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A Malaysian property investor who bought a serviced apartment adjacent to a cemetery 10 years ago is now reaping the benefits, earning steady monthly profits from what many considered a high-risk purchase.
The investor, known online as Faizul Ridzuan, shared his success story on social media.
He purchased a leasehold serviced apartment near the Kuala Lumpur City Centre (KLCC) area for RM750 per square foot despite its proximity to both a cemetery and low-cost flats.
At the time of purchase, forum users widely criticised his decision.
Most properties in the KLCC area were freehold, making his leasehold purchase seem unwise.
Cemetery Views and Cash Flow Challenges
The cemetery view was considered bad feng shui by many potential buyers.
“Many people’s first reaction was ‘crazy’,” Faizul wrote, recounting how online forums were filled with predictions that the property value would never appreciate.
The property came with additional challenges typical of service apartments – higher electricity bills and a developer with no proven track record in high-rise construction.
Initially, rental income barely covered loan payments, interest, and management fees, with many investors experiencing negative cash flow.
Three Years Later: Area Development Pays Off
Three years after taking possession, the area began transforming.
Commercial developments flourished nearby, the landscape matured, and the overall environment improved significantly.
Today, after deducting all expenses, including loan payments, interest, and management fees, the investor earns over RM500 per month from the property.
Faizul, a Universiti Malaya graduate, added that recent transaction prices for similar units in the area range between RM1,000 and RM1,100 per square foot—a substantial increase from his original purchase price.
Strategic Investment Analysis: Why It Worked
Beyond the surface-level contrarian bet, Faizul’s investment success was built on solid analytical foundations that many critics overlooked:
Superior Rental Yield Performance The property delivers a 9% rental yield compared to the market average of 6%, demonstrating that stigmatised properties can offer premium returns when properly positioned.
Grade A Property at Discount Pricing: Faizul identified the unit as a Grade A property purchased 20% cheaper than competitors, representing clear undervaluation in a tier-1 area due to market perception rather than fundamental flaws.
Risk Mitigation Through Diversification: The investment featured multiple rental strategies and tenant segments, creating what Faizul calls a “bullet-proof” investment. With more than three different ways to rent out the property, he wasn’t dependent on a single tenant profile or market segment.
Strategic Timing and Safety: As an end-lot purchase, the unit offered additional safety and desirability factors that partially offset concerns about the cemetery proximity.
Tier-1 Location Advantage :Despite the stigma, the property remained in a tier-1 area at an undervalued price point, ensuring long-term location fundamentals would eventually prevail over short-term market sentiment.
Lessons Learned: Research Over Opinions
Faizul’s biggest regret? Only buying two units instead of more.
I listened to people’s discouraging comments saying the property wouldn’t work out. I believe there’s no perfect property because perfect properties come with imperfect prices.
His advice to fellow investors is clear: conduct your own research rather than relying on others’ opinions, as everyone’s investment criteria and risk tolerance differ.
The success story underscores how contrarian property investments, although initially unpopular, can yield substantial returns when market conditions shift and areas evolve over time.
READ MORE: From RM37K To RM1.8M – Bangsar Uncle’s 55-Year Property Investment Pays Off Big Time
Disclaimer: This article is for informational and educational purposes only and should not be construed as investment advice or a recommendation to buy, sell, or hold any property. Property investments carry risks, and past performance does not guarantee future results. Readers should conduct their own research and consult with qualified financial advisors before making any investment decisions. Individual results may vary based on market conditions, location, timing, and personal circumstances.
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