From Miss P, a viewer who wrote in by email
Miss P is 25, earns RM3,500 a month and rents a cheap room in Subang Jaya near work. Her father has offered up to RM300,000 towards a property, as he has done for her siblings, so she has something to fall back on. Her fiancé's family has bought him an apartment in cash, ready well before their wedding in two years. She has been viewing new launches near Subang and PJ, finds the agents pushy, and wonders whether a completed subsale is better.
Should she buy a new launch or a completed subsale with the money, and how does she make the most of it?
“hold on this money for me first until I am ready”
Not yet. On RM3,500 a month she would be stretched by any loan, so ask her father to hold the money while she researches and raises her income to about RM5,000. Then use it on a subsale or bulk-purchase unit whose rent covers the instalment, and live in the fiancé's apartment.
Why
New launches price in the future
Developers know local rents, price a unit you get in three or four years at tomorrow's prices, and since COVID add bigger safety margins. That is why few new launches have rent covering the instalment.
Subsale needs the cash she has
A RM500,000 subsale needs about RM90,000 up front plus RM35,000 to RM40,000 to furnish, which is what stops most young buyers. Her father's money removes that barrier.
Keep the gift for investment
Sean would not spend it renovating the marital home, where a simple renovation can cost RM100,000. Her father's purpose is a safe haven for her, so it belongs in a property that pays its own way.
Twenty viewings make you immune
After visiting about 20 properties across types and areas, you learn what you like and can see sales tactics coming, such as 'only two units left'.
What to do
- Ask your father whether the money must buy a home, and whether there is a deadline.
- Live in your fiancé's apartment after the wedding and budget for its renovation separately.
- Visit about 20 properties, new and old, high-rise and landed, before deciding.
- Check your loan eligibility, and work to raise your income towards RM5,000.
- Then buy a subsale or bulk-purchase unit whose rent covers the instalment, putting spare cash in the loan account.
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 #261 | DADDY GIVING RM300K TO BUY PROPERTY!!
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #261. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in September 2024. Sean is a client of FAR Capital, a bulk-purchase club he recommends joining, not its owner. The episode is sponsored by The Makeover Guys, a renovation company.
