Gold getting more expensive and property price may dip?

Gold getting more expensive and property price may dip?

I had a great conversation with someone who loves hold investment and could speak easily on the topic for hours. However, he kept saying that property investment is not good because… he bought a landed property somewhere in Klang Valley and it has not appreciated much for the past 5 years and yet the rental is very bad and could not cover the monthly mortgage payment.

Property Investment is just like any other real investment

Actually, it’s good to note that an investment is good when we invested right. Right property. Right price. Right strategy and etc. If we bought a landed property and we want to get rental returns, it’s quite a certainty that it will have negative ROI. Sorry but that’s the truth. Perhaps a high-rise unit would be better if we are looking at renting it out for returns.

Secondly, if we bought a property at the highest price, we cannot say the property price has not been moving much over the past few years. Truth is, we bought at a price which has moved too much within just that time when we bought… and thus it will have to stay quiet for a few years first before the whole market may help it to move a bit again.

Some trends for everyone to see

Yes, I actually told him all the reasons why his property investment may not have worked well but he insisted, so here, I also insisted lah. Below would be the trend for the gold price and also the trend for the property price too. I added in Melbourne property price just for show.

Enough evidence? Not yet?

If the above is still not enough evidence, then skip property investment lah. Every year, Malaysia has roughly 350,000 property transactions. One person less will not matter too much. This is fact yeah. So many other investments we can do. More liquid type too. Property Investment is slow and needs lots of time too. Time to view, time for loan approval, time for renovation, time to move in, time to sell, time to wait for money from the bank and more time… If it’s stock market, it’s almost immediately that we could buy and sell.

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