5 properties, 6 Months, Profits from stocks

A friend started reading many property investment books few months ago. She has accepted my two lunch invitations though she loves to eat by herself as she spends her time efficiently and effectively, for investment. She asked me if Ipoh is worth buying. I said, for rental, no. Even Penang is tough when we are talking about rental yield. She’s more of a Bursa Malaysia’s stocks supporter for a very long time and I think she’s awesome at it. Using lots of those charts which helps to increase chances that she may hit the right stock within a short period of time. While I do not really like such way of investing but that’s my own opinion. Who cares, as long as she is able to make sufficient profits for 5 properties within this year!

She asked me if it is doable or even possible. I said, why not. As long as it is a property which you intend to rent out and you have the required 10% for first 2 and 30% for 3rd, 4th and 5th, why not?  Furthermore, as soon as the rental starts to cover the mortgage, you can continue to save money for your next investment already. She laughed. I think the possibility is quite high that she can pull this off somehow even if not all within this year itself. She is diversifying her investment portfolio, something very important because it’s bad to put all eggs in one basket.

She told me that her friends who bought in Penang in 2009, 2010 has earned crazy money. I said, at that time, close your eyes and simply buy, you will still earn loads of money. Today, if you are expecting something like that, you have to be lucky. However, if you are aiming at say 30-50% potential capital appreciation versus FD rate of 3%, then yes, property market still has that kind of return if you buy the right locations but this kind of return cannot last forever or Malaysia will suffer a ‘mortgage crisis’ of our own.

She told me she is now 30% into her goal but she would not tell me anything until she has completed her project of 5 properties within 6 months. I wish her all the best. As she is aiming at rental, she should be safe and not speculating on new properties which at this particular moment is pretty slow.

written on 24th May 2014

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