What the rental yield calculator does
This calculator works out the return on an investment unit from its rent: the gross yield (a year's rent against the price) and the net yield after running costs and empty months.
With your loan details it also shows what is left, or what you top up, each month after the instalment.
What you should know
- Gross yield
- A year's rent divided by the price. RM2,500 a month on a RM600k unit is 5.0%
- Net yield
- Gross rent less empty months, maintenance and sinking fund, quit rent, assessment and insurance, divided by the price
- Sinking fund
- Usually 10% of the maintenance charge, collected by the building's management for major repairs
- Agent's fee
- Commonly one month's rent for a one- or two-year tenancy, paid by the landlord
- Income tax
- Rent is taxable income. Costs such as maintenance, quit rent, assessment, insurance and loan interest can be deducted
- Selling within 5 years
- Malaysian citizens pay real property gains tax of 30% on the gain in years 1 to 3, 20% in year 4 and 15% in year 5; none from year 6
Good to know
- Use rents for similar units in the same building or street, not the asking rents in ads, which are often higher.
- A new project with many investor buyers can have a lot of units for rent at handover, which pushes rents down for the first year or two.
Figures reflect the rules as we understand them and can change. Check with your bank, lawyer or LHDN before you rely on them.