If Wan to do property investment, which one to buy? FOR RENTAL. FOR CAPITAL APRRECIATION.

I heard a sifu webinar talk, keep saiding MLTA is d best bcoz got cash value.
Which I don't really understand why its better since d cost is so much.

MRTA super hard nearly impossible transfer if you decide to flip/sell house.

MLTA is transferable if you sell house + cash value.

It depends on how long you intend to hold onto property also.

If like wan to hold 5 - 10 yrs plus then sell, which one better?

MLTA transfer, free of cost?
What is d purpose of buying insurance?

MLTA if you can afford it. Because then if you payoff your first property loan and get another property you can use existing MLTA to cover the 2nd loan without paying age-related premium increase 😂 5-10 years later if you take a second loan and get MRTA for the 2nd loan, your MRTA insurance premium will get much higher because you're older and more high risk

For that kind of short period you either get MLTA or just go without insurance. MRTA not worth the hassle and cost for only holding 10 years or less.

Transfer between property cost is not high, you need to discuss with your bank/insurer. Usually quite straightforward as long as coverage can cover the loan amount, because it's life linked, not property link. As long as you're living and breathing the MLTA will follow you lol

buying insurance is so in case if you die or become total permanent disabled (TPD), you and/or your dependants can at least pay off the loan with insurance payout without risking your loan become NPL and your property seized by bank if you can no longer afford to pay loan instalments

For MRTA your bank will slowly reduce amount covered until end of term, it becomes 0 at the end of the loan term. It is strictly used to settle any outstanding loan amount if death or TPD. Example if you buy RM300k coverage MRTA for 20 years, 20 years later you'll get nothing.

MLTA you get full payout of the cash value once you finish MLTA term. Some MLTA include investment aspects to help cover some of the costs like sales charge etc.

This post has been edited by DragonReine: Jan 11 2021, 08:16 PM

MLTA is not linked to the property, but linked to your life.

Lets say u buy RM 500k MLTA, it will be used to pay any of your remaining loan, be it your first or second property, in unforeseen circumstances.

Thus, it's aimed to protect your family from paying house loan or have extra money for their living.

If you plan to have 2nd or 3rd properties, go for MLTA.