First of all, thank you to those people who are kind enough to share previous article to their friends. We do not request any sen for our sharing, if there is any point that you do not agree with us, it just fine. Tell us what you think if possible, i am looking forward to receive more feedback and comments. Cheers!
Let us continue our time travel. This is one of our very 1st property. It was end of year 2009. I was at age of 28 then. I wonder this consider starting my 1st property early or late. You judge it. For me, i always regret that nobody teach me to invest or own a property much earlier.
The property is a residential unit in a low rise condominium. The purchase price was RM320,000, which was the highest transaction price in record, after it was completed since 2001. Ya, we are stupid and buying it at highest price. Guess what, this 1st property has become our lowest price ever in our investment bucket, which mean, every units that we purchased in this condominium since 2009, it is going all way higher and higher. Currently, even you are offering 600K, i am afraid you still cant get any unit here. Yes, the price has double in less than 5 years time.
What is the lesson here?
I have seen so many people want to start their investment or get a good return of their investment, and yet, they are still struggling in achieving it. Many of them thought that they are not skillful, knowledgeable, or maybe experienced enough, therefore they are yet to achieve their target and cant live the life that they dream for. This is so wrong. Of course, this is my personal point of view. The common problem that i have seen, it is always .
People might admire of our investment return. They always say if they started to buy in 2009, then they will have lucrative profit now. But we all known, time machine is yet to be invented, we cant go back to 2009. Same as property price. Then, they will check with me, what can i invest now? I always reply this, you suppose to buy in units in this area with current price.
Guess whats the reply?
"Serious? how can we still buy in with price of record high now?!!"
Be my guest, either you do not buy, or you continue your time machine research.
I didnt say that investment tools must be purchased at high price, i am saying that high price does not mean it is not worth to invest.
In an investment, price is what you pay for, value is what you get. We are looking at the value in our investment, not price. You will never understand this if you are focusing on price numbers only, especially when you are capital gain kaki.
We have been going too far away of the topic today, fear to commit.
People always argue that why they do not commit in property investment nowadays. The property price is too high and expensive. Sound familiar to you? (See, price issue ). I always ask them, when do you think the property price was low? no matter whats year that they told me, it is only happen in the PAST!!! Did you get me? property price is only damn cheap if you are looking at the past!
My grandma owned a landed house in Perlis. That is the only property she owned throughout her lifetime. She purchased it with price of RM4000 at time before my mother was born. More than 50 years ago. Do you think this is cheap? it is only cheap now. In past days, it took all my grandma savings to purchase that house. My mother owned a house in Ipoh, the purchase price was RM68K. It was 1997, SEA financial crisis. Do you think this is cheap? it is only cheap now. This house also took all my mothers savings to commit it.
Look at our unit again, it was RM320K in 2009. I was having argument with my wife about it, because we were paying record high price and it was deep in USA subprime crisis. I wonder if you can see our commitment during that time.
Property never get cheap in present, it will only be cheap when you are searching them in past. Question here, do you own a time machine? If you do not have it, what are you going to do about it? what is your plan?
Something to think about.
Since the properties price is getting higher and higher, how can we or investors afford to own more of them? This is not a big secret, it is LEVERAGE. But, i am doubt that people know how to apply it. Another huge mistake that i have seen people made when come to property investment. They want to invest property with their SAVINGS (just nice to opposite with LEVERAGE). I would say this is a bad idea and it never work out.
You try to ask around, see why people cant afford to invest or own a property now. Majority is going to answer with i have no/not enough money. Their money is refer to their SAVINGS, as majority do not have great investment tools or assets. Try it out, then you may think that how can i predict it so accurate.
This has nothing to do with psychic abilities. I was one of them before. Why i do not start property investment before age of 28 or much younger time? Because i do not have money/savings. Whats a coincidence!!!
Majority of us cant purchase a property with our SAVINGS. it is never going to work well. Ask a question to yourself, in past 5 years, how much you have saved? And how much of properties price has gone up? If your savings can outbid the properties price, I advise you do not have to look for investment, just keep on doing your business or high pay job. There are really great tools to you. Properties are tools or chance for people like us, who do not own a great business or not in salary of 6 figures per year.
Ask yourself a question, has your savings outbid properties price in past 5 years? Ask another question, will your savings outbid properties price in another 5 years?
Hmmmm..... something to think about again.
I would like to end my sharing with a phrase here.
You only can change your life, if you are taking action to change it.
(We have to raise the bar a little bit. I will publish chapter 3 if there are 25 people willing to share this article to friends. Thank you again and enjoy reading.)
Here is our September event details:http://www.eventbrite.com/e/n-tickets-13048681959