From Miss L, a viewer who wrote in by email
Miss L is 33, earns RM10,000 to RM13,000 a month, has about RM60,000 in savings, RM50,000 invested and no debts besides RM700 a month in insurance. She once lived as a student in an apartment block built in the late 1990s in Bukit Jalil, and an owner is selling a well-kept 1,200 sq ft unit there for RM455,000, about RM371 per sq ft. Similar units rent for about RM2,200 a month.
Is this subsale unit a good first investment property?
“I will not get it mainly because I have better options.”
It is a very safe deal she can afford, and she wouldn't lose money. But Sean wouldn't buy it himself, because the same budget can buy newer units with more room to grow. With no rush, she should negotiate harder and compare all four buying channels first.
Why
The rent already covers the loan
A RM400,000 loan over 35 years at 4% costs about RM1,800 to RM1,900 a month, around RM2,000 with maintenance, so today's RM2,200 rent breaks even. It could also let to families, medium-term tenants or students room by room, and Sean's rule is that the more ways a unit can cover its instalment, the better.
Old buildings protect the bottom, not the upside
Across the road, newer Bukit Jalil projects transact at RM900 to RM1,000 per sq ft and some rent for far more. A new building next door underpins an old one's value, but the old one rarely doubles. Sean treats buildings over ten years old as their own category, with their own median price.
Subsale takes real cash
She would need about RM45,500 down and about RM36,000 more for legal and other costs. Sean's own test is to have RM50,000 for renovation plus six months of instalments left over after buying.
The location is strong
Bukit Jalil has a KL address, quick roads to the city, rail links and private universities, which Sean believes keep students living nearby after they graduate. Families from older wealthy areas nearby also help their children buy apartments there.
What to do
- Before any investment, have six months of expenses as an emergency fund, medical insurance and a clear career path.
- Negotiate: offer the price you would be happy with, such as RM400,000, and walk away if the owner refuses.
- Compare what the same budget buys through new launch, subsale, auction and bulk purchase.
- Compare an older unit's price with the median for older buildings, and a new one's with the median for new buildings.
- If you buy, fully furnish the unit so it can be let in every way, from families to room by room.
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 #308 | IS IT WORTH INVESTING IN AN OLD APARTMENT
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #308. The quoted answer is verbatim; everything else is paraphrased. Figures are as stated in March 2026. Sean mentions that he buys bulk-purchase units as a customer of FAR Capital; he does not own the company.
