After my talk at the recent Havoc Hartanah KL 2016, a real estate negotiator sat down for a glass teh tarik with me. He was from a leading real estate agency in Malaysia and he asked me if there are still units which can provide positive yields. He has not come across any! In other words, every property he wanted to buy would only give negative yields or extremely low yields.
I told him that I would suggest that he look at rental first. For example if he is aiming for the RM1,300 to RM1,500 range, search under rental first. He can then jot down the names of those projects which are being rented out at the range that he wanted. Next search the prices of those projects. Those that could give positive yields can then be viewed and negotiated with. He laughed and said he had never thought of looking at rental first. I wished him the best.
Today, I read other piece of good news for him. Rental information for Klang Valley would be available from October 2016 onwards. It will be provided by JPPH. It was reported in The Edge Property. JPPH will start providing information on rental on subscription basis from October 2016. It will cover Klang Valley for now and the information would be based on the stamped tenancy agreement. With this data, JPPH is also able to give fairer value for properties based on rental yields. Of course, this may not provide every single information we need.
Right now, we can use property portals for comparison but nothing beats official data right. I remember over 21 years ago when I wanted to rent a room. There were no benchmarks. It’s a take it or leave it kind of situation. For someone looking at renting in a new place for the first time, all these information do help too. Of course for those thinking of investing, this will ensure he does not pay too high, else yield would negative. Happy referring and investing. Do note that it’s based on subscription basis.
written on 24 Apr 2016
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