What is this picture means to you? It’s means a lot to me, that why today I would like to share my property investment journey from … beginning until now…
Actually all was from my dad inspiration during I was school kid. During I was kid, my dad every time drag me to “those house” that I was not stay and ask me do this and that (as short – pekerja am) and that time I was very very hesitate to do that because weekends actually is a time for me to handing around, but not doing the housework with my dad. The day after the day, this so called “work” basically is not a routine but once in a blue moon, but I still hate it. But no choice, my dad “instruct” me to do it… aha, this is not the main message I want to deliver here…
During the time, I was get to know that those “houses” that I helped my dad to do the housekeeping was his house, and some more got others strangers stayed inside. My dad told me that, these strangers we called it “tenant” who is renting my dad house by paying money (called “rent”) to my dad every month. Oh, this triggered my curiosity and my dad keep brainstorm me that owing more property whereby this is one of the way (my dad perspective) to increase your value of your money from erode by inflation. At the moment, i only could capture very little info which is ‘property value will keep increasing from time to time”, buy more property/ties as many as you could.
This phrase/lesson from my dad penetrated inside my mind and it change into an action after I start working. If i not mistaken, i bought my “first house” at 2009 with a very cheap price during that time, in medium range only. That was my first time, many things I need to explore myself to get the procedure/guide from friend or even having some “hiccup” during the process of purchasing that frighten me out. At the end, this “first house” I waited about 1.5 years (which was consider too long exception case) to get the house key (Even though my 2nd house which was purchase 1 year after that had obtained the key earlier). Anyways, no pain no gain, and at the end of the day, get a lot knowledge learned during these period.
The house I bought, I straight rent to viewer (who become my tenants) and I become “tuan rumah”, from there I learned how to manage tenants including maintain operation of the property. Agents always said, property investment average can get 8% at least return. Aha, due to my property I bought in low price and while I I able to get more than 12% return, sound good right? Thus, this become my side income since that. The property now after 9 years, increased about 120% [No joke…]
Above was my sharing how I involved myself in property investment in very layman description, I know that this is one of the way to do let your compound your money value during elapsing time.
Let the professional out there tell you, why invest in property as below…
1. Rich people have many properties
You, yourself would be able to notice that most millionaire investors have a long list of real estate properties on their assets. It is either they buy a lot of real estate properties using their money earned from their business or they are in the business of building and selling real estate. In the later case, I am referring to those developers and building contractors.
2. Available to anyone
The second reason is that real estate investment is available to anyone. Because real estate is simply everywhere; you can see land, you can see houses – basically you will find that in any place where there are people living, there will be real estate for sale. It is like a basic human need, just as food and clothing are a necessity for people to survive. Real estate property is available in any place or location and it is also very much affordable for almost anyone.
Leverage means that you use just a portion of the money required to get the whole control of a very big investment. With just a relatively small amount of money, you will be able to buy and “own” something which costs a lot of money. It is also called in the art of investment which is to use other people’s money to make more money.
Real estate is going to appreciate over time due to the effect of inflation. Since inflation is inevitable, the prices of goods, petrol and other commodities are just going to rise over time. And due to that fact, because real estate is made of something real (it is built out of cement, brick and mortar), the property price is going to rise over time. So when it rises, you have more equity built up and you can also do refinancing to get more money. Even if you do not do much about your investment you will gain a lot of profit because of inflation.
5. Income-generating Assets
Real estate properties are income-generating assets. That means when you own a property, you don’t need to sell it in order for you to gain an income. It is going to produce the income for you by renting it to somebody else. And that somebody else, the tenant, is going to pay for the mortgage, too. So, you are already gaining profit from your property even when you have not even paid for it in full. The tenant shares some of the burden of paying for the loan while you also earn money through it. This is one of the most amazing aspects of real estate investing.
There is a lot more, I hope my sharing may bring you some motivation to go for your 1st house purchasing!!!
Before I end my writing, there is another way to get your money keep generate more money for you … “money investment” – I did explain during my previous sharing… Do feel free to leave your comment if you want to know more…