$150K at EPF or buy low cost flat with 6% return?

Question:I need some advice.. if an old person has rm150k in epf. either leave it and get dividend yearly 6% or buy a low cost flat cash with rental rm750 monthly. I want to know the calculation that i am not aware of

Replied:
Hi Ahmad, based on ur limited information below will be my with inputs.

EPF rate=6%
This is the risk free rate.
In order to generate better than EPF rate, the targeted return should be at least 2 times.
That means 12%. Why? Think about it, if we put in at FD=3%, but we dun as we can get 6% from property investment!
FD rate is also risk free rate.Google "Risk free rate" and u know what i mean.

To invest in low cost at RM150K, u need to pay maintenance,repair cost, tenant sourcing etc. it will erode ur initial 6% calculations.
If you do not target 12% return, if i were you, i will put into EPF.

Since u mentioned is at old age, the risk level should be conservative?
From the message,i assume "the old man" want to buy cash. Form Faizul webinar,if not using leverage, property investment is not ideal for "the old man"

Of course I am not sure how old is the old man u mentioned.

Even buy the "low cost" must have strategy on how to double the investment in 5 years.

Above just my view.free to debate on it.

You may refer sample Strategy here for your reference