Investors can choose shares, bonds, insurance savings plans, gold, commodities or cryptocurrency. Sean has invested in shares and businesses too, and was asked why he still focuses on property.
Why choose property over other investments?
“you use minimum to get maximum”
Sean gives three reasons: banks lend you most of the price, property trends move slowly enough to see and act on, and the property pays rent while you hold it. But he still says not to put all your eggs in one basket.
Why
Leverage from the bank
On a RM500,000 home you pay about RM50,000 and the bank lends RM450,000. Sell at RM600,000 and your RM50,000 has made RM100,000, with housing loans charging up to about 5%.
Trends move slowly
When a new rail line opens, you can watch people move along it over years. Share prices can fall overnight on news from abroad.
Rent while you wait
Gold just sits until you sell it. A property earns rent every month for years, and you can still sell it at the end.
What to do
- Compare how much of each investment you can finance with a loan.
- Follow infrastructure and population moves to spot slow trends early.
- Count rental income, not just the sale price, in your returns.
- Spread your money: for RM1 million, Sean suggests about RM600,000 in property and the rest in shares, bonds, business and yourself.
- Spread properties across price ranges and places, not one block.
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.
#Q14: REAL ESTATE VS OTHER INVESTMENT OPTIONS
Sources & Verification Data
Summarised from Sean's English captions for this October 2017 video. The quoted line is verbatim; everything else is paraphrased. His example of buying a new launch with a 1% deposit is left out, as such schemes may no longer apply.
