#3 – Missed opportunities? Look for the next one yeah
For a property investor, the worst time is when they could have bought but did not. I still remember the time I bought my first condo in Penang. The size was 1,258 sq ft and the price was RM247,000. After buying that one, I booked another unit for RM256,000. However, in the end I did not proceed. This unit, I sold at RM640,000 8 years later. If ONLY I bought the other unit too… right?
Then, there was this condo purchase in Kelana Jaya. The year was 2007. The units were over 1,000 sf and most units were below RM200,000. I bought just one for RM183,000 and wanted to buy another unit at RM192,000. After negotiating, I could not get the price I wanted and the transaction did not happen. Fast-forward just a few years later I sold my unit for RM460,000. If only I proceeded with the second unit…, right? It’s okay, next one please.
Not so awesome is this: Maybe Sometime …
I have friends who tell me that they will be buying a property “some ” in the future. When asked when, the answer will always be vague, and the “sometime” never turns into the first time. If we look at advanced property markets in the world today, the fact remains that without a property to our name when we retire, it will be a tough time. Property may just be the ticket out of poverty in many countries.
In Silicon Valley, for example, the monthly salary of a security officer is US$2,400 but he would struggle every month because of property. The typical rental for a one-room place is US$2,400. He could share a room with others, but I am worried for him when he gets old or when he has a family.
Remember, when we retire, our income stops and it’s going to be a struggle paying for rental every month. However, if we turn that “sometime” into “the first time”, the property would have been completely paid for at the end of 30 years.
By the way, a RM200,000 property at just 2% increase per year will still become RM500,000 at the end of 30 years. It’s very true that inflation would have eaten a lot of the RM300,000 increase in value, but I want to also remind everyone that not many Malaysians could save RM500,000 in their bank when they retire. So, better do it with a property…