From L, a viewer who wrote in by email
L is 28, earns RM7,000 a month and saves RM3,000 to RM4,500 of it, with about RM50,000 in shares and ETFs, RM50,000 in crypto, a RM20,000 emergency fund and no loans. Agents say L can afford RM400,000 to RM800,000; L's instinct is a RM400,000 to RM500,000 unit whose rent covers the instalment.
Why do most first-time buyers buy new rather than subsale or bulk purchase, does leasehold matter, does feng shui matter, and what price range should a first investment be?
“I will go for tier one location instead of a local market focused location”
First-time buyers buy new because they have no cash, and developers price that convenience in, so new units are often worth less than their price at handover. For an investment, tenure and feng shui matter less than paying below the area's median price, and with about RM700,000 Sean would buy in a tier one location.
Why
New launches price in the free extras
Discounts, free legal fees and other perks are built into the price of a unit you get in four or five years. That is why owners find at handover that banks value a RM500,000 unit at about RM480,000: they paid the real price, and borrowed the rest.
A subsale shows you what you are buying
You can see the view, build quality, defects, neighbours' rents and recent sale prices before you commit. The catch is cash: about 18% of the price, so about RM90,000 for a RM500,000 unit, before renovation.
Tenure and feng shui come after price
Freehold matters more for landed homes, but a leasehold unit near work beats a freehold one two hours away. A unit next to a cemetery at 30% below market can be a good investment; one with perfect feng shui at 30% above it will still lose money.
Tier one locations have no rent ceiling
Areas such as Mont Kiara, popular with expatriates, command rents locals would never pay; Sean rents a one-bedroom there for about RM5,000. At RM700,000 he would choose Dutamas over Petaling Jaya for the higher yield.
What to do
- Compare a subsale's instalment with the rents its neighbours get before buying.
- Reserve about 18% of the price in cash for a subsale, plus renovation.
- Judge any unit against the median price of its location, not against its perks.
- Aim for the cheapest project in a tier one location.
- Check you could carry the instalment if the unit stayed empty for six months.
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 #285 | NEW PROPERTY PRICES ARE MOSTLY INFLATED
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #285. The quoted answer is verbatim; everything else is paraphrased. Figures are as stated in June 2025. Sean says in the episode that he is a VIP member of FAR Capital, the bulk-purchase club he recommends for completed unsold units, not its owner.
