The “ASSETS” which we could invest or spend in.

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Occasionally, a new smartphone is launched and we look at our current one and suddenly noticed that our current no longer looks as nice as when we bought them 12 months ago. It no longer excites us. We are now tempted to buy that new handphone which may be RM4,000 but comes with a 12 months easy payment plan. That’s just RM333 per month. Just RM11.11 per day to use the new smartphone which will make every one of my friends envy me… for the next week or so. The reason why I say so is because by the end of next week, all my friends would have already seen my new smartphone. They cannot be saying, ‘wow, you have the latest smartphone,’ every week for the next 52 weeks, right? 

It’s not just the latest new smartphone, it may be that new car. As all of us would know, the repayment period these days could be up to 9 years. So, if we are looking to pay RM400 per month for a new car, then it’s possible to buy a car which is valued at RM400 x 12 (months) x 9 (years) = RM43,200. (I skipped the down payment part as well as that low interest. We just treat this as a simple calculation). RM43,200 meant we have many choices including a Bezza, Persona and even the cheapest version of that popular car called MyVI (manual version).  What happens as soon as the new car comes out from the showroom? Yea, depreciation of easily 15-20% of the price. After 5 years? After 9 years? 

These two typical examples show us why both are not considered a good example of investing our money wisely. That new smartphone will unfortunately be looking ‘old’ within 6 months because a new model by the same company or competitor would have been launched to replace it. By the way, most people lose their happiness feeling with their new car many months down the road. They may not even wash it that often anymore! Building wealth is however not about saving our money instead of buying a new smartphone or a new car. To build wealth, we should invest our hard earned money instead. 

What could we invest for RM400? Well, perhaps a property related to the education sector? Everyone knows that education is an evergreen sector. Number of students are stable and during a crisis, the number of students taking up further studies may even show an increase. UniSuites Kampar may be a project worth understanding further. Some reasons to buy a unit in UniSuites Kampar include the following: 

Qualifying for the loan application – RM400 per month meant that as long as someone is earning a stable income of RM2,000 or higher will qualify for it. Unless of course that someone is already paying RM400 for a smartphone and RM400 for a car. In other words, this is an easy entry into the property investment world. Will it make us become a millionaire? That’s debatable but it is an investment if compared to a new smartphone or a new car…

The banks will lend based on our Debt Service Ratio (DSR). Anyone earning RM3,500 per month and wishes to apply for a loan will usually get their loans approved if the DSR is less than 50%.

Continuous rental – Students studying in University Tuanku Abdul Rahman is growing on a yearly basis and the current number including that of TAR College is 25,000 in total. UTAR does not provide hostel for its students. This meant that the rental income from the students will continue based on a stable manner. For many owners, this stability is preferred over high turnover of renters even if the renters are able to pay much higher for example. 

RM400 investment – Buying a property is an investment and the price usually rises slowly because the cost to build a property will always be rising in future. Think cement price, labour costs, other material costs etc. All these will always be rising which meant that any developer building a similar property in the future will have to price their products higher. The salary for a general manager today and five years later will also be higher and all these will contribute to higher property prices too. 

Mature neighbourhood – Sometimes, when the price is low, it’s because it’s in a secluded area. UniSuites is situated in an area full of different amenities. From supermarkets such as Tesco dan Econsave to the branded F&B places such asKFC, McDonalds, Starbucks, Old Town White Coffee, Secret Recipe, Domino’s and even more of the local F&B places, everyone is spoilt for choice. There is even a hotel as well as a Petronas petrol station within the vicinity too. In fact this area is where many of those staying outside the area frequent because of all these conveniences. 

Convenient to start renting – UniSuites come fulluy furnished. This meant owners do not need to find the renovation people, buy the electrical goods, ensure the renovation is on track and more. The furnishings include closet, bed frame and bed, study table, chair, small fridge, air-condition unit and even water heater too. All the necessary are provided and the renter could move in with just their clothes. 

Staying Healthy and Active – Beyond just a swimming pool like the usual apartment or condominium, UniSuites know the needs of the student population. They lead an active life and they will have access to all these facilities: swimming pool, gym, badminton courts, basketball court, reading room, multi-purpose hall, BBQ area and many more. 

Security and Safety – Parents are always worried for the safety of their children. This is especially if their children are staying in any landed property without proper security and within the same house, there may be 15 – 20 other students. UniSuites Kampar offers a ‘gated and guarded’ project with two levels of security. This will be a good assurance to the parents and students who will be studying in UTAR and TARC. 

Hassle free and totally free – When we are renting out our unit by ourselves, we will usually need to attend to calls from the tenants occasionally. This may be inconvenient to working professionals. For those who are renting out their homes as homestay, the need to be attentive becomes even more apparent. For the owners of UniSuites Kampar, they only need to relax. The rental will be credited on a monthly basis by the tenant to the owner. Rahim & Co is the management company managing the development. Rahim & Co is a prominent real estate consultancy firm established since 1976! 

It’s an asset with lots of options in the future – With the value of money continuing to be eroded by inflation, a property hedges against it. In the future, after finishing paying for the property, we could choose to sell it and use the money to do something we love. We could also give the property to our children and let them earn the rental income to supplement their monthly salary too. Options are plenty. 

Connectivity assured – WIFI for all tenants assured. Nowadays, one of the key issue for everyone is internet access. UniSuites Kampar will provide this connectivity for free to all tenants. Students who are staying in UniSuites could choose to walk or they could also take the shuttle bus to UTAR or TAR College.

That super important question. Will it make someone become a millionaire? That depends on the time horizon that we are talking about yeah. If we look at a RM400,000 property today with a 3% appreciation every year due to inflation, the home will become nearly RM1,000,000 at the end of 30 years. If we look at UniSuites Kampar instead, that may be buying up to 5 units and having the flexibility of deciding separately what we intend to do with the units instead? 

Info Source:  https://www.money-zine.com/calculators/investment-calculators/future-value-calculator/

Happy calculating and deciding. Reach out to UniSuites today to find out more asap. 

Article written in collaboration with UniSuites Kampar.

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