ASKING SEAN
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- čas přidán 14. 08. 2023
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In this episode, we will address about whether to make an investment today or to continue saving for a dream home in 12 years time? My suggestion would be the first get an investment unit, which indirectly puts him closer to his dream home 12 years later.
M personal opinion is not every property investment is viable now, especially high rise. So to buy a property to fence off inflation is not as simple as that...
11:16 wonderful suggestion👍
very good and sound advice!!! keep it up!
I think Asking Sean #1 to #999 would be the same answer regardless of the question and questioner's situation i.e. don't buy landed, rent and max out in as many new condos as possible, and by the way, don't even think about other asset classes 🙂
Well not really. It has changed. And across this period, this would be the game plan for now. Until we see things shifting, we will have other plans;)
@@iherng I think it depends on each individual overall financial situation and risk appetite
mantap arr Sean... Financial advise is priceless...
Malaysia has one of the craziest earn and spent ratio, especially in KL, yet people don’t come as a whole to resist this, still letting capitalism and superior to chop our way, good luck then.
People get brainwashed with conversion. Like they kesian the Singaporeans spending RM20 on a bowl of noodles, or RM2.5 million on a highrise. All while forgetting Singaporean don't earn MYR. 😂
We keep seeing foreigners telling us we have "lower prices" and "affordable home ownership", and after awhile we forget the fact all these is always relative to how much we earn. 😂
Aiya, simple example la, imagine if you get paid RM4200/mo as fresh graduate, and iPhone is about RM400-RM1000, home wifi is below RM50. Food in hawker centre about RM7 including drink. Is RM600K HDB in KL city centre still "out of range" after working 3-5 years? 😂 These number I pluck from web one, i just convert the unit from SGD to MYR without messing the digits.
Even from the daily spending if KL can maintain this rates I'm sure by then the B40 group size will shrink tremendously. Tell Singaporean if you earning 4000 per month and there is a phone that you like a lot, and it cost about 6000. Dont pandai-pandai do the single end conversion for the capitalist (only converting the product price so that the product price number looks smaller and justified). See if they will see this purchase as logical. We all kena conned by capitalists from all directions la 😂 it's not just property.
@@newname3718 Sadly the awareness is low. Many worried about not getting a job, rather than getting a proper paid job. Some being exploited not knowing they are. Relying on primary goods export and low skilled industry as our main contribution of workforce, can't get us too far, despite many MNCs investing, it is just a repackaged modern slavery due to the economical labour cost. Only to be led by the nose due to the cost competition both internally and externally, to a certain extend that we can't bear the consequence, even the very basics and bare minimum living standards. Hopefully one day people will understand, either you change, or you change the environment or you come together to change the environment. Let’s not be too pessimistic, good day will come.
There is a risk of buying so many properties on loan. The assumption many people make is the economy will always be good and rent will always be stable. In case of a major recession which many are saying will come, people may throw the rent and property prices.
Those with loads of properties will have a much higher deficit to cover compared to those with only one property. 1 property need to top up 300. If you have 30 properties, 9000. Either you sell at reduced prices or continue topping up 9000. It may not happen very often, but when it happens, many will be caught off guard.
Properties are recession proof as it is a necessity. Like food, you don't stop eating no matter how bad the recession is. If the house is in prime area, it will perform even better after the recession.
@@Epiderm91 If you are saying property will not go to zero, I totally agree. But if you are saying property prices won't drop 50%, you just have to look back at history. Right now commercial properties in the US at prime areas have dropped up to 70%.
Even now at the auction market in Malaysia you can find property at 50% discount or more and this is just at the beginning. I dare not imagine how it'll be like when something worse than 97 happens. Anyway you money your choice. Like many economists, I will prepare myself in an all cash position.
@@ffa6681 Those are not price dropping, those are price correction. Developers sell at inflated price above median price to unsuspecting buyers. When you can get the same size units at another condo in the same area, people will not buy the above market ones. Hence the owners/developers have to mark down their prices due to unable to sell...worse, the buyers unable to service the loans and the unit go to lelong, at median price. Auction properties only accessible to those with cash. It doesn't mean market crash, no demand or whatsoever. In one of my properties, there were units listed at 40% below market. But the rental is still expensive and I even make money from it. As long as you pick the right property at the right price, you can weather any storm. Sure we need cash for rainy days, but if you have extra cash lying around, the values will continue to drop if you don't do anything with it. Properties is great at storing values and hedge against inflation.
IF property is the investment vehicle of choice, this method only works so long you have income generated from somewhere to plug the gap during months of no rent (like you pointed out on the assumption part).
When that condition is no longer possible, + no tenant, it will be a crazy bleed for a long time due to the tenure of the loan. Totally agree with your comment.
Yup, inflation really a big problem. It will eat all your money and saving. Also your loan debts 😁
Post Covid everything rise price, including my rental to my tenant 🫣 even after rate spike. When BR drop, its time to breakeven or even start earning
How does a bank calculate the DSR?
I feel like I am in a similar situation. I am also trying to decide whether to buy a 2nd condo. The 1st condo will only VP next year (hope to rent out), and I am eying 2nd condo which will VP in 2025 for own stay. I can cover both installments, but I worry if 1st condo cannot rent out then I would have zero net cashflow. And I doubt switching plans by staying in 1st condo while renting out 2nd condo would work as 2nd condo is pretty high density (3k units!). Any advice out there?
Should I wait until 1st condo got confidence can rent out, only come back and buy the 2nd condo (price likely increased 2 years later), or take the chance and buy 2nd condo now to lock-
in the price? Any increased savings within these 2 years will probably just go to paying for that price increase. T_T
I also want to buy my dream house about 3 years ago, keep working and salary rise 40%, however I am still not able to afford my dream landed house for my family. I found a few good condo but still cancel at the end because I still want to buy landed. It is very hard to give up my initial wants, as when I am thinking my mother is getting older and requires a landed house. However, unless my salary or extra income able to increase to 200% then it will be hard time to pay for instalment for landed. Nowadays I have to convince myself to buy condo for investment at the same time a bit scare for investing .
Trust me..its better to keep your money, rent and buy landed later when you have enough. The Condo''s workmanship, mangement fee, maintainence and bank loan interest is all not worth it. Pening! Dont get influence with all this fancy design and location. Developers just want to get your money...the workmanship all goes down the drain. Better to keep ur money and buy landed. No need to feel FOMO.
@@tony2times287there is a fear for inflation😂 I am looking a good one, found a suitable one skyline Kuchai however not buying it. This is a regret as no other project cheper and more potential than this
Landed is best👍🏾
Actually right people should also be aware on the age of people that give you advise 😂 we all have different schedule, and the same economy event could be happening at different stage of life or financials for different people. There is no right answer, all you can do is to talk to more people and understand their thought process when they make the decision to buy or not buy a property. (Keep money to buy landed is like fairytale for a lot of people, but it's true if your income within your age group sit well above average, otherwise you may want to consider putting the money in places like kwsp) developer for condo are Hawks doesn't mean developers for landed do charity. 😂 Price has weak relationship with workmanship and so does "reputation". Property isn't something common people buy every 3-5 years (unless you are in that targeted category that you buy property like how we buy phones then yes, the developer will take extra note on workmanship)😂😂
@@newname3718Yes, more I study more I reluctant to buy. Not all appreciate in money, what you pay is what u get. As far I know I have missed mco period which a lot of good property in market like Sunway Belfield which has increased 100k before VP. The rest I not seeing this😂 Have to earn harder no matter planned to invest or buy new home
Provided the apartment doesn’t depreciate? I dunno much about that but am aware of some that depreciated post pandemic?
Well definitely some will increase in prices, and there will be some that drops. So if the rental demand is high for a particular project, the apartment will most likely increase in price too. The task is to hunt for these projects;)
Best
Home owner should change a mentality regarding home ownership. I technically "rent" house and pay rent to the land lord. The "landlord" is me. I purchase a house that rentable. And the "renter" is me.
And I have other house too.. I not renting someone else house.
@@wowl4453 I have 5 house.. I rent 4 of my house to other people.. and I stay in my own house, aka I "rent" my own house. I don't have to rent someone else house in order to "rent a house". I can always "rent 1 of my house" and not someone else house
10:07 The pain of signing the NDA 🤣🤣🤣
Salary cannot catch the rising OPR too
Unfortunately…. Thanks for sharing:)
@@iherng Keep up the good work
I think this person needs to reduce his expenditure monthly. His spending is $7500 out of $10000. Excluding his mortgage, he is spending $5k per mth. That's 50% of his take home. If he can cut his cost by 50%, he will be in a much better position for additional properties. Also, cash out $75k from crypto asap bro. Either use this to reduce his current mortgage principal or as downpayment for 2nd property better.
It’s not a lot! U may have no family to understand that the cost can be very high these days. As of last year aug, price of goods and food etc all gone up again. For a family surviving on 7500 is not a luxury, it’s just enough . Anything lower would mean not living your live anymore. Life needs to have a balance…not just save save save
@@nashpal1 Actually why i say what i said is because his objective was to buy another property for investment. To do this, he has to reduce his cost as his risk is too high. If he does not have this objective, then he can carry on living with what he spends. So my advice to a lot of investors wannabis, reduce your cost of living 1st before starting out on a prop investment journey. This will allow a lot of runway in terms of building your prop portfolio. BTW, i have a family with children. Am living in 2 countries and my cost per mth is still less than $5k. I have done it. Thats why i can make this advice.
Yeah🎉🎉 farcap premium client..
:)
Hi, it sound to me that you are heavy leverage. Aren't you worry about current high interst rate environment? What happen if global recession and no one rent ur house ?
In my opinion, the current interest rates are not high. 12%-10% was high. It’s technically a golden era now.
Why would you then buy a house where no one rent?
❤
Thanks for watching CK!!