia. A lot of sound and practical advices. But nothing can be more sound and practical than from our own Locals; Don't you agree? Of course, you do. Who can definitely know more things, rules & regulations about their own tuft?

May i learn from experienced landlords rather then from books or "crooks" (aka B4 got hooked -lock, stock & barrel. Hope it always remain a joke only.) The worst case is learning from my own shortcomings/lack of knowledge. It may turn me off just like many people who invested in stocks the first time without adequate "preparations".
So may i enjoy this new venture of my life with more pleasant and happy memories with the experienced & valuable help from "ValueBuddies".
Shalom.
Thank you very much.

[kichialo]

Hi Temperament

Shoeboxes are considered more risky because you are leasing it out to single expats/students. They generally do not renew their tenancy after 2 years, so you have to go and find new tenants, which leaves your apartment not generating cash flows in the interim period. They may also be called away to regional postings/student exchange, so they may terminate the lease on short notice and willingly forfeit the deposit. Also, the pool of tenants is highly correlated to the state of the economy. If the economy takes a turn for the worse, then you may find your target group of tenants returning home. When that happens, who will you find to rent a <500sqft space from you?

Finally, the following is just my personal observation.. But if you lease it out to single male tenants, they tend not to take very good care of the apartment, e.g. leave coffee stains on the marble, blackened spots on the worktop, grimy walls, etc. So, if these terms to protect your own interests are not stated clearly in the contract, you might have to incur costs to make good the apartment.

As a rough rule of thumb, the yield on a property generally reflects the riskiness of the property type. But generally, so long your apartment is located within close proximity to CBD, a MRT and amenities, you should be able to attract tenants.

Congrats on your property purchase. Hope you Huat Ah!

Thank you very much.
Same to you; Huat Ah.

And also many thanks for everyone who contribute their ideas.
As i am going to be "landlord" for the first time, can ValueBuddies share a bit more on how to relate to or "manage" housing agents (rental specialists) and the potential tenants they bring.
And how to or where to advertise to try to rent out the property as quick as possible. Who should liase with Utilities-like PUB, Telcom, etc.. Authorities?

i have read some books written by real landlords from Malaysia. A lot of sound and practical advices. But nothing can be more sound and practical than from our own Locals; Don't you agree? Of course, you do. Who can definitely know more things, rules & regulations about their own tuft?

May i learn from experienced landlords rather then from books or "crooks" (aka B4 got hooked -lock, stock & barrel. Hope it always remain a joke only.) The worst case is learning from my own shortcomings/lack of knowledge. It may turn me off just like many people who invested in stocks the first time without adequate "preparations".
So may i enjoy this new venture of my life with more pleasant and happy memories with the experienced & valuable help from "ValueBuddies".
Shalom.
Thank you very much.

Just to chip in although I am also a new and inexperienced landlord. For a start the Council of Estate Agents which is the regulatory body has on its website some information on what is expected of agents' standards and behaviour. There are also some useful documents or templates.

[georgelee]

ive own 3 studio units so far.. all 3 are doing pretty well in terms on rental yield. however...being a landlord does have its woes...one tenant i had was a nightmare...they are disastrous i would say. Most of my appliances are poorly maintained...Find the right tenant and a responsible one is the difficult task..