Lack Of Updates..
This article I would like to share is on the property myths, there is 6 to know.. enjoy ..
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Property investment in the new decade
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THE times have been good for property investors in In fact, some people have seen their net worth jump up by 30 or 40 I am happy for them. As an avid property investor, I have benefitted |
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Six myths
The price rise has distorted reality to many investors, including my
colleague. Because the price climbed up as soon as he bought the
property, and remained at a high level even today, his view on property
investment is seriously distorted. He thinks that:
1. Prices will go up as soon you buy a property.
2. The gains will be in double digits per annum.
3. This is normal.
4. Prices always go up.
5. It is easy to make money in properties.
6. He is a super genius when it comes to property investment!
Long-term property investors will quickly point out that none of the above are true. That’s right – none!
Not always like this
For starters, I can tell you the current situation is exceptional. It
wasn’t like this five years ago, and certainly not ten years ago. I can
also tell you that times are not going to remain this good forever.
Prices do not rise to the sky, and interest rates do not stay low
forever. In fact, interest rates has already climbed (or to use the
toned down term of ‘normalised’) by 75 basis points already this year.
Why am I so sure of this? Simple; I have seen similar euphoria before
(the first in the mid-1980s and then in year 1997 during the Asian
Currency Crisis), and the story did not end well on both occasions. Like
most bubbles, prices edged up slowly initially.
The initial buyers made money and this attracted others to invest
into properties as well. And as prices climbed higher and higher, the
euphoria got to the levels that some people were rushing to buy because
they were scared that the prices will spiral out of their reach if they
do not act then.
But when the market crashed, as all bubbles eventually do, a lot of
people were seriously hit, a lot of money was lost, and that included
seeing their properties being auctioned off by the banks.
History repeats itself
I see the same story being repeated today. On top of the ever present
dangers, there will be massive challenges in this new decade.
There will be much turbulence in the coming days, and some of them
will be unlike what you and I have seen or experienced before. This may
include double-digit interest rates, multiple bank failures, currency
crashes and explosion of the derivatives market.
As a result of the new challenges, the investors using the current
success formula of buying five properties at one go (by paying the
minimum down payment and borrowing to the hilt) will be seriously
hammered. They will experience much pain, to put it mildly. Some people
will lose their properties, some will lose more than money and yes, some
will become ex-millionaires.
But of course, where there is danger, there are also opportunities.
This will include a huge number of properties being auctioned and also
getting huge discounts from distressed sellers.
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Selected Cars only need to apply !
I think I have posted this before saying that if you are a Singapore registered car driving into the Highway of 1Malaysia,
you are definitely to be booked. I am still right till proven wrong,Guess what, today as I was heading up north to celebrate
my mum's bday at Malacca, dad wanted to have a short getaway from home town, so he suggested malacca as the central
area. So as I was driving down the highway of the gifted, and knowing their celebration *Hari Raya is close by,
as a Malaysian we would understand that there is most certain to be road block everyday till Raya.
So cautiously driving, keeping the speed limit at 100km to 110km, even knowing that there is a speed excess buffer of 10km,
I still drive within the 100km mark. Drivers from the opposite direction was already warning that there is an ambush/operation
going on, so I was even more keen to prove my theory wrong.
After about 20km down, there was this road block as predicted, and this police officer asked me to move to the
side cautioning that I had done a boo boo, but before he did that he had to go through a list of cars that had been
over the speed limit. I could see his face that my number was for sure not in there, he had the face like WTH!?
Foreign car never speed? I could see it in his eyes that after he saw a young guy behind the wheel of a big car,
he saw $$$$. That's why he had a pause before confidently asking me over. (Too bad he didn't know I am local)
Pulled over by this officer called Encik ARI, never bothered to even look at his badge number,
he greeted me happily and he thinks he is going to get some $$$$, asked for my driving license and ID.
Now why would u wan to see my ID, if its a traffic offence?
So this is what happened.......
Me: so what is the problem sir?
OFF: you drover way pass 128km, 10km before.
Me: are u sure? I was watching my meter all the while.
OFF: yes I am sure if not why would ur car number be here, ( mistake #1:yeah right, its not you who takes down the number, it was the guy up front)
Me: oh ok if u say so. Then book me.
OFF: *keeps quiet, holding my I'd pretending to write
Me: so are you done?
OFF: open up ur window behind (mistake #2: if ur stopping me for speeding offence, why need to go to my stuff?, obviously he is trying to find fault)
OFF: You LOCAL? (Duh, isn't that obvious, ur holding my ID) and he went silent again.
Me: sir even my GPS logs my speed of the car
OFF: WAT u have this? This is against the law (he quoted under Akta kommunikasi this is illegal)
mistake #3 you are just trying to find fault here, telling me that this item is a speed detector, and even claims he has one, (am sure he don't even knw what he is holding)
OFF: didn't u see the papers 3 days ago
Me: Sir, do I look like I would be able to obtain the local papers. (he looked stunned)
*officer looking pissed, hands me my ID, and license, tells me that the ticket will be sent to my hse Mistake #4: you were busy going through
all my stuff and talking to me, u didn't even write down my details how are u going to do that?
Mistake #5: you are suppose to issue the summon on the spot and not say it will be sent over, if it can be sent over they don't need to station you guys
over there.
If any of u police are reading this, the next time round, I am going to make a documentary out of this to prove that my theory is correct.
So please if you guys are there to protect and serve I would gladly pay my fine, but if u catch me and say that I had speed on the highway which I
really had not done so. You better make sure you have the evidence.
