Once Upon A Time a Single Storey Semi-Detached House in Taman Perling was tenanted for RM500. With the miserable rent of RM500 per month from the tenant, the house owner could hardly cover the interest rate on the loan he took from the Bank.
So the Landlord gladly sold the house to his tenant for RM180,000 – releasing himself from the burden of negative equity every month.
Two Years later in June 2013, this same house in Taman Perling has more than doubled in value to RM400,000. Since the tenant got it cheap at RM180,000, he quickly sold it off for RM380,000 – netting a profit of RM200,000 in 2 short years.
I happened to pass by that same house last week. Saw a “To Let” Sign only. Upon enquiry I found out the asking rental price of the Happy New Owner. “RM1,800”, he quoted. Did I hear wrongly?
So I asked again, “HOW MUCH IS THE RENTAL?”. Again he replied, “ONE THOUSAND EIGHT HUNDRED RINGGIT!”
WOW! That’s More Than 3 Times The Tenanted Price 2 Years Ago When It Was Last Tenanted For Only RM500. As I drove away, I was calculating the monthly Bank Installment of the New Landlord.
Suppose he took a RM300,000 housing loan. His monthly house installment would be anywhere from RM1,500 to RM2,500.
His asking price reflect his cost of commitment. His rental must therefore, at least cover his monthly installment. I hope he finds a good tenant soon.
Down South in Taman Sentosa, a Corner Double Storey House on 4,000 sq ft was purchased in Year 2012. The “Sentosa Landlord” renovated the house into 11 Rooms with attached bathrooms.
He rented out the self contained studio for RM550 to RM650 per room – netting him a combined gross rental yield of RM7,000 per month.
With the escalating Boom in Iskandar HE HAS RAISED THE ROOM RENTAL RATE TO RM750 & RM850. And All ELEVEN ROOMS ARE FULLY OCCUPIED CURRENTLY! One Room For RM850? Expensive? No.
I drove round Taman Pelangi and made enquiry for similar rental room. I met Jimmy who is a Big Time Landlord here. His price is an exorbitant RM1,500 per room.
Upon viewing I saw a nice new King Size Bed but all other stuff were old – old water heater, old washing machine, old refrigerator & other worn out old stuff.
To my surprise, people are actually renting those rooms for RM1,300 to RM1,500 each. Now I understand why houses within the price range of RM600 to RM1,000 are quickly taken up in places like Masai, Ulu Tiram & Pasir Gudang.
And these are low cost houses and single storey houses- once rented for RM200 to RM350 only.
Gone For Ever Were Those Good Old Days When You Rent Houses For A Song In Iskandar.
Skyrocketing Rental Prices Follow Skyrocketing Purchase Prices Of Iskandar Properties!! AS PROPERTY PRICES RISE HIGHER AND HIGHER IN ISKANDAR – SO WILL RENTAL PRICES RISE IN TANDEM!! AND SO NOW YOU SEE!
If you are one of those fortunate tenants whose landlord is ignorant of rising rental prices. My advise is to pay your rental promptly. And during New Year or other joyful occasions bring food or fruits as gifts to your kind landlord.