From JR, a viewer who wrote in by email
JR married young and is 44; his children are in their 20s and now financially independent. He and his wife each earn about RM140,000 a year. His parents bought several properties in his name and keep the rent, so his finances look odd on paper. He lives in a landed house, has found an apartment he loves, and feels a void at not owning a home himself, but has little savings and a shorter loan tenure ahead.
Is buying a home at this stage sound, or would renting make more sense?
“There is no rush.”
Buy if the rent for that apartment covers at least 85% of his instalment and his loan eligibility passes; rent if the rent is well below the instalment. Either way there is no rush: his children are independent and his biggest responsibilities are done.
Why
The 85% rule protects the exit
If current rent for similar units covers about 85% of the instalment, he can rent it out or sell without a loss if his needs change in five years. At his age a loan may run only 25 to 28 more years, depending on the bank's age limit.
Rent in your name counts for loans
Banks recognise rental income with a stamped tenancy agreement, six months of bank statements showing the deposits and the SPA, and the names must match. Rent from units in his name but paid to his parents does nothing for his eligibility.
Renting is cheaper when rent is far below the instalment
If a RM1 million to RM1.2 million unit rents for about RM2,800 but costs RM4,000 to RM5,000 a month to finance, renting is the practical choice; the owner may later offer to sell it to him.
Owning buys certainty
A landlord can sell and ask you to leave, so money spent customising a rented home is lost. Sean found that owning his home brought a peace of mind and pride that renting does not.
What to do
- Compare rent for similar units in that building with your likely instalment.
- Check your loan eligibility, and whether the landed house is in your name and what it is worth.
- Have tenants of the units in your name pay into your account, so the rent counts as your income.
- Ask your parents to sort out a will or trust for the properties in your name.
- Consider charging your working children a modest rent at home, saved towards their own deposit.
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 #276 | IS HOME OWNERSHIP JUST A ROMANTIC FEELING?
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #276. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in March 2025. The episode is sponsored by The Makeover Guys, a renovation company that furnishes Sean's units.
