ASKING SEAN

Link to join my team in property investment club: bit.ly/3DxoxWS
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In this episode, this audience highlighted the mixed signal I'm giving to young people regarding property investment. On one side I encourage people to invest as early as possible for all the benefits, then on one side I tell people to not invest due to its commitment.
The main difference would then be the state of the listener in terms of career, risk appetite, and ambitions. I also further explained about the different convenience available within this era that makes it easier to setup a business, also the concept of using property to retain wealth instead of making money.
Anyway, happy new year guys!!

[@Kaddo12]

Instead of looking around for 800k or even 500k project property itself, just start with affordable homes like RumahWIP, Selangorku itself where the monthly instalment is still within reach. I have seen, heard, experienced where property agents be like, oh, 3 years down the road, you will be earning at least RM 5,000, so no problem. Please don't forget you have other commitments from car, insurance, and there might be a possibility of you not reaching that income level so soon (expectation Vs reality). Get something within your own budget for now, then slowly upgrade yourself along the way. Don't compare yourself among your peers and don't succumb to social media where people always 'show' the material things they have. #JustMy2Cents.

[@jacko9294]

Excellent comment. There is no need to rush to buy overpriced properties from wealthy developers that leave nothing on the table for you. Consider an older terrace house in prime areas like Sea Park and renovate, instead of funny-out-of-the-way places and high density condominiums. Be smart; don't be a prisoner to the banks!

[@SkitHertz]

Affordable homes are for own-stay purposes, not for investment purposes, though.

[@Kaddo12]

@@jacko9294 Absolutely agree with you! Start from the bottom and work your way up. It's a journey afterall :)

[@Kaddo12]

@@SkitHertz : Definitely. For me, there are a few ways to go about it:- 1. Once you are ready and comfortable, move out and rent the current unit. 2. Just stay where you are and get another unit as investment. Just continuously build wealth and assets along the way.

[@newname3718]

​@@jacko9294 how much is "older terrace house in prime area" now ah? below 500k is it.

[@SkitHertz]

So in summary ... everything is incredibly nuanced, there is no simple and straightforward answer to any question, there is no easy way out (unless your parents are filthy rich), hence you'll have to figure out what's best for you, given all the insightful advice that people like Sean has shared. Slowly becoming a life advice channel haha

[@AnsonLoo]

Big no, youth should invest in themselves, money should spend to buy access to hard skill education, not to some banker or developer coffer, next generation stage is on global, don't bind yourself in one single country.

[@taufeq94]

Can totally relate. Thank you for the sharing! Reflect on ourselves, take a deep breath and focus

[@laukhengsoon]

Yes agree with Sean, the flipping product is no longer valid in the current market. 10-20 years back maybe yes

[@jacko9294]

Interestingly after RPGT, developers marked up houses even more - to offer a "cashback". And "investors" lapped it up - borrowing even more , paying more interest and sacrificing future capital gains.

[@laukhengsoon]

@@jacko9294 Developer usually sells the property price at future value, as a buyer we need to think rationally and make sure we can afford the interest before purchasing. is a long term commitment

[@jacko9294]

@@laukhengsoon Some condos with cashback can lose up to 20% value subsale (worse if you renovate). Then you will be paying 5% compound interest on the S&P purchase price. There is NO future value for you friend. Just massive IRR for developer, juicy bulk law fee for legal firms, and delicious interest for the banks (with the big four being the most profitable companies in Malaysia ex Petronas). If you want to make money in property, start a renovation business or become a lawyer. Just avoid overpriced condominiums.

[@patoises]

@@jacko9294 This only happens in Malaysia where buyers effectively pre-pay for condos and bear all the risks. Whereas in Europe, the developers normally build the condo first before trying to sell. I would never pay money in advance for a product that will be delivered in 3 or 4 years. But that's how Malaysian properties economics roll, the developers always have the upper hand, in cahoots with the banks making the "inflated" loans. And I find it interesting that only in Malaysia there's a thing called "S&P price" which is different to the "actual purchase price". Anywhere else in the world, this would be called market manipulation and possibly illegal. And don't get me started on the concept of "below market price", there is no such thing. If your property is not selling at market price it is most certainly that is it "overpriced".

[@aaronyong7671]

@@jacko9294 Many property Guru push the green horn to purchase this type of property. when a project launching, If you Notice most of the buyer are for investment ( 50% Investment) this property price will not increase and the rent rate will be lower that other 40%.

[@cycy-p6s]

I bought a condo project at RM470k prelaunch. After waited for 4 years when it finally completed, the property value increased to 500k with many owners listed their units for sale. Considering that I still need to fork out about 20-30k to renovate the brand new unit, I don't see any good for buying properties at their pre-launch phase, especially for condo units. Worse still, market price is unlikely to increase in short term given that so many owners are queuing up to let go their units. If hold for long term, the wear & tear of the condo will deter the increase in market value. Hence, from my experience, condo units do not make a good or even sensible investment at all. At best it should be considered as a form of forced savings if you managed to rent out your unit at a rental just enough to cover the instalment. But again, how many condo units in KL can fully cover bank instalments with rental?

[@kcl7876]

This is a very good case study for 90% of first time property investors in KL The remaining 10% who made profits did it by short term letting, partition rooms or picking the few well located condos that are not in over supply

[@aaronyong7671]

Your case above are valid and Good tenant are not easy to find these day, Property ( high rise residences ) future price would not easily increase ( Capital Gained very slow %). Pre-launch property is very high risk, most developers are in hot pot ( financially tie and loan interest expensive). Rental could not cover your monthly loan repayment, hence do not waste your money and times in property market now ( Go to visit every project take data and review in 3 years later for knowledge and comparison of stock investment).

[@tanchunshui]

As a 24 years old teenager, I will say if you want to invest or buy a property, you need to think how you gonna manage your property, it might be time consuming. The monthly repayment might be cause your cashflow become tight every month. But if your saving rate is really high and stable, you are ok to buy it. For myself, I just buy one property recently as I am comfortable to pay the progressive interest. And of course, before I buy the property, I actually invest in others platform too such as stock investment, p2p and ecf investment.

[@kcl7876]

Easier way to learn property management is buy one very close to where we live, according to own affordability. It could be a walk up apartment, but still lots to learn from being a landlord!

[@michaelbyz23]

Thanks for sharing!

[@iherng]

Thanks for watching Michael!!

[@adamfm7428]

Can i still take loan for second property if the first property is being used for airbnb. From my understanding it is possible for rental property where you just need to get the tenancy agreement stamped but not sure abt airbnb

[@rafiqmuhamad8251]

It is a myth to think that property price is increasing. If it is 15 years ago, may be. But not for the current situation.

[@iherng]

It depends on location Rafiq. There are still a lot of discussion about property being too expensive.

[@kenttan7312]

Trying to gain enough knowledge and confidence to do trading full time can see the financial market like Forex and stock that move really fast . Never thought about property like u said. Will follow your channel for more insight from you !

[@kcl7876]

At a younger age, youths can still experiment with forex or stock market, even if lost money they have many years left to make it back

[@danielh.a2822]

Hi i got a question what if someone who is actively trading in stocks , crypto etc..can they straight apply for a housing loan base on withdrawal transactions or do they need to create SSM account..create a salary and pay epf monthly then only can apply ?

[@axzae]

If your main source of income is not "mainstream", I would suggest you to approach bank branch directly to get your answer. there's always one counter there for loan related enquiry.

[@idristafiq]

I don't know who needs to hear this but stop saving all your money. Invest some of it if you want financial freedom.Invest in Bitcoin, gold, silver, buy stock, forex market. Anything! Just invest and save yourself. Good talk! I tell that to my friends everyday. Saving is good investing is much better, I used to think saving money would save me but NO, saving is just keeping it to spend later.