Property Investment 101: Nearly 1 in every 10 property is above RM5.75 million?
We are lucky, it’s not in the Klang Valley…
Read on about the title and then the whole article. This news is applicable in London. Just in case there are some foolish comments about we earn ringgit, how to compare to London properties, then statistically speaking, median salary for a Londoner is… as follows:
Just need to imagine a working adult earning £42,000 per YEAR and then look at the property market and whoa… nearly 1 out of 10 properties are £100,000 or higher. (now you understand yeah. earn RM buy RM loh, earn £ but in £ loh.) They are not necessarily having a better time than us even if they earn £.
Meanwhile this is the article about the RM5.75 million property
“Research shows almost one in 10 London homes are now worth £1 million (RM5.75 million) or more, but the number of new property millionaires is growing fastest in other parts of the UK.” Full article in eveningstandard.co.uk here. Additional statements from the article includes these two as well. “Estate agents Savills said 342,949 residential properties in the capital sold for £1 million or more at the end of 2022 – up three per cent from the previous year.” Last but not least this: “the reality across inner London, in particular, is that £1 million will see you limited to a flat, or a terraced home at a push.”
Nope, London FLATS are not the only ones at over a million yeah
This is why this famous property quote will be true somehow, someday in most property markets
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” – Andrew Carnegie, billionaire industrialist.
More often than not, this is driven up slowly or occasionally fast by inflation numbers. In other words, value of money moves down, price moves up to compensate for the lower value of money. This is why property is always seen as a natural hedge against inflation. It’s not the only hedge yeah. It’s a natural one.
Value of money becomes smaller. Companies pay you higher salary so that you can at least maintain your lifestyle of last year. With a higher salary, you can afford higher prices of many things and when everything increases in price, then the cost of building a property increased. Thus, the property price will increase. This is why when everything moves up, property prices would just follow. You have a property, you follow this increase. You do not have a property, just work harder to keep up.
I do not want that RM1 million day to come for 1 out of 10 properties in the Klang Valley yeah
Gradual increase, please. That’s what I really want and hope for. Enough of all these unnecessary speculations in the property market. In fact I do not even want the property price to rise following inflation rate. I hope it rises maybe half the inflation rate? That would ensure it’s going to be gradual and continuous and that’s all I needed and hope for. This will help more Malaysians have a chance to own a property yeah. Happy property hunting. Yes, it’s all about property investment 101.
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Next suggested article: When rates rise, property transactions drop, right?