Hi Sean, great advice! Just sharing my thoughts - if we look from a return perspective, she is getting a rental yield of 4% from her property, whereas the avg epf return is 50% more (around 6% - 10 year avg epf dividend for conventional). Also epf does not require her to manage anything like collecting rent, maintaining the property since it’s an older property etc. Maybe given her age (60+), the liquidity and higher returns from epf + not managing a rental property might suit her better?
Very simple, if you intend pass to next generation, who care is leasehold. If investor, you have to cash out before 75 years lease left. Dont wait until lease is below only want to sell.
hii iherng, i want to ask what will happen if whole leasehold property in the taman at the end after many years only few residents want or will renew the leasehold ?
Hey Sean, I need advice. I bought a leasehold house in March 2022 near KLIA without proper financial planning, thinking I'd pay off the loan before retiring at 60. But now, I realize I'll have to pay for another 13 years after retirement. I didn't know it was leasehold until after buying it. I'm 39 and want to be loan-free by 55 to focus on retirement savings. I'm single with no plan of getting married and okay with a frugal lifestyle to secure my future. The house has 54 years left on the lease.
In Singapore, when a leasehold prop draws near to its expiry, it is extremely difficult to extend as the all extensions to a fresh lease (say 99 yrs) is subjected to the government's approval. And the government will want to see what is the reason for extension. Usually, only when a big improvement plan to the overall project is submitted, then the chance of approval is high. If its just status quo with no big change to existing structure, chances are not approved, and the government will just take back to land with owners left nothing. DO note that building structures needs a complete overhaul when approaching 50 yrs. And this is not cheap. Maybe its different for Malaysia. But if they choose to follow this example, then it is not wise to hold on to a leasehold unit for too long. Unless all the owners in the development can propose a major refurbishment with improvements, which will not come cheap.
Hi Sean, for 3bedroom student rental property. Is it wise to convert the living room into another room to rent? It would be able to bring in more rental income but am afraid prospective students would be turn off because the whole unit will look like a closed up hostel. Your thoughts?
sometime i think why the heck i need work hard for my next generation. Next generation maybe will more stupid, lazy and no longer hardwork since they got all free and easy cash and property. Basically you work die die just for them and while you not entire your life till die.. just my 2cent and please share your though...
Hi Sean, great advice! Just sharing my thoughts - if we look from a return perspective, she is getting a rental yield of 4% from her property, whereas the avg epf return is 50% more (around 6% - 10 year avg epf dividend for conventional). Also epf does not require her to manage anything like collecting rent, maintaining the property since it’s an older property etc.
Maybe given her age (60+), the liquidity and higher returns from epf + not managing a rental property might suit her better?
You’re absolutely right!! But I suspect it’s due to the leasehold title that she’s considering to sell. Not so much on returns.
Hi Sean, i think selangor leasehold renewal of 1k option is cannot sell only. When you want to sell you need to pay renewal premium 1st.
Very simple, if you intend pass to next generation, who care is leasehold. If investor, you have to cash out before 75 years lease left. Dont wait until lease is below only want to sell.
I totally agree on your opinion regarding 2 life certainties: Death & Tax.
Love all your content man. Thanks for sharing all your knowledge!
After extend the lease hold, how is the capital gain % need pay to the state govt?
Sarawak house mostly 60 years lease. Even left 30 years still can take loan but maybe different states different rules.
hii iherng, i want to ask what will happen if whole leasehold property in the taman at the end after many years only few residents want or will renew the leasehold ?
Hey Sean, I need advice. I bought a leasehold house in March 2022 near KLIA without proper financial planning, thinking I'd pay off the loan before retiring at 60. But now, I realize I'll have to pay for another 13 years after retirement. I didn't know it was leasehold until after buying it. I'm 39 and want to be loan-free by 55 to focus on retirement savings. I'm single with no plan of getting married and okay with a frugal lifestyle to secure my future. The house has 54 years left on the lease.
How to refinance as 64 years old? Ia it overdraft the house? pledge it for overdraft facility?
Yea. That’s one option too.
In Singapore, when a leasehold prop draws near to its expiry, it is extremely difficult to extend as the all extensions to a fresh lease (say 99 yrs) is subjected to the government's approval. And the government will want to see what is the reason for extension. Usually, only when a big improvement plan to the overall project is submitted, then the chance of approval is high. If its just status quo with no big change to existing structure, chances are not approved, and the government will just take back to land with owners left nothing. DO note that building structures needs a complete overhaul when approaching 50 yrs. And this is not cheap.
Maybe its different for Malaysia. But if they choose to follow this example, then it is not wise to hold on to a leasehold unit for too long. Unless all the owners in the development can propose a major refurbishment with improvements, which will not come cheap.
How does aunty refinance at the age of 60? Does she transfer the ownership to her offspring to refinance with the bank?
That was what I had in mind, that’s why the leasehold issue is not really her problem haha:)
So meaning leasehold if we sell the house or rent it out some of the profits will have to go to the government?
what a great advice🙏
Puteri apartment? Is it Kelana Puteri?
Hi Sean, for 3bedroom student rental property. Is it wise to convert the living room into another room to rent? It would be able to bring in more rental income but am afraid prospective students would be turn off because the whole unit will look like a closed up hostel. Your thoughts?
Thanks for information....just learning new topic
Thanks for watching!!
whats up guys, welcome to iherng podcasts.... you mean youtube right xDD
Well this episode is in spotify too;)
sometime i think why the heck i need work hard for my next generation. Next generation maybe will more stupid, lazy and no longer hardwork since they got all free and easy cash and property. Basically you work die die just for them and while you not entire your life till die.. just my 2cent and please share your though...
i also hang out around OUG, if one day i spot you i will yamcha with you ok?
Say hi first. If I'm not with my family then no problem;)