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Rental yield per annum is the percentage return based on rental income from the property after deducting the costs incurred to maintain the property versus the total purchase price of the property.

Capital gain is the gain or loss incurred after selling the property. In short, you will only get the capital gain when you sell your property.

To determine whether your property is making money from the rental you are collecting is more than just comparing the rental amount with your monthly instalment. There are a lot of other costs involved in owning a property that you must take into consideration.

If you have decided to target expatriate professionals, and have narrowed down the location to

Mont Kiara, a 672-square-foot condominium unit at Verve Suites, Mont Kiara is currently selling at RM750,000. The market rental rate is RM2,800 for a fully furnished unit.

Some of the property cost that may be incurred in a year are the maintenance fee (RM0.33 per square foot), assessment tax, quit rent and mortgage insurance. Let’s assume that the cost of maintaining the unit runs up to RM3,500 a year.