My suggestion Irene, I see that you want retire life and don't want to manage it anymore. So my suggestion is just sell them off. Regardless of what the market is. Take the money and put into FD to get interest. Then slowly spend it off and keep one last PJ house that your stay for emergency. Whereby u can reverse mortgage it if you need the money.
Maybe I missed something, but is a cash flow of RM3.7k a month for properties worth around RM2.5m too little? If she deposits all the cash into FB with a 3.5% interest rate, the interest per year will be RM87,500. Should we relook at the rental?
You might have overlooked that not all the properties are rented, she still has to live in one of the property. So if she put all the money in FD and got 87500, she might still have to fork out 3500 monthly or so for her own rental property she will stay in?
I get the sense that the issue here is actually not the $ value, but more on the hassle of managing and upkeeping the properties. Quit rent, income tax filing, tenants moving in and out, repairs, agent fees etc are bothersome, and net rental is probably still less than FD or bond yields. Also, it sounds like the person is quite modest in lifestyle so living expenses need not be high. At that age with that size of portfolio, I would guess that the EPF savings is also >RM1mil. So if immediate cash flow is not an issue (can draw EPF), you could slowly divest the properties and live off the risk free interest from FD/ bonds/ EPF. Cash out any life insurance (no children) and load up on medical insurance. Spend the free time productively with family, no sense in adding debt which adds another mental burden at this age. The principal sum is always secured with high liquidity and functions as the fallback. If really there is the motivation for more financial gains, can take some small percentage of assets say 1 year's interest and learn to trade stocks or other instruments to occupy time.
Refinancing might be hard for retiree 😮 short tenure and higher interest. She might not have complete income support (if Ms Irene retired already) besides her rental income But salute to Ms Irene, I do hope I’ll be like her when I retired 🥹
If u r govt pensioner refinance Yr high valuable market property is an option to do at the age of 41-45, besides u increase Yr investment, u may enjoy yourself and family with a quality & memorable vacations which cannot be obtain when all Yr childrens are growing up and u r getting older
Just a suggestion, why not to consider reverse mortgage or skim bersara bercagar? You could continue to stay while encashing on the asset, somewhat similar to refinancing but you dont have to pay the monthly commitment, they pay you monthly cost of living instead.
Can also sell off everything then use the money to invest in REIT. You don't have liquidity issue, no need to manage the tenant, just that the monthly cash flow will be lower.
Sell them off but no need do it in a rush & price it well. Proceeds like many here suggested put into FD. Travel the world. Check off your bucket lists. Have fun. Donate & do some charity work. I would also recommend a book for her. Die with zero by Bill Perkins. Congrats to her for a well earned retirement. 👍🏻
During our no go years, we will want a fixed income without any trouble. Sell one by one in order to catch the average market. Cash put in FD and spend off slowly.
There will come the time where reading or walking is a big problem, not to mention manage an account or property. Property does take a lot of efforts to manage.
Depending on her spending habits. After retirement, if she doesn’t spend a lot of money, then maintain as it is. If she goes for trips every year, or spends on some expensive hobbies, she may need to sell some of the properties. But after she hits 70 to 80 plus of age, she may have dementia or Alzheimer disease and no longer capable to think and manage daily routine & transactions, she may have to sell all the properties. Some may even keep all their fortune or cash at home.
If it is total 2.5 million ringgit, should sell all and buy government bonds for above 4% return. yield also higher than 8K rm per month. Makes no sense to collect rental of 3K rm only
sell one property to enjoy life abit. other properties revise the rental rate to market rate. keep it to beat the inflation. sell one by one as u age further.
Susah ni... Volume is too small to hire a property manager. Sell all at 62 yo. Put them all in FD. Only use the interest. The rest are emergency fund. Need to pay somebody to take care of you as well. Say u get 6k per month interest, 4k for u, 2k for a parttime helper/ nurse.
Important is money & hassles free life. Nothing to manage, no headache and nothing to be worries along the renting period. 2.5m, if every month expenses 3k. Irene need 70 years to finish. Can Irene extended her lifespan to another 70 years? The worst part of holding property is when come to emergency, is hard to cash out within short period. Can Irene sell off on hand properties within a month? Unless you want pass to next generation. Till the end of the day, what we have, if not fully spend or sell. Is belong to this earth. We have to return all back to this planet. My goal is sell one used one till finish all property on hand. along the road, others will generate capital appreciation plus rental income. Never ever use rental as a monthly expenses. Is a poison for u not to let go urs property till you DIE, you will never ever fulfill ur dream to have luxurious retirement life.
Sorry for my ignorance, $2.5m still not enough for a single elderly person with no children? So in Malaysia only multimillionaires can retire comfortably or are we overanalysing/over strategizing here?
It totally depends on the lifestyle choice of the person. That’s why we discuss whether to maximise all the way, or play it safe, or just chill. Absolutely up to the audience:)
I think you didn't get her point. She didn't want the hassle of managing her rental properties after she retired. She sounded like she just wanted to liquidate her assets and lived off her earnings (FD, dividend s, etc) from the cash. Didn't sound like she was intending to grow her assets. With the amount of cash she has ( including cash from selling her assets) she would have enough to see her through her life happily ever after.....
if you are holding property more than 10 to 20 years, the price might depreciate, better just sell all and put in FD, after 60 yo your life goal should never be about making more money
Wa, so early lol for me,if i am lazy lol i will just put few millions into FD and get interest, no hassle and it will only appreciate. Simple. But thats me
Maaf tuan, saya mungkin tanya soalan yg lari dari content tuan 😅 Harap ada yg tahu, respon saya. Saya nak claim LAD (penangguhan rumah) tp developer tak layan 🥹 saya beli apartment dec2019 & until now belum siap (jan2023). Contract 36months if nothing issues. But then comes covid. Just wanna know how long it takes to postpone the development during covid? And can i claim LAD? If can, i wish to claim before it too late. Please help me 😢😭 Developer keep saying the house will finish in this month. For the record i asked on sept2022, oct2022, & jan2023. The answer is same everytime i asked: “will handover this month.” 😅
Pihak developer ada hantar surat "EOT" tak? Maksudnya pihak kerajaan perumahan telah meluluskan permohonan untuk ketangguhan projek disebabkan covid. Saya syorkan untuk carikan surat rasmi tersebut dulu.
@@iherng thankyou for your response! Very appreciate it! Btw, kalau tak ada EOT, mungkin saya boleh proceed LAD ya? How the process ya? Should i hire a lawyer or what? 😂😅 im sorry, im a bit lost with all of these process 🙏🏻
Sean doesnt know her age. If she is 60 or more, a lot of suggestions may not be applicable. For example refinancing (banks won't approve loan to retirees in 60s) and selling one property every three years..
@@iherng if i read her questions again, , she is trying to go asset light because of her age and no dependent status for easier manageability. I don't think she wants to maximize her return at this stage.
if u hv a professional job and high income without getting married of course u will be a millionaire at age of 40. But at the end of the day u will suffering the severe loneliness which cannot be treated by huge amount of money or multiple assets that u have
Well then you can hold everything in cash. Don’t even put into banks as they might be bank run. Oh wait, don’t hold cash because the government not stable…. Well everything depends on how you use them as all of them have risk. Thanks for sharing your thoughts:)
2.5mil on FD with Public Bank 4.8% average every month you will get 10k risk free.
My suggestion Irene, I see that you want retire life and don't want to manage it anymore. So my suggestion is just sell them off. Regardless of what the market is. Take the money and put into FD to get interest. Then slowly spend it off and keep one last PJ house that your stay for emergency. Whereby u can reverse mortgage it if you need the money.
Maybe I missed something, but is a cash flow of RM3.7k a month for properties worth around RM2.5m too little? If she deposits all the cash into FB with a 3.5% interest rate, the interest per year will be RM87,500. Should we relook at the rental?
You might have overlooked that not all the properties are rented, she still has to live in one of the property. So if she put all the money in FD and got 87500, she might still have to fork out 3500 monthly or so for her own rental property she will stay in?
A little morbid but really really interesting and valuable that you're giving advice to seniors at this stage of life!
I get the sense that the issue here is actually not the $ value, but more on the hassle of managing and upkeeping the properties. Quit rent, income tax filing, tenants moving in and out, repairs, agent fees etc are bothersome, and net rental is probably still less than FD or bond yields. Also, it sounds like the person is quite modest in lifestyle so living expenses need not be high. At that age with that size of portfolio, I would guess that the EPF savings is also >RM1mil. So if immediate cash flow is not an issue (can draw EPF), you could slowly divest the properties and live off the risk free interest from FD/ bonds/ EPF. Cash out any life insurance (no children) and load up on medical insurance. Spend the free time productively with family, no sense in adding debt which adds another mental burden at this age. The principal sum is always secured with high liquidity and functions as the fallback. If really there is the motivation for more financial gains, can take some small percentage of assets say 1 year's interest and learn to trade stocks or other instruments to occupy time.
You are a Pro, you have given the answer of what Ms. Irene needs. I can tell you are a very understanding person, cheers
Refinancing might be hard for retiree 😮 short tenure and higher interest. She might not have complete income support (if Ms Irene retired already) besides her rental income
But salute to Ms Irene, I do hope I’ll be like her when I retired 🥹
If u r govt pensioner refinance Yr high valuable market property is an option to do at the age of 41-45, besides u increase Yr investment, u may enjoy yourself and family with a quality & memorable vacations which cannot be obtain when all Yr childrens are growing up and u r getting older
Just a suggestion, why not to consider reverse mortgage or skim bersara bercagar? You could continue to stay while encashing on the asset, somewhat similar to refinancing but you dont have to pay the monthly commitment, they pay you monthly cost of living instead.
“Skim bersara bercagar”.. interesting, where can I find more info/packages/providers? Hopefully have monthly payment
cagamas
Can also sell off everything then use the money to invest in REIT. You don't have liquidity issue, no need to manage the tenant, just that the monthly cash flow will be lower.
Yupe. So we got FD, reits, stocks and etc… a lot of ways to invest that money:)
Thanks for sharing Jason!!
Sell them off but no need do it in a rush & price it well. Proceeds like many here suggested put into FD. Travel the world. Check off your bucket lists. Have fun. Donate & do some charity work. I would also recommend a book for her. Die with zero by Bill Perkins. Congrats to her for a well earned retirement. 👍🏻
Why not engage a company to manage the properties on her behalf? She can sell later if/when needed. Until then, keep collecting the rent.
During our no go years, we will want a fixed income without any trouble. Sell one by one in order to catch the average market. Cash put in FD and spend off slowly.
There will come the time where reading or walking is a big problem, not to mention manage an account or property. Property does take a lot of efforts to manage.
Exactly
Depending on her spending habits. After retirement, if she doesn’t spend a lot of money, then maintain as it is. If she goes for trips every year, or spends on some expensive hobbies, she may need to sell some of the properties. But after she hits 70 to 80 plus of age, she may have dementia or Alzheimer disease and no longer capable to think and manage daily routine & transactions, she may have to sell all the properties. Some may even keep all their fortune or cash at home.
NO if u get reason rental incomw
If it is total 2.5 million ringgit, should sell all and buy government bonds for above 4% return. yield also higher than 8K rm per month. Makes no sense to collect rental of 3K rm only
sell one property to enjoy life abit. other properties revise the rental rate to market rate. keep it to beat the inflation. sell one by one as u age further.
Depends on what is she pursuing for. She can exit all her properties, 2.5mil put FD.
yup, no hassle, easy income. no need worry about rental etc
Exactly!! Lots of ways;)
Wow! What a professional & pure from heart advice bro. Even I benefit to ideas. Syabas. Hat off.
Susah ni... Volume is too small to hire a property manager. Sell all at 62 yo. Put them all in FD. Only use the interest. The rest are emergency fund. Need to pay somebody to take care of you as well. Say u get 6k per month interest, 4k for u, 2k for a parttime helper/ nurse.
Important is money & hassles free life. Nothing to manage, no headache and nothing to be worries along the renting period.
2.5m, if every month expenses 3k. Irene need 70 years to finish. Can Irene extended her lifespan to another 70 years?
The worst part of holding property is when come to emergency, is hard to cash out within short period. Can Irene sell off on hand properties within a month? Unless you want pass to next generation.
Till the end of the day, what we have, if not fully spend or sell. Is belong to this earth. We have to return all back to this planet.
My goal is sell one used one till finish all property on hand. along the road, others will generate capital appreciation plus rental income.
Never ever use rental as a monthly expenses. Is a poison for u not to let go urs property till you DIE, you will never ever fulfill ur dream to have luxurious retirement life.
Sorry for my ignorance, $2.5m still not enough for a single elderly person with no children? So in Malaysia only multimillionaires can retire comfortably or are we overanalysing/over strategizing here?
It totally depends on the lifestyle choice of the person. That’s why we discuss whether to maximise all the way, or play it safe, or just chill. Absolutely up to the audience:)
I think you didn't get her point. She didn't want the hassle of managing her rental properties after she retired. She sounded like she just wanted to liquidate her assets and lived off her earnings (FD, dividend s, etc) from the cash. Didn't sound like she was intending to grow her assets. With the amount of cash she has ( including cash from selling her assets) she would have enough to see her through her life happily ever after.....
Put 2.5m in FD and spending the interest, end up dying with 2.5m in the bank right? Is there a better way to slowly draw down the 2.5m? Lol
if you are holding property more than 10 to 20 years, the price might depreciate, better just sell all and put in FD, after 60 yo your life goal should never be about making more money
If refinance. You still need a job right to maintain new mortgage?
When you are close to retirement, bank will loan you money for refinancing? Even with rent , can meh?
Yes,this is my question too
Potentially can, as the houses are rented and she can prove her income. Can loan till 70yo
Wa, so early lol for me,if i am lazy lol i will just put few millions into FD and get interest, no hassle and it will only appreciate. Simple. But thats me
Right???
@@killmyindianbrother yup (for him to be so early lol - updated my comment)
That's me too :)
Man, up to a year to sell a property there? See, I was correct about the huge property overhang there.
2.5mil 😂😂😂😂? Then Sell them all and put fd u get 8k per month risk and worry freeeeeeee. So why hold all these property for 3k
That’s a great solution. Hope she sees this:)
Great advice 👍👍👍
Glad you think so Limau!!
at the age of retirement without job. the bank still let u refinance ka?
Maaf tuan, saya mungkin tanya soalan yg lari dari content tuan 😅 Harap ada yg tahu, respon saya.
Saya nak claim LAD (penangguhan rumah) tp developer tak layan 🥹 saya beli apartment dec2019 & until now belum siap (jan2023). Contract 36months if nothing issues. But then comes covid. Just wanna know how long it takes to postpone the development during covid? And can i claim LAD? If can, i wish to claim before it too late. Please help me 😢😭
Developer keep saying the house will finish in this month.
For the record i asked on sept2022, oct2022, & jan2023. The answer is same everytime i asked: “will handover this month.” 😅
Pihak developer ada hantar surat "EOT" tak? Maksudnya pihak kerajaan perumahan telah meluluskan permohonan untuk ketangguhan projek disebabkan covid. Saya syorkan untuk carikan surat rasmi tersebut dulu.
@@iherng thankyou for your response! Very appreciate it!
Btw, kalau tak ada EOT, mungkin saya boleh proceed LAD ya? How the process ya? Should i hire a lawyer or what? 😂😅 im sorry, im a bit lost with all of these process 🙏🏻
To what you suggest to refinance the property, will bank approve loan to a ppl that retire?
Can use rental collected as income.
Sean doesnt know her age. If she is 60 or more, a lot of suggestions may not be applicable. For example refinancing (banks won't approve loan to retirees in 60s) and selling one property every three years..
Yea. That's why I gave a general one but I have friends who still gets financing until 70. Again, it depends on their financial status as well.
@@iherng if i read her questions again, , she is trying to go asset light because of her age and no dependent status for easier manageability. I don't think she wants to maximize her return at this stage.
If women don't get married & hv family, sure can own 3 or 4 or 5 properties. Simple as that. Don't get married.
You prefer 3 more properties over a happy marriage? Why not have both?
if u hv a professional job and high income without getting married of course u will be a millionaire at age of 40. But at the end of the day u will suffering the severe loneliness which cannot be treated by huge amount of money or multiple assets that u have
@@akukuattakterkata8356 Then get a girlfriend. When u got lots of money, the girls can smell wealth.
There is no such thing as a good marriage ... Not with the generation of humans nowadays ...
I'm living in one, so I'm not too sure about what you're saying... But thanks for watching!
People buy properties to become Debt Slaves. Presuming an ever lasting golden rice bowl job. Sure way to future disaster
Well then you can hold everything in cash. Don’t even put into banks as they might be bank run. Oh wait, don’t hold cash because the government not stable….
Well everything depends on how you use them as all of them have risk.
Thanks for sharing your thoughts:)
✌️
@iherng read the die with zero book by bill perkins
Appreciate the suggestion. Will go check it out!
Gong Xi Fa Cai Steven!!
Diversify. stocks, bonds,real estate & cash. Not one single investment is fail proof!