From LL, a viewer who wrote in by email
LL and their spouse are in their 40s with a combined net salary of about RM20,000 a month. They own their home in Puchong and five rented high-rise units in the Klang Valley, a portfolio Sean values at about RM4.75 million, with each rented unit bringing in between RM200 and RM2,000 a month more than it costs, with a seventh unit due in 2030. They have about RM250,000 in cash, about RM800,000 in EPF and insurance on every loan, but worry that their leasehold units will lose value and that the economy or politics could hurt prices.
Should they sell one property and keep the cash, and if so which one, or hold everything?
“Why do you need the cash?”
Decide what the money is for before selling anything. If they do sell, Sean would start with the small, low-yielding Shah Alam unit; otherwise they can hold, since every unit pays its way, and agree as a couple on how much is enough.
Why
Their buffer is already solid
Sean asks how long you could last if every unit lost its tenant at once; his own buffer is six months. RM250,000 is solid for this portfolio, kept liquid in fixed deposits, a money market fund or against a mortgage, where it can still be withdrawn.
Cash loses value faster than it seems
Sean puts his own inflation at 10 to 11% a year once family costs are counted, so RM350,000 held as cash loses about RM35,000 of buying power a year. Property prices and rents tend to adjust with the market instead.
Leasehold renewal has precedents
Petaling Jaya has announced lease extensions back to 99 years for RM5,000, on condition the property passes only within the family, and Sean knows of projects in PJ and TTDI converted to freehold for RM1,000 to RM2,000 per owner. Their own leasehold units have about 90 years left.
The smallest unit uses a full loan slot
The Shah Alam unit earns only about RM200 a month and is worth about RM350,000, yet it takes one of their two 90% loan slots in a portfolio of nearly RM5 million. That is why Sean would sell it first.
What to do
- Write down what the cash would be for, such as education, a business or simply peace of mind, before selling anything.
- Work out your own inflation rate from what your household really spends, not the official figure.
- If you sell, start with the unit that earns the least while still taking up a 90% loan slot.
- Ask your tax adviser whether holding the properties in a company would suit you better, especially for passing them on.
- Agree as a couple how much is enough, and once you sell, don't look back.
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 #320 | AFTER 6 PROPERTIES, CONTINUE BUILDING OR TO START SELLING?
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #320. The quoted answer is verbatim; everything else is paraphrased. Figures are as stated in September 2026; the viewer's unit-by-unit figures are summarised rather than listed.
