First of all, I do not think young people will stop buying cars and homes in the near future. This article shares some reasons why it believes young people will stop buying cars and homes. Why young people don’t buy cars and apartments anymore. In brief, it said that in the USA, the generation below 35 are known as the generation of renters. They have their own values which is different from the older generation. Yeah, that’s me. Well, it said that young people believe successful people don’t buy homes, they rent. To be considered successful, invest in experiences: travel, do extreme sports, build startups. Other things shared is that young people have no interest in material things. ‘why buy a car when you can take the cab, with a personal driver.’ or ‘why buy a home in a beautiful place to go for vacation when AirBnB lets you stay in beautiful places all over the world.’ Buying things make us worry. (Hahahaha..) and in conclusion, it said that whatever we purchase would depreciate over time. Even properties, especially during crisis. Let’s take a poll now, only open to young people BELOW 35 please. [polldaddy poll=9691467]
The gap between the richest and the poorest are getting ever wider. Wealth gap between the richest and poorest is ever wider This tells me that what majority does are not always right even if minority would have to lose when it comes to democracy. Secondly, a question. Is there anything wrong to buy and get others to pay for it via rentals? Assuming they love to rent, they must still find a place to rent, let’s provide them the place / space. This morning, a close friend sent me a WhatsApp message. The topic in a Toastmaster’s Table Topic Contest is “What something you know you do differently from most people.” I replied by telling her that she already know I am different from most of her other friends. She sent me a LOL. Do we follow what the majority does? I mean if our generation is stereotyped as such, do we comply?
One young colleague who uses UBER / GRAB everyday had bought her second condo nearby KLCC. She does NOT own a car. So, the study that shows young people may stop buying cars may be true. However, she understands that property would appreciate, especially those near hotspots, in her case, KLCC. One of my staff, a 35-year old just bought a new property last year. RM450,000 condo. She asked me, ‘should I buy when I would most probably not stay there?’ She already owns a place and stays with her husband. My answer is always a “YES unless you have better ways to invest your salary.” Assuming nothing happens these couple of years due to slowdown and assuming she has negative returns from renting the unit out, the negative returns will likely to be manageable while the potential capital appreciation within the next 10 years will likely be much larger than what most of us are able to save. RM450,000 x just 2% per year is still RM9,000. Divided into monthly basis, this is still RM750! 🙂 Frankly, how many people we know can afford to save RM750 per month? Happy believing what you think will happen in future and act on it. No carno property is perfectly fine for some, perhaps.
written on 12 March 2017
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