There are many myths about property investments. Most of these myths are also because we have never really take some actions to find out more. They say we will only do something impossible when we are pushed to the limit. Quite true really, applicable when I was buying my second property. For 1 month, I thought it was impossible because of all my awesome analysis on only the negative part. In the end, I proceeded because I believe worst comes to worst, I will sell of the first one and take some losses if need be. Perhaps a 2 year setback? That’s the worst that would happen! That ‘impossible’ second property sparked my interest with property investments until today. Let’s look at the three usual reasons why people who did not own a property, still did not buy yet.
Too Far – Unless you buy in a place without roads, it is very hard to find a ‘too far’ place for property. Even property developers would never build in places whereby it’s impossible to access. Think duration, not just distance. Think about it. Many years ago, Mon’t Kiara was nothing more than just……. nothing. Sunway was nothing but mines, mines and mines. You only go Sungai Buloh when, when, when you really have nothing to do. Today, these places are still growing, especially in terms of price per sf. Oh yeah, Desa Parkcity certainly was not called Desa Parkcity before it became Desa Parkcity… Haha….
Too expensive – When we intend to buy because we intend to profit from it, it will look expensive. If we are buying the property asa form of savings or hedging against the inflation and everything else, then the term expensive becomes manageable. Secondly, please read and understand what are the property prices in the hotspots versus the secondary areas. The difference remain huge. Understand why these hotspots became hotspots and understand the secondary areas with these traits as well. It’s definitely cheaper and not too expensive. Oh yeah, if it’s already too expensive, it’s time for the property bubble to burst.
Too soon – Buy what we could afford. Not buy things which stretched you thin or speculatively buy. Thus, the question of too soon does not appear. It’s just a question of could we afford it at that point in time. What age should we buy? 30? 40? No one can answer because everyone is different. No one should use this as a reason not to buy. By the way, there are many different categories of homes too. It does not need to be landed or luxury condos.
Let’s be reminded however that property may not be for everyone because it’s very sticky. It may be high risk if we bought wrongly and many other negative reasons. How about investing in REITs? It’s safe, it’s easy to buy and it’s affordable and low risk. Decide and take appropriate actions. To lower our investment risks, sometimes diversification is a good way. Just do not think that it’s too far, too expensive and too soon. Happy investing, regardless of your choice.
written on 16 June 2016
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