From Mr Tan, a viewer from Penang who wrote in by email
Mr Tan is 40, a Chinese physician who ran three nursing homes until the round-the-clock emergencies left him close to depression; he has now sold them. He owns eight properties, one to live in and seven rented out, with RM3.2 million in loans running to age 70, all semi-flexi. He has put the sale proceeds into the loan accounts to save interest. Rent exceeds instalments by about RM11,700 a month, and his family of four, including his 72-year-old mother and five-year-old son, spends RM5,000 to RM6,000.
Should he live on the rental surplus, or withdraw from his flexi loans to buy more properties before he loses his business income for loan applications?
“personally my choice will be option one”
Live on the surplus and don't buy more. Eight properties already pay him more than his family spends, the loans are being paid down by tenants, and the priority now is his health and time with his son.
Why
The portfolio already works three ways
Malaysian property has averaged about 4% a year in price growth, the RM11,700 surplus is a top-20% income on its own, and every month's rent pays down the loans to build equity.
Parking cash in a flexi loan was right
With a semi-flexi loan, interest is charged only on the balance after his deposits, yet the money can still be withdrawn in an emergency for a small fee.
He can sell one when he needs cash
Selling one unit every five years would fund him for decades. Sean suggests setting about RM1 million aside for his son, and still has more than enough left.
Investing early bought the choice
Had the business income gone on luxuries instead of property, he could not have walked away. Money's purpose is health, freedom and peace.
What to do
- Live on the rental surplus and keep the flexi-loan cash as a buffer.
- See a specialist about the low mood, and rebuild physical health with exercise.
- Spend the years before your child starts school with him.
- If you want to run the portfolio as a business later, consider an investment holding company.
- Ignore criticism from people who don't live the life you want.
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 #267 | INVESTMENT ENABLED OPTIONS IN LIFE
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #267. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in November 2024. The episode is sponsored by Versa, a savings app.
