BY VIKTOR CHONG
AN ASSET should have the ability to appreciate in value and produce positive cash flow, according to Leveragelab Bhd founder Jeevan Sahadevan.
He said wealth creation was all about the purchase of good assets over time, whether in the form of business, property or paper investments. A rented property is a suitable example as it creates rental income, he added.
To the avid investor, Jeevan said one should have several rituals including to always learn.
“You must have the mindset to improve your business and investment knowledge continuously.
Jeevan says the mindset to keep improving your business and investment knowledge is vital for wealth creation.
“The environment changes fast, and we do not want to be left behind.
“Another important ritual is to put aside at least 10% to 20% of your monthly earnings in total gross cash flow. Keep it in an account dedicated just for your investment. This will accumulate and provide huge cash flow or down payments for your future investments over time,” said Jeevan.
He added when it came to the right portfolio, there were two factors to be considered – the level of investment and the risk tolerance – where the investor’s risk appetite needed to be considered.
“As your investment skills increase, your net worth will follow, opening more doors for opportunities. For instance, instead of buying bond funds, the investor can now purchase bonds directly or in other forms of notes.
“You will also begin to look at structured financing methods.
“At the billionaire level, the key concern is always about concessions and monopolies that the individual can join.
“For those who have no idea where to begin, start with property,” he said.
Jeevan stressed the importance of property and unit trust to protect the investor.
“In Malaysia, property and unit trust are fantastic tools to use for hedging our portfolio against risk. Both are easy to do over here. Just make sure you get proper advice and compare those investments accordingly.”
When buying landed property, he said, an investor should take note that there was less land available.
This scarcity factor will drive up the value of landed property over the decade.
“Non-landed properties such as office lots and condominiums will have their benefits, too. This will translate into developer perks or better rentals,” said Jeevan.
When prompted about the market condition, he expressed optimism.
“Nothing is ever slow or fast. It’s all in our perception. Always have money on standby for investing purposes and build yourself a great network and reputation.
“Opportunity is everywhere. The only problem is the availability of funds or network credibility to take advantage of this chance when it presents itself. With preparation, you will be able to profit in any economic climate,” he added.
Jeevan will elaborate on this topic in his talk titled “How does property act as a buffer in your investment portfolio?” at the StarProperty.my Forum 2017.
Seasoned property investor Ken Teo will talk about “Real Estate Investment Strategy for Middle Class”, while AJC Planning Consultants Sdn Bhd director Mahani Mohd Yasin will talk about “Sustainable Planning Increases Township Values”.
The StarProperty.my Forum 2017 will be held at Elmina Sales Gallery in Shah Alam, from 1pm to 5.30pm on Sept 16.
For more information or to register, visit starproperty.my/forum