What was it that someone said? The 8th wonder of the world, the "compounding interest"?

Truer words were never spoken     

Thank you! And when Einstein speaks, we would do well to listen

Age: 34
Occupation: Financial Advisor working under investment banks
Working duration: 6 years
Commission earner: 1.1M on 2021, 1.6M on 2022, this year 2023 should be higher
Marital Status: Just married, 1 daughter
*Have some small other 7 F&B franchise businesses not collected any profit yet, I am a small shareholder of sleeping partner*

Savings/Assets:
1. Saving RM 100K
2. PRS 520K, (I pay alot PRS due to I no longer contribute EPF)
3. EPF 130K
4. Started collecting branded watches this year value: RM 230K, easily sell to any 2nd hand reseller at RM 180K (Audemars Piguet)
5. Myvi 2012, full payment mum driving
6. Crz 2013, full payment dad driving

Total Assets: 930K, (not including mum and dad’s car)

Liabilities:
1. Property A under loan repayment another 30 Years, monthly repayment RM 2000
2. Property B under loan repayment another 30 Years, monthly repayment RM 1900
3. Subaru BRZ 2014, under loan repayment another 8 more months, monthly repayment RM 2300 (this can be asset after 8 months)
4. Upcoming Brand New Porsche Taycan GTS 2023, under loan repayment another 9 years upcoming on Oct 2023, monthly repayment RM 8500
5. Insurance, RM 3600 per month, alot of life insurance
6. Maid, RM 1850 per month
7. Upcoming liabilities for next year seeking property at 2.8M loan @ monthly repayment around 12K per month on 2024
8. High maintenance wife 🤣, not declaring amount

Bro..i can tell you that having a spouse n later getting a divorce is quite bad for net worth.

=================================
New chapter of my life.
Typed @ 22.4.2024.

Career wise :
#ExitKKM

Regardless of the so called "iron rice bowl" given by the government, i decided to resign due to shitty pay, idiotic bureaucracy, toxic environment.
Letter written to Head Of Department after CNY - resignation letter done and enforced on March 22 2024
Joined a private team on the same month itself.

Previously, KKM salary is quoted approximate MYR 16 to MYR 18 per hour (Base salary + Oncall claims ) ---
You can say now i work less hours, and earn much better bucks - now i'm eligible for certain Visa Infinite credit card now.
(previously slavery at KKM can't even entitled for Visa Signature LOL)

Age : 30
Single

Assets :
ASM FP : 204k FP - done, will let itself roll .
Stock : 41k --- still at minimal loss, small cap is shit, surprisingly banks and TENAGA make good runs.
KWSP : 77k
High-liquidity MMF : approximate 70k
PRS : 6k - just to avoid paying MAHALDANI tax LOL

Target 1 (ASM) - completed , exceed target by 100% - done and dusted.

Target 2 (first property for investment) - scouted, reason for the high liquidity MMF is to prepare the 10% deposit for the housing, estimated completion time 2028, pending S&P signature.

Target 3 (stock) : fuck Bursa, scouting SGX for S-reit and SGD priced securities.
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Dooddads
same old Myvi, same old phone, same old Laptop

but i think i gonna do some upgrade on my phone and lappie coz ... it's time. My phone recieved notification that Rize will stop support my phone soon (they gonna support Android 11+ only LMAO)

If tenant cannot pay 100%, you still need to cough up money.
30 years down the road, ringgit would have drop more. Not worth it.

That's why I don't have property. I refuse to sink in my hard earn money to see my ringgit drop some more.

Interest paid by rental $$. if can cover the whole installment means house also paid by rental...I only pay other $$ such as quit rent,management fee etc....its a good deal to me....

how bout the hassle to handle tenant? you can engage 3rd party to handle everything A to Z, but need pay for certain fees...so this is depends on the investor preference.

if i dun buy the property, no rental, then no fully paid property after 30 years, equities = 0

if i buy the property, got rental, after 30 years fully paid, equities = Property market values 30 years later.

Sell the property 30 years later, you got cash, or continue collect rent.... be it in MYR, rather then equities = 0

actually no having owning both asset class. owning hard asset like property have a lot of hidden cost and in a way its not passive. u need to work renovation, find future tenant, lawyers, etc. The reward? its so small and high chance u will lose money. U are taking up a lot of risk.

Stock dividend i can literally sleep and take it. the real definition of passive cashflow

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....

I used your 4.7% yield as an example it translate to RM28.2K/year Not sure how u get 133k. Your Loan will be approximately 25.2k (im using average loan 4.25% based on 450k). Maintenance? Cukai Tanah? Cukai Pintu? Renovation? Your cashflow is 3k/Year and u havent deduct so many things. and u already paid up up front capital of 50k.

Lets use maybank as example. I take a business loan at 4.25% for 35 years. Yield 6% 0 upfront capital. 500k x 0.06% = 30k. 30K-25.2K = 4.8K nett free cash flow i dont have to do anything. Over time the difference will compound.

The trick to growing wealth is having free cash flow and reinvest it overtime it will compound. Yes your property will increase in price but you are likely suffering from negative cashflow over time. Factor in periods where there are no tenants, damaged item, cukai, renovation, etc many more.

A lot of people seems to have this idealistic view on property investing that they can just collect rental for 30 years and gain a free property. But they forget that...

In 30 years, most if not all condo / high rise depreciate in value because of maintenance and building wear and tear. Unless you are buying a landed in prime area to rent out, in which case your rental most probably wont even cover half your installment.

In 30 years, new projects will be built beside your high rise and you will have to lower rent to compete. RIP yields. You can buy in a matured area where there will be less further developments but chances are your entry price or upfront cost will be significantly higher. Iherng uses Mont Kiara as an example a lot and let me tell you even in Mont Kiara some properties are bleeding money and you are not Iherng. You do not have his connections that allows him to buy properties way below market value.

Going into property investing without planning your exit strategy is a sure way to lose money.

Also recurring hidden costs eat up your profit if any more than you think. For a 500k property to be TRULY cash flow positive after deducting ALL expenses, your rental better be around RM3k. Why?
- Quit rent / Assessment Tax
- Maintenance fees
- Vacancy costs
- Repairs for wear & tear / furnishing replacement
- Utility
- Agent fees
- Insurance (if MLTA)
- Rental management services (Generally they charge 10-15% of monthly rental these days) unless you want to manage it yourself.

And that doesnt even include your upfront cost yet.
- Downpayment
- Legal & Stamp duty
- Agent fees
- MOT
- Insurance (if MRTA)
- Progressive  interest (if buy from developer)
- Renovation cost

Glad to see many posting here with a lot of wealth but driving ordinary cars only. 

Given the rates, ptptn is one of the best and lowest loan around.

So settle that last, pay what you need and leave it be. Focus instead on closing the house loan first, then car then only the education.

I am under the impression that his car loan is fixed, so you pay more every month also chances are whatever you committed to pay, you have to pay. For houses, still can reduce if its a flexi so can reduce in terms on interest paid.

But it does matter what car you drive when you get hit by a drunker driver tho. The driver who banged my car, my car only suffering minor damages (not even reaching the internal pillar frame), but his car, the car head was totally destroyed / kemek / squeezed until the car head is like non-existent, and the driver suffering bad injury on his head full with blood. Had a friend's kembara hitting a merce, the kembara's front part also destroyed badly while the mercedes was like intacted. Hopefully proton cars nowadays are better after took over by the China company. My boss owns a 4 wheel drive that cost over a million (the car's inner body is surrounded by very big and solid pillars frame), i am pretty sure he can survive 95% of accident unless being banged badly by those super big size transformer.

You guys all got high networth, invest in a good car, protect yourself and your love ones