Property Purchase – Rhythm Avenue USJ19

Scenario
Invest in a residential property to gain positive rental income and capital appreciation… hopefully.
First step … picking the right property

Solution
Rhythm Avenue at USJ 19 is the first choice I made.
Kind of funny since it is this same property that went abandon about 7 years ago which got me into trouble.
but…Here’s why I made the decision.

The revival was done up pretty well just like most newly completed condo… by Malaysian standard.

The property is sitting on prime commercial land at USJ 19.

It would be better if it’s on residential land since that would save me on bills, fees and others.
But it does have it’s benefits if they have key tenants taking up the retail lots.
Which they have!

Carrefour & Digital Mall which of course consist of many mini-tenants.

I believe this the only condo in USJ having such key anchor tenants right below it.
It’s also just minutes away from Taipan and near the LDP & Utara-Selatan highway.

Of course… being in a prime location and having good anchor tenants would mean nothing
if the “price is not right”.

So, is the “Price Right”? Does it bring in positive cash-flow?
Here’s a basic calculation base on my purchase

Base on a similar unit I rented out for RM 850 per month.
I consider it partial furnish.
Didn’t do much…. just the grills, lights & fans.
Furnish with fridge, wash-machine, bed-room set, sofa & portable kitchen cabinet.

Principle paid is average out within 5 years loan period

That’s RM 3840 per year from an initial investment of

For the lawyer’s fee, I receive a 50% discount for Stamping (Thx to budget 2009)

So, that’s a ROI of 16.3% per year.
I didn’t even calculate property appreciation.

Anyway… the bottom-line is, the price definitely is right base on the rental it can bring in.
It’s pretty obvious actually… a decent condo in USJ at RM 145k is a steal.

The disadvantage is that it’s pretty hard to get a decent loan from the banks.
Decent meaning…  good rates, term period & margin of finance
Probable due to it’s abandon history, hence you must shop around.

Oh yah… did I mention it’s Freehold.