age 29....
Income (Permanent Job) : 90K/YEAR excluding side income & dividend from share

assuming you started to work at age 20,...
assuming you earned 90k pa since age 20...now you are 29, that means 9 yrs working income.
assuming you did no spend anything since 9 yrs ago,..your total income is 810k

you now have
Stock KLSE : 350K
Stock Global : 100K
Forex : 30K
Crypto : 30K
Cash in Hand : 80K
EPF : 90K
Equity : 700k

 

you stock selection must be very GOOD....
can increase by this rate in 4 years time...

What is this Equity 700k?

Investing in properties has alot of similarities with investing in stock.   There are two component to look at,  (1) capital appreciation / stock price gain and (2) rental / dividend.  High rental/dividend will corellated to lower appreciation / stock price gain.   At least this is true to most but not all and vice versa.

So just aiming for high rental to cover your installment is just short term view, ignoring the other component all together,  which is a long term view.

Your definition of correct way of investing property mostly apply to distress properties that has low resale value but command a high rental due to its location and maturity.

Maybank stock, 10 years history,

average dividend yield = 6%

Maybank price 2014 , RM 9.80 vs 2024 (Now) RM 9.75 = 0% appreciation
if i got RM 50k downpayment to purchase properties(worth RM 500k, loan 450k 4% interest) vs buy maybank stock , rental cover installment = Yield 4.7%.

Property price RM 500k (0% appreciation, balance loan RM 367k , Equities = RM 133k) vs Maybank Stock + dividend 6% CAGR 10 years = RM 84k

so conclusion, property with 4.7% yield Equities build RM 133k > maybank stock 6% yield Equities RM 84k.....
Ok next question is can the property price sell at 500k? how bout other cost quit rent insurance chase tenant payment etc etc...... if RM 133k vs RM 84k, i will rather busy chasing tenant and make payment for quit rent insrance etc etc...

About sleep and take it, how many ppl really buy stock and ignore it for 5 10 15 20 25 30 years? yes if u buy bluechips banking stock maybe can...other stock how? buy and close eyes i dapao u bleed till dead....

sorry i used 3.9% interest lol i cheated...nah i typo not 4% haha..

property price remain 500k 10 years later loan balance RM 367k, hence RM 133k




about business loan, where your collateral? what is the opportunity cost for the collateral? if pure business loan interest rate BLR +% effective 7-8% hor...

wtf u play more cheat then me.....

i take your stock portfolio and borrow more to buy more property lo like this =.=......
Serious note is your business loan 500k 4.25% calculation doesnt work because u shud use 7-8% to calculate........

ya you biting your own words... Bank wont simply loan out their money but they can loan to you 4% without collateral....You must be VVIP.

Anyway no point to further discuss when you're not using equal level illustration for scenarios...

Wtf u serious bro??????

Your 4% is flat rate is it?

If not flat rate and is effective rate then u really vvvvvip

I use 7-8% effective rate already consider cheap……..

actually, if you can get 4% term loan that easily and without constraints (ie u can deploy the funds as you see fit after getting the credit), u already win and no need to go into details of what investments to take risk in. Your rating is almost the same as government of Malaysia, and by extension, should be better than most banks here... haha.

So is trading account credit lines la…. So your portfolio is the collateral lah? If your share tumbles 50%(for example) you kena margin call la and need top up?

1st year is 4.65% how bout 2nd year onward?

Credit card 3% is flat rate lo…. Go for 0% cash out or balance transfer…… or your 3% is effective rate due to vip?
Conditional means not clean loan right????????

Just want to get the facts correct

wah bro apa trick you play till bank can give you cheap loan like that to do  risky dealings?

bank can tutup kedai liao lo..
take bank's money to earn money.
usually it is the other way round.

play shares somemore
bank not consider  you high risk customer kah?

This thread suddenly derailed into stocks vs. properties (tho still an interesting read)
Let me try to bring it back on track and also leave a footprint here while at it since I haven't posted this in forums before (usually just updates on my blog)

Came from a hardcore B40 family and frankly speaking, I got friggin' lucky and never would've thought that these were possible if you asked me about this 10-15 years ago. I only have my mom to thank - her insistence to send me to uni despite our financials (and I wasn't even grateful or helping her out back then) and she can now harvest her fruits (me)

Age: 32, Female
Occupation: IT kuli
Marital Status: Single with One Dependent (Parent) / No Kids

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~RM891K Net Worth, valued as of March 2024 rounded up to the nearest thousands. Could be more frugal, but happy with the current balance in life vs. savings

Asset(s):
Condo @ RM0 - I value it at RM0 since it's generating expenses rather than cash flow. It's a concept I took from Rich Dad Poor Dad . Controversial, yes, but I'm more comfortable this way. (Market Value probably RM400k-ish nett transaction fees)
Vehicle @ RM0 - it's just a piece of metal junk that gets me from point A to point B, 15 years and running!
Cash @ RM200K - includes all kind of random cash - be it in my Flexi Loan, FD / StashAway Simple / Overseas Cash / etc. Recently hoarded more than I'd personally like, but no choice since I need to spend these in short/mid term.
EPF (Passive) @ RM447K - passively managed EPF a.k.a our sweet sweet Conventional Portfolio with yearly dividends
EPF (Active) @ RM117K - actively managed EPF a.k.a i-Invest or withdraw-to-invest and try to outsmart EPF. And yes, I fared worse than EPF. Might as well kept it untouched.
My "Freedom" Portfolio @ RM440K - ETFs, Stocks, FDs, and all random craps
Liability:
Mortgage Loan @ RM310K - been accelerating my payments since Dec 2023 before I make my next big move in my lifetime.

That's a very impressive return! I don't use CAGR but IRR (to be specific, XIRR) and barely caught up to KWSP returns

You can't blame those who predicted the future correctly and moved their assets - or moved themselves - out of the country early enough not to suffer the horrendous depreciation in value that came with years of mismanagement, corruption, cronyism, nepotism and abuse of the NEP under successive regimes.

I'm lucky I hopped on that train before it left the station.

Here's a better scenario... earn in a strong currency that holds its value, and earn enough to retire anywhere you choose, even in an equivalent first world country

Of course. There’s more than one way to skin a cat. I have no grudges or negative feelings about those who find their successes in Malaysia. I just don’t understand why some would bear grudges against those who do overseas.

Your success doesn’t diminish mine in the least and I’m happy for you.

I am talking about being realistic. If you hold ringgit currency, you would have seen your net worth erode with time.