When we buy our first property, that’s just buying a property. Our investment journey starts from the 2nd property onwards. (Yes, I am writing a book to focus on that 2nd property onwards. Please wait for it) As for those starting with 5 properties or even 10 properties, that’s called GAMBLING. I represent the working population of Malaysia and I have been working since July 1998. So, that’s over 20 years of non-stop full-time employment. I bought my first property in 2003 and my most recent property in 2017. So, a total of 14 years of property investment adventure as a working professional. Here are 7 reasons why we should start this journey / adventure.
#1 – Retiring with SOME serious money. How many of us will retire with half a million in savings? Well, buying that affordable property of RM250,000 today will ensure that by the time we retire,that home is half a million ringgit or higher.
#2 – Forced to save. Assuming we are able to save RM1,000 per month for 30 years, together with compounded interest, this monthly savings should give us half a million ringgit or more. Question: Without the banks forcing us to pay the mortgage every month, how many of us could save every month?!
#3 – No wastage because nothing left to waste. A fresh grad may have to skip avocado toasts, Starbucks and even changing a new smartphone model every year in order to pay for the monthly mortgage. Well, one is becoming an asset. All the rest are just ‘rubbish’ after some time…
#4 – Property investment is easy. I am dead serious. Read more, survey the area, browse articles online (including kopiandproperty.com) and hey, the mistakes are totally minimised. If you do not believe me, ask 10 people who owns a property they bought over 5 years ago, how many are LOSING money even in today’s slow market…
#5 – Opportunities still aplenty and future is bright. Look to advanced property markets. Suddenly we realise it’s advantageous to be in a growing and not mature property market. 😛 On a longer period of time, regardless of whatever property cycle or the time on the property clock, property prices rise with income. (Unless most Malaysians stop receiving increments..)
#6 – Leverage (It’s usually 1 to 10!). Property is the only one where you pay just 10% downpayment or lower and the returns are based on the overall property price and not based on your downpayment. RM10,000 may be your downpayment for a RM100,000 home. The price increase is NOT based on your RM10,000 but it’s based on your RM100,000. Savvy?
#7 – Everyone needs a home, somehow. Unlike cars or handbags, without a home, we have nowhere to go. Of course we could also rent but this is a basic need; shelter. This is why the demand for homes will continue to grow. Demographically, Malaysia is only 29 years old (median age).
I could go on and on but 7 is my favourite number. I hope these are enough to get you started. Finally, I just want to also say that property investment will also allow one to be able to determine if they should leave their bad boss or stay and suffer. I already have many peers who are semi-retired today. None of them are due to the stock market, nearly all are due to property investments. Do not speculate, do not gamble and it will be safe for a very long time yet. Happy starting your journey.
written on 10 Dec 2018
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