Dec 13, 2010
Dr Peter Yee started out as an educator. Along the way, he attained a long list of degrees including a Doctorate in Business Administration (DBA) from Golden State University, USA, majoring in Investment Management, a Master in Business Administration (MBA) from the University of Dubuque, USA, a Diploma of Computer Education from Hyogo University, Japan and a Bachelor of Science (Hons) in Chemistry from the National University, Malaysia.
Over the years, he became a management training consultant, stock broker/remisier, restaurant owner, property investor and property investment coach. Today, he is financially free and has “retired” from full-time work. Yee is the author of property investment books titled, You Can Become Rich in Property and The Certain Way to Life’s Riches.
He runs How to Make Money from Residential, Commercial and Auction Property workshops in Malaysia. For more information on upcoming workshops, SMS
Dear Dr Peter,
I would like to hear your sound advice on how I should approach property investment. I currently have a free flowing asset worth RM400,000. I just got a new job less than 6 months in KL. Not confirmed yet. Saw a nice fully-furnished condo in Bayu Angkasa asking for RM450,000. I have also been exploring around some old condo in OUG that is asking for approximately RM160,000. I cannot make up my mind if I should do one of the following:
1) Buy the Bayu Angkasa condo and take some loan?
2) Buy up 2 units in OUG in cash, rent out 1 unit to generate income?
3) Do none of the above, and invest in upcoming 2 to 3 years’ project worth RM700k and above, with maximum loan.
What would be a better move?
Thanks & Regards,
Dear Confused Investor,
We suggest that you focus on your career and get yourself confirmed in your job first. Then you will have more peace of mind to go and invest. Before investing, consider what is your purpose of investing in the different properties – is it for your own stay or do you already have a place to stay and the properties are for generating passive income through cash flow and capital appreciation?
If it is for your own stay, then you will need to consider your requirements. If you are single, then the considerations would be:
• Is the location close to your work place?
• Is it close to shops which provide services that would support your lifestyle i.e. laundry services, eating places, etc.
If it is for your family, then you will need to consider the surrounding facilities such as schools, supermarkets, playground, as well as the space required to house the members of your family.
If the property is for investing, then you will need to calculate the yield and the potential capital gain and see whether the returns that you will be getting will be more than just putting your money into the fixed deposit. Besides this, invest in yourself by going for some workshops or read books on property investment.
From your questions, it implies that you have about RM320,000 cash, are from outstation and are a relatively risk adverse person. By the way, what do you mean by free flowing asset worth RM450,000? Is it fully-paid property or combination of property, stock and cash?
For your case, my second opinion is that you may consider buying the two units of OUG condos worth RM160,000 each, rent out one unit and the other unit for your own stay. After that, you may consider investing in upcoming two to three years’ project worth RM700,000 with maximum loan.