The total rent collected throughout the possession of the shoplot is RM200 000. Calculate the return on investment obtained by Encik Yusuf. Solution: Total rent RM200 000 Capital gain = RM1 300 000 — RM486 000 — RM60 000 — RM15 000 — RM15 000 —RM18 000 — RM450 000 RM256 000 ~ Total return = RM200 000 + RM256 000 = RM456 000 RM456 000 Retu stment => x 100% turn on investment = 2 E05 999 =16% Ea Encik Hussein bought a house on 1 January 2015 in Cheras at RM300 000 and cleared 10% down payment of M30 000. He expects a return of 30% over 20 years. Encik Hussein sold the house at a price of RM600 000 after having owned the house for 20 years. The loan amount amortised to the bank was RM475 000. During that period, he managed to earn a rent of RM60 000. Other expenses incurred are as follows: Stamp duty (during sale and purchase) RM4 000 Agent's commission RM2 000 Legal cost during sale and purchase — RM4 000 What is the return on investment for Encik Hussein for 20 years? Did he achieve his expectation to get a return of 30%? Solution: Return on investment = Rent + Capital gain = RMG60 000 + (RM600 000 — RM30 000 ~ RM475 000 — RM4 000 — RM2 000 ~RM4 000) RM60 000 + RM85 000 = RM145 000 4 _ RMI145 000 " Return on investment = R300 000 x 100% — « 9, Encik Ht -d to obt ite of retu -ao ee retum of 30%. ao OC Q QM ©