Continuation from the previous post. Many Malaysians in their mid 30s start thinking seriously about using property investment as a retirement strategy. But is it really the best way forward?

📈 The Case: A 46-Year-Old With RM1 Million in Cash

A friend of mine had recently liquidated company stocks during the crash time and converted them into over RM1 million in cash. With RM800,000 targeted for a new investment property (70% loan), the remaining RM500K would serve as a buffer or for other investments.

With a 70% loan, the original financing amount is RM550,000. His plan? Hold the property for 10 years and sell around age 55, ideally for capital appreciation.

🔍 Breaking Down the Numbers:

• Property Price: RM800,000

• Loan Amount: RM550,000

• Tenure: 24 years

• Monthly Installments: Assumed to break even or generate slight cashflow

• Estimated Selling Price after 10 Years: RM1 million

• Loan Balance after 10 Years: RM380,000

• Total Installments Paid: RM357,000

• Interest Paid: RM187,000

• Upfront Costs (down payment, reno, agent fees): RM320,000

• Total 10-Year Holding Cost: Over RM500,000

🧾 Hidden Costs Most Investors Overlook

While the numbers seem reasonable at first glance, there are other inevitable costs like:

• Vacancies and tenant turnover

• Repairs and maintenance

• Property management fees

• Quit rent and assessment

• Potential delays in capital appreciation

Even if the property appreciates to RM1 million, the real net profit—after accounting for loan interest and upfront costs—might be just slightly above RM100,000.

💡 The Bigger Lesson

The point isn’t to say property investment is bad—it’s to highlight the importance of financial literacy and holistic planning. The key question isn’t just “Can I afford this property?” but rather:

❓ “Is this the best use of my money to reach my retirement goals?”

If RM220,000 (your upfront capital) was compounded at just 5.5% annually, you could potentially reach the same RM370k–400K range in 10 years with much less uncertainty and more liquidity.

🤝 What Can You Do Differently?

Property investing requires more than market timing—it requires strategic thinking.

Before jumping into your next property investment, ask yourself:

• Is your goal income or capital gain?

• Have you factored in the real cost over time?

• Are there more efficient vehicles to achieve your objective?

👉 Want to explore smarter strategies to make your property work for you? Or to see if your current portfolio aligns with your retirement goals?
Contact us here at Chat Property Malaysia for a personalized consultation.