Property Investment 101: ONE reason why it’s IMPOSSIBLE to buy a property nowadays

Property Investment 101: ONE reason why it’s IMPOSSIBLE to buy a property nowadays

What’s your perfect property? One which is very affordable and meets all that you want plus needs? Perhaps just a SOHO unit with security and is a Transit Oriented Development (TOD) which you can go to the ground floor and walk to the MRT station directly?

A property which could showcase your achievements? A bungalow with a swimming pool within the bungalow and a gym overlooking the pool? Plus enough parking space for 18 cars? Plus a dining hall which could accommodate 20 people and a living room which could host parties?

Sometimes, for some of us, that property needs to be just a shelter to go home to every day. Whether a big or a small house, both could become a home sweet home or a lonely one. Everyone may dream of a perfect property but many will find it harder to buy a property nowadays. Some say it’s the earning being too low, some blame the property price being too high. If it’s really the earning, what’s stopping us from earning more and if it’s the price, how about lowering some requirements? Actually, the below is one main reason why we may not be able to afford a property these days.

You Only Live Once (YOLO) – so holidays a must!

A long time ago, when I started working, I did not know that I am supposed to take a vacation so that I can recover after working very hard for 6 to 12 months. I thought vacation is just going to some nice places for good food. By not spending a few thousand ringgit just for the flight and more for a luxurious accommodation; worked so hard, one deserves better, I could save more.

In fact, I could save enough money for a down-payment for my first property (730 sq ft apartment in Relau, Penang) and as I earn more and save more, I could afford to buy my second property (1,258 sq ft condo in Sungai Ara, Penang) and then the first property outside Penang (1,055 sq ft condo in Kelana Jaya) and well, the property investment journey started.

YOLO – tell people we have ‘arrived’

Drive an old car? Drive a branded car? Back then, I did not know that I am supposed to make people see me as successful by driving a more ‘branded’ car. So, I drove my father’s Nissan Sunny until it reached 350,000km. I guess Nissan is branded enough then? Then, i changed to my current Persona 1.6 manual and has been driving it for 14 years. I have not paid any installments for it for the last 9 years. The savings would allow me to save some downpayment. Then again, maybe this is a no-no lah, people will think why you cannot afford a better car.

YOLO – no need to buy lah, renting is better

Yes, people are getting married later, when they do. They are also having fewer babies when they do. The latest statistics already show that we are way below the necessary 2.1 new baby per couple here in Malaysia. Not just Chinese but all three major races. “At present, Malaysia’s fertility rate is the third lowest in Southeast Asia, following Singapore and Thailand, with an average of 1.6 children.” (Info source: thesun.my) Since we are now alone until much later, there is little need to do too much planning and renting is thus more sensible than buying.

YOLO – renting is better because it’s cheaper than monthly mortgage payment

This is true yeah. I know some are saying rental can cover mortgage but that’s when we are ‘cutting’ more rooms from the total rooms and our unit is near to some places where people do not mind to just have a place to sleep as they are not at home the whole day anyway. However, for a typical unit, when we look at a typical property price for a property today and then we calculate the monthly mortgage, it is likely to be higher than the rental we need to pay. Just need to remember that even though renting is cheaper, paying rental is also forever.

No one should be pressure to buy a property

There are some of us who would never needed to own a property. Some of us earn a salary which is the envy of many. In other words, it’s more than enough to cover rental forever. Some of us owns a business which is already generating exceptional returns and it’s very stable. Some of us may have parents who has bought a property for us and is just waiting for the right time to pass it to us. There are valid reasons why we do not need to buy a property on our own. For all these valid reasons and more, I agree that property investment is not a must. For the rest, it is still better to own one property.

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