Opportunity Cost in Property Investment - part 2

A long, long time ago, in a galaxy far, far away, there were two persons with similar income but with different lifestyles. Their simplified budget is shown below.

In summary, A is savers, prefer to work hard in early life, postpone any leisure as late as possible (ALAP) and concentrate on building strength to do property investment. Even so, person A still has excess for once in a while vacation or holiday trip.

B is a happy go lucky, start the life almost the same as A. However, B prefer to indulge in luxury which B think it is his human rights. When B cannot afford to buy property, B blame on the government why the price keep increasing. B assume government should control all the prices in the world so that people can live ever after.

If B like, he should live in a communist country where everything is controlled and provided by the government. The freedom of choice should come with the responsibility to plan and live your life wisely.

By the way, where is the justice to people who live frugally to save money and invest for a better life. While at the same time there is another group of people who care less for any proper financial planning. This kind of people are not only asking for subsidies in their life, they contributes to fiscal trade deficits. These kind of people like to drive imported cars, buy new gadget almost every year and use branded clothes or products or services.

In a way, I respect people who start from a humble beginning and become an establish investor. Property investors are very important in the economy. They become the economy growth engine. Without them, those who cannot afford to buy property don't have any place to stay or do business. It is sad to see when municipals entertain squatters by building very cheap ad-hoc shop lots for people to do business. Municipal acts will results in the area will die off slowly while investors will suffer. But be mindful, a property investor is different than a property speculator. Go figure!

Based on person A budget, I predict he can easily make an investment in the future. He not only can buy another house, he can buy a shop lot if he is smart enough. Person A life was where I was six years ago except I had another house with RM800 installment. I could only rent it out for RM400 per month. But, due to sheer determination and wise thinking, I managed to buy a shop!

I wish Good Luck to any of you to figure out the tricks to buy a shop if you have reached this stage!