Most property investors in Malaysia buy based on gut feeling, agent recommendations, or the promise of "capital appreciation." But if you're investing for cashflow — meaning the property pays you every month after all costs — you need a different framework entirely.
After analyzing over 5,000 listings across 8 Malaysian states, we've identified five reliable indicators that a property will generate positive monthly cashflow.
1. Gross Rental Yield Above 5.5%
The single most important number. Gross rental yield is calculated as:
(Annual Rent ÷ Purchase Price) × 100
In the current interest rate environment (OPR at 2.75% as of January 2026), you generally need a gross yield above 5.5% to have a realistic shot at positive cashflow after all costs.
Why 5.5%? Because once you factor in:
- Financing costs (4.0–4.5% effective rate for conventional, 3.8–4.3% for Islamic)
- Maintenance fees (RM 150–400/month for condos)
- Assessment tax and quit rent
- Insurance (MRTA/MRTT)
- Vacancy allowance (1 month per year)
...a property yielding under 5.5% gross almost always goes negative on a net basis.
Properties in our directory averaging 6.0%+ gross yield have a 78% probability of being cashflow-positive under Islamic financing.
2. Maintenance Fees Below RM 0.35 per sqft
This is the silent cashflow killer. A 1,000 sqft apartment with maintenance fees of RM 0.50/sqft costs you RM 500/month — that's RM 6,000/year eating directly into your rental income.
The sweet spot: RM 0.20–0.35 per sqft. Properties in this range tend to be older developments (10–20 years) in established neighborhoods with stable management corporations.
Watch out for:
- New launches with temporarily subsidized fees
- Developments with large common areas (pools, gyms, function halls)
- Mixed developments where commercial tenants haven't moved in yet
3. Within 800m of an MRT/LRT Station
Transit proximity is the strongest predictor of rental demand and rental rate stability in Malaysian property markets.
Properties within 800m of a rail station:
- Command 15–25% higher rents than comparable units further away
- Experience lower vacancy rates (average 0.5 months vs 1.5 months per year)
- Attract a wider tenant pool (young professionals, expats, students)
The MRT Putrajaya Line (opened 2023) and upcoming MRT3 Circle Line are creating new cashflow opportunities in areas like Kepong, Sungai Buloh, and Cyberjaya.
4. Islamic Financing Available at Sub-4.2% Profit Rate
One of the least understood edges in Malaysian property investing: Islamic financing frequently produces better cashflow than conventional loans.
Current landscape (February 2026):
| Bank | Type | Effective Rate |
|---|---|---|
| Maybank Islamic | Islamic | 4.10% |
| CIMB Islamic | Islamic | 4.15% |
| Bank Islam | Islamic | 3.95% |
| Maybank | Conventional | 4.35% |
| CIMB | Conventional | 4.40% |
The difference of 0.2–0.4% translates to RM 50–120/month on a typical RM 350,000 property — often the difference between negative and positive cashflow.
MRTT (Takaful) premiums also tend to be 5–10% lower than conventional MRTA, adding another monthly saving.
5. Three or More Rental Comparables in the Same Area
A property might look amazing on paper — 7% yield, low maintenance, near MRT. But if the rental estimate is based on a single listing or wishful thinking, you're building on sand.
Our threshold: minimum 3 active rental listings in the same development or immediate area, posted within the last 60 days.
When we see 5+ comparables, confidence is HIGH. When we see 3–4, confidence is MEDIUM. Below 3, we don't include the property in our directory — the rental estimate isn't reliable enough.
This is especially important in newer developments where rental markets haven't matured, and in areas with seasonal demand fluctuations (university towns, tourist areas).
Putting It All Together
No single indicator guarantees positive cashflow. The magic happens when multiple signals align:
- Strong candidate: 6.2% yield + RM 0.28/sqft maintenance + 400m to MRT + 4.05% Islamic rate + 6 rental comparables
- Avoid: 5.8% yield + RM 0.45/sqft maintenance + 2km to transit + only 2 rental comparables
The properties in our directory have been pre-filtered through all five criteria and analyzed under both conventional and Islamic financing structures — so you can see exactly which ones make the cut and why.