In one of my previous blogs, I advertised to sell my first house on 19 August 2014. I rented the house for RM600. The current tenant was a good paymaster. The payment was always made on time. Soon after my advertisement including in my facebook, the tenant told me September will be their last month to rent the house. This was a good news for me. My house is located in a hot market. If the current tenant want to quit renting, I can raise the rental for a new tenant.
My advertisement for rent was published in 6 September 2014. The asking price was set for RM800. After submitting my advertisement, I pray for Zohur. As soon as I finished my pray, someone call me asking to rent the house. Wow, that was fast. Normally, it took a day for an advertisement to get publish. And it took a couple of days for any inquiry on the house. Since, I don't have the house keys, I set the visiting date to be at the end of the week and hoping I can get the house's keys. Within a few days, more than 10 people already expressed their interest to visit the house. Some of them want to move in immediately. But, I cannot allow them to do that until they view the inside of the house.
Unfortunately, I cannot get the house's keys by the end of the week while in the following week, I went to KL and Kuantan. Finally, the visiting day was finalized on 20 September 2014. And there were more than 25 people already contacted me to visit the house. But on 16 September 2014, I visited the house due to Malaysia's day celebration and manage to meet one of the potential customers. This customer is smart since they managed to visit the house earlier by asking permission from the current tenant to get inside! After updating the visiting day to all potential customers, I waited at the house from 12pm to 5pm.
There was one main purpose for me to ask my potential customers to visit the house: to access their background in order to determine whether they are worthy to rent my house. After more than 17 years having tenants for my house, I was very sure what to ask in a way they don't realize what I have been doing. This will be revealed in detail in my 3rd affordable property investment seminar on 8 Nov. 2014.
Some of my potential customers need a few days to decide while a couple of customers wanted to see me on the next day to finalize the discussion. I finally choose to accept a tenant who was the first one I met and signed an agreement on the following day. There were still a few people visit my house on the following day. To their surprise, they were too late to rent the house when they met me at 5pm Sunday 21 September 2014.
What baffled me towards the end of the tenant hunting, some of them can afford to buy a house in the area based on their background. Here was my simple analysis:
Selling Price : RM150,000
Loan : RM150,000
Loan length : 30 years
Interest : 4.5%
Monthly : RM760.03
Since, the monthly loan repayment is less than the rental fee, most of them definitely can buy the house with profit. The main question was how to come out with the 10% deposit, lawyer fee and duty stamp? Once you know the tricks, you may bang your head on the wall for not taking the opportunity!
Another question one have to ask is how to make sure the loan is approved. This is also another investment trick which one should learn in order to progress quickly in the property investment industry.
To know the answers for both questions, you should attend my 3rd affordable property investment seminar on 8 Nov. 2014.
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