My Property Investment Progress after 6 Months or MCO

 I wrote this article after watching a documentary about "The True Story of Bangkok's Ghost Tower" at https://www.youtube.com/watch?v=WE5L6yf3nro or click the title. At the same time, I am worried with what is happening to the global economy when there are banks bankrupt in USA (Silvergate Bank, Silicon Valley Bank, and Signature Bank, which collapsed in March 2023) and Switzerland (Credit Suisse Group AG). Deutsche Bank and other more than 180 banks are in line for possible bankruptcy.

There are troubling signs in these bankrupt banks:

1. depositors money are not secured. it is limited to certain level depending on countries such as USD250,000 in US. Most depositors money are lost if exceed this insured level.

2. bond holders lost their money - this is the risk of investment. But isn't it funny the main shareholders who are in the board of directors managed to took out their money before the collapsed. How convenient!

3. the rule of laws are broken in USA and Switzerland. Some analyst call Switzerland has become a "banana republic"!

4. It is dangerous to put all of your money in a single bank. It is better to split your money into several banks or investment funds without exceeding the insured values. For Malaysia, the maximum amount being insured is RM250,000 per account holder per bank. (read here https://www.pidm.gov.my/en/how-we-protect-you/deposit-insurance-system/deposit-insurance-system-faqs).

 

Now back to my property investment. Since 1997, I have successfully accumulate a substantial amount of property investment in several market segments: investment, house, shop, premium house and land. The first investment above was done without any much knowledge including how to get a bank loan. It was painful for the first 4 years. It was during ASEAN financial crisis. The interest skyrocket to 13%! I had to pay RM800 while the rent was only RM400. This went on for 4 years. Fortunately, I managed to pay all the loan in 2013. My wife wanted to sell the house in 2016 for RM170,000. I didn't. We almost got a buyer. Fortunately, I had to cancel the selling of the house due to disturbances from the potential buyers. I believed they also didn't know the buying procedure. A few months before MCO in October 2020, a buyer already agreed and signed the agreement to buy the house for RM250,000. But, he had to cancel due to MCO and job condition were very bad. At the end of last year 2022, I managed to find a new buyer of the house for RM260,000. Selling a low medium cost house is really a long process. We the seller and the buyer must be very patient! 

Now a buyer is interested with my shop lot for about RM800,000. This shop lot was bought in 2009 with fixed interest. From the rental, I got almost RM1,200 monthly profit. The rental rate is about to be increased at the end of the year. Due to these three factors I had a strong feeling not to sell unless the offer is really good.

My main concern is what if after selling and all the cash are in the bank: the economy crash like in USA and Switzerland, or scammer (the calls are getting frequent. I just cursed them or ignored them!). What is the best strategy to keep the cash money and grow the money.

Bank Negara Malaysia (BNM) OPR has increased 3 times since early last year. Read here after BNM increased the OPR two times last year. My total monthly payment for all investments (4 loans) has increased for more than RM700 which is not bad actually. One of my colleagues have to pay additional RM700 just for one house loan!

Inflation is good for a wise property investor. Despite all the monthly increment, the total rental fees has increased by RM150 (excluding my shop lot at the end of this year). I even managed to help one of my in-laws to increase the rental fee by RM400!

Contact me if you want to learn proper property investment including looking for the right investment, formulate your strategy, looking for tenants, income tax, and the management. Paying for my service is a lot cheaper than losing million of RM!

So, you should plan your investment, loan and repayment wisely.

 

Perbezaan Asset dan Pelaburan

Semasa saya mengajar kelas pelaburan hartanah beberapa tahun lalu, beberapa peserta bertanya adakah saya banyak menyimpan emas. Emas tidak memberikan pulangan yang tinggi, Jadi saya cuma menyimpan sedikit emas. Saya lebih suka membuat pelaburan hartanah. Dengan modal yang sama, pelaburan hartanah memberikan pulangan yang lebih tinggi jika dipilih dan diurus dengan baik. Tetapi pelaburan hartanah memerlukan komitmen yang lama berbanding emas.

Ramai orang keliru apa beza simpanan emas dan pelaburan hartanah. Para pelabur menyimpan emas untuk perlindungan (hedge) dan bukan untuk pertumbuhan. Emas mempunyai kecairan nilai yang tinggi berbanding hartanah yang memerlukan masa tinggi untuk dicairkan. Jika pendapatan kita bergantung sepenuhnya dengan perniagaan, lebih elok menyimpan banyak emas dan sedikit hartanah. Jika pendapatan perniagaan bertambah stabil, boleh menambah pelaburan hartanah.

 

Beli asset apa3 pun bagus seperti emas, perak, tanah, rumah dan sebagainya. Tapi asset cuma menyimpan nilai.  Istilah finance: hedge. Asset bukan mengembangkan atau menambah nilai. Jadi pulangan nilai tak tinggi dalam keadaan normal. Ia bergerak naik mengikut inflasi. Masalahnya kekadang keadaan tak normal macam inflasi sekarang ni boleh menyebabkan asset susut nilainya seperti emas!

Untuk memastikn asset2 tersebut memberikan tambahan nilai tinggi, mereka harus diurus-niagakan atau orang melayu cakap kena diusahakan daripada dibiarkan terpendam contohnya macam tanah pusaka. Ramai orang suka apabila dapat tanah pusaka tetapi berapa ramai yang bersungguh-sungguh mengusahakan tanah pusaka tersebut hingga mampu membeli tanah lain. Kalau dipendam asset tersebut lama-lama pun tak bagus. Ramai waris memilih untuk menjual tanah pusaka yang diterima. 

Untuk menjana pendapatan daripada asset yang kita ada perlukan kepakaran dan pengalaman. Kalau baru sekali-dua buat kurang berjaya, tak boleh kecewa. Kena cuba lagi, lagi dan lagi hingga berjaya. Rumah sewa saya yang pertama dibeli di Pasir Gudang dengan bayaran bank RM800 sebulan. Semasa mula2 disewakan, rumah tersebut hanya boleh disewakan sebanyak RM400 selepas tahun 2000. Saya habis bayar rumah tersebut pada tahun 2012. Dan hampir tiap2 bulan sekarang boleh menjana pendapatan sebanyak RM800 sebulan sebelum ditolak cukai tanah, pintu, baik-pulih dan sebagainya. 

Dulu saya kerja kilang, tokeh kilang cerita dia adik-beradik berniaga 11 jenis perniagaan, baru berjaya menjadi jutawan. Keluarga mereka pernah jadi keluarga ke 11 terkaya di Singapura semasa saya bekerja dengan mereka dari 1995 hingga 1997. Dalam kitab-kitab lama pun ada ditulis kisah2 orang arab simpan asset2 dan tidak digunakan atau diniagakan, lama-lama asset tersebut hilang nilai atau hilang terus! Kita yang banyak akal kena la rajin fikir-fikirkan apa boleh dibuat untuk jana banyak pendapatan daripada asset2 yang ada. Jika tidak ada idea, boleh menghadiri kursus-kursus pelaburan dan perniagaan oleh mereka yang telah berjaya, dan bukan guru-guru skim cepat kaya!

Orang berpelajaran tak tinggi memang tak tahu macam mana nak fikir jana income pasal mereka pun tak ada asset langsung! Berniaga warung atau tepi jalan, atau MLM pun tak ke mana tapi cukup untuk hidup. Tetapi saya telah menemui mereka yang kurang pendidikan tetapi berjaya mengembangkan asset pelaburan hartanah mereka hingga berjaya tergolong dalam kelompok T20!

Setiap asset yang ada mesti mempunyai cara tersendiri untuk dikembangkan mengikut citarasa masing-masing. Contohnya geng2 ayah saya semasa muda, ramai membeli tanah. Ayah saya cuma suka menanam dusun. Dulu hasil dusun memang rancak tetapi apabila usia meningkat, amat sukar untuk mengusahakan dusun-dusun tersebut. Tapi kekawan ayah saya, ramai yang menanam kelapa sawit. Saya masih ingat lagi, semasa sekolah rendah, ayah saya sudah membeli semua tanah dan menanam dusun, sementara kawan baik dia yang mempunyai anak berada dalam satu kelas dengan saya tapi bapa dia lebih suka menanam kelapa sawit. Masa tu bapanya baru ada 10 ekar tanah. Selepas kawan ayah saya meninggal, arwah bapa dia ada lebih 30 ekar tanah kelapa sawit. Bahagi adik beradik 5 orang, banyak juga tu dapat.

Kesimpulannya, bagus jika kita menambah asset, tapi lagi bagus jika asset yang disimpan dapat dikembangkan untuk memberikan nilai pulangan yang maksimum.