From Z, a viewer who wrote in by email
Z's family has worked overseas for about 20 years and plans to retire in Malaysia, selling their overseas home first. They own a freehold landed house in Desa ParkCity, which has risen a lot and earns rent, and a leasehold townhouse in Petaling Jaya whose value has been flat for four or five years; both still have loans. As non-residents they pay a 30% flat tax on rent.
Should they sell or refinance the townhouse to buy a condo for rent and appreciation, or a landed home to retire in, and does a landed house in Desa ParkCity still have room to grow?
“if I'm in your shoes I will sell the townhouse”
Keep the Desa ParkCity house: its rent already covers the loan, it costs nothing to hold, and gated landed homes there remain in demand. Sell the flat-priced leasehold townhouse while it can still fetch its value, then decide whether that money builds more investments or buys the home they want to retire in.
Why
Don't sell what costs nothing to hold
Selling only makes sense if they need the cash or a loan slot, which they don't. Cash loses about 5% a year to inflation, while the property preserves its value; if they ever sell, Sean would wait three to five years for the upturn.
Gated landed homes hold value better
Older, open landed areas suffer from public through-traffic, parking problems and break-ins, which caps prices at RM1.2 million to RM1.6 million. Gated, strata-titled townships like Desa ParkCity charge maintenance but offer the security buyers now expect.
Refinancing releases less than it used to
In Sean's example, a RM800,000 townhouse with RM300,000 owing could once release about RM340,000 at 80% of value. Under the newer cash-out calculation over a 10-year tenure, perhaps a third of that, a little over RM100,000, is usable.
Choose the home by the life you want
Retirees without school-age children can rent anywhere; a home of your own buys certainty and pride. Gated townships in the northern and southern Klang Valley, such as around Elmina, have risen 50% to 80% from launch prices.
What to do
- Keep the Desa ParkCity house, possibly refinancing only so the instalment stays close to the rent.
- Get an agent's view on the townhouse's market and bank valuation, then sell.
- Talk as a family about how you will live in retirement before buying a home.
- Rent first after you return, and look around before committing.
- If you want more income instead, buy a smaller city condo whose rent covers the instalment.
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 #272 | MOVING BACK TO MALAYSIA
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #272. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in February 2025. Sean offers to refer the family to the agent who handles his own rentals.
