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Not going to invest, regardless of the government of the day.

Posted in Personal Finance, and Starting Property Investing

Many friends, way before the 9th May 2018 election say that they were very cautious in buying a property because it is too illiquid. What if something bad were to happen and they could not dispose it off quickly? One of the bad thing that could be happening? Well, the economy of Malaysia going bankrupt in a few years’ time. I replied that I could not answer for them since I am not an economist but EVEN an economist could not predict a crisis accurately at all times. Sometimes, one of their many predictions happen and everyone thinks they are the most accurate economist of the world. Well, just for everyone’s information, Malaysia was given an investment grade sovereign rating (read here) way before the election and these international rating agencies certainly are not under the payroll of the previous government. International Monetary Fund adjusted their economic growth prediction for Malaysia upwards. Please read here.  Okay, hope it’s clear that it was NOT due to the economic factor that these friends were not buying. More likely due to their lack of understanding of what’s a good property to buy, perhaps.

The election has passed and there are now chants of a BETTER Malaysia. The main reason is because our new Prime Minister is Tun Dr Mahathir. A close friend once asked me this question many years ago, ‘Why do you think highly of Dr. Mahathir?’ This was after I told her that I bought ‘A Doctor in the House’ and I think it’s a good book. (I read it twice). Anyway, I even bought her a copy of the book which has been translated into Chinese. No idea if she has read but a few weeks back, she told me she had full admiration to our Tun Dr. Mahathir. 🙂  Coming back to our question to the many who did not invest in properties way before the election, do you think they will buy one now? I think the answer is crystal clear. Some would say that the situation is quite uncertain. Would the economic plan by the Team of Eminent Persons really work? Let’s just say that everyone can just search the keyword of ‘Zeti’ among my 2,600 articles and you should understand that I have full confidence in her. Beyond just his knowledge about economics, Tun Daim is someone whom I regard as a nationalist too. With his wealth, he could be based anywhere in the world but he is still here in Malaysia, as a Malaysian among us Malaysians. For Robert Kuok, he built his business empire in many places but regards Malaysia as a home. Please read his book yeah. In brief, none of these eminent persons needed any salaries from the government.

By the way, if anyone were to rush into the market and buys a wrong property, it will still be a loss regardless of what our Team of Eminent Persons could do, okay? I asked this question recently in one of my talks. ‘If you hated a property last year and that same property is still up for sale this year, would you suddenly fall in love with it? Considering circumstances remain the same?’ The answer is No, even if that same property is up for sale next year. Article on unsold units here.  Property investment is really an investment. It’s for a longer term than one or two years. Do we really think Malaysia has no future? If that’s the case, please do not buy property and keep all our funds liquid. If we believe there’s a future, then we just need to look at the advanced property markets in the world today. Property investment will always be a good one even if everyone should diversify and not keep all our investment eggs in one basket. Oh yeah, I realise now that those friends were just against property investment. If this the case, they are not going to invest, regardless of the government of the day. Happy investing.

written on 16 May 2018

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