1. Buy ONE US property (USD 40K) without loan with rental yield up to 24%.
2. Buy ONE NZ property (NZD 500K) with 90% loan (interest 5%) with rental yield of 8%
3. Buy ONE MALAYSIA properties (RM800K each) with 80% loan (Interest 4%) with rental yield of 3%.
Assume no inflation for the next 30 years and your RM120K will turn to:
USA RM 63,2280 [519.11% increment from purchase price of RM121.8K]
NZD RM 1.517million [1213.6% increment from deposit of RM125K deposit]
M'SIA RM214,640 [178% increment from deposit of RM120K]
Details calculation are as follow:
*** USA
Detail: 3 beds landed double storey with about 1500 sqf in Atlanta, US
After 20 years with using USD 40,600 to purchase a house (RM121,800)
= House cost + Profit of 30 years
= USD40600 + USD5672 x 30
= USD40600 + USD170,160
= USD210,760 (RM 632280) [519.11% increment from purchase price of RM121.8K]
*** NEW ZEALAND
Studio 1 BD room
After 20 years with using NZD50,000 (RM125,000 as deposit)
= House cost + Profit of 30 years
= NZD500,000 + NZD3560 x 30
= NZD500,000 + NZD106,800
= NZD606,800 (RM 1.517million) [1213.6% increment from deposit of RM125K deposit]
*** MALAYSIA
Purchase price = RM 800,000
Deposit (10%) = RM 120,000
Loan = RM 680,000
Loan monthly for 30 years with 4.2% interest = RM3326 per month
INCOME (Yearly)
Rental (3%) = RM2000 x 12 = 24000
EXPENSES (Monthly)
Loan = 3326 x 12 = 39912
Maintenance = 200 x 12 = 2400
Tax = 100 x 12 = 1200
Total Income (yearly) = RM24000
Total Expenses (yearly) = RM43512
Profit = RM (24000 - 43512) = - RM19,512
After 30 years with using RM120,000 as deposit
= House cost + Profit of 30 years
= RM800,000 - RM19,512 x 30
= RM800,000 - RM585360
= RM214,640 [178% increment from deposit of RM120K]
ADVISORY WARNING: This website provides information as an educational service to its readers and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Readers and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the reader or prospect's individual analysis and decision making. The author expressly disclaim any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information.
*** USA
Detail: 3 beds landed double storey with about 1500 sqf in Atlanta, US
Purchase price = US$ 33,000
Renovation = US$ 6,100
Lawyer fee = US$ 1,500
Total Purchase = US$ 40,600
Deposit = NA - Pay by cash
Loan = NA - Pay by cash
Loan monthly for 35 years with 1.5% interest = NA - Pay by cash
INCOME (Yearly)
Rental = US$825 x 12 = US$9900
EXPENSES (Yearly)
Loan = 0
HOA = $432
Insurance = $500
Property Tax = $1265
Management (10% of rental) = $990
CPA = $300
Tax = (10% of rental income for foreigner) = $641.3
Total Income (yearly) = US$9900
Total Expenses (yearly) = US$4228.3
Profit = US$(9900- 4228.3 ) = US$5672 per year
Return on Investment (ROI) = (Profit/Deposit)*100 = (5672/40600)*100 = 13.97%
After 20 years with using USD 40,600 to purchase a house (RM121,800)
= House cost + Profit of 30 years
= USD40600 + USD5672 x 30
= USD40600 + USD170,160
= USD210,760 (RM 632280) [519.11% increment from purchase price of RM121.8K]
*** NEW ZEALAND
Studio 1 BD room
Purchase price = NZD 500,000
Deposit (10%) = NZD 50,000
Loan (90%) = NZD 450,00
Loan monthly for 20 years with 5% interest = NZD2970 p/m
INCOME (Yearly)
Rental (8%) = NZD3333 x 12 = NZD40,000 per year
EXPENSES (Yearly)
Loan = NZD35,640
Insurance = NZD500
Property Tax = 0
Management (10% of rental) = 0
CPA = NZD300
Tax = (10% of rental income for foreigner) = 0
Total Income (yearly) = NZD 40,000
Total Expenses (yearly) = NZD 36,440
Profit = US$(40000- 36440 ) = NZD3560 per year
Return on Investment (ROI) = (Profit/Deposit)*100 = (3560/5000)*100 = 7.12%
After 20 years with using NZD50,000 (RM125,000 as deposit)
= House cost + Profit of 30 years
= NZD500,000 + NZD3560 x 30
= NZD500,000 + NZD106,800
= NZD606,800 (RM 1.517million) [1213.6% increment from deposit of RM125K deposit]
*** MALAYSIA
Purchase price = RM 800,000
Deposit (10%) = RM 120,000
Loan = RM 680,000
Loan monthly for 30 years with 4.2% interest = RM3326 per month
INCOME (Yearly)
Rental (3%) = RM2000 x 12 = 24000
EXPENSES (Monthly)
Loan = 3326 x 12 = 39912
Maintenance = 200 x 12 = 2400
Tax = 100 x 12 = 1200
Total Income (yearly) = RM24000
Total Expenses (yearly) = RM43512
Profit = RM (24000 - 43512) = - RM19,512
Return on Investment (ROI) = (Profit/Deposit)*100 = (-19,512/120000)*100 =-16.26%
After 30 years with using RM120,000 as deposit
= House cost + Profit of 30 years
= RM800,000 - RM19,512 x 30
= RM800,000 - RM585360
= RM214,640 [178% increment from deposit of RM120K]
ADVISORY WARNING: This website provides information as an educational service to its readers and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Readers and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the reader or prospect's individual analysis and decision making. The author expressly disclaim any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information.
