For decades, Malaysians have been told that buying landed property was the ultimate way to secure long-term wealth.
After all, “land never depreciates,” right?
But recent experiences from homeowners paint a far less glamorous picture.
Instead of raking in passive income, many are bleeding money every month, especially in suburban areas where rental returns can’t even cover the loan repayments.
When dreams turn into monthly losses
The harsh reality is especially evident in areas like Semenyih, Kajang, Nilai, and Puncak Alam, where many investors are learning that expectations don’t always match reality.
While monthly bank instalments can hit RM3,700, the rental income in these areas typically sits around RM2,000–RM2,500.
This shortfall forces homeowners to dig into their own pockets, topping up hundreds or even thousands of ringgit every month just to cover the loan.
As one property investor put it on social media:
Many people think buying ‘landed’ property guarantees profit. But when rental rates remain stagnant, houses stay empty, and expenses pile up, the owners are the ones left struggling.”
Why investors are losing money
So, what’s causing this situation? Several factors are working against property owners:
- Low rental yields in suburban areas despite rising property prices
- High competition from the surge in new housing projects
- Costly maintenance like roof repairs, fence replacements, and general upkeep
- Limited rental demand, as most buyers in these areas prefer living in their own homes rather than renting
All of this combines to turn what many thought was a passive-income investment into a long-term financial burden.
Experts warn: Think twice before investing
Given these challenges, property experts are urging potential buyers to rethink their investment strategy before jumping into the landed property market.
Quoting mStar, one expert stressed that landed homes are better suited for personal residence rather than rental income, especially when the risks of loss are this high.
Simply put, the belief that “landed property always makes money” may no longer hold true in today’s property market.
