Years Purchase Calculations

Syazwani rented out her single storey terrace house located in Bandar Universiti at RM1200 per month. The rate of return of similar properties in that area is 6.5% per annum. Calculate the capital value of Syazwani’s property today. Her neighbor Encik Amirul offers to buy the house for RM300,000. Advise her whether to accept the offer or not.

Syaza wishes to sell his house which is freehold interest. The house was let at market rent of RM2,640 per month gross. Advise her on the minimum price she should offer if the investment return of property is at 6% per annum.

What is the present value of the right to receive RM10,000 per annum for the next 10 years? Assume an interest rate of 7%.

An investor could receive RM200,000 per annum for the next 20 years. What sum would this investor be prepared to accept today if interest rate is 5%.

Alif intends to buy a house with freehold interest located in Seri Manjung. He will receive a net income of RM24,000 per annum from the property which will commence in 7 years time. Calculate the capital value of the property if the return is 8% per annum.

Recently Daniel bought a freehold property which yields an income of RM36,000 per annum. However, the income will only commence in 3 years time. Assuming 7% interest per annum, calculate the value of the property to Daniel.

Puan Zakiah wishes to buy a leasehold property located in Bandar Universiti, which gives a profit rent of RM3,600 per month for 15 years. Assuming the rate of return for similar properties is 6% per annum, the sinking fund can be invested at 3% per annum, and tax is at 30%. Advise Puan Zakiah if the offered price is RM 400,000.

Encik Ramli owns a leasehold property with a profit rent of RM1,200 per month for 10 years. Assuming a rate of return is 6%, Annual Sinking Fund is 2.5%, and tax is 30%. Calculate the value of Encik Ramli’s interest.