From Mr. C, a viewer who wrote in by email
Mr. C is planning his first purchase, a two-bedroom unit in a new Subang Jaya project with strong rent. His plan was to buy where rent covers the instalment and maintenance, then sell after about five years for a gain of perhaps RM100,000. He doubts the long game: older apartments decline, newer projects keep coming, and a RM500 to RM1,000 monthly surplus could turn negative during vacancies or repairs.
What is the point of holding several properties for 30 to 35 years if they may be hard to rent or sell by then?
“Don't be too concerned of cash. Build the asset first.”
Flipping is hard now because developers already price in the gains, so Sean holds properties whose rent covers the instalment on zero down payment and lets tenants pay them off. Cash from a sale loses value to inflation while the property keeps pace, though there is no rule that you must hold to the end.
Why
Each RM500 surplus is about RM100,000 of value
A buyer can pay about RM100,000 more and still have rent cover the instalment. Sean's Mont Kiara unit, bought for about RM1 million three years ago with a RM4,000 instalment, should rent for RM5,500 to RM6,000, so he could sell at RM1.2 million to RM1.3 million, but would then have to find somewhere to put the cash.
Cash loses to inflation
Sean puts real inflation at around 10% to 12%, against about 6% from EPF, so cash shrinks every year. Property hedges inflation: rising building costs, higher wages and lower interest rates all lift the value of what existing owners hold.
Older units still rent
Older Mont Kiara units first sold at around RM380,000 to RM420,000 still yield about 5% to 5.5% at today's prices, because not everyone can afford new. Whether new beats old still comes down to location and management.
Tenants and the bank do the work
A break-even portfolio costs Sean about one and a half to two months of instalments a year in agent fees and repairs, roughly five years' worth over a 30-year loan. Five RM300,000 units renting at RM1,500 each would then pay him RM7,500 a month, for working on each unit once or twice a year.
What to do
- Buy only where rent covers the instalment and maintenance with zero down payment, Sean's strict rule.
- Compare the price with the area's median so you never overpay.
- Look at 20 different properties across the buying channels before settling on this one.
- Use credit for property and put your own capital into other investments.
- Judge any gain as a percentage of what you put in, not as a lump sum.
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 #303 | WHY BUILD A PROPERTY PORTFOLIO?
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #303. The quoted answer is verbatim; everything else is paraphrased. Figures are as stated in December 2025.
