Property invest

I read something interesting today about investment on property, it tells that we need to know the rental rate there before you buy the property and a good guideline for residential investment is about 6% (or more) rental returns.

This mean that if you got the annual rental return with more than 6% of your property value, then that property is worth for invest. Here is the formula:

Rent/month X 12 months
____________________ X 100 = 6%
   Property Value

Besides that, we also need to consider how long will that property be filled up, how is demand vs supply, growing rate and so and so.

I think 6% calculation is quite helpful for benchmarking if that property is worh for investment or not, but I think it is hard to find a condominium in Penang for a 6% rental return now, isn't it?

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