The 3 most common types of Real Estate Investment In Malaysia

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Thought of earning profit from real estate investment but not sure if it’s profitable? We understand you want to expand your passive income, and it can be lucrative if it is done correctly.

Here are some investment types that can help you make an informed decision about property investment and personal finance.

1. Residential Investment

Residential investments are investments in properties with residential land titles, such as terrace houses, apartments, and condominiums. When compared to other commercial property investments, it has a lower entry price point where investors and homebuyers can achieve bigger loan margins (margin of financing up to 90%).

2. Commercial Investment

This category consists primarily of office buildings, Small Office Versatile Office (SOVO), Small Office Flexible Office (SOFO), small office lease office (SOLO), Small Office Smart Office (SOSO), and so on. Commercial assets are frequently involved in multi-year leases. This results in a larger and more stable cash flow, even when market rental rates fall. When investing in commercial properties, one issue to consider is the larger upfront capital outlay because, unlike residential properties, the margin of financing is usually smaller than 70% – 80%.

3. Retail Investments

Retail real estate investments are similar to commercial real estate investments, but with different mechanics and desirable locations. This investment combines real estate and business investments. In some circumstances, the landlord obtains a part of the tenant’s profits in addition to the regular rent in order to keep the property in excellent condition.

Conclusion

Real estate is a common industry for potential investors. The real estate market has its own set of challenges, such as a residential real estate overhang. However, if you choose the correct real estate investment that matches your purchasing power and demands, it may generate a strong return on investment (ROI).

Engaging a real estate professional to guide you with your real estate investment journey. Talk to us today!

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