From RC, a viewer who wrote in by email
RC is 36 with three children. He and his wife earn about RM20,000 a month together, and his side business brings in about RM25,000 more. They own a Shah Alam apartment bought for RM345,000 in 2014, rented at about RM1,600, and a RM1.3 million semi-D bought in 2023, both in joint names, so any further loan is capped at 70%. He is thinking of a Bukit Jalil condo to rent out until they downsize in 20 to 25 years, which would need about RM150,000 down and RM2,200 a month.
Does it make sense to buy now, rent it out even at a small loss, and move in at retirement? Or should he sell the Shah Alam apartment?
“Invest in properties using credit. Invest in everything else using cash.”
Don't buy it. Nobody knows what he will need, earn or be able to do at 56, and putting RM150,000 into a 70% loan for an own-stay project is the wrong tool. Sell the apartment, which frees a 90% loan for each of them, and buy for cash flow instead.
Why
Twenty years is too far to plan a home
By 56 his income, health and family will all be different; if his side business grows, he may prefer somewhere quite different. A building also needs good management to stay in shape for decades, and the Urban Renewal Act uses 30 years as a checkpoint. Sean expects oversupply in parts of Bukit Jalil.
Joint names used up both 90% loans
Each Malaysian gets two 90% loans for residential property. A couple who buys every home jointly uses both people's slots each time, so their third purchase is capped at 70%. Selling the joint apartment frees a 90% slot for each of them.
At 70%, many units beat this one
With 30% down, which is the international norm, almost any KL project rents for more than its instalment. Putting RM150,000 down on an own-stay project only to break even is a poor use of that cash.
The apartment is ready to sell
Held for about ten years, it falls outside RPGT, which is counted from the SPA date. Sold at RM330,000 to RM350,000, it would roughly clear the loan, and a cut in interest rates would make it easier to sell as more buyers qualify.
What to do
- Prepare to sell the Shah Alam apartment, and ask agents to test the market now.
- Keep the RM150,000 invested, or park it in the semi-D loan account to reduce interest if your bank allows it.
- With your two freed 90% loans, buy units where the rent covers the instalment, comparing new, subsale, auction and bulk purchase.
- If you want sole names later, ask the bank whether one spouse can refinance the other's share; that spouse's income must qualify for the whole loan.
- Shop for a retirement home when you are near retirement; any time can be a good time to buy at the right price.
Editorial Note: Summarised from Sean Tan's full episode. The quoted answer is in his own words; the rest is our paraphrase. Figures reflect the recording date, so check current rates and rules before acting on them.
ASKING SEAN #295 | BUYING A HOUSE TO RETIRE IN 20 YEARS TIME?
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #295. The quoted answer is verbatim; everything else is paraphrased. Figures and RPGT rules are as stated in September 2025. Sean owns a unit in Bukit Jalil himself and is a customer of FAR Capital, a bulk-purchase club, not its owner.
