WHO SAY NO GOOD PROPERTY IN KK BELOW 350K?

I get this a lot, “where to invest in KK har?, KK so expensive nowadays, how to buy, want to buy also don’t have money lah” Same can be said about this 5 years ago, and I can safely predict 5 years later is still going to go up. With such a young demographic in Malaysia, 55% below 40 years old (almost there), housing is going to be a Need, there is no doubt about it. So don’t expect prices to drop anytime soon.

So can we capitalize on this instead of saying “Oh, I look at this before but I didn’t buy because blah blah blah” the truth is you still not going to buy if don’t have the balls to take the plunge. Anyway, can’t help you with your balls, but I could tell you a few places you could start your investment journey.

• Beverly Hills Apartment

This place has proven itself as an investors dream, I have a friend who invested 4 units here and is still looking for more. If you have a unit here it will probably be rented out in no time. Mature, good location, good and large rentals is what make him bought so many here. But still prices are still on the affordable side, from RM150k to RM320k the normal range with different square footage and different phases.

Rental range from RM600 to RM1100, affordable to the many out there thus its easy to rent out. Look for Phase 2 if you can because its nearest to the shops but second nearest may be good too. Choose the second highest floor instead going for the ground and 1^st floor as they are general more expensive.  If you are going to rent it out, it doesn’t make much difference in rental rates as supposed to buying a 3^rd floor unit.

Cons: Its Old and capital appreciation may be limited as there already a boom that pushes the values up. Then there is a fact that Beverly Hills apartments have being built for a for quite a while, more than 15 years so naturally you will need to be prepare to fork out some money to repair water damage or other wear and tear items.

• Cyber City Apartments

Good location, near to the airports, good rentals, near to shops and facilities it’s a very much under the radar for a while but recently the activities have pick up. Its actually very close to the city, normal traffic only 10 to 15 minutes. Recent addition of a fresh market right across from Cyber Square shoplots is an added bonus.

Price range from 150k to 330k, with the latter being the renovated unit. Rentals is good from RM700 to RM1100, tenants coming from office workers in the city to airlines personnel (some MAS air stewardess used to stay there, hmm)

Cons: The road leading into cyber city itself is full of potholes and not properly maintained. And it can get congested to go in and out, security guard lets in anybody who wave at them to go in. Go figure!

• Country Heights

Me and a few friends agreed this is the place to look out for to get good values now. Knowing KK people I think most would stay away because its too “ulu” and nothing fancy surrounding the area. But things may change soon as Gamuda Land have launched Bukit Bantayan Residence nearby, with prices starting from RM420k, and it was selling pretty well. I was told Phase 2 would be an increase in price.

Prices here range from 160k to 220k so there is still room for growth. Pan Borneo highway is said to be connected to this road as well but I don’t ask me when, we invest for long term remember? Rents are good RM700 to RM1100, with some owners getting 6% or higher for their rental yield. Shop around for good deals as there are many units on the market.

Cons: Have to wait for the development to come, and current tenant profile may be limited to low to lower middle wage workers who may not be as prompt with their rent. Kicking them out might need a bit more persuasion, if you get what I mean..

You may have noticed all of this is walk up apartments, but it’s the easiest to start your investment journey, you have to start somewhere, why not now?

• Try to shop around, as there many more sellers in the markets now than before, in fact today when I check mudah, there was 109 listing of houses for sale, I estimate around 400 listing for sale in KK alone, more sellers than buyers now.
• If buying walk up apartments, get 2^nd or 3^rd floor as they are cheaper yet the rentals but differ much, maybe RM50 to RM100 but the difference in values makes up for it.
• Buy nearer to the the exit because for high density development, morning queuing to go out, I call it “que out” may take a while as most people go to work around the same hours.
• Get a 2 or 3 bedroom if you can. Even when there is only 2 people staying, most will still need an extra bedroom for guest or store room etc. The tenant pool is larger and fits most typical families.
• To get good tenants, make sure you do a screening and NEVER compromised on the Deposit. If the tenant could not pay you a deposit what makes you think they will pay on time?
• Psf or price per square feet should be used as a guideline but not the absolute rule in buying your investment property.
• Investing property is a long term game at least 5 years so be prepared to wait. Collect rent while you wait for the capital appreciation.

Some wants to do investment and stay at their “investment” but rarely can you be objective when you are buying your own house. My advice is- Buy what you like for your house; buy what your tenants like for your investment.

Propertykid. Always Learning, Always Investing.