What is GRR – the Guarantee Rental Return?  

The definition of GRR. 

• GRR is where the developer will rent a house that you bought with them, according to the rates offer for a certain period.  
• For example, the AX Developer offer 6% GRR of the home they are selling at price of RM400,000 for 20 years. This is a technique of the developer to attract the attention of the buyers. 
• So, the buyers will able to get the GRR of RM24,000 a year, and divided by 12 months which is RM2,000 a month, and can cover the monthly instalments to the bank. 

There is nothing wrong if you want the GRR package, but make sure you consider these things; 

• The price of the project with the property prices around the area. 
• Logic promised to return. 
• Have to look at the area whether there is high rental demand in that area. 
• Identify who is the developer, the company, and their reputation.  
• Understand the lease agreement, how much is the compensation if the GRR canceled?  

1. Not all projects have this GRR are evil developers. 
2. There are buyers who are enjoying this GRR that he obtained every year. 
3. All depends on you to analyze whether it is worth it or not.  

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