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If you get professional advice and buy in the right location investment gains in Malaysia can reach 90% per annum annualised based on both capital growth and rental returns. Financing is readily available for overseas buyers but knowing how, where and when to buy is crucial.
This was one of the over 280 Malaysian property deals we sourced last year and is typical of the Malaysian investment property deals we source.
| 3 bed/2bath Condominium |
Purchase Price: RM440,000 |
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Refurbishment to luxury international standards was arranged by us using our network of interior design specialists and contractors - total reburbishment cost was RM82,000. Total cost was RM522,000 (US$149,000 - £70,000). Currently tenanted to a Japanese family on 2+1 year renewable lease at RM5,500 per month. This property was bought with furniture and the tenant already in place, therefore no voids.
Gross Yield – 12.6% per annum
Management Cost - RM350.00 per month
Repayment mortgage at 85% LTV, 6.25% interest rate, through one of our recommended brokers who deal with our Malaysian investment property deals.
Gross Income
Rent - RM5,500 pcm: RM66,000 p.a.
Outgoings
Monthly interest payments - RM3,033
Insurance - RM42.00 pcm
Management Cost - RM350.00 pcm
Net Income - RM2,075.00 pcm: RM24,900
Cash Position
Deposit: 15% RM78,300
Finders Fee: RM13,800 (depending how many properties you purchase)
Legal Fees: RM3,800
Total
RM95,900 (£13,700 or $27,000)
The areas we target for our Malaysian property investment deals are seeing an average of 12% capital growth each year.
Therefore - on average - $27,000 invested into each property deal that we promote would return at end of year as follows:
Net income: RM2,075.00 x 12 = RM24,900 per annum
Capital Growth: at an average of 12%
Start of Year 1 Value: RM522,000
End of Year 1 Value: RM585,000
Return on Investment calculated as:
RM24,900 + RM62,640 = RM87,540 - or 91.3%
(RM87,540/RM95,900 x 100%)
Of course this is an average - and does not take voids into account - but gives you an idea of the potential available in Malaysian property in the market we target.
This also shows why capital growth is the key factor when looking to get a strong return on investment.
Maximise your leverage, cover your costs, and target local affordability and you will see fantastic return on investment.
All our Malaysian investment property deals go very quickly and demand has constantly outweighed supply. To discuss your situation or any of the property deals available: Contact Us
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