I just added 2 new online calculators which I think will be useful, especially for property investors out there. These calculators made specifically for property investors who rent out their property.
First, Property Rental Yields Calculator use to determine whether a property worth to be invested as rental income. Second, Tenancy Agreement Stamp Duty Calculator to find our the cost to stamp the rental agreement.
In general sense, people purchase property for the purpose of owner occupancy or investment. They are known as “home owners” and “property investors”. In this article, we shall take a closer look at the core differences between these two types of property buyers and the strategies that best catered them. It’s important for you to identify the category you fall into, before purchasing property.
In layman term, “homeowner” refers to people who buy property to live in (and not to rent it out). They consist of people who have the intention to stay in their property for long-term (longer than 10 years) with emotionally driven purchases. On the other hand, “property investor” refers to people namely landlord or property buyers keen on resale. These property investors usually do not reside in the property they purchase and if they do, it will not be long before they re-sell it once prices peak in the short-term (less than 5 years). They are normally more focused on profit above all, without being emotionally driven.There are a range of factors for property owners and home-owners to tackle differently.
With Malaysia’s booming economy and globalization, there is an influx of expatriates from various countries to our country. Georgetown is rapidly becoming an expatriate hub for its highly industrialized economy. To date, Penang has drawn numerous MNC companies into investing in the state comprising Dell, Intel, Motorola, Altera, Seagate (to name a few) centered in Bayan Lepas Industrial Zone area.
Due to the large number of MNC companies, it creates a huge demand in the market for serviced apartment among expatriates on work-affiliated assignments seeking for short stay. This causes undersupply issue with the inventory shortage on that aspect. Therefore, service apartment or short term rental is generating higher rental income when compared to rent from residential property.
Income derived from a rental property is taxable. If you own a rental property, the rental income obtained should be declared in your income tax return form.
Bear in mind that not all monetary transaction between the house owner & tenant is taxable. Also remember that certain expenses on the rental property are eligible for deduction to reduce the income tax.
Take a look at the following scenario.