If I were to give my opinion, I would say that it is very wrong to purchase your first property as your "dream home" and invested 70k on renovation. It is better to buy property with investment value where you need very minimal entry price. Once your have few investment property with +ve cash flow, you can then buy your dream home using the cash flow from you investment property. Always remember, rent where you want to live and buy where you can rent.
Dear Sara, my advice is to separate aset and liability. From what iherng said, you seems to already have a shalter. So the question is: the house you buy will generate income or not? If yes, then it is an aset. If you buy to stay instead of staying in quarters then it is a liability. So does this upgrade in lifestyle makes you happy? If yes, by all means. If no, then you can save your money in ASB get some dividend and compound your money. Just to let you know, buy a house for own stay is not an investment. When you feel like upgrade your lifestyle, you can then go find one. Dont be FOMO. Investment for long term is definitely necessary, but that have to depends on your appetite of risk. All investment contains risk. Different people works differently in risk appetite. You have to find out yourself. Just my two cents. Cheers.
I will go for scenario 3 because of this basis: -Always prepare for exit plan which can sell/rent out property anytime or maintain affordable installment ( in case suddenly cant working anymore/ TPD/married and follow husband/need to resign and take care parent) -15 years tenure seems short but anything can happen along the way. -by longer the tenure, you still can save money in ASB and enjoy the compounding. At the same time if your lucky enough, you also will enjoy good appreacition of the property -Some people invest to purchase luxurious property, car etc. Some people invest just to make sure they can retire early. Which one are you? Moreover your purpose of invest maybe differ during your age grow older -By lower the installment, you may have more salary balance which you can park at ASB while searching for good opportunities.
Very good advice. Take scenario 3 and you have still cash. This gives the opportunity to still invest into your education to increase your working income. Then by the age of 40, you might have the house and the 600000 in cash and from then on, you would be so much better off.
owning a property is also a burden. there is the maintenance, the taxes etc. we must keep cash to maintain our life style and for emergencies. as we grow oider we will need more liquid assets not less.
@@iherng the financial gurus say we keep 8 months of expenses in liquid savings. That is for normal times. This pandemic has raged for 2 years. Better to raise the savings to 12 or even 18 months.
There you see the young people. Internet only 20 years old... I had the first AOL account in 1994. About the house: to me it seems as if 70k renovation in relation to the purchase price and estimated returns at age 40 are too high. What does it add to the value of the house vs. costs. Maybe better get a 300k property instead.
The video never mentioned so there is an assumption that Sarah is living and working in Kuantan now? What was the initial price of the Kuantan house when it was first build and sold? It is an old house? And after how many years it is now worth about RM$200k? Don’t think the house in Kuantan is a worthwhile investment, but should be alright if it is for own stay.
Since she's working there, it's pretty safe to assume she works there =) Well, thanks for asking all the right questions. Those will be super helpful to the audience.
Yes she can. But there are other conditions as well for that loan. It would be something to think about because our current housing loan are also low. Great point!!
Hi Bro, just watched a video mamak session. You got mentioned about new house, if insider normally can get 20-30% below market selling price. So how can we do it?
The question is "IF" hahaha. As I'm not familiar with the micro location property dynamics, the audience will need to do more research on that to determine the appreciation. Thanks for watching Chueng Khai!!
Sean I think you are waffling a bit, which I think you yourself admitted. Simply, her query boils down to should she invest in property or invest in other asset class (e.g. ASB which is effectively the stock). Maybe addressing this might be more useful, rather than grappling with the predicted "numbers". Don't get angry ah, just feedback only. Love your channel.
Hahaha. No worries. Because it's only after answering halfway I had your exact thoughts. It's whether to diversify or not hahaha. It's always great to have different views. Thanks for sharing as always patoises!!
@@iherng dream big mah , rather keep 600k sgd option 1 , bcos I feel sg u have cash in bank is much better because if u want invest in property is a pain in ass in sg as compare to Malaysia. If 40th I have this much money , maybe I will lay Low and do nothing better .
good advice. yes, keeping cash is really not the way. your cash growth can never beat inflation unless your cash is in certain form or growth vehicle that is bigger than inflation. many people like to say cash is king, yes and no for me. i hold 90% cash. bad time, so what now? cash is king, buy stocks? stock in US is at all time high, who can tell if there is no economic crash cycle every 10 years. buy lelong property? buy crypto? many keep saying cash is king but they dont even know what is it to have cash. so easy say buy crypto this and that cause the price is high now. i bought my crypto at USD 3400, 1.1BTC. did many people know how to do that when Bitcoin was at 3400, which is about RM 17k ? compare 17k ringgit and now, at that time when it was 17k CASH is king, where are the kings. i think many people have 17k. but do you even know how to invest? so dont tell me cash is king because you got cash but dont know how to invest also useless. eventually property is something we must have no matter what other investment product we invest in. dont keep saying property is not good.
If I were to give my opinion, I would say that it is very wrong to purchase your first property as your "dream home" and invested 70k on renovation. It is better to buy property with investment value where you need very minimal entry price. Once your have few investment property with +ve cash flow, you can then buy your dream home using the cash flow from you investment property. Always remember, rent where you want to live and buy where you can rent.
Dream home changes. For the time being, just build the dream house in the Sims. 😂
Dear Sara, my advice is to separate aset and liability. From what iherng said, you seems to already have a shalter. So the question is: the house you buy will generate income or not? If yes, then it is an aset. If you buy to stay instead of staying in quarters then it is a liability. So does this upgrade in lifestyle makes you happy? If yes, by all means. If no, then you can save your money in ASB get some dividend and compound your money. Just to let you know, buy a house for own stay is not an investment. When you feel like upgrade your lifestyle, you can then go find one. Dont be FOMO. Investment for long term is definitely necessary, but that have to depends on your appetite of risk. All investment contains risk. Different people works differently in risk appetite. You have to find out yourself. Just my two cents. Cheers.
I will go for scenario 3 because of this basis:
-Always prepare for exit plan which can sell/rent out property anytime or maintain affordable installment ( in case suddenly cant working anymore/ TPD/married and follow husband/need to resign and take care parent)
-15 years tenure seems short but anything can happen along the way.
-by longer the tenure, you still can save money in ASB and enjoy the compounding. At the same time if your lucky enough, you also will enjoy good appreacition of the property
-Some people invest to purchase luxurious property, car etc. Some people invest just to make sure they can retire early. Which one are you? Moreover your purpose of invest maybe differ during your age grow older
-By lower the installment, you may have more salary balance which you can park at ASB while searching for good opportunities.
Very good advice. Take scenario 3 and you have still cash. This gives the opportunity to still invest into your education to increase your working income. Then by the age of 40, you might have the house and the 600000 in cash and from then on, you would be so much better off.
owning a property is also a burden. there is the maintenance, the taxes etc. we must keep cash to maintain our life style and for emergencies. as we grow oider we will need more liquid assets not less.
Thanks for sharing!!
@@iherng the financial gurus say we keep 8 months of expenses in liquid savings. That is for normal times. This pandemic has raged for 2 years. Better to raise the savings to 12 or even 18 months.
ASB underlying asset is combination of equity and fixed income, not cash entirely.
Of course both you need.
Health balance proportions
There you see the young people. Internet only 20 years old... I had the first AOL account in 1994. About the house: to me it seems as if 70k renovation in relation to the purchase price and estimated returns at age 40 are too high. What does it add to the value of the house vs. costs. Maybe better get a 300k property instead.
Hahahaha!! I started counting from Web 2.0 after Y2K.
Anyway, thanks for sharing as always. I really appreciate it=)
This is the question i have been waiting for.
Owh really?? Hahaha.
Thanks for watching Global=)
The video never mentioned so there is an assumption that Sarah is living and working in Kuantan now?
What was the initial price of the Kuantan house when it was first build and sold? It is an old house? And after how many years it is now worth about RM$200k? Don’t think the house in Kuantan is a worthwhile investment, but should be alright if it is for own stay.
Since she's working there, it's pretty safe to assume she works there =)
Well, thanks for asking all the right questions. Those will be super helpful to the audience.
If she is a government servant can't she get a low interest loan?
Yes she can. But there are other conditions as well for that loan. It would be something to think about because our current housing loan are also low.
Great point!!
Big fan of iherng, instead of cash or property,
here is another question,
property or REITS?
REITS
Hi Bro, just watched a video mamak session.
You got mentioned about new house, if insider normally can get 20-30% below market selling price. So how can we do it?
I'm sorting out something for you guys yea!! Stay tuned for the announcement video=)
@@iherng thank you very much..
Bro can you review sri petaling Pinnacle...quite strategic
Let me try to see what I can do. Thanks for watching Brandon=)
mind to disclose who is your mentor?
Well there are a few of them, some are families and some are ex bosses=)
Kuantan property can appreciate that much meh ?
The question is "IF" hahaha. As I'm not familiar with the micro location property dynamics, the audience will need to do more research on that to determine the appreciation.
Thanks for watching Chueng Khai!!
Sean I think you are waffling a bit, which I think you yourself admitted. Simply, her query boils down to should she invest in property or invest in other asset class (e.g. ASB which is effectively the stock). Maybe addressing this might be more useful, rather than grappling with the predicted "numbers". Don't get angry ah, just feedback only. Love your channel.
Hahaha. No worries. Because it's only after answering halfway I had your exact thoughts. It's whether to diversify or not hahaha.
It's always great to have different views. Thanks for sharing as always patoises!!
Why keep fiat money? Invest is better option
Absolutely! Thanks for sharing Lim=)
If I hit 40 and I have 600k sgd instead of rm in my bank , I don’t Mind choice option 1 haha
Haha. Suddenly your MYR will transform into SGD...
@@iherng dream big mah , rather keep 600k sgd option 1 , bcos I feel sg u have cash in bank is much better because if u want invest in property is a pain in ass in sg as compare to Malaysia. If 40th I have this much money , maybe I will lay Low and do nothing better .
ee herng or 'i' herng bro ?
Up to you Moo Moo =)
@@iherng 👌
To me..retire debt free
Thanks for sharing Zam!!
good advice. yes, keeping cash is really not the way. your cash growth can never beat inflation unless your cash is in certain form or growth vehicle that is bigger than inflation. many people like to say cash is king, yes and no for me. i hold 90% cash. bad time, so what now? cash is king, buy stocks? stock in US is at all time high, who can tell if there is no economic crash cycle every 10 years. buy lelong property? buy crypto? many keep saying cash is king but they dont even know what is it to have cash. so easy say buy crypto this and that cause the price is high now. i bought my crypto at USD 3400, 1.1BTC. did many people know how to do that when Bitcoin was at 3400, which is about RM 17k ? compare 17k ringgit and now, at that time when it was 17k CASH is king, where are the kings. i think many people have 17k. but do you even know how to invest? so dont tell me cash is king because you got cash but dont know how to invest also useless. eventually property is something we must have no matter what other investment product we invest in. dont keep saying property is not good.
Mr. please kindly forward me your email, your are talking to fast on the recording.