From JT, a viewer who wrote in by email
JT is 25, married to a foreign wife, lives with his parents and works in his family's business. He bought a 1,098 sq ft Bangsar unit at auction for RM870,000, now rented with positive cash flow and about RM500,000 below the median value, and an 800 sq ft Damansara Heights unit for about RM1.1 million, 20% below market, still awaiting keys. His loan margins are used up.
How should he grow towards RM10 million in property in ten years: commercial property, a purchase using his wife's foreigner quota, or more residential?
“The critical path is your income journey.”
For now, don't grow it. He already has the two or three properties Sean encourages over a lifetime, so the next step is to settle the second unit, put his own money into other, uncorrelated assets, and grow his income and business knowledge, because property keeps you rich rather than makes you rich.
Why
A third property is expensive
Beyond two 90% loans, financing drops to 70%, so a RM1 million unit needs about RM300,000 down, or RM350,000 to RM380,000 with legal fees. Sean asks whether that money would do more in other assets than in a property growing marginally each year.
Commercial property is playing with fire
The successful commercial investors Sean knows buy subsale shop lots that already rent at 5% to 6%, rather than new launches that can take eight to 12 years to come alive. Businesses often buy commercial and industrial property mainly to hedge against inflation.
Diversify into uncorrelated assets
Sean uses his credit for Malaysian property, the game he understands, and his own money for other assets. Property cannot be dollar-cost averaged, so one bad purchase at the top of a cycle can ruin your credit and your confidence; he made that mistake himself after three successful deals.
Judge success by cash flow, not asset value
RM10 million can be reached with a single penthouse, so the number means little. Sean's first level of success is a portfolio that breaks even; the second is a surplus that also pays for your own home.
What to do
- Settle, furnish and rent out the second unit before looking for another.
- Put your own savings into other assets, such as Malaysian or US stocks, and learn how they work.
- If you buy commercial, choose a subsale unit that already rents at 5% to 6%.
- If you use a foreign spouse's quota, buy a family home where RM1 million is the area's normal price, with a larger down payment, rather than an investment.
- Before any purchase, run Sean's four basic steps: intent, affordability, 20 properties compared, then an informed decision.
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 #307 | PROPERTY INVESTMENT SHOULD BE PASSIVE
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #307. The quoted answer is verbatim; everything else is paraphrased. Figures are as stated in February 2026. Sean buys through FAR Capital's bulk purchases as a member, not its owner.
