You know what’s the real Number 1 investment in Malaysia? And by Number 1, I don’t mean the amount of money people have invested. I measure it by this: if you go to any random lecture hall, Starbucks, or office tower in Malaysia and shout out the words: “Hey mofos, I’m gonna invest in <xxx>!!!” how many people will think you’re crazy?

Well, if you shout out the words “Bitcoin” or “Stock Market,” a lot of people will cover their children’s ears and walk away. But this is what happens if you shout out “PROPERTY!!!”:

  • 80% of people will silently approve (tho still think you’re crazy for shouting in public).
  • 18% of people will have an internal debate about whether interest rates are too high, if rental yields are too low, or where’s the next “hot” area.
  • 2% will walk up to you and say “Hey, can you teach me?”

But property investment has a few problems… like affordability and liquidity. How many people can afford the downpayment for an RM 800k new development? And then the liquidity problem: even if you manage to buy a property at 500k, and the market price in five years is 750k — how quickly/easily can you sell?

Because if you can’t sell or rent easily — then you’re gonna be stuck paying painful loans for a long time…

Thankfully, this is where REITs come in handy. They allow investors to easily invest in the property sector — but without liquidity and affordability issues. (They’re also really good for lazy people like me.)

Think of REITs like unit trusts — but instead of investing in other stuff, they invest into property like shopping malls, office buildings and hotels. The best thing? At least 90% of their profits must be paid back to investors as dividends.

Typical Returns :

5-7 % per year

How to Start:

REITs are listed on the Bursa Malaysia Stock Exchange. Sign up for a stockbroking account to buy them. More at Stocks section below.

Best Places to Compare / Learn:

Guide to REITs

List of REITs

Guide to REITs

List of REITs

p.s. There’s also a special form of REIT for Bumiputeras called AHB.

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