How To Maximize Renting Potential Of a Property

Tips on how to Maximize Renting Potential of a Property

Have you recently just bought a property for investment purpose? Or do you have a property that you are planning to rent out to earn some extra monthly income? There are many houses for rent in Selangor nowadays. With so many properties around nowadays, the competition in the rental market is high. Whether you plan to buy a property for investment purpose or trying to earn from the property that you already own, this article will guide you through some tips on how to maximize the renting potential of a property.

1| Right property 

First is to understand your needs in a property

Whether to buy an apartment, condominium or landed property is one the questions that you should ask yourself. Is a condominium much better than a low-cost apartment in terms of rental yield? Are you looking to have a higher rental yield? The type of property that you choose will have different rental yield. Hence the importance of right property. The rental yield per annum is the amount that you gain based on the rental income you get from your property after minusing the expenses incurred in order to maintain your property versus the purchase price of your property.

Therefore, you should also do your research on the rental rate of properties in the same area to find out the market rental rate and market demand. Also, it is also known that a high rise property will have better rental yield and a landed property will have a higher capital gain.

2| Do the calculation 

Next is to do your calculations

Once you finish doing and your research and have made a decision on which property to purchase along with the location of the property, you will then need to do the calculation on how much rental yield you will be getting to make your investment worthwhile.

For example, a condominium unit in Cyberjaya with 965 square feet is selling at RM 455,000, it will cost RM1,800 for a unit that is partially furnished based on the market rate. Assuming the maintenance cost for the unit in Cyberjaya is RM3,000 a year including RM0.25 of maintenance fee per square feet, quit rent, assessment tax, and mortgage insurance. The rental yield will then be:

Net rental yield = ([(RM1,800 x 12) - RM3,000] / RM 455,000) x 100 = 4.08% per annum

If you are purchasing the property with a home loan, it is essential to take the annual interest rate into account. For example, with 4.39% of interest for a loan of 35 years with 90% margin of finance, the interest during the first year will then be approximately RM19,356.

Net leveraged rental yield = (RM21,600 - RM3,000 - RM19,356) / RM45,500 x 100 

 = 1.66% per annum 

Based on the calculations above, the rental yield is not promising. It costs RM1,910 per month for the monthly repayment of the home loan, which is an extra RM110 more than your rental you receive. An investment with a fixed deposit that comes with interest rate of 4.15% will give you a higher return as compared to renting out your property.  

Therefore, it is important to do a calculation before investing your money in property. 

3| Manage your investment 

Managing your property

Bear in mind that property investment requires a lot of hard work and it is an illiquid investment as compared to another form of investment such as unit trust. Once you have decided to invest in property, you will need to spend time on managing it. From bringing your potential tenants to have a view on your property to preparing tenancy agreement, paying taxes and maintenance fees, collecting rental and repairing any wears and tears on the property. However, you could engage a real estate agent to help you manage your property if you do not have the time to be involved in all the processes. The agent fees are charged as follow:

Duration of tenancy	Fee
Up to 3 years	1.25 months gross rental
More than 3 years up to 4 years	1.50 months gross rental
More than 4 years up to 5 years	1.75 months gross rental
More than 5 years	1.75 months gross rental
More than 5 years without option for renewal	1.75 months gross income
More than 5 years with option for renewal	1.75 months gross income + 0.25 months rental for every additional year

4| Know the target market 

Are you targeting families to rent to

Or students from a nearby university?

Next, you will need to identify your target market to help you decide on which type of property to buy and which location to consider. Your target market could be expatriates, corporate tenants, students or young working adults. Ask for your real estate agent’s opinion if you are engaging with their services as they know better on which location is the best based on the target market. Remember to put yourself in your target tenant’s shoes. For example, if your target tenant is students, you will then need to take factors such as public transportations, banks, supermarkets into consideration. Finding the right target market will help you to narrow down the type of property to invest in.

5| Tax implications 

And how can we forget about taxes?

a. Property tax

The property owner will need to pay for assessment tax based on annual rental value for the property based on the assessment by local authorities. As for landed property, RM0.0035 per square feet of quit rent is charged annually.

b. Income tax

All Malaysians will have to pay for income tax if their total income exceeds RM5,000 per month. However, the total amount you pay can be reduced if you offset it with mortgage interest payments, repair costs and property management costs.

c. Capital gain tax

It is also known as Real Property Gains Tax (RPGT). It is charged on gains from the disposal or sale of real properties or shares in Real Property Companies. If you are planning to sell off your property, you will then need to pay the capital gain tax for the profit you make from selling your property.

You're good to go to with planning your rental agreement!

In conclusion, renting off your property should not be a difficult task as long as you have the right property located at a right location and managed well. It might be troublesome at some point, but it definitely is rewarding and worth the hassle that you have gone through.

Iringan Bayu Seremban | Playground of the Wind 27th Jan to 25th Feb 2018

What to expect at the Iringan Bayu Playground Of The Wind

Today I took the time off to explore the Playground of the wind at Iringan Bayu Seremban. I’ve been seeing their posters everywhere on my social news feed and finally managed to make my way here within an hour drive away from Kuala Lumpur. So if you're wondering what to expect at the Playground of the Wind, here’s a preview of what you’ll be able to do while you're there. FYI, the ‘playground’ is open every weekend from 27^th January -25^th February 2018 between 10am to 5pm. Be sure to not miss out on this exciting period!

Featuring 20,000 pinwheels in one location

I know it may be a property attraction, but im living proof that you can actually just enjoy your day here without feeling pressured by any of their friendly sales person who purely just wants you to enjoy the area. I was actually attracted to the idea where they were having this 10 wind-spired highlights as their activities that you can check out while you're there, and guess what?! They’re all inspired by pinwheels! So imagine seeing pinwheels everywhere in a greener environment.

10 Wind-Spired Highlight

Walk by the passage of Dream

Make a wish at the pavilion of wishes

The breeze plaza

If you’ve gotten this far in the post, you might be wondering what are the highlights while you're here at Iringan Bayu? Let me break it down to you. While you're here, you can explore the forest of chimes, visit the pavilion of wishes and make a wish, go through the passage of dreams, visit the walls of wind-inspiration symbolizing diversity and stop by the breeze plaza to get a feel of the easy breezy vibes.

Watch the spinning spectacular sensation turn as the wind blows

Drop by the pinwheels of purity

Take pictures with these dazzling displays of pinwheels

Choose your color at the wheels of fortune 

Other than that, you can also check out the pinwheels of purity to spin a pinwheel for a bright future, check out the dazzling displays, take some photos at the spinning spectacular station, find your choice of color at the wheels of fortune and nail your favorite pinned pretties for a ‘WINDY-ful’ future. Most of these checkpoints are 100% insta-worthy places to take pictures, and they are very nostalgic to those who used to enjoy playing with pinwheels during their childhood days.

Official Launch

Why not checkout the property while youre there!

There will also be different activities happening on different weekends, so be sure to plan your weekend ahead with friends and family to visit the Iringan Bayu Seremban show village. To launch this wonderful township on the 27^th and 28^th of January, you can join the sistawork Workshop, play with wooden block games, get artsy with handwork, enjoy yummy fluffy cotton candy and maybe bring home your very own DIY paper pinwheel workshop! With so many activities happening, it's definitely something not to be missed if you happen to be around Seremban. Pastura properties are available from RM390k* only (terms and conditions apply) with guarded neighbourhood and is a freehold development. 

3^rd -4^th February 2018 – Hunting Ground

10^th -11^th February 2018 – Wind Festival

25^th February 2018 – Chinese New Year Highlights

RSVP through their Facebook Page under Events

Tell me if this is not any childs dream to be surrounded by Pinwheels?

At the Iringan Bayu, im reliving my childhood with pinwheels!

Iringan Bayu Seremban is by OSK Property bringing you a master plan that gives you space within a serene environment. Located in the heart of Seremban, Iringan Bayu is a home for those who want a modern living which includes a spacious park, design and future growth. And if you ask me, im looking forward to their 22-acre Central Park, crafting an enriching lifestyle concept surrounded by peace and serenity. Now that you've heard about it, why not make some time over the weekend to enjoy the presence of 20,000 pinwheels? It would be best if you could RSVP so that they can ensure that the food present would be enough for everyone to enjoy. Plan your week ahead for an enjoyable time with family and friends featuring pinwheels. 

Iringan Bayu Seremban

Website | Facebook | RSVP here  

Iringan Bayu Seremban | Weekend Family Activity

Look at it spin!

I can't believe that it's already 2018, and to me, it also means that im another year older. Being at this age in time, to some its still the best age to spend your life, but to keep my spirit young, i like to reminisce the times when I was younger where I was more carefree, energetic and not to forget the times where I like to run with the win with my neighbours. Hehe. C'mon, don't tell me I'm the only one who feels this way? OH! And another nostalgic toy I used to play with was the pinwheel, the thing that spins when you run or when the wind blows.

I remember having one pinwheel as big as my face

They come in different forms and sizes

Talking about pinwheels, people would like to talk more about the colors of the pinwheel and back then, if you had the shiny metallic blades, you had a cooler pinwheel. I mean, to really think about pinwheels, I think it's a great representation to present whimsical, carefree, innocent, happy and playful. Being once a child, I remember how holding a pinwheel really made me felt slight power depending on how strong the wind is, and to me, that was what all that matters. Also the fact that by having a pinwheel, it gives you this feeling of being one with nature.

Iringan Bayu | Changing your lifestyle through winds of renewed living

Have you ever wondered what a pinwheel symbolizes? I did some research because I'm older and curious, and to my surprise, it actually has a meaning of turning ones luck around. Apparently, to the Chinese culture, it is believed that the pinwheel is an instrument to turn obstacles into opportunities. It symbolizes so much that it actually makes you think about the unseen energy that the eye can't see, which makes it fascinating to really think about how a pinwheel can make your mind explore.

A CHANCE TO RELIVE YOUR CHILDHOOD

Check out this amusing video i found on Facebook!

Iringan Bayu is featuring 20,000 pinwheels during their launch!

Being in a modern era, I must admit that toy's like these aren't easy to come by since digital toys are taking over the generation. But, what if I told you that you'll get a chance to relive your childhood in Seremban? That's right, Iringan Bayu Seremban brings you 20,000 pinwheels for a windy-full weekend with your family and loved ones to launch the opening of their new Show Village of Iringan Bayu. If you would like to bring your family out to enjoy the winds of nature, why not head on over to the Irigan Bayu launch happening on the 27th of January 2018! Psst, they'll also be event activities available for your family as well.

LIVING IN YOUR YOUTH | Iringan Bayu Seremban

3D Interpretation of Iringan 

Imagine being given the chance to live a life where you won't have to worry about your kids being outdoors in a guarded neighborhood. Iringan Bayu Seremban is the ideal family home as they have designed this property to have a practical layout with full utilization of space! It also has a comprehensive amenities close to home, making it easy for you to jog, cycle and event with outdoor gym equipment too. It also claims to have a wide living space, and the highlight of it all would be the fact that the location is green, where you get a location where you can get fresh air each time you wake up in the morning.

Spacious design with utuliszation of space

It all sounds too good to be true, so im actually planning to go for the launch next weekend to really see it for myself. Will I be seeing you there? Hehe. If you would like to see it for yourself as well, don't forget to register (link below) to be invited to the pinwheel exhibition AND at the same time enjoy the green environment. I'm hoping to take some cute photos with the pinwheels as well while I'm there. So honey, if you see my next post with a pinwheel in it, don't make me say that i already told you so. Be the first few today to sign up and explore the beauty of Iringan Bayu Seremban and the art of pinwheels.

Register now to get an exclusive invite to the one of a kind pinwheel 

https://goo.gl/forms/mhDPjS9s0Y3DIDgu1 or contact 06-630 4656 now!

Find out more on Iringan Bayu: Click Here

Event Activities to look forward to: 

7 - 28 January 2018

Sistawork workshop

Wooden Block game

Hand Artsy

Yummy Fluffy - Shaped Cotton Candy

DIY Paper pinwheel workshop

Food Truck

3 Feb to 4th Feb 2018

Bubbly Bobble

3D Artwork Workshop

Dreamcatcher DIY Workshop

DIY Paper pinwheel workshop

Lokal Food store

10th Feb to 11th Feb 2018

Giant Kite Flying

Acoustic/Folk bands & solo performances

Buskers budget

Incl Bosco White, Statues, Floating army

Magician showcase (Family friendly comedic style)

Handy Art

Lokal Food store

[PROPERTY] The Greens @ Subang West | Two-Riffic Bonanza Campaign

The Greens @ Subang West

Being in my mid-twenties, I find it rather challenging to find properties that I can afford. Recently I went to check out a property at The Greens located in Subang West, for a preview of how the place and location looks. I was fascinated by the offer as the price starts from RM482k* for a unit of your own, in a very central area with easy access to highways. (BONUS POINTS) Thus giving me a reason to share with you on a great property to invest/buy together with an ongoing campaign called the"Two-Riffic Bonanza" Lucky Draw Campaign.

The CBHB group has carved a strong foothold in the local construction industry and now with another project expected to be completed in June 2018, The Greens @ Subang West. The Greens is a Freehold residential development comprising of 646 units of condominiums developed on a 7 acre land with a total gross development value of RM400 million. The condominiums are available in 8 different type of layouts from 3 bedrooms, terrace units and penthouse with built up raging from 915 sqft to 1,830 sqft.

The development emphasizes on healthy living and is fitted with over 45 facilities spanning over a 120,000 sqft park which includes a half basketball court, indoor and outdoor gymnasium, reflexology walkway, yoga deck, infinity lap pool, BBQ Terrace, Social Lounge, Cycling Track, Sauna Room and much more! The development also comes with multi-tier security system to create a safe and secure living environment.

Two-Riffic Bonanza Campaign

Just in case you brought your lucky star with you, let me just lightly share with you a thing or two about the Two-Riffic Bonanza campaign. The campaign is a gesture of appreciation from Crest Builder for their customers support for the past and future developments. The Two-Riffic Bonanza lucky draw campaign consists of four (4) Monthly Lucky Draws which are held every month from February to May 2017 and one (1) Grand Draw to be held in June 2017. The campaign grand prize includes Honda Jazz, Mac Book & an Ipad or alternatively you may stand a chance to win an iPhone 7 and mysterious prizes from their monthly draw prizes. All buyers are eligible to participate in both the lucky draws as they meet the qualifying terms and conditions.

Masterbed room

The kitchen space

Just making myself at home in the living room

Whos ready for dinner?

I'll definitely be keeping an eye on this property as its located in one of my personal ideal locations, and hopefully be suitable as an investment as well. Sharing to you from an architectural perspective, I would have to say that the layout has been well thought off and internal layout has been arranged to be maximized in terms of playing around with spacing. Not too bad for small families or if you're thinking to rent it out to MSU students, it would also be an ideal property that you can think about as its just 2km away from the university. Hehe. Do share me your thoughts and do leave me a comment below 

Sara ♥