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.
From Bernadette, a viewer who wrote in by email
Bernadette is over 60. People keep telling her fixed deposits are pointless and EPF returns may disappoint, and she has been shown developer-run short-stay projects in Bukit Bintang and KLCC advertised at 9.2% to 9.6% returns.
Should she invest in property at her age? Should she pay cash or borrow, buy new or subsale, and are these short-stay projects worth it?
“A bit too late for real estate? Personally, I think so.”
Probably not as a main plan. Property's big advantage is decades of cheap borrowing that tenants help repay, and at 60 that is mostly gone. Low-risk options paying a similar return, without the hassle or locked-up money, suit her better.
Why
The leverage advantage is mostly gone
Banks usually cap loans around age 70, so the tenure is short. A RM500,000 loan at 4% costs about RM5,000 a month over 10 years against about RM2,200 over 35. Almost no RM500,000 unit rents for RM5,000.
Property locks your money up
Selling takes about four to five months for freehold and seven to eight for leasehold, which needs state consent. That is a problem if you suddenly need money for health or an emergency.
Other assets pay similar returns more easily
RM500,000 in fixed deposits at about 3% pays roughly RM1,250 a month; a property yielding 6% pays about RM2,500 but needs tenants, agents and upkeep. EPF has paid around 6%, and some Malaysian dividend stocks have paid more, with the freedom to sell part at any time.
Advertised short-stay returns rarely last
High returns usually hold only for the first years. Once a building proves profitable, more owners convert and a price war follows: in one Bukit Bintang project, nightly rates fell from about RM300 to RM120. Only investors buy such units, and authorities can ban short stays, as Singapore and Penang have.
What to do
- First decide whether this money is spare or what you will live on. If you depend on it, keep it liquid.
- Compare any property yield with fixed deposits, EPF and dividend income before buying.
- If you still earn and do buy for investment, Sean would borrow rather than pay cash, keeping cash for medical costs, with mortgage insurance so no debt passes to your family.
- If you already own a short-stay unit, plan to sell while it is still profitable, typically within five years.
- Be wary of returns quoted by the people selling the unit; get independent advice.
ASKING SEAN #289 | SHOULD I STILL INVEST IN PROPERTY AT 60?
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #289. The quoted answer is verbatim; everything else is paraphrased. Rates and returns are as stated in July 2025 and will have changed.
