Many years ago, whenever I come to KL to visit my friends or shop around, I will stay in my friend’s rented condo in Kelana Jaya. The condo’s name is Kelana Puteri. It’s a medium cost, leasehold, high density condominium. At that time though I have never felt the ‘medium cost’ because I was only staying in a medium cost 700 sf apartment in Penang. I have nothing against leasehold at all. You can read about my thoughts about ‘leasehold’. As for the last reason, high density, I have never ever felt so before because the land area inside the condo was huge. There’s a huge swimming pool, by far largest I have ever seen thus far. Two tennis courts, two squash courts, a 220m square walking track as well as kid’s playground.
One day right opposite my friend’s rented condo, I saw a ‘for sale’ sign. I called and got to know that the price was RM195K. 1055 sq ft. Thus it was just RM184 per sq ft which even more cheaper than my 700 sf medium cost apartment in Penang! I searched around and got to know that the rental then was RM1,000 – RM1,200 depending on empty versus furnished. I called the agent, viewed the property and in the evening gave an offer of RM190K. The agent called back and said seller said min RM192K. I bought my first property in KL.
Within one month, I rented it out, fully furnished, with TV, Fridge, Washing Machine and whatever you needed. My friend asked, ‘are you not worried since you work in Penang and your property is in KL?’ Well, to be honest, even if I am renting out my apartment in Penang and I am working in Penang, of course I would be worried. However, my reasoning is, if you choose your tenant well, the risks are minimised. For 5 years, I rented the property out without any hiccups until I finally moved to KL and have a ready place to stay. 🙂
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Impressive! How do you handle expenses for repairs on investment properties? We have no mortgage on our home but still spend a lot on maintenance.
That has to be factored in, no other choice. I think on average it’s RM100 or RM1,200 for one whole year. Of course, buy right instead of trying to make things right later. If the condo is in very bad condition, normally I would not consider as I have no time.
Bro, any good rental property to grab on current market?
Asali, I really have not started looking yet. Still observing. However, my focus will only be in less favoured areas with potential. never in popular areas.