Asset? or Liability?
it is understandable that asset is a useful or valuable quality thingy. something that has appreciate value in the future. while, liability is something that hold your back.
when i was a teen, i used to have a funny definition about asset (which i was confidently 'right' that time). easy, asset is something you own, something big and valuable for you. such as, your house or your land or even your car.
as i left my teen age, i came across that my definition about asset was totally wrong. it came from my discussion with my hubby, my father in-law and asset-collector-guru, azizi ali. it's not your house, or your land, or any big thing you own. asset is something that brings money into your pocket.
it made me realize that my house won't fill my pocket with money, even it takes money from my pocket. or even my land. i have to get my money out everymonth, for billing, taxes, and so on. how can i accept that my house would be my asset? maybe that's the answer why i don't buy any house.
it's not about having lots of houses but where the houses are. robert kiyosaki didn't simply buy any property without knowing the location and the potential of it. i won't buy any house in miri, neither buying a house at KL/KB while i am at miri. simple, no value added. if i buy a house at KL, i have to pay the price monthly (i don't have cash to pay it fully) and still have to pay the rent here. easy way, rent it out, but i don't believe it is that easy. i saw many in my very family, rent out houses, in KL, JB, etc. end up with unpaid rent for months and the tenants disappear. if i buy i house here, when i wanna move out then what? rent out? sell out? in this very city, where the development is still not very rapid (yet), i don't think i could sell at higher price. many and many new housing areas developed, if i was them, i would buy a new one rather than get other's house. again, will i sell at lower price? so what i'm gonna get?
maybe i am not really get into real estate yet. but there is rule of thumb, do something with value added. i don't buy any land or any house, because it will make me committed to and my monthly salary have to go to there first. meanwhile, i can do many things with my money. i can save it or invest in unit trust to get more return. yeah, it is no doubt that property investment would bring more into you pocket but as a layman like me, i don't have knowledge about property. i don't read much books and i don't even have money to buy land!
easy, with not much money, not much saving and not much knowledge about investment, find another vehicle to rig your asset up. your asset is your brain. equip the brain with financial knowledge, would make it smart enough to decide. the best investment in to invest in ourselves.
since i don't have much knowledge and experience in stock market, i just go for unit trust. easy, find a company that would provide return more than inflation rate per annum. easy and convenience, diversified investment reduces risks of losing money.
buying land/house for others (like what azizi ali did) makes your properties your asset. but buying land/house for your own usage won't be your asset. unless you sell it someday. if want to have a property to be sold/lease, study the location. nobody won't rent your shop/house if you have it at a swamp area. and always believe that rumors is always rumors. my FIL's friend was confidently bought a property at a place which was popped to be a potentially growth new-satellite town. but until now, nothing happen and he is filthy paying for the price, which my FIL & i believe that he would get better if he bought someplace else.
maybe someday, when i have enough money, i'll buy a terrace house at Damansara, renovate and sell it at exponentially higher price as what donald trump did. hopefully an-unrenovated house still available that time.
when i was a teen, i used to have a funny definition about asset (which i was confidently 'right' that time). easy, asset is something you own, something big and valuable for you. such as, your house or your land or even your car.
as i left my teen age, i came across that my definition about asset was totally wrong. it came from my discussion with my hubby, my father in-law and asset-collector-guru, azizi ali. it's not your house, or your land, or any big thing you own. asset is something that brings money into your pocket.
it made me realize that my house won't fill my pocket with money, even it takes money from my pocket. or even my land. i have to get my money out everymonth, for billing, taxes, and so on. how can i accept that my house would be my asset? maybe that's the answer why i don't buy any house.
it's not about having lots of houses but where the houses are. robert kiyosaki didn't simply buy any property without knowing the location and the potential of it. i won't buy any house in miri, neither buying a house at KL/KB while i am at miri. simple, no value added. if i buy a house at KL, i have to pay the price monthly (i don't have cash to pay it fully) and still have to pay the rent here. easy way, rent it out, but i don't believe it is that easy. i saw many in my very family, rent out houses, in KL, JB, etc. end up with unpaid rent for months and the tenants disappear. if i buy i house here, when i wanna move out then what? rent out? sell out? in this very city, where the development is still not very rapid (yet), i don't think i could sell at higher price. many and many new housing areas developed, if i was them, i would buy a new one rather than get other's house. again, will i sell at lower price? so what i'm gonna get?
maybe i am not really get into real estate yet. but there is rule of thumb, do something with value added. i don't buy any land or any house, because it will make me committed to and my monthly salary have to go to there first. meanwhile, i can do many things with my money. i can save it or invest in unit trust to get more return. yeah, it is no doubt that property investment would bring more into you pocket but as a layman like me, i don't have knowledge about property. i don't read much books and i don't even have money to buy land!
easy, with not much money, not much saving and not much knowledge about investment, find another vehicle to rig your asset up. your asset is your brain. equip the brain with financial knowledge, would make it smart enough to decide. the best investment in to invest in ourselves.
since i don't have much knowledge and experience in stock market, i just go for unit trust. easy, find a company that would provide return more than inflation rate per annum. easy and convenience, diversified investment reduces risks of losing money.
buying land/house for others (like what azizi ali did) makes your properties your asset. but buying land/house for your own usage won't be your asset. unless you sell it someday. if want to have a property to be sold/lease, study the location. nobody won't rent your shop/house if you have it at a swamp area. and always believe that rumors is always rumors. my FIL's friend was confidently bought a property at a place which was popped to be a potentially growth new-satellite town. but until now, nothing happen and he is filthy paying for the price, which my FIL & i believe that he would get better if he bought someplace else.
maybe someday, when i have enough money, i'll buy a terrace house at Damansara, renovate and sell it at exponentially higher price as what donald trump did. hopefully an-unrenovated house still available that time.
