Rented for: RM19,000 per month
Concluded by: Shawn Fernandez of Fernstate Sdn Bhd (012 288 1251)
When: March, 2014
· 5,000 sq ft land area
· 4,000 sq ft built-up
· Four bedrooms, one study, one maid’s room
· Six bathrooms with quality fittings
· Renovations completed in March 2014
· Partially furnished with full range of kitchen equipment (breakfast kitchen and working kitchen), curtains, blinds, an alarm system and CCTV cameras
The bungalow’s current owners bought the property in August 2011 for RM3.1 million in a deal brokered by the same agent. Its built-up then was 2,500 sq ft.
The property was subsequently renovated to increase the built-up to 4,000 sq ft and add a swimming pool for about RM1.8 million, said the agent. Renovations were completed in March 2014.
The property was rented out just as renovations were completed and the certificate of completion and compliance was issued. A couple working for a foreign multi-national company is renting the place at RM19,000 per month on a two-year agreement, with an option to extend for another two years. In comparison, average rents for bungalows in the area are RM15,000, said the agent.
A back of the envelope calculation shows that the yield of this property is 4.65%.
“Most people tend to think that they need to have a very large property to secure the high rentals. However, I have demonstrated with this property that this is not necessarily true. All you need is to engage someone with the right amount of experience and expertise,” said the agent.
According to data from the National Property Information Centre/theedgeproperty.com, from 2012 to 2014, there were only four transactions in Jalan Jelutong. In 2012, a home was transacted at RM3 million, or RM597 psf. In 2013, two homes were transacted at RM3.16 million, or an average of RM602 psf. In 2014, a home was sold for RM3.3 million or RM770 psf.
Average transacted prices for the period from 4Q2013 to 3Q2014 were RM699 psf, while average asking monthly rents were RM12,200, or RM2.14 psf, translating into yields of 3.7%. These findings were based on five listings. Details such as built-ups were not available.
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