YouthFest 2025: Buy to Sell or Rent Out? Here's What You Need to Know

Marcus Liew
Jun 14
2 min read

With growing interest in property among Malaysian youth, the big question is:Should you buy a home to flip it later — or rent it out for passive income?

Faizul Ridzuan (FAR Capital CEO) shared key strategies at YouthFest 2025:

Renting Out for Passive Income = More Secure

Renting offers recurring income and reduces risk, especially if you're not moving in immediately.
Aim to cover at least 70% of your monthly instalment through rent to avoid financial strain.
This strategy gives you time for your property to appreciate, and flexibility in selling later.

Flipping a Property = High Risk, High Skill

Works only during a bull run and with proper market timing.
Requires full understanding of property cycles — not ideal for first-time or casual investors.

Buy vs Rent Decision Rule: The 50% Rule

"If owning a unit costs RM2,000/month and renting the same unit is RM800 — rent instead."

Rent if it's less than half the monthly cost of owning.
If rent rises above RM1,500 (75% of monthly instalment), buying may be smarter in the long run.

Buying for Own Stay? Comfort Matters

Many first-time buyers choose low-cost homes, but:
- Poor facilities, bad maintenance, and undesirable areas can lead to buyer’s regret.
- Make sure your first home is one you’re happy living in.

New Launch vs Sub-sale: Entry Cost is Key

Sub-sale properties need 15% upfront (e.g., RM75K for RM500K property).
New launches offer lower entry costs, making them less likely to become a financial burden.
Ideal for young buyers who haven’t built up a large savings buffer yet.

Final Tip:

"Don’t stretch your finances. If you’re not moving in yet, rent it out smartly. Focus on cash flow, not just capital gains."