Does the rental income generate positive cash flow?
The rental range of an unfurnished 960 sqft unit is RM1,700 and is not able to sufficiently cover the monthly instalment. Moreover, many of the units are at least partially furnished. Thus, this shows potential tenants of this residence are expecting some furnishing at the very least.
On the other hand, the average rental income for the semi-furnished and fully-furnished units is able to cover the monthly loan instalments and generate a positive cash flow.
Which investment earns you the highest rental yield?
Of the 3 unit types, the fully-furnished 960 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, all the fully-furnished units are able to obtain a gross rental yield of above 5%. Thus, the choice may come down to the target market’s preference in size.
Should you invest in Paraiso Residence?
In conclusion, there are many factors to consider when choosing the right property for investment. While we calculate and make predictions based on available data, an investor needs to consider the time and effort taken, besides planning for any unforeseen risks when investing. We hope this property review has been informative.