Gross Rental Yield: approximately 4-6% depending on the location
Annual Appreciation Rate: approximately 0.88%
Vacancy Rate: approximately 15% in urban areas. However rate is lower in high demand city such as Kuala Lumpur
Choosing a location:
- A highly convenient area would be nice especially if it is near a university or near a city.
- Properties in area with higher population density will usually have higher rent yield than the others.
- Area with high tourism count will also be good as more customer will come.
Pros and Cons of Residential Properties
| Pros | Cons |
|---|---|
| Stable and predictable income from rentals | High initial capital requirement and financing challenges |
| Potential for property price appreciation | Ongoing property management and maintenance costs |
| Tax benefits such as deductions on property expenses | Risk of tenant turnover, vacancies, and late payments |