Property Investment 101: Budget 2023 highlights for property Let’s run through the Budget which was unveiled by PM Anwar Ibrahim recently. Source: theedgeprop.my (click here
People’s Housing Projects (PPR) is built to provide homes to Malaysians who could not afford their own home as yet. Thus, all these PPR homes must be for the benefit of poor Malaysians and not to enrich anyone who managed to get a unit and is then sub-letting the unit out to foreigners and gaining profits from it while many other needy Malaysians are having to wait for a unit for years.
Google for reasons for property investment and you will an unlimited number of articles about this topic. After having invested into property for the last 18 years or so and having properties in 6 cities / towns in Malaysia, here are 10 reasons I think are important for property investment. All the WHYs…
Are you a first time home buyer? I was one as well, once upon a time ago. Are you worried because this is going to be a purchase of a few hundred thousand ringgit? I was as well. I thought buying my first property was very scary and buying my second property would cause me potential bankruptcy!
“Charles, we have too many affordable apartments being built today. This will soon collapse the market.” I still remember this statement from a friend (not a good friend, not a close friend, just a friend) many years ago. Well it was before Covid’s arrival. It was at a time when every developer were telling the world that their affordable project is the best affordable one. Somehow, it scared my friend who thought that property price will collapse when there are too many affordable apartments being built.
I graduated in July 1998. Yes, now you know my generation is known as the Gen-X. It was in 1994 that I started that I enrolled in Inti Subang Jaya for my degree. At the time, all the colleges in Subang Jaya or Bandar Sunway does not have the attractiveness of today. In fact most of them do not even have University status! They are merely colleges and they could not even grant degrees at the end of the studies.
You can read more about it here in an earlier article too. REIT Advantages Real Estate Investment Trust (REIT) is another way for invetors to start investing into the real estate world without the need to have big capital. Just buy these like we buy a stock from the share market. Enjoy the dividends which is still considered attractive when compared to fixed deposit rates. Just need to be aware of the latest returns before you buy yeah. It could have changed because the REIT price may have increased etc. Plus, REIT allows us to buy into real estate assets which would have been impossible for us to buy by ourselves. For example, a stake in Pavillion Bukit Jalil? Below is the media realese from Pavillion REIT.
As per Department of Statistics, Malaysia, the median salary of someone working in Kuala Lumpur is RM10,549 while the median salary for someone working in Selangor is RM8,210. That means one would earn up to 30% extra per month if one were to work in KL instead of Selangor. Just need to note that this is median and that KL would have more of the high paying jobs because someone working within the KL CBD cannot be having a lower pay than someone working in Kajang. Else, better work in Kajang lah since properties in Kajang is much cheaper than KL.
I bought my first high-rise unit in 2003. It was then followed by another high-rise and another and well, high-rise units in 6 cities / towns in Malaysia. I only bought my first landed property in 2020 yeah. So, 17 years of just high-rise units. Did I have any price appreciation at all? Haha. When I speak in any events in the future, do ask me yeah. Will tell you all about it. In the mean time, let’s look at actual numbers from iProperty.com.my’s latest media release.
Okay, I would not. Then again I learnt long time ago from my real estate friend that there are people willing to buy a haunted home, as long as it comes with a hefty discount. I repeat, I still would not. Haha. However, frankly speaking, if someone is able to buy a haunted house at a super heavy discount, then ‘clean’ it up, then maybe it’s possible to sell for profit? Else, perhaps buy, ‘clean’ and then use for own stay?
Actually, can also ask this instead. How long can home owners hold versus having to sell their properties during a slow period? It can also be how long can potential home buyer wait and see while continuing to pay rental or whatever payment if the house they are eyeing is for own stay.
The issue with social media these days is that we are tricked into believing what we read is the truth and that’s far from the truth. Engagement is key. Thus, social media platforms will do their very best to show you things you lik to read. What you like to read would then be the majority of things shown to you. As for property investment, it’s another thing which will have both sides of the story ALL THE TIME.