just creating this thread for an open discussion... is it by buying a landed property...you can definitely earn better than FD rate?

the question here is whether to invest in a landed property or invest through other means like mutual funds, equity etc...

my father seems to swear by landed property but for me, i feel if i buy one, my financial will be fully tied down to the house only and i can't do anything anymore... i did think about it and a few concerns i have:

1. BLR interest rates, no one can guarantee if it's going to remain the same or goes up?
2. cost of maintaining a house
3. financial fully tied down by loan for the house, if you ever buy, you sure wanna try to pay up the loan asap cause now BLR also 6.75%, FD cannot cover also. In other words, less liquidity for you.

so lets say i buy a house now, i think for sure the price will go up...but will you really earn? because some of the money already paid to bank interest and also you might spend some money to renovate the house and bla bla bla... other expenses for the house...

so net total is, will you still earn at a rate better than FD which is 3.7% at this moment? (assuming worst case la) of course we can invest some other place with better returns...

what say you guys ???
should buy a landed house and be bonded by the loan? or should i maintain my way of saving money first and invest at mutual funds/equity? i just feel that buying a house is something like buying above your means... because u owe ppl money but then we invest in what we can afford.... u don't invest more than what you have...so ur not in debt....

hmmm......

How long are you willing to be bonded by the loan? 5 years? 10 years? Less then 1 year ? making a profit of course:hehe:

Buying property for investment is not buying above your means, it is one of the best leveraging options out there.
You invest only 1/10 to get 100%, not bad huh?



PS. FD is crap as investment, 3.7% PA is below the average 4% inflation we experience PA

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Added on November 20, 2007, 10:07 pmAnd it is not guaranteed to profit. Nothing has a guarantee in investment, unless of course you can foresee the future or have a special deal

This post has been edited by bryanyeo87: Nov 20 2007, 10:07 PM

Buying a house for investment is all about location. You can try buying a bungalow at Bukit Beruntung and you be lucky if you can even get a home loan. Oh BTW, there is also a developer by the name of TALAM.

Not only location, to be exact there is 4 major things you need to look at before jumping into a property investment.


1)Location ( you gave a very good explanation and example lol)
2)Price
3)Development Master Plan
4)Quality of materials used, workmanship and of course the design

i know FD is crap investment...i am just showing a worst case example, means worst case we put FD also we earn 3.7% every year..

so when you buy house.... what is the net income/net return after deducting all the cost like maintainance, fees etc? since bank interest rate BLR is now 6.75%, does it make sense to loan the money and be subjected to high interest rate or keep existing money and invest in other investment vehicle?



big decision cause for me, once i invest in one landed house, my money will be fully tied down by the house deee and i can't really focus on other investment...so mainly i will only focus to pay the house loan...

If you are not familar with property investment, I suggest you invest into books and seminar instead. There are some property investment books by local author.

Have a read at this.
I hate going over it all over again.
http://forum.lowyat.net/topic/542971
http://forum.lowyat.net/topic/383936 ( you hv to look past the first few pages to see interesting debates)
http://forum.lowyat.net/topic/542759
http://forum.lowyat.net/topic/526217 (another hot debate assured)
http://forum.lowyat.net/topic/451863
http://forum.lowyat.net/topic/522351
http://forum.lowyat.net/topic/515819
http://forum.lowyat.net/topic/521899 (some budget planning on the initial cost)
http://forum.lowyat.net/topic/439484 (understand leasehold vs freehold)
http://forum.lowyat.net/topic/489695 (another hot debate on property as investment)
http://forum.lowyat.net/topic/454074 (some simple calculation method on ROI)
Pls know your purpose of buying a property....i.e. for home stay or purely for investment. (That's my advise)

Like mentioned by cuebiz; read up first and ask on what you don't understand.
haven't gone into pasting links from http://www.myrealestate.com.my/ or www.realestate.net.my/forum/ (two good forum for realestate queries)

nice quote!!!!!! anyone who has question not specific to particular project should really GOOGLE here 1st...

just a friendly note: please beware by talam name. they got issues on houses at equine park area. and their name have been blacklisted by bahagian perumahan & hartanah (BPH). they even change to other name but dunno what. do call BPH if u want to make sure.

A lot of Talam's projects had been taken over by IJM.
So is IJM a good company?....I believe those into property would recommend IJM's property.
So what lies in the future for Talam since IJM now is working closely with Talam?!

IJM might hav benefited from taking over talam project with a good price, they are not stupid , just like VW come to proton, sinking proton might make motorcar's industry easier for them but they prefer the facilities tht proton has...