Hi All,

I am pretty new towards property investment and I would like to understand the pros and cons of Residential vs Commercial title in Malaysia. Would anyone care to share some pointers out please? Thank you

Kinda tired at the moment. To keep it short, residential=capital appreciation for landed and rental yield for condo, commercial=capital appreciation and rental yield. Residential are for beginners, commercial are for advanced(aside from service apartment). Will continue after i sleep. Have a lot of documents to go through at the moment

Looking cyberjaya property?

@christiano7mu
hahaha yes. However, would really like to learn more.

I learnt something yesterday which requires confirmation. According to my aunt (which has been in property investment for 20 years), she mentioned that utilities rates in "commercial" title are higher most of the time.

Any1 can clarify and provide me more advices on this?

Utilities, assessments are more expensive for commercial rather than for residentials. Each asset class has its own merits and there is no hard and fix rules as to which is better. Otherwise most people would only invest in one type of property. I don't think we can summarise residentials are for beginners and commercials for advance.

at the end is Making Money whether it is leasehold, freehold, landed, condo, residential, commercial...

+1

an agent told me that for SOHO that comes with commercial title: if the owner register water & electricity bill under an individual's name (rather than a company name), then the water & electricity bill will be charged at residential rate, anyone can verify this?

Pretty hard to confirm! You have to wait until you got strata title for your unit and you got individual meter registered to syabas. Then only you know how long this will taking to be ready!

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Added on March 20, 2011, 3:41 pmPretty hard to confirm! You have to wait until you got strata title for your unit and you got individual meter registered to syabas. Then only you know how long this will taking to be ready! Otherwise under bulk meter, pretty hard to devide all the bills payable. Also need to pay for the bills charged under common areas. How the rate will be?

This post has been edited by kh8668: Mar 20 2011, 03:41 PM

There are some comments from residence in Saville Residences which indicates its possible.
Check it out :
http://saville.49.forumer.com/viewtopic.php?f=3&t=17

great, seems like it is really possible, then the utilities bill issue wouldnt be a big hoohaa anymore. i wonder what would be the actual variables that decide whether commercial title will be charged at residential rate or vice versa.
anyway thanks a lot

Viva Residency at Jalan Ipoh had done that long time ago.... and other service apt are following the trend as well..

http://biz.thestar.com.my/news/story.asp?f...36&sec=business

Haha.. the purpose of this thread is not to find which is better actually but to "know" what am I investing in.

Any other pointers that could be shared? I'm pretty sure there should be difference in "Residential" vs "Commercial"

Even residential there are quite a fair few subclasses - apartment, condo, low costs, terrace, semi-d, bungalow, land and Commercial - office space, retail lots, shophouses, land. Every single one has its own pros and cons. Not least the difference in prices.

Dealing with tenants again quite different over the different class. Chances of a low class tenant in a low costs property compared with educated people in higher class properties. One would stupidly avoid paying you rent while the other, even run away with 4 months unpaid rent, you will still say, that's one hell of a good tenant.

What exactly are you looking at the difference between the two?

@michaellee
I'm trying to understand the difference in the title thats all. Why the need to seperate Residential vs commercial? Because I do see places where it is holding Commercial title but it is actually deemed as Residential in my opinion (Condo, apartments, etc).

Residential title property = the property only for residential use. specific use stated in the title.

commercial title property = the property only for commercial use. specific use stated in the title.

so...hahaha

This is a rather new thing. Commercial land actually attracts a higher land premium. For every township, the town planner will always proportionate their land to certain percentage. However, as some owners who bought commercial land find that perhaps office space or shopping centre might not fetch as much profit (possibly due to oversupply) they will build service apartment which essentially is residential built on commercial land.

Commercial title somewhat favors the developers when they are doing projects that raises the density ratio in that area substantially.

As well, some commercial titled projects chooses not to give / sell / rent out their parking space, that is not an option in residential titled.

Note that higher utility bills aside, your maintenance fees are higher too?

But, on the other hand, commercial titled properties favors the investors WHEN the location has all the ingredient for commercial success,
it'll give your residential unit a =Boost=

This post has been edited by 1ullaby: Mar 21 2011, 11:10 PM

Commercial utilities rates are higher than residential.

Those are called service apartments or SOHO

Those under commercial title are not obliged to offer parking space. If u got then , if didn have,

I disagree slightly. The plot ratio of each land has already been predetermined by the relevant council so it does not matter if it is residential or commercial. In town planning there are also plots of lands which are designated high density residential. You are right about the car parking space.