From TK, a viewer who wrote in by email
TK is 28, a project manager in Kuching earning RM8,000 a month and spending about RM6,800, much of it on four cars; he is eyeing a fifth for when his baby arrives. He has RM500,000 in fixed deposits and RM100,000 in EPF, and owns a double-storey house bought for RM418,000 with RM80,000 down, rented at RM900 against a RM1,450 instalment, though it could fetch RM1,200. He lives in his uncle's corner house and is weighing that house, a new RM700,000 to RM800,000 double-storey or a RM500,000 to RM600,000 apartment.
Should he keep his rented house, buy his uncle's, and choose landed or an apartment for his family home, and how much should he put down?
“Why do you need four cars in the first place?”
Keep the house he owns and, for a family with this many cars, a landed home makes sense. But on RM8,000 with RM6,800 spent each month, the real problem is spending: until he controls it and stops buying cars, the property questions don't matter.
Why
His rented house is earning its keep
New double-storeys nearby sell for about RM620,000, so his RM418,000 house has likely gained. Early in a loan most of each instalment is interest; at RM1,200 rent, about 85% of the RM1,450 instalment, the tenant is effectively paying the bank's interest for him.
His uncle's house depends on the price
Bought for RM280,000 in 2015 with neighbours now at RM400,000, it has risen about 43% in ten years, and corner lots usually fetch 25% to 35% more. Compare his uncle's price plus renovation with RM800,000 for a new house in an area whose water and power supply he doesn't yet know.
Cars lose value; homes gain it
In ten years his cars will be worth half or less, while both houses he knows have risen. In Kuching renting is cheaper than owning, but the saving only helps if it is invested rather than spent on another car.
Count cash flow, not units
A better goal than owning many properties is positive monthly cash flow, such as RM10,000 a month across the portfolio. In Kuching, Sean would buy an apartment only if long-term rent, not Airbnb income, covers the instalment.
What to do
- Bring monthly spending down, ideally to about half your income, before buying more property, and don't buy the fifth car.
- Raise the rent on your existing house to the market rate of about RM1,200 when the tenancy is renewed.
- Ask your uncle his price, then compare it plus renovation with buying new.
- Take a 90% full flexi loan and park spare cash in it to cut interest, after checking when your bank lets you withdraw it.
- Move some of the RM500,000 fixed deposit into options that earn more, such as EPF, which pays about 6%.
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 #293 | INVEST IN PROPERTY OR A NEW CAR?
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #293. The quoted answer is verbatim; everything else is paraphrased. Figures are as stated in August 2025.
