Does the rental income generate positive cash flow?
The average rental range of an unfurnished 850 sqft and 1000 sqft unit is RM1600 and RM1750 respectively and not able to sufficiently cover the monthly instalment.
On the other hand, the average rental income of RM2200 earned from a fully-furnished 850 sqft and 1000 sqft unit will adequately cover the monthly instalment. They have a gross rental yield of 5.4% and 4.8% respectively. Moreover, there are currently not many fully furnished units available in the market which also means the competition is relatively lower to rent out.
Which investment earns you the highest rental yield?
Of the 2 unit types, the fully-furnished 850 sqft unit generates the highest gross rental yield at 5.8%. The generally accepted market average is around a 5% rental yield.
With that being said, the bigger fully-furnished unit of 1000 sqft which comes with 4 bedrooms will be more suitable to target tenants with families. The rental yield for this is at 4.8%. Thus, identifying your preferred target tenant will help you make the correct investment choice for you.
Should you invest in M Vertica KL City?
Based on the calculated rental yields, we think M Vertica is a good property for investment. While we calculate and make predictions based on available data, an investor also needs to consider the time and effort taken, the tenant profile suitability and any other unforeseen risks.
We hope this property research has been informative.