Buying new house - rent out current home or use savings

Discussion in 'Malaysia property' started by kick99, Feb 8, 2012.

  1. kick99

    kick99 New Member

    I am about to buy a new house. My current home is under water so I will not be able to sell it at this time. I have enough in savings for the down payment on the new house plus to put away enough money to pay the mortgage on the current home for 1 year. (Possibly 2 years.) I know that in this area I can rent it out for enough to cover my mortgage. My question is would it be better to leave it empty (no potential risk of damages by renters) or rent it out?
     
  2. jocelynm88

    jocelynm88 New Member

    I would rather setting two types of rental, because thru my experience:

    1) if you setting partial furnished/unfurnished - you may have tenants who is looking for fully furnished.

    2) if you buy all the furniture & fittings and decided to rent as fully furnished - you may have tenants only wanted partial furnished.

    I always advice my clients to setting two rentals, space for tenants to negotiate as well as landlords won't lost too much to cover the bills (quit rent/assessment tax) or management fees.

    In your tenancy agreement should have a clause:
    hope the above clauses example is helpful to you.
     
  3. luckikong

    luckikong New Member

    Rent it out...

    Absolutely, rent it out. You leave it empty it will worth nothing. But you rent it out, you can prove its worth and others good impression of this house. So when the time gone by, your house will worth more and more money. You know?
     
  4. stteck

    stteck New Member

    I do agree. As a small investor, we would hold a house for 3 to 5 years for whatever reason (bank loan lock in period, RPGT) under normal circumstances. renting it out can help to reduce bank loan burden.
     
  5. DustinYeoh

    DustinYeoh New Member

    Maximize whatever space you have by renting out.... it at least helps to take away the burden by a bit
     
  6. Alex0

    Alex0 Banned

    Guys am also want to buy a new house with tow bedroom if anyone here want to sale than contact here back i will appreciated .....
     
  7. fuzzy

    fuzzy New Member

    Personally - I'd rent it out - bare if possible.

    For one thing, there'd be less chances of damage (less items - less damage).

    Also, if you going to buying new furniture just to rent it out (you might be taking the old ones to your new place), then its just a lump of cash out of your pocket, only to be recovered thru a minor increase in rental over a period of a year. Or even possible two (built-in wardrobes do cost after all).

    On the assumption that you're renting it bare, there's little chance of heavy damage (or rare case at least). Paintworks and what not minor damages can generally be recovered from the security deposits.

    Just my 2 cents though.
     
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