A house is more than just a place to live. Many has wondering why is owning a home such a big deal?
Today, let me break it down based on my personal opinion:
- A Place to Call Home: No matter which stage you are in life now, a roof over your head is one of life’s essentials. It’s a place for you and your family to feel safe and secure. It can be a rented home, but at the same time it can be a home of your own too.
- A Wise Investment: Real estate often appreciates in value over time. Think about it: if you bought a home today and sold it in ten years, it might be worth a lot more. For example, I bought my first home at RM220,000 and 4 years later, I sold it at RM390,000. The current home I am staying now was bought at RM317,000 and after 13 years, now the value is around RM650,000.
- Steady Income: Renting out your property can provide a regular stream of income. This can be a great way to supplement your income or even retire early. I just realised this after working as a real estate negotiator for 3 years. I started to purchase my first investment property during MCO (the worst time for many people to consider buying an investment property, but I bought it knowing it’s the best time where property prices are at the lowest I can get. I bought an apartment unit at RM220,000 with an existing tenancy of RM850 (approx. 4.6% gross rental yield) and after 3 years, the current tenant is paying me RM1,100 (which makes my gross rental yield of 6% and most importantly cover my instalment too)
- Limited Supply: Land is a finite resource. As cities grow and develop, land becomes more scarce, driving up prices. And if there’s one thing I regretted not doing with property investment, is that I didn’t buy invest in a landed property when I can afford it. Now I can only see the success of others.
- Protection Against Inflation: The main reason i started investing in properties is when I realised over time, the value of money decreases due to inflation. Owning a home can help me hedge against this, as property values tend to increase along with inflation. A very good example is that we often sees meme in social media showing memes on how much the value of our cash dropped. What we can use to buy with RM100 was so much lesser compared to 10 years ago.
- A Path to Early Retirement: When I was young, I often tell myself that I want to retire at the age of 45. I worked hard and I started my own online store specialising in selling premium iPhone accessories from Taiwan. Both of this requires me to work without rest or holidays. Today, as a real estate negotiator, I learn about real estate investing and how I can find good property deals to invest. This is because now I finally know that renting out my properties can provide a passive income stream. This can help me save for retirement and enjoy a comfortable lifestyle later in life.
So, what are you waiting for? Buying your first home is a big decision, but it can also be a very rewarding one. If you’re thinking about taking the leap, do your research and start planning today. If you are still unsure, you can always find an agent you can put your trust in and discuss with him/her on how you can start your real estate journey.
Until then, wish you all the best.
article written by,
Yeoh Kok Woe | REN21251
Mobile: 016 552 2666
Portfolio: https://yeohproperties.my
