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5 Questions First or One Question First, before you invest in anything?

There’s a Facebook page I visit often, Property Insight Malaysia. An interesting view came up today, it said that before you do any investment at all, there are five questions that you must ask before that. They are: Is it a solid company or investment vehicle?  Does it provide good income? Is there good opportunity for appreciation? Does it protect against inflation? Is it easily reversible? All these are important questions, without any doubt. However, I think somewhere along my sharing for the past 5.5 months, I wrote indirectly about ‘Are you ready’ Personally, I always believe this is the first question one should find out before you do any investment. For example, if you are thinking about investing in shares, do you ask the question of ‘is that share good?’ or do you ask ‘what’s the typical PER for companies in this industry?’ The latter requires you to really read and study and get sufficient knowledge before you embark on your investment.
When you buy property, your first property, do you ask, ‘is this location good?’ or do you ask, ‘how much is the price psf for this location, what about the neighbourhood and the rental returns at this particular moment?’ Again, the latter requires you to have read some books, attended some seminars, paid for some workshops and read kopiandproperty.com for the past 3 months.
When you decide to start up a business, do you ask, ‘can this business earn profit?’ Or do you ask, ‘what’s the typical breakeven duration. what’s more important, higher rental and higher catchment area or lower rental and lower cost and thus giving you more chance of not losing huge amount of money should the business does not work out for the first few months.
Nothing is easy. Nothing should be easy because if everything is easy, then everyone can do it and I think if everyone are millionaires, there’s no point in you aiming at just becoming a millionnaire, right? I always believe, if you did not do sufficient homework and you somehow still made it, it’s just pure luck. The thing about pure luck is this, if you do not work hard, it stops following you after a while. Personally, my advise for anyone wanting to buy property is to really read property news for 6 months and know more before you buy your first property. I know, some are much faster than me. If you do not want to invest a lot of money, then buying a property magazine with lots of articles and read continuously, together with online property news as well as visiting property fairs will help tremendously. Yes, you can do all these and be successful even if you did not subscribe for one article per day from kopiandproperty.com
Luck follows those who work hard. I believe, before you ask any questions of which one is best. Get to know first, how should you consider, which one is the best.
written on 22 May 2014
Next suggested article:  Latest update, Interest Rate, Malaysian economic situation

Property Investment always start with knowledge. Equip ourselves with more here.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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0 Responses

  1. I am convinced that the smarter one would ask the most pertinent question, rather than asking many questions. Focus. This is the essence of right concentration to succeeding in a world with too many distractions. Level of questions, be it complicated or technical may not answer the question in doubt. It is about individual understanding of self, how confident a calculated risk can be taken – thus to ask the most pertinent question. Property investing needs a lot of this type of ‘mind set’.

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