14/06/2023
Let's tackle one of the common challenges when it comes to investing in a new project—estimating rental returns. But fear not! I've got a nifty method that'll help you make an informed decision before diving into your investment.
Step 1: Take a virtual stroll to Google Maps and find similar condos or apartments nearby. For instance, let's say we're eyeing a shiny new project on Old Klang Road. I'd check out completed projects like Millerz Square or Verve Suite, which happen to be around 500 meters away. They'll serve as handy references.
Step 2: Now, head over to trusty property websites like Property Guru and iProperty. Type in Millerz or Verve Suites, and filter the results by the number of rooms. Sort them by price per square foot. You'll discover the best rental rates the market has to offer. But wait, there's a twist! Reduce the rental amount by 20% to see if it can cover your monthly installment.
Let's break it down with an example. Say the monthly installment for a 3-bedroom unit is RM2,600, and the estimated rental is RM2,900. Hey, that means the current market rental can comfortably cover your monthly expenses. Win-win!
If you're feeling extra adventurous and want to maximize your rental returns by renting out individual rooms, visit room rental websites like iBilik. Look for rooms in the same location and calculate the average rental price for each room type—master room, middle room, and small room.
Still with me? Great! Now, using our trusty project as a reference, decide if you'd like to partition out the living room. Add up the earlier calculations to get a fantastic estimation of your potential cash flow.
Last but not least, deduct the monthly installment amount from your estimated rental returns, and voila! You've got yourself a solid estimate to help you decide if this project is worth your investment.
So go forth, my fellow property enthusiasts, and make wise decisions armed with this handy technique. Happy investing! 🏠💰✨
