1 )Ali bought a condo 2 years ago for 500,000 and now the price rise to 600,000 leh
2) The more you borrow , the richer you are ( According to Milan Doshi )
3) It doesn't need money to make more money. ( Borrow from bank and the loan repayment bear by tenants)
But lets not forget property investment do have risk as well.
1) Illiquid.When it comes to emergency and u need large chunk of money , it can be inconvenient.Same as business , even one have many assets but no cash for immediate use also unsustainable when crisis hit.
2) Interest rate risk . When interest hike , more loan repayment.
3) Maintenance fees , renovation , Wear & tear , sinking fund etc can be a huge amount too.
4) Tenants problem which sometimes can bring u headache.
Thats my thoughts
Disclaimer : I'm not against Property investment . Just to highlight some risks as i noticed many people buy property,stretch the loan to max and expect the price will always up without knowing the risk.
Jan 6 2013, 06:14 PM
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