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10 reasons why we should buy a property (Part 2)

As promised, please refer to the other 5 reasons.
#6 – Demand will always be around. (I meant for Malaysia).  Looking at the demographics, Malaysia has a median age of 29. This is as safe as we can get. Any lower and Malaysians may not have enough demand since not that many Malaysians have worked and saved enough yet. At 29, that’s pretty okay! Graduated at 23, worked for 6 years, saved RM8,000 per year and that’s already RM50,000 for a first property…
#7 – Everyone’s on your side. Developers would not want prices to fall. Block 1 at RM400,000 and Block B at RM350,000? I think the developer would need security guards… Banks would not want prices to fall. They lent to us based on a value of RM400,000.  A year later, the price falls to RM350,000? I think the banks will be sweating because if something happens, they will immediately lose RM50,000 even if they were to auction our property…. The government will not want prices to fall. They prefer prices to stay almost the same so that voters will be happy that they could buy. Thus, the 1 million new affordable homes in 10 years… (here’s that earlier article)
#8 – It’s the least we could give to our kids? Let’s not think about giving them money because in future, that money we give them will only be enough for them to buy a home VERY far from us or VERY SMALL if it’s nearer. However, if we give them a property, they will thank us for thinking well ahead before they even need to think about property. Parents just have to sacrifice a bit…
#9 – Retiring better if not earlier.  Without an income when we retire, do we really want to worry about rental if we did not own a property by then? If we bought a property every 10 years, we should have 3 properties when we retire at 65. Selling one is more than enough to last us longer than what the average Malaysians have in their EPF account. EPF says the minimum savings one should have would be RM228,000 in their account when they retire. At the moment, majority of Malaysians are nowhere near this number.
#10 – When we get lucky in property, it’s super huge. Our RM50,000 worth of stocks may increase 3 times and we suddenly have an extra RM150,000 to spend. However, if we used the same RM50,000 for a 10% downpayment and our RM500,000 property tripled, that’s RM1,500,000 of extra money. I am not saying it could happen but the possibility is there… (Think old PJ and current PJ?)
If we google for ‘reasons to invest in properties,’ there will be never ending articles about it. Don’t worry. If we google for ‘why NOT to buy a property,’ there are just as many articles. So, the world is fair and everyone has their own say. From my understanding, no one has actually gone bankrupt simply because they did not buy a property yeah. It’s usually due to some other reasons. Haha. If we dive deeper into the types of properties to buy, then we have even MORE debates; high-rise versus landed, popular hotspots versus emerging new spots and more. Perhaps that’s for another article. Till then, happy deciding.
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written on 6th Oct 2018
Next suggested article:  Male loses in final decision making for property investment?

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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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