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Debt Free, really?

Posted in Property Penang

Everyone loves to be debt free. Truth is, I want to also be debt free. However, one level above debt free is financial success. Debt free is not financially successful? If you bought a RM500,000 property, takes up a 15 years repayment period and finished paying everything in 10 years. You are now debt free and your property is worth RM800,000.

However, tell me, what’s the difference between staying in a RM800,000 property and having RM800,000 under your bed? There’s little difference but if you must argue, ok, you have potential capital appreciation and you save on rental. Hardly amazing reasons. However, if you took a 30 year loan instead, save some mortgage payments and paid for a second smaller property, guess what, after 30 years you may have two properties instead of one for which you can sell your second property and buy your 3rd and 4th property. 🙂 You may have even sold your second property after 10 years for a good profit. Think about it.


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