Property Investment

Yesterday, there was a good friend that told me she was queuing to book a condominium. I was a bit surprise at first. As I never imagine that she would be so desperate to get a house.

And then she told me the main purpose is for investment. Wow! I think is great! As what I know she was not aggressive in investment previously, probably influenced by me who urge people around to me to go invest. Hehe! I want to give her a big round of applause. Is a really good start for her!

Personally, I think 99% she will earn money from her first property investment. Because the down payment is only RM17k compare to the buying price of RM441k. The RM30k is early bird discount from developer, which is tactic to sell the property like a hot cake. With RM337 psf, it beat down another newly launched condominium next to it which is RM355 psf. So I think there is still room for it to rise, probably she will earn RM50-60k after 3 years during sub sale. Is a good profit, which is >300% return within 3 years.

For me, I don’t think there is any different investment in property and stock. If I'm going to buy a house for investment, I will need to go and search around, looking at the environment, check on the developer background and comment and etc. So i didn't go and invest in the project though the return is tempting, as i got the news too last minute and i don't have time to do some research. There is one of my friend that looked over >100 apartments before he bought one. Actually, Peter Lynch recommends that stock investor to buy a house first before they get started in stock market. If you buy a house, meaning that you will work hard to research in and out of it, and most probably you planning to stay there if the price is not yet hitting your target price yet, as you like the house when you bought it.

So if you buy in a stock like the way that you buy in a house for own stay, you are going to become a great stock investor!

Anyway, there will be a seminar by a famous property investor, Milan Doshi will be coming to my company to give a talk next 2 weeks. I will be joining to see if there is anything I can learn from him. I guess the same investment methodology will be able to be applied to stock market as well.