I love questions when I speak. (Though there are usually not many) Helps me learn about what people were thinking when it comes to property thoughts and helps me to learn something which I could then use in my next talk. In 2019, I have been quite lucky. This week is the 41st week of 2019. I have spoken slightly over 41 times thus far. 🙂 Happy to share my personal views on the property market.
Recently, I spoke in Edumetro sales gallery. It’s a project by HCK Capital. One of the attendees asked this question. “They say millennials no longer like to own a property. They prefer to rent.” I continued his question. I said, “Yeap, in fact they rate lifestyle and travelling on a much higher priority than property ownership.” Everyone nodded their heads in agreement. I concluded with this, “If they love to rent, we should just let them rent… from us…” A few people smiled.
Seriously, the world is changing at a very fast pace. My parents asked me if there was something wrong with my first property when I told them that I wanted to buy my second property which was an upgrade in size and quality from my first apartment. My first one was 730 sq ft apartment and I stayed in it for 4 years before buying a new condominium of 1,258 sq ft. Fortunately, they understood today what’s the difference between owning just one property until we retire versus looking at property as another form of investment option beyond just the Fixed Deposit.
Someone told me that one day in the future, everyone will rent a car instead of buying a car. They do no need to change a car every 5 years for example. They could keep driving new cars. He wondered how will car companies survive. I smiled. When people only want to rent cars, the car rental companies will still need to buy those cars. In fact, they could not just buy 5 cars and rent to 5 people because people want choices… How many of us go to car rental companies and they say they only have one car for us to pick?
An ex-colleague who was renting a home with friends asked me if he should proceed to buy a small unit or a 1,000 sq ft unit if both are almost the same price. The difference between both units is the location to the city centre. The smaller one is nearer. The bigger one is further away. I gave him a third option. If his housemates are good people, he could buy the 1,000 sq ft unit and continue to rent out the extra 2 rooms to the housemates. The rental he got from the housemates are now his and he could use this to start saving for the next upgrade. He is doing that today.
No idea how successful was he but he took advantage of the fact that people love to rent… or perhaps people just do not have the necessary down-payment for a home. Either way, owning a property will always be a positive one as long as one does their due diligence. Remember. When many people say that they are going to rent in the future and not buy, don’t follow me. Fulfil their needs by renting our units to them. Happy understanding that there are always two sides to a coin.
Next suggested article: Renting out our homes without an agreement?