Many weeks ago, someone asked me what’s the better investment when it comes to real estate. Is it property or is it land? In fact, for properties, what is the type which is best? Residential or commercial? I told her that there is no comparison in my personal opinion. Land is certainly the best as there is really no benchmark as to how high it could suddenly go.
A piece of land, unused could have been bought for RM1 per sq ft a long time ago and then suddenly the same piece of land is now situated within some development or economic corridor, the price per sq ft will now be out of this world in percentage versus the RM1 per sq ft the owner paid earlier. The issue is always how big piece could we buy because a small piece may not be that attractive for development while a big piece would come to how long we could afford to hold since nothing much could be generated from the piece of land unless we spend more money…
Below is the latest from National Property Information Centre (NAPIC) and it tells exactly why I say land is the best. Take a look at the number of transactions and then look at the increase in value. One word, it’s wow. Two words? Wow, Wow! Haha.
Then, why I invested into residential and not land?
Sisters and brothers… I do not have lots of unused funds which I could use to buy and and then not worrying about it for the next 10 years? Or more? Meanwhile for commercial, the entry point is typically higher too. Thus, more suitable for those with very deep pockets. Do you not wonder why they always say the richer gets richer quicker? Just need to also remember that they are the minority. If you could join them, that’s best. Else, it’s okay to continue earning, investing and getting the returns like typical working professionals do.
As for residential, good thing is that I could get loans for it, I am able to get people to rent it from me and well, you can see clearly that the price is also rising faster than the transactions. I would love it to be higher but hey… the percentage above looks healthy to me! Slow and steady is the name of the game regardless of land, commercial or residential.
Just as the businessman doing billions or export and import could earn money, the hawker selling char koay teow could also earn money too. Just stay focused on what we like to do based on what we have and I think the future is bright for everyone who does something versus doing nothing and hoping money will fall down from the sky. Cheers.
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