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Advantages of investing when we are younger

I am 44 this year. They say the life of a man starts from 40. Ahem… Haha. Every time people asked what would have happened if I could go back 20 years, I replied in terms of property investment, I would have have purchased more properties than today but in terms of working life, I am grateful for the opportunities given to me and the many coaches and mentors I have then and now and I think for this part, I want to just have the same. I am grateful. Depending on our age, it may yield different advantages.

Any age under the “Too late” category?

Musang King season is over or maybe on the way back depending on when you read this article. Actually, when it comes to durian, many wished they had thought of planting Musang King durian trees over 20 years ago. If they did, they could have earned many thousands of ringgit from just one tree every season. One tree could yield up to 200 durians (when they are much older okay and the planting was done right) Now imagine if they had just 16 healthy and productive Musang King durian trees? How many durian trees could be planted on a 1 -acre land? 1 acre could have 16 durian trees planted. Some readings here. If you plant today, you are 10 – 15 years away from starting of a good harvest.

Why younger means better? Stretch It Longer

What about property then? If we are young, it gives us an advantage over older buyers. One major reason is because our monthly mortgage payment could be lower as it is stretched over a longer period of time. Another important reason is because we would have time to upgrade a few years after our first property and could then start our property investment journey on a firm footing; one home for own stay and one for rental income. Perhaps a calculation as below showing two buyers; one a 30-year old and another a 40-year old. Both buying the same RM400,000 property.

30-year old can pay over 35 years.
40-year old could only pay over 25 years

Savings? That is EXTRA for investments (if you did not spend it away…)

Difference is over RM300 and what can this RM300 do? Well, every year, that’s RM3,600 which could have been reinvested into the stock market for extra dividends and that potential price capital appreciation too. By the way, just 10 years and this RM3,600 a year becomes RM36,000. If your investment worked, the money could even double to RM72,000.

If I am younger, can I afford a mistake? FATAL mistake is still fatal.

Let’s understand that if we bought the wrong property, it will still be a huge mistake. Difference is that younger buyers may just have time to recover many years later while older buyers would been disadvantaged versus these younger investors. So, do due diligence and not just rely on some Facebook free seminars yeah. I tell you again, if I know of any SURE-WIN properties, I will just buy and wait and maybe tell all my good friends and siblings, there’s no need to share with the world unless I also have profits from it…

Should I stop investing if I am older than 44?

No quick answer but if you are already a multi-millionaire at least and your are getting a five figure returns in interest every month, I guess one could just choose to stop working and read a book or something. However, if we are still working for a salary every month and if we stop working, we would not be able to survive till we leave this world, then investing is compulsory. Better late than never as they say. It does NOT need to be into property as well.

Happy understanding and all the best.

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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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