ASKING SEAN

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In this episode, an audience received inheritance due to the loss of his grandmother. So terribly sorry to hear that. However, he is figuring out what to do with the money currently whether to settle his existing housing loan? Or to invest more in properties?
The key question is to know yourself as an investor. What's your risk appetite? And how comfortable are you with managing tenants? These will be key questions to determine the way forward for this money, but in the mean time just park the money at the housing loan to save up interests

[@vineshrajoo2805]

Thanks for another great advice boss. When it comes to wealth management, the inheritance issue seems to be a bit sticky and sensitive. As parents, we should somehow teach our kids to be careful and prudent with money so that they are not easily overwhelmed by the "materialistic trap" when they inherit a large amount of cash. Apart from that, it is also a good idea for parents to pass some of the inheritance to the kids when the parents are still alive, rather than giving one lump sum after they have passed away. For example, when parents are financing their kids education , they should tell their kids that this is part of their inheritance( a gift of love from parents to their kids).

[@ifeelhalfnaked484]

greed and show off mostly, as a smart person you can live your way as effective possible

[@vineshrajoo2805]

@@ifeelhalfnaked484 Correct

[@ednatham]

Depends on age as well . When you are young, it is to take more loans risk. If you over 45 years old try to reduce all the loans and debts free as much as possible with passive income.

[@iherng]

100% That's a very important factor I forgot to emphasize since the couple is only around 31. You're the best Edna=)

[@EDW5316X]

Love your knowledge and guidance

[@Mytubelove76]

Sean, maybe you share about prepayment strategy to shorten loan tenure and save some interest in future. I uses prepayment as way to save loan interest and it does help.

[@vinvin5238]

Personally, it is important to settle the loan fully for 1st property. In the case of redundancy or lost of income, it is at least a home to stay without a mortgage. The rest can put to flexi loan to surpress the interest while waiting for opportunity. Alternatively, get a wealth management.

[@iherng]

Well to me, it depends on how comfortable you are with your income. The opportunity cost for that amount of capital is high too. Therefore its about risk appetite and ambition of individuals=)

[@CasioMataFK]

Im kind of at the same situation and appetite as well. I totally agree with your advise but I would like to throw in additional factors. We always balance perfectly our income vs commitment. I have seen some healthy person gone through some bad luck and income is greatly affected. So investing could be both to support ourselves when bad luck comes yet we cannot over extend doing it that there is no end to it. Be clear on why we are investing is important, to hv comfortable passive income to retire or aiming for great wealth to afford better life style.

[@ijim2004]

Whats your plan when bnm starts to increase interest rates as us fed tapering off money printing. Wouldn't it be a risk if we keep leverage and borrow max?

[@iherng]

I think that is pretty difficult to execute as it will affect our economy recovery directly, well at least for these few recent years. But after the bull run, the government will definitely implement more cooling measures. It will then be very challenging to acquire property in the future.

[@notification47]

Sean, why not do a video on all the flooded areas and, what is the actual pricing of these houses because of this Act of God. Will the perceived Market Price reduce due to this as the future is so uncertain

[@iherng]

Well this was recorded earlier in the weekends. In fact, I'm going out now to help evacuate my family in Taman Sri Muda who's been stuck there for 2 days:(

[@patoises]

Firstly, it's not Act of God, it's weather. Secondly, people are still stuck, it is really inconsiderate to just talk about "pricing". Thirdly, any logical thinking person would already know the answer to the question you posed, so no need to talk about it.

[@notification47]

@@patoises we should be open for discussion..not cancel culture

[@leahsweetie01]

What is property buran?

[@ezzaldeenal-hababi8213]

HI iherng I wish you doin great I'm just wondering how much is the interest rate for first property buyer may I find lower than 1% and how much will be interest rate for second property considered as an investment my income and my wife compound is around 13k

[@izzazross6027]

In Malaysia context, it is impossible for 1% as at the time of writing, our Overnight Policy Rate (OPR) is 1.75%. So 1.75% will be all Banks base cost + whatever their margin are. I don't know if there is a way but basically Banks won't offer you anything less than 1.75%. Any lower, they will be loss making.

[@iherng]

Hi Ezz, I don't think so. That rate is lower than our education assistance PTPTN fund which is at 1%. It's investment, for people to make money so I doubt it will be lower than that.

[@Mytubelove76]

No need settle loan as long as got rental income. This is my philosophy

[@chestercheng.realestate]

No money to fully settle loan yet :D

[@leearningjourney]

Bro, RM500k not enough to buy crypto punk ler >.< hahah

[@ifeelhalfnaked484]

flood massively destruct properties in outskirts, i dont think a lot of people looking for new home now, its not stable. Any plan developers will reduce the home price?

[@iherng]

Will you ever sell your products at a loss? I think instead of reducing home price, developer would choose to not launch. They will just hold the land until the market is ready. Only the government is obligated to provide affordable housing. In my opinion, I think those who can afford who definitely relocate their family away from these flood prone location. Anyway, thanks for sharing. Have to go help evacuate my family now

[@vineshrajoo2805]

@@iherng Hope that you, your family and relatives are safe, boss.

[@kevinkhor100893]

Well, you can take a look at completed but unsold units. These unsold units are just annoying for developers to keep as they built it some time ago but they havn't seen any returns from it yet. I just bought a unit at a condo but 1 year later, the developer is giving a lot of discounts for new buyers. The only thing is that you have to stay there for 10 years to be eligible for this discount. I think it's a no brainer for me if it's for an own stay house.