- Let us flash back a night like this in Nov, 2010. I was doing my investment sharing over internet in midnight as usual.
Property investment --- Mentalities (Chapter 1)
Let us flash back a night like this in Nov, 2010. I was doing my investment sharing over internet in midnight as usual. Suddenly, a friend provided info about new launching project had caught my eyeball. An experienced developer was going to launch a high rise project with RM270 per sqft. It was pretty cheap in my mind. Initially, i thought this project has to be "dalam dalam or ulu ulu" place. Then, he named the place and asked whether i familiar with that location. Of course, i known it because my college was nearby there. He is a generous guy and willing to share more info with us.
Next morning, we met there and had a surrounding tour with him. I was excited by the development in that area. It had been 8 years after i left that college and never can imagine it changed so rapidly. A few new commercial area, new shopping mall, new hospital, a few hypermarkets and chinese school was pending approval. We walked in the developer office. It was soft launching and a few units left. I didnt have my cheque book and went back to developer office with cheques. Of course, it was not one cheque, there were 3 cheques. But, there was only one unit left, the others two will only be confirmed if any purchaser withdrawn.
Then, the coming weeks, i kept on checking at anyone who interested to share the units with me. I may need their loan or cash. I was aiming to "sapu" all three units!!! Even that was 2010, many friends already told me that they interested in properties investment and always asked me if there was any good deal. Were they going to say "Yes"? Dun be silly if you thought everyone will say "Yes".
It was not "everyone", not "most of them", not "a few", end up, it was only one who said "Yes!!!". Developer office informed me that another two units were available, but i had no choice to pass deals to a good friend (good to him and glad to see them earned from this deal).
Before i go on with this sharing, please allow me to gratitude the generous boss who brought us there and my partner who shared 50% of this unit with us. Thank you again.
So, how much we has earned? I think it is really simple for you to calculate from below attachments. We collected keys at end of May, signing this S&P today. The unit was sold as bare condition, means it was original unit that delivered from developer.
For those who has finished their calculation, might asked about why only one said "Yes"??? And maybe some may think of why i didnt approach you??? Here is the key, if i approach you for any deal, are you sure that you will say "Yes" ?! I dare to guess you will say "NO". That should be normal and correct answer.
Past few years, I have seen so many people who keep on telling me that they want to invest in properties, they want to retire, they want to be financially free.... etc. They "want", but they never "DO"!!! Or they never dare to say "YES" to catch their tiny chance. There are many more patterns, but if i keep on writing, people might unlike this page or even more hate me. Because i revealed the truth in them. If you are not one of them, great for you. Definitely, you can easily understand my statement.
I always remembered those years (2009 to 2011) when we started our properties investment, people is always skeptical about our choice and decision. They thought properties investment is risky, condominium is not valuable than landed properties, residential cant be better than commercial, BLR is going to rise soon, cashflow investment cant be better than playing capital gain... etc.
5 years gone, i believed many of them are still thinking the same. World has changed, but some people just do not change. Even for most of investors who are going in properties investment with different strategy than us, our results have proven that we are far better than them. And yet today, they still challenge our judgement.
Please do not think that this sharing is set an example and ask you guys to jump in new launching projects. I have invested in more than 20 properties during past 5 years, only 2 units were purchased from new launching projects, included this one. And both of them were bought in 2010.
Our million dollars is made from subsales properties.
Since 2013, we keep on telling people that invest in new launching projects can be high risk investment. Reason 1, due to land limitation in klang valley, developers are building far away from prime location. Reason 2, most of the new launching projects will be mix development (commercial titles), pricing is high. Reason 3, GST impacts.... etc. There can be more in my listings.
I do not intend to hurt those new launching kaki. Of course, I am never an expert in new launching projects, maybe it is not fair for me to judge and make my comment here. Developers are not going to like us, who will never say good things about their projects.
My investment sifu has taught me, "investment is a plan". If you do understand new launching problems and have a great plan to get yourself rich, then why not? I do agree if you already ready for this, i only worry about those who do not ready and jump in investment with their greediness.
In 2014, I gave my advice that you should take your opportunity to acquire subsales properties in prime location. Again, there are many who are skeptical and challenge our judgement. Even with years, things are changing but people never change. Am i right? Many are worry about future of properties market due to cooling measurements, supply issue, pricing issue..... etc. Investment is a plan. You are welcome to attend our sharing, to study our plan. Then, you may have different thoughts about whats in your mind.
During last presentation, i have told people, if you own zero properties, you have to buy. If you own less than 5 properties, you have to focus on accumulating. For those who has more than 5 units and above, you can think about selling some units to ease cooling measurements impact and getting ready to hunt in good deals. See, investment is plan. it will not be same for everyone who has different position.
I would like to end this chapter 1 sharing with a funny conversation. At least, i think it is funny. Lately, i have been checking with friends about feedback in our properties talks. If we constantly organize two talks in a month, charging is average of RM100 per seat (depends venue), some of them told me that it is too frequent for them. I cant stop myself to think about it. People is busy, until they have no time to learn how to be rich. Want to be rich, but never ready and act like people who is going to be rich. Even they want a slower plan to be rich. A fast plan is not going to suit them.
What to you think?
To be continue......
(i will publish my charpter 2 sharing if there are 20 person willing share this article to their friends. Thank you and hope you enjoy reading. )
---- By Jeff TAN