There’s too many people trying to sell me properties these days. It’s on my Facebook wall, it’s in SMSes, it’s in emails and more. In fact many are offering free meals (Raya open houses) and one even offered Sheila Majid (as an entertainer during the event lah) which kopiandproperty.com thoroughly enjoyed. She’s definitely one of the very best singers we have in Malaysia! Moving on, some advertisements on homes say it’s the final few units. Some property speakers tell me that this is the best time to buy. One funny speaker even said this is only the second best time to buy because the best time to buy was 20 years ago when the property prices were too low. Who knows, the second best time to buy may repeat itself 20 years down the road from today! So, is property investment really an investment? The below would be four reasons why everyone should HATE property investment. (Haha.. Happy reading!)
Too easy, it’s risky – You see, when it comes to property investment, one is able to LEVERAGE. A property which is RM500,000 means a downpayment of just RM50,000. This is a huge risk to the buyer because what if one could not afford to pay for the mortgage after a few months? Fortunately though the banks do not simply lend to anyone who wants to buy a property. Besides, the property prices increase based on the overall price of RM500,000 and not our downpayment of RM50,000. This does not make sense! The prices should just increase based on our downpayment, else, the house prices will go up fast and the owner may get good returns! So, everyone should just invest in everything else other than property, especially those investments which does NOT give us leverage. We get returns based on only actual amount we invested. 🙂
Easy to be cheated – An ex-colleague bought her second property 1 month after I gave a Property Investment 101 sharing in our company. There are also those launchings of a few hundred units of landed properties recently that was nearly fully booked. All these buyers must be thinking that buying a house is like buying vege or fish in the market? Why are these people so easily influenced to buy a property? Don’t they know that when a housing bubble bursts, their home prices will drop? Okay, I have no idea when the bubble will burst or if there’s a bubble. I also do not want to tell you that house prices will continue its climb after each financial crisis. (PRETEND you did not see this last sentence)
Who says everyone gets rich from property? Think really carefully. Some people who got rich from property, they will tell you. Some people bought the WRONG property and they lost money, they will not tell you. (Yes, WRONG property…). So, I definitely think there are people who lost money! Just that all those stats about property prices over the past 26 years in Malaysia for example still showed an average home price increase of over 6 percent. I think the numbers must have been made up, somehow. Oh yeah, just wanted to also share that most high-net-worth individuals usually have property investment as part of their portfolio. I am sure this is just to show that they are rich and not because property investment gives good returns.
It takes TOO LONG. Property investors like Charles Tan of kopiandproperty.com tells me that I should not buy a property if I am thinking about flipping for huge profits in 1-2 years. This is absurd! If I have invested in that XXXX scheme or that XXXX metal, the prices have gone up in days or weeks. This property investment takes years! In fact it took months for the transaction to be completed and when I need to sell, it takes another few months! If I COULD IDENTIFY for sure which stock in the share market to buy, I would have gained returns much faster. As for which stock will surely rise, can some readers give me some tips? I am equally scared the stock price may drop after I buy. 🙂
There are actually ever more reasons why investing in property is not the best decision ever in our lives. In fact, we should just forget about diversification in investment and forget about property or real estate. It’s time to just enjoy our salary and spend it all on things we like because as you know, enjoyment must be now and not years later when we have more wealth. I must show to my peers that I drive a slightly better car than them. I hate it if I am the only one with an old smartphone while everyone else is using the latest smartphones. Make me lose face loh. If after reading these you are still interested with property investment, then sign up for an article a day at kopiandproperty.com yeah. Happy investing into whatever you love to invest as long as you are happy. I love property investment but please evaluate carefully before buying yeah.
written on 5 July 2018
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