Posted by Alex™ > 2018-06-09 14:43 | Report Abuse

salary RM2.5k, house installment RM1.5k? apuuuuuu....pls don't do that.....the most i can tolerate is 25% off take home pay. You haven't told her she need cash for deco, touch up, furniture, and incoming houseowner expense like cukai pintu, home insurance

also remind her, take 30-year home loan she will kena at least 50% interest on top of borrowed principal.

Posted by Sami_Value > 2018-06-09 16:22 | Report Abuse

@Alex

kikikiki, we are from different school of taught. Buying property from the point of view as the buyer vs buying property from the point of view as investor totally different.

Property investment - location is the 1st priority. Other area softening does not mean all area softening. This time around is the best time to buy if you find a good bargain at the correct area. There are method to test & scout if it is true there is great demand at certain area.

If it is unfurnished unit, yes. Some money for minor renovation necessary. 10k to 20k.

Reason for completed unit = sub-sale market, the property could be fully furnished & renovated & ready to move or lease out. The fire insurance & MRTA is compulsory the moment you take loan from banks / most of the time. The quit rent is small money.

Reason to borrow young because when you are young, you can stretch your borrowing to longer tenure up to 35 years long & you can have lesser monthly commitment. As you age, bank will no longer give you longer tenure. The amount pay back at 50% that you worry, most of my investing peer did early settlement on 5 years to 10 years time instead of total 35 years. It is not as heavy as 50% as you perceived. I did my early settlement for the 1st property also.

Bear in mind, yes, our salary will increases over time, the value of property also increases over time due to inflation.

* provided she can survive with the balance monthly cash.

I was recently offered a unit in waiting to let go by buyer if the buyer loan is rejected by bank from an agent. The buyer was taking 2 units at same time, fully furnished & renovated with move in condition. Selling price RM 300k but the monthly rental fetching RM 2k/ month. Will you not buy if coming across this kind of offer when you can afford it financially?

I checked all the property portals from i property, property gurus, durian property - no one is selling at that area ! those who buy, do it silently coz they are still loading up until they cannot take. The agents are keeping listing unit tight in hand & only release to selective close client. There is under supply at that area with sudden upsurge in the rental demand. The location, I would not like to reveal.

Posted by abang_misai > 2018-06-09 21:51 | Report Abuse

Sendiri pun tak betul.... ini kan nak bagi nasihat... dah mc Hadi Awang nak jadi penasihat

Posted by hstha > 2018-06-09 23:15 | Report Abuse

Semiconductor Outlook: Further Upside in the Cards
https://www.zacks.com/stock/news/307182/semiconductor-outlook-further-upside-in-the-cards

Posted by moneypedia > 2018-06-09 23:30 | Report Abuse

such a nice topic from a young lady....reminisce my study life, kinda saving type, till i can save my study loan bit, buyin a 3rd or 4th hand car from ma sister, go and back to work for few years.....make some personal loan, for buying gold a bit then a land, ...ok good lady, ahis age i only has half of her saving or less...ermmm...

Posted by moneypedia > 2018-06-10 00:05 | Report Abuse

just share2 for me no 1. land and housing, low risk high return 2. precious metal, low risk low to medium return 3. then the stocks imvestment and trading high risk low to very high return...so choose it wisely, or do it all, according to our capability....

Posted by moneypedia > 2018-06-10 00:20 | Report Abuse

ohh i forget, my preference no 1. unit trust, low risk low return but more liquid and peace of mind, no 2 then land and the rest...ermmm...happy investing amigos...

Posted by qqq3 > 2018-06-10 00:26 | Report Abuse

Posted by moneypedia > Jun 10, 2018 12:20 AM | Report Abuse

ohh i forget, my preference no 1. unit trust, low risk low return but more liquid and peace of mind, no 2 then land and the rest...ermmm...happy investing amigos...
==========


to each is own, that's what makes the world so interesting.

Posted by qqq3 > 2018-06-10 10:25 | Report Abuse

my son is 25....salary $ 5,000.....bright future....saving money is I think the last thing on his mind.


I expect him to earn at least $ 12,000 by 30.

Posted by Alex™ > 2018-06-10 13:16 | Report Abuse

ic sami value, hope she is better off la with car loan and house loan, if can do early settlement (i think it's a must).

if recession kicks in and she loses her job, she can well loses her butt too, being that she is stuck with depreciating car loan, and a house that she couldn't sell at at least breakeven.

I note your point that when it comes to property, and the example you gave, easily 8% rental yield. Good offer. The thing is, if recession comes (just a probabilistic scenario), can rental yield be guaranteed? If got contract, then gooding la. If not, as property market is softening, what stops these renters to go to places where it is easier on their pocket?

I can also share. I saw someone hoot a property around 2011, want to sell at at least 50% profit off his initial purchase, list it since 2013, now until 2018 he is listing the property at some 23% loss (still no ppl buy), because that area is oversaturated with empty properties.

The best part? the photo sports some furnished stuff, still wrapped in nice plastic, since 2011 until now no ppl rent, apu.....kena con by sales agent.

I haven't talk about his monthly installment paid since 2011 (even earlier i guess before the unit is ready), those mrta la insurance la as you said.

Posted by kcchongnz > 2018-06-10 15:26 | Report Abuse

Posted by qqq3 > Jun 10, 2018 10:25 AM | Report Abuse
my son is 25....salary $ 5,000.....bright future....saving money is I think the last thing on his mind.
I expect him to earn at least $ 12,000 by 30.


RM4500 or RM5000 a month?
Is that so great?
Do you know that can't even pay for a two room apartment in Auckland?

Actually whether one can be wealthy when they get older is not how much they earn, but how much they save and invest to accumulate.

You should encourage your son to read the riches men in Babylon, rather than boosting something above which is nothing to be proud about not saving money.

You never ever wonder why after you retire, you can't even have 6 figures investment in shares as once posted by you?

Posted by qqq3 > 2018-06-10 16:14 | Report Abuse

kc

For a 25 years old, Happiness is a worthwhile objective, not certified financial tools.

and happiness comes from knowing he got a bright future.....and in the right direction.

The certified financial planning goons think too highly of themselves...........

Posted by qqq3 > 2018-06-10 16:21 | Report Abuse

kc

there is a saying, how much can eat is fated.....no need to worry too much....just living a life that is meaningful and better if got bright future.

Posted by qqq3 > 2018-06-10 16:24 | Report Abuse

how much can a 25 years old save any way? how can it be a meaningful amount?

it is not how much can save, it is how much can earn that is important.

Posted by kcchongnz > 2018-06-10 16:29 | Report Abuse

Posted by qqq3 > Jun 10, 2018 04:14 PM | Report Abuse
kc
For a 25 years old, Happiness is a worthwhile objective, not certified financial tools.
and happiness comes from knowing he got a bright future.....and in the right direction.
The certified financial planning goons think too highly of themselves...........


I thought I read about your son doing CFA.

Tell me frankly, how does he go about doing stock analysis?

Does he folow my way of using financial planning tools, my way of business and financial statement analysis and valuation, or

Your way of dynamic investing, panic moment, sailang?

Than I will be able to tell if he is going to be successful or not.

Posted by Ayoyo > 2018-06-10 17:41 | Report Abuse

A fisherman who wants to catch more fish will cast one, two or more nets. This is akin to someone who works for money. He slogs day and night or jogs thru several jobs (nets) in the hope of making more money (fishes). The end result? By the end of the day, he's going to be exhausted with very little money to show (just like the fishermen)

The wealthy ones make money work for them in that they make the fishes (money) swim to them. How? They build coral reefs.

It is never too late to build your own coral reef, be it in starting your own business or passive income empire (properties, stocks etc), investment in education (to widen knowledge and increase your value) or leverage on other people (to complement your weaknesses), developing an edge in your techniques or methods to bring in consistent income etc

simple as they are, those are the secrets of the millionaire's success

- rewritten from Joey Yap's live events

Qqq3, I do hope and believe that your son will have bigger dreams than what his father had wished - that for him to make 12k per month by 30

And yes, love and hatred may be on the same stick but they are at the opposing ends.. Which means You can't be feeling both at the same time.. And outcomes vary upon which ends of the stick one is holding

Posted by qqq3 > 2018-06-10 17:45 | Report Abuse

kc

at 25, what they do is monkey see monkey do. I copy you, you copy me.

but that is the way society is organised. Some will follow, some will rebel, eventually, some will break out and do their own stuffs.

as for the certified financial planning goons, they think too highly of themselves. In a world full of uncertainties, they think they can advise people , strangers how to prioritize their money, their lives.

Professional hazard, just being busy bodies, ...young people should stay clear of these certified planning types....Happier this way.

Posted by qqq3 > 2018-06-10 18:13 | Report Abuse

Professional hazard, just being busy bodies, ...young people should stay clear of these certified planning types....Happier this way.

BFM ...regularly put in a certified financial planing type on air....talk cock, talk BS, I either switch off or laugh at them.

Posted by Sami_Value > 2018-06-10 23:25 | Report Abuse

@Alex

ic sami value, hope she is better off la with car loan and house loan, if can do early settlement (i think it's a must).
..................................
- By norm, a personal finance conscious individual will not commit heavily on the depreciating asset. The is the first lesson will be taught. Judging from gender personal preferences even my from own peer, female have tendency to spent on aesthetic even though knowing it is depreciating asset.

if recession kicks in and she loses her job, she can well loses her butt too, being that she is stuck with depreciating car loan, and a house that she couldn't sell at at least breakeven.
...............................
-as I mentioned earlier, how comfortable is the lady with her current active income. Do not jump to conclusion too fast by thinking she only have fix salary to rely on. At 25 y.o with 35k saving, she "might" have part time income or other unknown incomes which can reduces her monthly expenses. Some people eat free meals at KFC & McD doing customer feedback for MSP. You can also get free petrol for customer feedback.

Another important part of the personal finance is to raise cash during crisis. Know what avenues you can raise emergency cash in case of unexpected event. You must know which financial instrument you can scarifies & let go in the event of emergency. Insurance premium, saving premium, EPF, jewelry, etc.

Just don't commit if not feeling uncomfortable. But with balance of RM 950/ month, too me, it is comfortable if I'm single.
........................................................
I note your point that when it comes to property, and the example you gave, easily 8% rental yield. Good offer. The thing is, if recession comes (just a probabilistic scenario), can rental yield be guaranteed? If got contract, then gooding la. If not, as property market is softening, what stops these renters to go to places where it is easier on their pocket?
................................................................
Yes, people will opt for cheaper option. You must know who is your targeted market group of people. There is a bottom-line which cannot be lowered. Anything lower than the base = sleep at roadside. The sector which did not affected by recession = education. Economy good, you still send your children to university, economy bad, you still send your children to university. Can university student opt for cheaper alternative at further location during bad time ? Know your target group. Rental for family range from 900-1500/month. Anything more than that, family cannot afford. Rental for students can go higher than 1500/month to 2500/month depending on the location & demographic.

I can also share. I saw someone hoot a property around 2011, want to sell at at least 50% profit off his initial purchase, list it since 2013, now until 2018 he is listing the property at some 23% loss (still no ppl buy), because that area is oversaturated with empty properties.

-Aiyo, your friend failed in flipping strategy. Flipping got flipping category & strategy , there is threshold amount cannot exceed also. If the threshold amount exceed, buyers will have a lot of other alternative coming in, your market will reduce due to competition. Know your target market, don't simply hoot.

If your friend flip strategy failed & resorted to rental strategy, must know the rental target also. Cannot expect unrealistic rental if the surrounding do not have infra like commercial area, university, industrial. If the rental target too high exceed 3k/ month, your potential tenants will be reduced to expat. No local will rent, coz if they can afford 3k rental, they can buy their own unit already.

The best part? the photo sports some furnished stuff, still wrapped in nice plastic, since 2011 until now no ppl rent, apu.....kena con by sales agent.
....................................
Don't fully blame agent. Agent is only sales person, their job is to sell. Investor job is to validate the agent selling points before investing by doing ground investigations.

I haven't talk about his monthly installment paid since 2011 (even earlier i guess before the unit is ready), those mrta la insurance la as you said.
.................
I think i3 have discussed many times. It is matter how the person use the tool. A sharp knife can be used to save life to perform surgery. The same sharp knife also can cut yourself if you accidentally slipped it because you don't know how to hold it properly.

Posted by Sami_Value > 2018-06-10 23:31 | Report Abuse

@moneypedia, land purchase is another category. you buy red color grant land ? coz for land purchase, bank will only give 50% margin & the tenure max at 15 years with quite a high BLR+ rate.

in short, buying land. you need heavy upfront cash.

Posted by Alex™ > 2018-06-10 23:48 | Report Abuse

Nice sami value, like to talk to u... Haha...

OK la, can ask her to hoot now. Buy before too late~~

Posted by Alex™ > 2018-06-10 23:49 | Report Abuse

Left 850 per month... After minus chap fan and ice water, still got money left for Sk2 makeup and yearly traveling or not? Hehe

Posted by kcchongnz > 2018-06-10 23:51 | Report Abuse

Posted by qqq3 > Jun 10, 2018 06:13 PM | Report Abuse
Professional hazard, just being busy bodies, ...young people should stay clear of these certified planning types....Happier this way.
BFM ...regularly put in a certified financial planing type on air....talk cock, talk BS, I either switch off or laugh at them.


Still don't know why some people, even after retirement, do not even have much money to leave behind?

Posted by qqq3 > 2018-06-11 00:06 | Report Abuse

Still don't know why some people, even after retirement, do not even have much money to leave behind?
==============


in 20 years, I will be as rich as KYY at 80, should not be a problem.

Posted by newbie911 > 2018-06-11 00:16 | Report Abuse

Qqq3, mind to share your top 3 holding?
Hope can follow u.

Posted by qqq3 > 2018-06-11 00:36 | Report Abuse

by newbie911 > Jun 11, 2018 12:16 AM | Report Abuse

Qqq3, mind to share your top 3 holding?
Hope can follow u.

==========

you can't follow me because I can sell without warning you..

nevertheless, for a direct answer to your direct question, you can read here....




https://klse.i3investor.com/servlets/forum/600157964.jsp