Banker's Thoughts

Investment means placement of money in selected intermediaries in hope for good returns to suit ones' risk appetite. It is something all should learn to do to grow your money. If not, the value of money become smaller by years because it is eaten by the extreme inflation. There are a lot of investment opportunities available in the market now. We will look at property investment for today. How do people earn from property investment? Normally, they earned returns from 2 methods: rental and trade.

When someone purchase a property with the intention to rent it out, he is actually hoping to earn rental income every month. Some prefer to trade with properties; which mean buy at low price and sell it at high price.

Last week, I went for property viewing with my friends in Vista Komanwel, Bukit Jalil. Vista Komanwel comprises of 3 phases which are A, B and C. We made an arrangement with the selected property agent to view a unit at 9th Floor in Vista Komanwel A. The unit was empty because the tenant already moved out and the owner decided to sell it off. For location wise, Vista Komanwel actually is not so strategic located or easy accessible compared with B and C. It took a long walking distance to reach the entrance of Vista Komanwel A from Vista Komanwel B.




The unit consists of 3 rooms and 2 bathrooms. The built up is 1,422 square feet. The selling price is RM220,000 according to the agent. The monthly rental can fetch up to RM1,500 per month. Generally, the tenants are students from Asia-Pacific Institute of Infromation Technology (APIIT). Based on our observations, mostly students who rent there are African students. It takes 5 to 8 minutes drive from Vista Komanwel A to APIIT. Every numerical evidences sound reasonable. However, the unit was not up to our expectation. Everything inside was quite in a mess. It will incur some additional charges to fine tune the place if we wanna use it for rental. The inadequacy of information provided by the agent was another major factor to consider. She was not polite throughout the viewing and do not seem to know about the owner's intention. As you can see from the pictures, there are still some wardrobes and cabinets everywhere in the house. She does not know whether the owner will remove them and who should bear the cost of removal. The balcony is actually facing a highway which is quite annoying if the tenant is looking for a peaceful home (tenant might bargain for lower rent due to the issue). The maintenance of Vista Komanwel A was far below our expected level. That is what make us think the property does not worth that much. We actually spend less than 15 minutes in that unit to identify all the flaws.

We decided to move on our venture and step into Vista Komanwel B for viewing and enquiries. The location of Vista Komanwel B was far far much better than Vista Komanwel A. The accessibility is easier from the main road. The entrance is extremely strategic. It is just situated opposite of International Medical University (IMU). We can observe a lot of local IMU students walking in and out of Vista Komanwel B. We even interview some of them for our knowledge. Mostly occupants are students from IMU due to the proximity for schooling.

Vista Komanwel B consists of 3 blocks. Compared to Vista Komanwel A, the maintenance is much more better. We were not able to view the interior of any unit from that block. However, we all agreed that Vista Komanwel B is far more worth than others. Apparently the pricing for unit here does not differ much compared to Vista Komanwel A.

We did not manage to have a look at Vista Komanwel C. However, we did some research and the pricing at there has a slightly higher market value. It is situated nearby IMU too. In conclusion, we are totally agree that it is worth buying for investment for Vista Komanwel B. The things to consider include proximity to IMU and the condition of the blocks. Bear in mind, the property is for rental purpose, we may want to sell it off in the future for higher price. Condition of the block plays a vital role to ensure appreciation of the selling price in the future.

Do share with me if you all know anywhere in Klang Valley that able to fetch high rental. I seriously looking for one. Thank you!!!