Malaysian Buys KL Serviced Apartment Close To Cemetery, Makes RM500 Monthly Profit After 10 Years

Initially facing negative cash flow and forum ridicule, the investment transformed as the area developed commercially over three years.

Xiaohongshu:

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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.

The Cheras Christian Cemetery surrounded by high-rise residential buildings in Kuala Lumpur. Despite traditional buyer concerns that cemetery proximity affects property values, the dense urban development surrounding this burial ground suggests that such locations may actually benefit from permanent green space and limited future development competition. (Pix: Fernando Fong)

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.

A screenshot of Faizul’s sharing on Xiaohongshu (RedNote), a Chinese social networking and e-commerce platform.

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.

Aerial view of Jalan Ampang Cemetery situated near the KLCC area, which is known for its high-rise buildings and urban development. (Pix: Fernando Fong)

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.

The KL Hokkien Cemetery (bottom) viewed from the top of Merdeka 118. The perspective shows how cemetery-adjacent properties in prime urban locations can offer unexpected investment opportunities, with permanent green space and limited development competition contributing to long-term value appreciation. (Pix: Fernando Fong)

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.

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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