Advertisements

RM4,000 is equivalent to an extra RM70,000 worth of ‘property’

Buying a property with our own money, that’s most important. Our own money should usually come from savings over a couple of years. It can come from our parents too but should not be from some other speculative sources. This ensures the property price do not rise suddenly. When property prices rises too fast and too soon, the only reason is because the demand has suddenly increased and this will usually push up prices because supply of houses cannot suddenly appear. Building a new property takes years. How do we save? One way we could save a lot of money is by NOT buying a new smartphone every year or every time a new model arrives.

Briefly, if you did not know that there are good smartphones below RM1,000 then this may be an article for you. 😛  Google for names like Huawei Nova, OPPO or Vivo will reveal many good choices. By the way, even iPhones have below RM1,000 models yeah, not just that latest XR or XS. Assuming we ‘die-die’ must buy that above RM4,000 phone, do we know what have we lost in terms of ‘property?’ Take a look at the image. RM4,000 phone divided into 12 months is equal to RM333 per month. RM333 per month is enough to pay for an extra RM70,000 in property price. If the price per sq ft is RM500, then RM70,000 meant we could have bought a property which is 140 sq ft bigger. This is a size of a medium room in a condo of less than 1,000 sf. So, is it a choice between a RM4,000 phone or an extra 140 sq ft room?

Thinking slightly ahead, if we are a junior executive with our first property, an extra room of 140 sq ft would allow us to rent that room out for an extra RM500. That’s an extra RM6,000 per year which is actually enough for ANY model we like. Alternatively, this rental over a period of 5 years is equivalent to RM30,000 which helps in downpayment for a second apartment which meant that our property investment journey have started. We always blame the money being smaller today but the truth is, 20 years ago, this opportunity that I have just mentioned is not easy to do. There’s just not enough demand and supply then. The world have changed, especially where personal finance is concerned. Think about it and keep using that smartphone in your hand carefully. Cheers.

written on 20 Nov 2018

Next suggested article:   Communication skills, world happenings, learning and personal finance 

 

Advertisements

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

Related Posts

Property prices falling: excess supply and cooling measures

This was reported by a UK-based newspaper, Financial Times (FT) about the property prices here in Kuala Lumpur. It said that the reason for average sales dropping by 4 percent since last July is because of two reasons; excess supply and domestic cooling measures. Judy Ong of Knight Frank in Kuala Lumpur said, “The inflation […]

Read More

7 things to do while waiting for property bubble to burst

I have quite a number of friends who laughed when told about the potential property bubble bursting. They earn their living from the real estate industry. I also have a few friends who are confidently telling me that when the property bubble bursts, they will enter the property market and buy all the properties at […]

Read More

2 Comments

  • fongkh1 on November 22, 2018

    Good discussion but I think people still commit for this as short-term loan rather than a long-term loan.

    • kopiandproperty.com on November 22, 2018

      You are right Fong

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Property investment news everyday? Subscribe for free!

An article a day, keeps you updated all the way.

Join 903 other subscribers

LIKE us for property news update, FREE.

%d bloggers like this: