From S, a viewer who wrote in by email
S is 31, single and lives with his parents in a small town, with a stable job and income of about RM7,000 including rent. He has a certified disability: a rare genetic condition that may lead to blindness. He owns a unit in Wangsa Maju whose rent covers its loan but for about RM100 a month, and a unit in Batu Kawan due in 2027 that he plans to rent out. He hopes property could one day fund gene or stem cell therapy.
Should he keep buying properties for financial security, or take his parents' advice to slow down and enjoy the present?
“I am fully agreeable with your parents”
Slow down, but don't stop. He can't qualify for another loan until the Batu Kawan unit is rented anyway, so spend the time building reserves and furnishing money, plan for the worst case with his sight, and make time with his family. Buy a third only once he has more than he needs.
Why
Each unit needs a six-month reserve
Sean keeps enough to cover six months of a unit standing empty: about RM10,000 for the Wangsa Maju unit and about RM20,000 for Batu Kawan. With RM30,000 to RM40,000 to furnish the new unit, that is roughly RM80,000 to save.
Plan for the worst case
If his sight failed in two years, would his job still pay, is there support for people with disabilities, and who would care for him if his parents retired? Those answers matter more than a third unit.
A third loan is harder
A third residential loan is capped at 70%, so it needs at least 20% in cash; a commercial title gets 85%. Rent from the new unit counts as income only after six months with a tenancy agreement and SPA.
Time with family is scarce too
Sean missed trips with friends while building his portfolio and can't get those moments back. Parents are not getting younger, and few people regret one less property on their deathbed.
What to do
- Set aside six months of instalments for each property.
- Save RM30,000 to RM40,000 to furnish the Batu Kawan unit before handover.
- Work out your income and care needs if your sight deteriorates.
- Put spare money into flexible investments such as EPF or fixed deposits rather than another property.
- Consider a third property only after the second is rented and reserves are full.
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 #260 | TAKE SOME TIME AWAY FROM PROPERTY INVESTMENT
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #260. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in August 2024. The viewer's medical details are kept to what the answer needs. The episode is sponsored by The Makeover Guys, a renovation company.
