OBD Condo - Golden Opportunity to get 8% yield

OBD is located in Taman Desa off Jalan Klang Lama, which is 5 minutes drive away from Mid Valley City. Within less than 5km away from one of the shopping hub where you can basically find everything, well, almost, under the sun, it is a bargain!

The company have just started tenancy on 1st April 2008 for a 2 years + 1 year term at RM3200 per month for this recently refurbished and fully furnished unit. Built up of 1586 sq ft and sits at above 10th floor, this unit is a must buy for all discerning investor. You take over the rental income after full release of the purchase price to the vendor.

Unit comes with one carpark. What you will get to enjoy is a FREE membership to a Health Club! You access it by paying a minimal fee of RM50/month. In this Health Club, there is SPA and Jacuzzi where you can enjoy. In additions, there is a Japanese Restaurant, Pool, Tennis Court, Salon, Bakery, Mini Market. Not to forget it is a FREEHOLD unit, where almost everywhere you get only leasehold unit.

Here is comes the simple calculations of the yield:-

RM3,200 x 12 months = RM38,400
divide by RM470,000 (selling price) = 8.17% pa

Maintenance fee is at RM 0.24 per sq ft and sinking fund is at 10% of it, which cost you RM380.64 + RM38.064 (10% sinking fund) = RM418.71 per month. If you want to add the assessment and quit rent which cost about RM140 per month, you have a total outgoings of RM558.71

Now, here is the nett yield calculations:-

RM3,200 - RM558.71 = RM2641.29 x 12 = RM31,695.48 divide by RM470,000 = 6.74% pa

How about that? No additional renovation costs, you just take over the rental yield after full release of money to the vendor!

* Picture courtesy of Shimizu Corporation.