Mark Chua, Financial coach
Contributed by Mark Chua
PROPERTY INVESTMENT ISN’T A JJPTR SKIM CEPAT KAYA LAH!
- This short article articulates some of my thoughts on Property Investment. Again, my apologies if my views are sweeping or cause any offence.
- To me, successful property investment is a long-term affair. It’s not very sexy and can even be a little boring. It’s about as exciting as watching fungus grow.
- It’s not a “Skim Cepat Kaya”. It freaking ain’t no JJPTR
- You know what I find amazing? I still get tons of fantasy advice telling me how I can build a property portfolio using my lunch money, or how I can quit my day job and buy 9 properties in 9 minutes. (I’m exaggerating, but you get the point)
I HAVE NEVER SOLD ANYTHING IN MY LIFE BEFORE.
- Recently, a student of mine asked me what were the fees incurred when selling a property. I blanked out. I just couldn’t recall the relevant figures from my mind!
- Then I realised that I was so unfamiliar with the selling process because I have never sold any of my properties since becoming an Investor 16 years ago.
- I buy and hold my property. I let the magic of time, compounding and leverage increase its capital values over the years. We each have our own strategy, correct? I am just revealing mine.
- And why should I sell? My Properties are “boring” ones in fairly prime areas, where the emerging middle class are staying. BORING IS GOOD. If you want exciting stuff, I would like to humbly suggest skydiving with Paris Hilton.
- Frankly speaking, I would rather have properties that go up by a boring but consistent 4 to 5% per year, compared to the latest fad that’s supposed to propel upwards by 60% per year.
- Some investors are constantly looking for the latest fad or trying to find the next speculative hot spot. They are always itching to sell something, “lock” in their profit and find that new flavour of the month.
- Just to clarify, I agree that strategic selling has merit. But you don't have to feel that you need to be buying and selling all the time to achieve something in life.
MORAL OF THE STORY?
- Not surprisingly, most people that speculate in the latest fads, or engage in high frequency “pasar malam” buying and selling may not have made much money.
- When you are tempted to do this, remind yourself that real estate has been the number one, LONG-TERM multi-millionaire maker throughout Malaysia’s history. (Well, with the exception of Jho Low, of course).
- Do you want to build wealth? Be patient. Build consistently. In all humility, good things take time. After all, Wealth is the transfer of money from the impatient to the patient.
Mark Chua is the bestselling author of the book “WHO SAYS”. He was a former senior vice president of a bank & an avid lover of properties. He’s also a Financial coach and well sought after speaker. He can be reached via at www.facebook.com/MarkChuaMY or www.beyondpropertymasterclass.com
