Time flies so quickly. Without notice, I have been in the education industry, teaching about property investment and entrepreneurship for 5 years.
In class, I have met people of all kinds. Some are very eager to learn and come prepared with various questions even before the class starts. Some people have no clue at all about property investment and would like to pick my brains as a stepping stone for their first property purchase. Others, they have bought several properties, but don’t understand why they bought them in the first place. Then there are some people who dragged their force or is dragged by their friend to buy properties they don’t want to in the first place.
Regardless of their motivation, I think some people don’t need to come to my class at all because….
because not everyone is suited to buy properties.
So, who actually is best suited to buy property? It is inevitable that different people will have differing opinions, but if you ask me, I will be classified into three kinds of people.
- The Workers
Robert Kiyosaki In his book “Rich Dad and Poor Dad,” mentioned that the source of income for employees is to earn through their time spent working for others. Nowadays, the thinking of the millennial generation has gradually changed. “We have no reason to work all our lives!” has become the motto of many young people. So they turned into freelancers – they limit their worker hours.
However, think about it rationally. The source of income for freelance workers is not fixed. In some months, a lot of money can be earned. In some months, there are not even a single cent earned. The banks do not like credit records like these. Compared with permanent workers, banks generally prefer these type of employees to apply for housing loans, and some banks even give professionals 10% more debts service.
Ponder on the caption in the picture above – “We have no reason to work all the time!”, this is what almost what every worker thinks. So how do you work less yet gain more? The answer is ‘investment’. When you get your salary every month, you have to save some of it. When the saving reaches a certain level, you can start investing to start making your passive income.
When you have both active and passive income working together, it is like a car with two sets of engines that can be driven faster and reach their destination earlier. Therefore, property investment is very suitable to help permanent workers get their ‘early retirement’, and even if they don’t work, they can ensure that their incomes are constant, and they can retire earlier.
2. Business Owners
My goal has not changed since the beginning: I want to help more business owner of small and medium-sized enterprises to leave the business. I have this idea because I used to be like them. In the past, when I was doing business, I made money and put it back into the business. If I lose money, I would sell my own assets to fill up the gap. How long do you think this will last? Is it not a difficult life to be trapped in this vicious cycle with no escape plan?
Fortunately, there is a way out.
I believe all of you are no stranger to McDonald’s, right? Both adult and children should know McDonald’s. But do you know? McDonald’s biggest source of income is not hamburgers, but property. If McDonald’s is a person, the money earned by selling hamburgers is ‘active income’; the money earned by real estate is ‘passive income’. This is what we call the hidden business model.
Therefore, business owners are one of the most suitable groups for buying property. They have business backing, and with ample cash flow, when they choose real estate as an investment tool, the benefits will be more obvious. Just like a hunter who goes to the forest to hunt, and shoot two birds with one arrow, if property investment is done properly, it can give back a return of at least 10% annually.
The last category of people who is suitable for buying properties is, of course, an investor! Usually, professional investors don’t put all their eggs in the same basket. The diversified investment will definitely reduce investment risks and strengthen the quality of investment portfolios. In addition to being traditional and safe, investing in property is also the only investment tool known to the world that can leverage funds from banks. In Malaysia, you only need to pay for 10% of the property price and the rest can be borrowed from the mortgage loan.
There are several ways to earn passive income in investing in property. Here are three more common methods:
i. Flipping – Buy low, sell high. Making a profit when selling off the property at a higher rate.
ii. Rent collection – a fixed rent is charged to tenant each month.
iii. Air B&B – Daily rentals and homestays are the trends that have risen in recent years.
Are you the three people mentioned above? If you are interested in learning more about Dato’ Sri Adrian Wee’s course, please feel free to contact our team @ 010-2008828 or leave us a message in Facebook!
Facebook Page: http://www.facebook.com/myadrianwee