Buying to rent out
We would not pay a Mont Kiara premium unless the rent supports it. We would not buy in Dutamas just because the asking price is lower, either. The useful comparison is what remains after costs, not which address sounds better.
This guide focuses on ordinary residential tenancies. If you are choosing a home for yourself, our Mont Kiara vs Dutamas own stay comparison is the better place to start.
Start with a reason someone would rent your unit
Mont Kiara: a school focused family rental
For this strategy, we would shortlist a proper family layout around Jalan Kiara for Mont’Kiara International School, or Jalan Kiara 3 for Garden’s main campus. Separate bedrooms, practical storage and usable parking matter more to this proposition than a dramatic lobby.
The location gives you a reason to approach that tenant group. It does not prove a waiting list of tenants or a particular achievable rent. Garden’s Early Years Centre is in Desa Sri Hartamas, so “near Garden” is not one single location.
Dutamas: a home chosen for the Publika area
A smaller apartment around Solaris Dutamas is a different proposition: a single person or couple who wants that shopping and dining destination nearby. We would favour a usable bedroom and living area over extra floor area that disappears into corridors.
Keep the search focused. A generic Dutamas address does not deliver the same reason to rent as a home genuinely convenient for Publika. Neither suggestion depends on assuming tenants are expatriates or that one area always rents faster.
Higher rent does not automatically mean a better return
Imagine two shortlisted units. These figures are invented to explain the calculation, not current Mont Kiara or Dutamas prices, rents or area averages.
| Item | Unit A | Unit B |
|---|---|---|
| Purchase price | RM900,000 | RM750,000 |
| Monthly rent | RM4,200 | RM3,600 |
| Gross yield* | 5.60% | 5.76% |
| Rent for 11 months | RM46,200 | RM39,600 |
| Annual running costs | RM10,000 | RM9,000 |
| Left before loan and tax | RM36,200 | RM30,600 |
*Monthly rent × 12 ÷ purchase price. This headline figure assumes a full year of rent and ignores expenses.
The running cost allowances include building charges, repairs, insurance, property bills and letting costs. They are example budgets, not quoted fees. Purchase costs and initial furnishing are separate.
Our reading: A costs RM150,000 more but produces only RM5,600 more a year after the assumed vacancy and running costs. That is about 3.73% on the extra purchase price, before financing and tax. The bigger rent alone is not a convincing reason to pay the premium.
On purchase price alone, the remaining annual income is about 4.02% for A and 4.08% for B. Their returns are much closer than their rents suggest. Including buying and furnishing costs would lower both percentages.
Would either unit pay for its own loan?
Not in this example. With 90% financing over 35 years at a constant 3.8% annual rate, A’s RM810,000 loan costs about RM3,490 a month. B’s RM675,000 loan costs about RM2,908.
Spread the income left after running costs across 12 months: about RM3,017 for A and RM2,550 for B. That leaves monthly cash shortfalls of roughly RM473 and RM358, before tax or unexpected expenses.
The rate, term and financing margin are illustrations, not bank offers. Eligibility and available terms vary. A cash shortfall is not the same as an accounting loss, because part of the loan payment repays principal, but it is still money the owner must provide.
Use the rent to set a price ceiling
Suppose you choose a 4.5% annual return before financing and tax on your total acquisition cost. That is a hypothetical target, not a promised or recommended market return.
For B, RM30,600 ÷ 4.5% gives a maximum total cost of RM680,000. If buying fees and initial furnishing were RM30,000, the purchase price would need to be around RM650,000, assuming the same rent and annual costs.
At RM750,000, that unit does not meet the chosen target. The options are a lower price, a different property or accepting a lower return. Hoping for an unproven rent increase does not fix the calculation.
Our buying costs breakdown and condo fees guide cover the expenses to include.
So when would we choose each area?
Mont Kiara: when a specific family unit has a credible school location advantage and evidence of achieved rent that justifies its purchase price. A neighbourhood reputation is not enough.
Dutamas: when the particular unit offers the tenant a clear convenience benefit and leaves more income after costs for the money invested. A lower asking price by itself is not enough.
For a real purchase, we would base the rent on recent comparable tenancies in the same building, with similar size, furnishing and parking, rather than the highest online advertisement. Signed rental evidence is stronger than asking rent; repeated ads may represent the same unit.
NAPIC’s residential market status data provides wider supply context, not a rental guarantee for an individual condo. Our preference is the purchase that works on supportable rent today, without needing a quick resale gain to rescue it.