We have limited wealth, thus stay focused on building it up

The prices of condos in certain areas have reached RM1 million even for just a slightly over 1,000 sq ft unit. There’s already no way for me to buy it anymore even if I work harder. It’s too late. I might as well just keep renting. Everyone my age is doing the same anyway. How many of us have this thought in our mind today? First of all, it’s very real. There are already condos which are above RM1 million and the size is just slightly above 1,000 sq ft. It’s also true that it might be too late to buy such condos in such areas. It may well be very real that all your friends are renting and you think since they are renting, then you can also continue renting, right? Wrong.

There are still condos available which are cheaper. You would still have to work harder not just to climb up the corporate ladder but also to keep your job. Maybe not even from fellow Malaysians but keeping your job from being ‘stolen’ by other better people in other countries. If everyone is renting today, then tell me why are the transactions numbers still show such a huge number, even if it’s on a downtrend. Who are these buyers? Are they only the super-rich who are now buying so that they can rent to all those who think renting is better?

I hope we are now suddenly awake? Yes, while we are thinking that renting is the best, there are people who are buying more units so that they can continue to rent to us! Life’s not a fair one, like many people have commented. That’s the reason why blamers blame everyone while successful ones focus on opportunities all the time and take actions. We WANT great areas, no wonder those areas are selling at prices higher than the moon. We actually just NEED some stuffs within those areas we want. If we want a place next to LRT or MRT, take a look at the stations again. Many are in areas which are much more affordable than you thought. If we want international schools, so understand that staying just an additional 10 minutes away from these schools would mean a much lower price. If we want the place to be nearby expressways, do note that there are LOTS of expressways and not just that few which we normally uses.

Unfortunately, many of us do not have unlimited wealth. That’s ok because majority are like us. This is why we still have opportunity to stay ahead. Imagine everyone having more wealth than us today. If this happened, we would always be poor until the day we say bye-bye. Long time ago, these potential opportunities do not exist. Today, it’s even bigger due to the continuous urbanization which meant more housing is needed.

What we do from today onwards may determine if we continue to be just the majority or start moving towards the above average and later the top 10 percent. Think again, there are lots to learn and do. If the majority loves to rent, then why not make them happy by buying a unit and rent to them? Happy investing or renting.

written on 11 Jan 2016

Next suggested article: 30 million population, urbanisation and new properties – long term view

4 thoughts on “We have limited wealth, thus stay focused on building it up

  1. Sometimes i think there may be too much obsession for house ownership partially due to cultural factor and peer pressure. Imagine this – If this RM1mil condo or landed can be rented out for RM2.5k (or RM3k for fully furnished unit), then one may really need to consider to rent and enjoy better quality of life as the rental paid are very cheap (likely to be half of what the owner has to pay for his monthly loan installment plus maintenance fees).

    Of course, the counter argument is the rent-paying tenant will lose up some savings that can be used to buy his own property – thus missing out great investment opportunities or wealth creation plan.

    However, there are many cases that people spend 500k or 1mil and burden themselves to ‘invest’ in property until their monthly disposable income is greatly reduced (over the loan tenure of 30 years) hence affecting their quality of life.

    P/S: I am a property investor.

    • Haha… wiun kiat, agree. Obsession for home due to cultural factor and peer pressure. Yet, if this is what the majority is aspiring for, then we do not have a choice but to be ahead of the race. I do not believe anyone should burden themselves just to get a home everyone would say, wow. My first home was 123k at a secondary area known to be ‘cheap.’ I have zero issues with it. Today, I am STILL staying in a secondary area even if the size is now huge. Cheers.

  2. I like your statement, ‘Life’s not a fair one’, a very cruel but yet a very true statement. Blaming doesn’t help in improving the situation but action does. A reminder for myself too. 🙂

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