Letting Of Properties And Property Investment Companies in Malaysia

There are many reasons why people may choose to let out their property instead of selling it. Perhaps they are unable to sell due to market conditions or they may need the income from the rental to cover mortgage payments. Whatever the reason, if you are thinking of letting your property there are a few things you should be aware of.

In Malaysia, the most common type of property investment company is a real estate investment trust (REIT). A REIT is a company that owns, operates or finances income-producing real estate. REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends.

There are many benefits to investing in REITs. They are a liquid investment and can be easily bought and sold on the stock market. REITs are also a diversified investment, which means they can provide a steadier return than investing in a single property.

However, there are also some risks to investing in REITs. They are subject to the same economic conditions as other publicly traded companies, so their share price can fluctuate. Additionally, REITs may be leveraged, which means they have borrowed money to finance their properties. This can make them more volatile in a downturn.