From Madam Y, a viewer who wrote in by email
Madam Y is 50 and her husband 54; they plan to retire in 2032 with about RM1 million in EPF. They own a three-storey shop lot worth about RM2.1 million whose rent falls short of its instalment, the cluster home they live in, worth about RM1 million, and two rented apartments. They also paid the renovation on below-market apartments for each of their two daughters, who pay the instalments, which the rent would cover. At retirement they want to downsize to an apartment near the MRT, close to their daughters.
Should they sell the shop lot and cluster home, pay off the two apartments and buy a small unit in cash, or keep some properties for rent?
“Plans should be drawn on sand instead of carved in stones.”
The plan is sound and would leave them debt-free with about RM3,300 a month in rent. But first decide what retirement means: stopping completely or slowing down. If they keep some income, there is no need to sell much, and with seven years to go they can sell gradually, when the market is good.
Why
Stopping work changes the whole plan
At 61, Sean would slow down rather than stop. Half an income means the properties that pay for themselves can stay; zero income means selling more. Many people who retire early find themselves bored and restless.
Know what the money is for
Property is a tool for reaching goals, such as travelling while you are still fit or helping family. Without a goal, RM3,300 a month and RM500,000 in cash is comfortable but not life-changing, so it is worth deciding what you want before you sell.
Timing the sale can add value
Sean expects lower interest rates and new rail lines to lift the market in the next few years. A shop lot worth RM2.1 million today might fetch RM2.5 million by 2032, and if rents rise to cover its instalment, they might prefer to keep it.
Their daughters' homes are a good lesson
Buying below market value let them borrow the full amount and spend cash on furnishing, so the units can be rented for more than the instalment. Sean's only worry is that the commitment may tie a daughter down before she has seen the world.
What to do
- Agree with your spouse whether retirement means stopping completely or slowing down.
- List what you want the money to do in retirement, such as travel, family or health.
- Sell progressively, starting with the asset that costs you money each month, and watch the market as rates fall.
- Before buying the downsizing apartment, test the car park ramps, the walk from lift to unit, the refuse area and where the MRT line actually takes you.
- Build hobbies, friends and fitness before you stop work.
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 #292 | RETIRING WITH 6 PROPERTIES
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #292. The quoted answer is verbatim; everything else is paraphrased. Values and rents are the viewer's own estimates, and Sean's 2032 figures are guesses. Figures are as stated in August 2025.
