old house need a lot reno. duit need

Basically what @arffrhn said.

To break it down in financial terms:

In the end you're still paying for the 2nd property with the disadvantage of servicing the loan interest + maintenance costs of keeping the 2nd property liveable, with the additional risk of the property losing value in the future (in terms of market value, and/or in terms of your heir(s)' desire to live there).

Whether you take out loan now and pay over time, or pay for it mostly in full in the future, in the end you're still paying for that property.

Similarly, I also advise that when your horizon/end goal is that many decades in the future, it's overall more beneficial to invest in more liquid assets than an illiquid asset like a property, to maintain that financial independence and flexibility in your golden years.

Forking out the high downpayment/pay in full also has the added benefit in the future of allowing your heir to get a loan that's lower in monthly payment, since the total loan needed is low, and that allows them to build a healthy credit health history for their future finances without placing too much of a burden (banks like people with good credit payment history, and a home loan is considered "healthy" credit).

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This post has been edited by Lembu Goreng: Feb 9 2023, 08:08 PM