From KD, a viewer from Johor Bahru who wrote in by email
KD is 40, single, a government servant earning RM9,100 a month net, with a car loan of RM944. She lives with her mother in a house transferred to her, and invests in shares, fixed deposits and money market funds, reaching half of her RM5,000-a-month passive income goal. For her first investment property she wants monthly cash flow and has shortlisted three new transit-oriented serviced apartments, in Kajang, Cheras and Petaling Jaya, buying new because she lives far away.
If all three give similar cash flow, what should decide it, how much does walkable convenience matter, why are some Mont Kiara subsales so cheap, and how should she judge bulk-purchase units near KLCC with cash back?
“we should always look at pricing first then location then only timing”
After cash flow, compare each project's price with the median of past transactions around it, and the cash each needs up front. Walkable shops and transit genuinely justify higher rent. And living in Johor is no reason to buy new: visit the sites, and consider subsales and bulk-purchase deals too.
Why
Below-median prices leave room to grow
A unit that rents well but is priced above its neighbours has limited capital appreciation. A unit bought below the area's median that still covers its instalment is the better buy.
Upfront cash differs by deal
One project may need RM50,000 to own, another nothing, and some even pay cash back while still covering the instalment. Through his investment club, Sean buys units with positive cash flow and no money down.
Older units are cheap for a reason
Older Mont Kiara blocks sell at about RM600 per sq ft against about RM1,000 for new ones, because of lower ceilings and layouts, such as toilets along the facade, that cannot be changed.
Prime location is not enough
Units near KLCC with good shops still lose money if priced above market. A premium is fine when you know why you are paying it, such as a proven retail operator.
What to do
- Pull the past transacted prices for each project and its neighbours.
- Compare how much cash each deal needs up front, not only the monthly cash flow.
- Take a week to visit Klang Valley properties in person, about 20 if you can.
- Check whether shops, transit, schools and clinics are within walking distance.
- Consider subsale and bulk-purchase options alongside new launches.
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 #256 | ALWAYS VISIT THE SITE
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #256. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in June 2024. The episode is sponsored by PropertyGuru's Brickz transaction reports, which Sean recommends for checking prices. He is a VIP member of FAR Capital, a bulk-purchase club, not its owner, and his units are managed by Cozy Homes.
