This may be incendiary but I’m one to speak his mind.

I sometimes wonder if the continued parking of assets in this country via property purchase is misplaced or in fact not a good way to build wealth.

There are certainly very pronounced and systemic failures in the current governing regime but everyone seems to just bury their heads in sand and ignore it. Many people who are not of the majority ethnic background own a large proportion of assets in this country which is not adequate diversification considering the very tangible risks here of economic failure and societal upheaval.

Many seem very pleased to own 3 or more properties which may be loss making and not an efficient way to build wealth but yet the cycle continues.

I very simply pose to the greater public the risk of regulatory and taxation as well as currency risks that persist with concentration risk of assets in a dysfunctional regime. There are better ways to get ahead and this sheep like behaviour has led to developers being unaccountable and arrogant. It’s frustrating to see a perception that Malaysia will operate like the US or UK.

This is if all variables remain the same, what if the country becomes a Lebanon or an Egypt. It’s not out of the realm of impossibility is my point where it’s headed.

Don’t disagree that the potential of Malaysia hasn’t been realized but you’re one race riot away from shattering business confidence. Then the prospect of a very expensive immovable asset becomes less attractive.

I’d argue that there’s an overwhelming number of people who do have the identical goal of owning a daisy chain of investment property. Developers wouldn’t be pumping out 1000s of units otherwise.

No joke that they’re serious about redevelopment. I was perusing through the KL 2020 plan and all of this redevelopment as far as Balakong, Jinjang etc were being actively encouraged.

If the intent is revenue raising via land sales and affordable property prices via crushing oversupply then they’ve done their job.

The problem is the negative wealth effect and the exposure of the major financial institutions to staggering levels of domestic debt.

The drastic rises 8 years ago happened globally everywhere due to the low interest rates and the rise of the mainland Chinese middle class with fairly lax capital controls at the time. Can’t entirely blame developers from trying to profiteer. It’s the regulators that have no teeth and opaque goals.

That’s financial advice. I think when we look at diversification it’s mainly to reduce concentration risk and it can mean across different asset classes and/or locations as well.

Your usual shares, managed investments etc. if you wanna do more property, then why not overseas or even landed plots in the rural plots.

Just realised a big issue is that many people don’t know how to math or don’t bother to do basic comparative analysis. Very easy to obfuscate numbers and pull the wool over their eyes.