From KB, a viewer who wrote in by email
KB is 59, a Malaysian who has worked in Singapore for about 35 years and holds Singapore PR. KB owns ten fully paid condos, three in Singapore and seven in Penang, and plans to retire to Penang in two to three years. The Penang units have doubled or tripled in value but yield only 3 to 4%, many are over 20 years old, and good tenants are getting harder to find.
Should KB sell some or all of the properties before retiring, move the money into fixed deposits and other assets, and stop dealing with tenants?
“So, don't suddenly sell all, pace yourself in selling.”
Selling the Penang units makes sense, perhaps keeping one, but slowly, so the sales aren't taxed as a property business. The three Singapore units are worth keeping for income.
Why
Selling fast can be taxed as business
RPGT applies to sales within five years of the SPA date, and the rates change with each Budget. The bigger risk is that many sales in a short time can lead the Inland Revenue Board to treat you as trading, and tax the gains as business income.
Singapore rent alone can fund retirement
Sean estimates about S$1,000 a month per room, so three units, assuming three bedrooms each, bring in roughly S$8,000 to S$9,000, about RM24,000 to RM25,000, which is more than enough to live very comfortably in Penang.
Penang's LRT decides what to sell first
Units near an upcoming station may rent and sell better once the line opens, so Sean would hold those until it is completed and sell the others first. Distance from transport isn't always a drawback; some people, Sean included, pay more for quiet.
Refinancing is no longer the easy exit
Sean's own plan was never to sell but to draw out equity by refinancing every few years. New rules now cap the cash you can take out at RM100,000, or a sum based on a 10-year tenure, which makes selling a more realistic exit.
What to do
- Sell the Penang units gradually, about one every two years; Sean calls this an unwritten rule among investors, not a law.
- Check the RPGT due on each sale against the current Budget rates before listing it.
- Overlay the planned Penang LRT route on your units, and sell those far from future stations first.
- Refresh the interiors of older units before concluding that tenants won't come.
- Keep the proceeds in low-risk places such as fixed deposits and blue chips, and steer clear of new business ventures and joint ventures with friends or relatives.
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 #315 | START SELLING 10 FULLY PAID PROPERTIES
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #315. The quoted answer is verbatim; everything else is paraphrased. Figures are as Sean stated them in July 2026; tax and refinancing rules change, so check the current ones before selling.
