Property Investment is so low down the investment list?

Property Investment is so low down the investment list?

If you are a working professional and you do NOT believe in property investment, perhaps you are the reason why many people also believe the same. Sorry to add that when we put property investment towards the last thing we invest in, then we must make sure all our other non-property investments would give us a return which will be able to cover what we will miss without having a property to our name when the time our income stops arrive. Below is a chart from this article: theedgemalaysia.com

Furthermore, the same article in theedgemalaysia.com also highlighted the following too. “The biggest financial fear among those in Generation Z in Malaysia, or Gen Zs, who were born between 1997 to 2013, is not having enough savings, according to a 2023 survey by insurance and takaful group Etiqa.

It is the concern of most respondents polled, with 64% of them highlighting that insufficient emergency funds and difficulties in savings were among their top concerns, followed by having poor credit scores (48% polled), and being unable to afford healthcare or medical expenses (31%).

In a statement, Etiqa said these concerns were partly fuelled by the rise in living expenses and economic shifts, which is prompting Gen Zs — the latest generation of adults entering the workforce — to reconsider their approach to saving and investing. Gen Zs now constitute 30% of the world’s population and are expected to reach 27% of the world’s workforce in 2025, it noted” Read the full article here: article in theedgemalaysia.com

Your non-property investments must be able to cover the following:

Why do I kept on emphasizing and writing against personal finance bloggers who said property investment is not needed?

Accommodation expenses of around RM500,000 after our income has stopped; when we retire and no longer have a monthly income. How does this RM500,000 come from:

We retire at 60 years old. We live to 80 years old. That’s 20 years. If we rent a place and we pay RM2,000 per month, then the calculation is as follows:

RM2,000 x 12 x 20 years = RM480,000.

As long as whatever we are investing today can give us RM500,000 which we can use after we retire, then it should be okay. If we think really logically however, if we have a fully paid property, we could even sell that property and have that cash amount which we can use anyway we like too. Happy thinking and doing and yes, as long as our non-property investments can give us returns many times RM500,000 then we really do not need property investment.

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