YouthFest 2025: Should you buy to sell or rent out?

KUALA LUMPUR (May 12): There is a growing awareness among youths today on the opportunities present in real estate investment, where you can either make profits through reselling your property at an appreciated value, or rent it out for recurring passive income. 

The question is, which is better?

Proptech company FAR Capital founder and chief executive officer (CEO) Faizul Ridzuan addressed this issue at EdgeProp Malaysia’s inaugural YouthFest 2025 held over two days at APW recently. 

The weekend event provided a platform for discussions on navigating adulthood amid rising living costs, while taking advantage of new opportunities present in the market.

Property investment using a renting approach offers a more secure passive income, said Faizul.

“Flipping, on the other hand, will only work when you invest in a property at the beginning or in the middle of a property bull run and are able to time your exit plan properly. This requires a full understanding of how the property market cycle works,” he added.

“If you are going to buy a property but are not in a hurry to move in, ensure you have substantial money to pay your loan repayments,” Faizul said.

He further explained that it is best to rent out the unit to cover at least 70% of your instalment. This prevents it from becoming a major financial burden, allowing you to wait a few years for your asset to appreciate before selling it.

Buy or rent?

Meanwhile, how do you decide whether to buy or to rent a home for your own stay?

"If the monthly repayment cost for you to own a unit is RM2,000, and you're renting a similar unit for RM800, you should consider renting because the cost of renting is less than 50% of the cost of buying. However, if the rental price exceeds RM1,500, you should consider buying instead,” he said.

Another consideration he raised was: “Rental normally doubles every 10 to 15 years, so while it might be cheaper to rent today, it may not be cheaper in the future”.

On buying your first home, it is important to ensure that it is comfortable to stay in.

“There are a lot of homebuyers who choose to buy low-cost properties as their first homes, but often the amenities and facilities are in poor condition, and the neighbourhoods may not be desirable, making them uncomfortable to live there,” he said.

On whether to buy from the primary or secondary market, Faizul pointed out that the capital required for a sub-sale property is significantly higher compared to a new launch property on the market.

“For instance, if you're looking at a RM500,000 sub-sale property, you typically need to have at least 15% of the capital readily available. It doesn’t seem smart to use RM75,000 of your savings, which might have taken five to 10 years of your working life to accumulate, just for this initial payment. However, if you can buy a property with the lowest entry price, the likelihood of that property becoming a financial burden is much lower,” he explained.

The YouthFest 2025 also saw fun engagements built around kiosks by Sime Darby Property Bhd, Malton Bhd, Radium Development Bhd, and PKNS Homes. To entertain visitors, EdgeProp partnered with Sony to offer PlayStation merchandise through the Astro Bot challenges, and TONG TONG ASIA for curated performances by homegrown artists like RADi, CLAUDIA and Asyraf Nasir.

Credits: Edgeprop.my - Published May 12th 2025 - Tam You Sheng