From Mr. J, a viewer who wrote in by email
Mr. J is 32, in government service on a pensionable career path, and already owns a 973 sq ft unit in the Klang Valley. He invests in global equities, Malaysian stocks, Singapore, gold and cash. He is weighing two purchases: M Aspira in Taman Desa, a Type B unit of 855 sq ft at about RM682,000 after rebates, with kitchen cabinet, air-conditioners, SPA legal fees and loan stamp duty covered but MOT not covered; and Residency Padang at roughly RM600,000 with discounts and incentives.
Are these genuinely good investments or do the rebates make the numbers look better than they are, and with equities already in place, is another leveraged property worthwhile?
“Property investment is not to make us rich but to keep us rich.”
The rebates are retail-price sales tactics that everybody gets, and a newer project only wins when the entry price makes sense. Let the existing unit run, use your second 90% loan slot only when you can afford it, and keep the capital a third property would need in global equities.
Why
Newer wins only if the price makes sense
In a growing area, older buildings' rents move little while new ones command more, because tenants now compare specifications. But if the new project is 20% or 25% more expensive than the old one, Sean says you have to think about it. His own Oak 163 unit in Jalan Mont Kiara was the latest project on that street, and he got it almost cheaper than the project next door.
Rebates are given to everybody
M Aspira and Residency Padang are RRP retail prices, so everyone who walks into the sales gallery qualifies for the same package and the same discount. Sean's own filter is rent that covers the instalment plus a RM500 surplus, roughly 7% to 8% ROI in the Klang Valley, and he says such deals are hard to find among new launches.
The exit depends on rent, not age
A 15-year-old unit with RM1,000 positive cash flow a month is not hard to sell, because every RM500 of surplus supports about RM100,000 more in price — every RM100,000 of loan at 4% over 35 years costs about RM450 to RM500 a month. The doomsday case is a 700 sq ft three-bedroom unit clashing with brand new affordable homes of the same size almost in the same location.
Cash in property is the worst deal
Malaysians get two 90% loan slots, so Sean would use them and let tenants carry the instalments while he keeps DCA-ing into global equities. On a third property only 70% financing is available, which means RM300,000 down on a RM1 million unit; he puts equities at a safe estimate of 8% to 10% a year, while property might go south.
What to do
- Set aside RM50,000 for renovation plus six months of instalments before you collect the keys — RM68,000 for a RM600,000 unit at RM3,000 a month.
- Set your own filter at rent covering the instalment plus a RM500 surplus, or a 7% to 8% ROI in the Klang Valley.
- Let your existing unit run and revisit a second purchase about six months after your tenant moves in.
- Compare all four buying channels — new, subsale, auction and bulk purchase — before paying retail price at a sales gallery.
- Keep DCA-ing into global equities with the capital you would otherwise put into a third property.
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 #323 | WHEN DENSITY TOO HIGH AND BUILDING TOO OLD
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #323. The quoted answer is verbatim; everything else is paraphrased. Figures are as stated in October 2026.
