Things You Should Know About Commercial Titled Residences





Are you planning to buy a commercial property in Malaysia but cannot decide if commercial property is a good investment plan? Real estate agents get asked whether a commercial or a residential property is a good investment plan. A commercial property typically refers to retail buildings, office buildings, warehouses, industrial buildings, apartment buildings and mixed building where it can be a mixture of retail, office or apartment. SoVo units are also considered as commercial property. Many people have been asking what is SoVo. SoVo, also known as small office, virtual office is unit that can only be used for commercial purposes. This guide will list down the advantages and disadvantages of investing in a commercial property in Malaysia.

A) Positive reasons to invest in commercial property
i) High returns on investments
The best reason to invest in commercial property over residential property is the higher income potential. Commercial property will normally have an annual return on investments between 6% and 12%. In addition, the price of commercial properties can increase by double in a short time (3 to 6 years) as compared to residential properties where it would normally take between 7 years to 10 years. This however, is large depending on the area of the property.

ii) Longer lease
Commercial tenancy will have a longer lease between 2 years and 10 years, whereas residential tenancy will turn over every 6 months to 12 months maximum, which is considered short as compared to a commercial tenancy. This is due to business commitment that the tenants have committed to as they spent a huge sum in renovating the shops for business purposes, hence, a longer lease.


iii) Well-maintained property
Renovation is needed to suit the business needs of the tenants, therefore, tenants will be spending a huge sum in renovating the shops to maintain the store image. After all, it is important to look presentable to attract the customers’ interests. Hence, the property owner and the commercial tenants will have their interests aligned: the owner will be able to maintain the property’s quality and the tenants will be able to attract more customers.

iv) Tenants
It is common to have tenants that are from large companies or corporations whereas the tenants for residential properties are typically individuals. With such big companies or large corporations, you can worry less on late rental payment as they are more reliable and tend to avoid the breaching of tenancy agreement.

v) Furnishing
Tenants for residential properties will normally request or prefer a fully furnished unit whereas tenants for commercial properties prefer an unfurnished unit because they tend to refurbish and decorate the unit accordingly. This will then save the owner a lot of furnishing and renovation costs.


B) Negative reasons to invest in commercial property

i) Bigger capital
You will need to fork out a big initial capital as compared to residential property for 2 reasons: commercial properties are more expensive and lower loan financing from the bank. With bigger initial investment spent on a residential property, you can only the gain in revenue will outweigh the gain in cost.

ii) Higher outflow
The percentage of tenant quitting the rent will be higher than the tenant quitting the lease in a residential property. This is largely depending on the demand in rental yields. If the location of the commercial property is not located in a hotspot area, the risk will be even higher.

iii) Higher interest rate with stricter lending condition
Obtaining a commercial property loan is typically much harder than obtaining a loan for residential property. Even if you manage to secure a commercial property loan from the bank, the percentage of loan secured is much lower as compared to the loan obtained for residential properties where it can go as much as 90% loan financing. In addition, the interest rate of bank loan for commercial property is typically higher as compared to residential home loan.

iv) Commitment
Owning a commercial property will demand a longer time spent on management as you will be dealing with more tenants as compared to a residential property where you deal with lesser tenants. You will be dealing with multiple leases, maintenance issues, public safety and so on.

v) Risky
Commercial properties generally have more public visitors as it is intended for commercial use. Therefore, you risk getting damages on your property easier as there are many people in a commercial property as compared to a residential property. There are some risks that can happen unexpectedly such as car accidents, or spray paint on the buildings. These changes in infrastructure are unexpected and unavoidable. Besides, the rental yields depend solely on the supply demands. That being said, more populations will increase the number of tenants in a commercial property for business purpose. However, this is very unpredictable as there is a possibility of lesser rental yields that result in longer vacancy phase. Although commercial properties will have a longer lease of 2 years to 10 years, once the lease ends, it will take a longer time to find a tenant. That being said, you will then need to cover all cost on your own.

In conclusion, commercial property in Malaysia can be a good investment option as well as commercial properties can offer a more rewarding income but with more risks. Whether or not to invest in commercial properties in Malaysia is depending on your property investment portfolio and how much risk you are willing to take. Make sure you weigh the pros and cons to make the best real estate investment decision that is suitable for you.








Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

http://www.ienaeliena.com/2018/11/things-you-should-know-about-commercialtitled-residences-.html

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
4 Things You Should Know About Delivery Pallets Via Distribution Network

4 Things You Should Know About Delivery Pallets Via Distribution Network

papar berkaitan - pada 26/10/2018 - jumlah : 298 hits
Many companies especially manufacturing firms pack their goods on pallets Doing so increases the ease with which they move these goods from one area to another More specifically forklifts lift pallets easily and then they offload them at de...
The Top 10 Things You Should Do To Care For Yourself As You Age

The Top 10 Things You Should Do To Care For Yourself As You Age

papar berkaitan - pada 20/10/2018 - jumlah : 316 hits
Growing old is inevitable This is because you can t prevent time from moving so fast Most people suffer from a mid life crisis because they don t know how to take care of themselves Since aging doesn t happen overnight you should learn to p...
Essential Home Improvement Ideas You Need To Know About

Essential Home Improvement Ideas You Need To Know About

papar berkaitan - pada 8/11/2018 - jumlah : 275 hits
There are a lot of occasions on which you might need to improve the home and spruce up your property Your house is somewhere you need to be proud of and it is definitely something The post appeared first on
Should You Be Concerned About Testicle Size

Should You Be Concerned About Testicle Size

papar berkaitan - pada 8/11/2018 - jumlah : 333 hits
A number of men find themselves worrying over testicle size fearing that how big they are may affect their virility and sexual performance The good news is that there is no truth to the rumor that having smaller testicles compromises a man ...
Everything You Have Ever Wanted To Know About Google S Top Layer

Everything You Have Ever Wanted To Know About Google S Top Layer

papar berkaitan - pada 20/10/2018 - jumlah : 338 hits
Google has a long history of updating its search engine One of its earliest updates was the introduction of the Panda algorithm That occurred on February 24 2011 The idea behind it was to minimize duplicated content and keyword stuffing Oth...
4 Things You Should Do To Prepare For A Camping Trip

4 Things You Should Do To Prepare For A Camping Trip

papar berkaitan - pada 2/11/2018 - jumlah : 303 hits
One of the most exciting things people can do for fun is going on a camping trip This is one of the best ways you can interact with nature and enjoy your time with friends and family This will help you and your family or friends to break fr...
Travel Etiquette Tips 6 Things Should Know

Travel Etiquette Tips 6 Things Should Know

papar berkaitan - pada 4/11/2018 - jumlah : 278 hits
It is fun being somewhere What s more if it is rich in foreign culture we have never seen before again if it is unique and indeed another That what is best when traveling and vacationing in a foreign country In addition travel also broadens...
Terliur Tengok Kempen It S All About You Dari Domino S

Terliur Tengok Kempen It S All About You Dari Domino S

papar berkaitan - pada 3/11/2018 - jumlah : 394 hits
Assalamualaikum Akhir akhir ni makin berleluasa pulak iklan Domino s kempen It s All About You Rupa rupanya dah 21 tahun umur Domino s Malaysia dan cawangan pertama dibuka kat Malaysia di Johor pada tahun 1999 Kempen It s All About ni sempe...
Saka Bapak Kau

Beli Rumah Lebih Jimat Dengan Kempen Hartanah Bumiputera Matrix

Natural Gas Fuel Not A Hazard

How Car Centric Planning Is Killing Malaysians

Masjid Lapangan Terbang Sultan Abdul Aziz Shah

Top Picks Best Trucks For Towing In 2025

15 Playful Midcentury Kids Room Ideas For A Retro Vibe

Khutbah Jumat Jumadil Awal Tangis Ibnu Rawahah Jelang Perang Mu Tah


echo '';
Senarai Lagu Tugasan Konsert Minggu 1 Gegar Vaganza 2024 Musim 11

Info Dan Sinopsis Drama Berepisod Dhia Kasyrani Slot Akasia TV3

Biodata Terkini Reshmonu Peserta Gegar Vaganza 2024 Musim 11 GV11 Penyanyi Lagu Hey Waley

Gegar Vaganza 2024 GV 11 Hadiah Tiket Peserta Juri Format Pemarkahan Dan Segala Info Tonton Live Di Astro Ria Dan Sooka

6 Janji Donald Trump Kalau Dia Naik Jadi Presiden Semula


Movie Jangan Pandang Belakang 2

Samarinda Lara Kasih

Daging Goreng Belengas

Kempen Hartanah Bumiputera Khas Untuk Pembeli Bumiputera Mendapatkan Rumah Dengan Tawaran Giler Menarik

Apabila Musuh Mengerumuni Umat Islam Seperti Hidangan

Pesakit Diabetes Mengalami Masalah Mati Pucuk