Starting the property investment journey right

I started my property investment journey in 2005, 2 years after buying my first home. I personally believe property investment journey starts from property number 2 onwards. My second property was technically an upgrade and thus I was able to change from a  smaller apartment of 730 sq ft to a condo of 1,258 sq ft. Remember, the first property is usually the hardest decision to make. We often want to buy something we love and yet, may not be able to afford just yet. Actually, it does not need to be like that. Enjoy what you buy and make the best of it. Focus on the continuous journey instead. Just like upgrading our cars, we will feel good when we are moving into a bigger home. In fact the good feeling lasts much longer than when you change to a bigger or more powerful car. 🙂  So, how do we start?
Know WHY you want to buy – That first property is usually to make sure you stop paying high rentals which would also help you to save some money for your next purchase. Oh yeah, my tenant of 4 years saved enough to buy his landed property in Penang. So, it can work both ways. As long as there are savings. You also want to buy because property investment has been a proven investment over a long period of time. Look at examples all around us and even countries outside Malaysia.
Know WHAT you want to buy – What’s out there? What’s available? Please do not just rely on some predictions or sales pitch and decided. There is no other choice but to research, to view and to compare before we buy. We must know what we are buying because this will usually involve a huge sum of money. Plus lots of commitment in terms of time and effort too. Search from major property sites and read their reviews for your first understanding about the area and property. iproperty.com.my or propertyguru.com.my or propsocial.my would be a few good starting point.
STOP forecasting WHEN to buy. DO the first two above right and the ‘when’ would just fall into place. Of course I would still advise that we should buy only WHEN we have accumulated enough ‘bullets.’ A very good point would be when we are comfortably paying for our first home and have enough spare change for another one. By the way, there is no need to rush. Property investment is not going anywhere yet. Malaysia is just too young, still.  Demographics Malaysia.
Yes, it is risky. This is going to be the biggest purchase we will ever make. (Except for some who has a more expensive car than a home). It might just be the biggest regret too and there are many sad stories around. This is why it should not be just buy anything that sounds good. It should be a REALISTIC comparison and remember, when some deals are just too good to be true, it usually is. Insider tips, why must it be insider tips?
What’s the investment horizon? Well, just like savings, treat it like one which is as long as it takes. In fact if we have kids today, it would be possible to gift them a property instead of money when they grow up. With the home, they could still have money. With just money, we would have to save like crazy for the pool of money to grow to say, half a million when they grow up. It is NOT realistic to become a sudden millionaire from property investment. (Okay, there are those courses around and if you like them, do go ahead)
We do not usually see much from the first few years. However, just rest assured that as long as there are always more baby shops and more diaper brands, it meant that the market is still going to be growing. The kids of today needs a place to stay too, in the future, right? As parents, do not spend too much on the kids. They need us to invest in things that will grow for them in the future. Happy investing yeah. (Nope, property is NOT the only thing we can invest in.)
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written on 30 Oct 2017
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