Real Property in Malaysia: Property Investment Tool: Investment Simulator for Single Unit or Multiple Units of Property with Same Unit Price

This tool is used to evaluate the gain/loss from the buy-and-rent of a property or multiple units of the property with the same unit price by comparing the approach of purchasing the property entirely with cash or with mortgage by taking into account the adjusted occupancy, rental rate, miscellaneous expenses to maintain the property and property appreciation.

To begin, user is required to specify the unit price of the property and to fill up the loan details (e.g. % of loan, interest rate and tenure):


Property Name

Unit Price	RM345,000

% Loan	90	%

Loan Interest Rate	4.2	%
Loan Period (Maximum 30 years)	30	Years

The calculator will automatically calculate the loan amount and monthly installment.

To proceed, the user is required to assess and specify the expected average monthly rental, % of occupancy per annum and the miscellaneous expenses to maintain the property:


Average Monthly Rental	RM1,500
% of Occupancy Per Annum	70	%

Other Average Monthly Expenses	RM250
[i.e. maintenance fee, housing tax, etc.]

This simulator is built to compare the gain of purchasing the property entirely in cash and if to purchase using bank mortgage (e.g. 80% loan, 90% loan, etc.) assuming that the purchaser can invest the balance of the free cash in hand (after deducting the down payment). User is required to specify the % Rate of Return per Annum in order to compare the gain net gain when disposing the property in future. For the % rate of return per annum, it can be based on the scenario if the purchaser placed the free cash in hand to a Fixed Deposit that offer, said, 3.5% annual interest rate or to invest in equity fund/bond that offer certain annual rate of return. Throughout this simulator, the figures indicated in red represent the investment related to this free cash in hand. If user does not wish to assess this option, just set the % Rate of Return per Annum to “0” (zero).


Initial Investment Capital	RM34,500

Free Cash in Hand	RM310,500
% Rate of Return per Annum	5	%
(if invest the free cash in other investment plan)


	Net Gain from Free Cash in Hand	RM195,272
	If Invested the Initial Lump Sum Cash in Hand	RM216,969

To account for the potential compounding gains/loss from the net income/expenses generated by the property over the period of time until the disposal of the property (mature period), user is required to specify the 'General % Rate of Return per Annum'. As reference, user can estimate the General % Rate of Return per Annum based on the general bank fixed deposit rate (refer to Fixed Deposit (FD) Calculator for the information). For example, if the net income collected from the monthly rental is placed in the bank fixed deposit and let the interest continue to compound over the period of time until the property is disposed, this can generate additional compounding gain to the owner.

In addition, user is required to specify the estimated '% Unit Appreciation Per Annum' in order to assess the appreciation of the property over the period of time until the mature period.


General % Rate of Return per Annum if the Net	4	%
Monthly Income Collected is invested.

% Unit Appreciation Per Annum	4	%

Unit Mature Period	10	Years

The 'Unit Mature Period' refers to the total duration from the initial ownership of the property (i.e. upon the first payment of the bank mortgage or collection of the house key) until the disposal (sale) of the property.

When disposing the property, various costs (e.g. legal fee, stamp duty, renovation cost, property agent fee, administrative fee, etc.) may be incurred. User is required to specify the estimated cost. The legal fee, stamp duty and RPGT can be calculated using the following calculators:


	Miscellaneous cost for disposal of the property	RM15,000
	(i.e. legal fee, RPGT, stamp duty, agent fee, etc.)

User can specify the following information to evaluate the investment return for multiple units of property with the same unit price:


No.of Unit Purchase	10
% of Occupancy Per Annum	60	%



Miscellaneous cost for disposal of the properties	RM150,000
(i.e. legal fee, RPGT, stamp duty, agent fee, etc.)

User can use this tool to simulate and assess the potential net gain from the buy-and-rent property investment strategy by evaluating the rent versus the occupancy rate in order to optimize the net gain over a period of time. For example, with the tool user can adjust (e.g. reduce) the rent, said below the market rate, in order to increase the occupancy rate and check on of this approach is going to affect the overall net gain.

Updated on 24^th April 2017