Sipping my favourite Latte this afternoon, I felt so relax here at my coffee spot… until I ran into a young man. He asked me his latest investment idea. After some calculation, I told him the numbers made sense and should be ok to buy. As usual, he has own ideas, insisting it might be better to wait :

1. The price to drop as the market is slow at the moment.
2. There is a piece of crack flooring in the living room of the apartment, and the furnishing is outdated and old, a few busted lights.

I don’t know why people keep on asking me some very smaall stuff when they are trying to do property investment. They would look at the smallest things like peel or crack paint, dirty floors or toilets or dented sink etc, while they neglect or forget why they want to do investment in the first place: which is to Make Profit.

The investment objective of property investment is to make profit plain and simple. Why make it complicated? If your numbers add up and make sense, take a chance and start investing, instead of trying to make sure everything is perfect before you start?

If you are going to get an undervalue property, chances are their will be certain “weakness” in the property, otherwise it wont be selling as cheap. I am pretty sure there will be cracks, broken, unfixed, outdated, obsolete, and heaven forbid “haunted”

Though some of my best purchases have come from buying the less than ideals properties.

I came across a T-Junction house in Taman BS in 2011, the Semi D was in pristine condition, renovated and decorated wonderfully and it was selling at market value. Bear in mind, in 2011 most properties is selling above market value, this property was only 5 minutes away from the best mall in KK, in a nice neighbourhood, schools within walking distance, and the owner was willing to let go with all the new furniture worth around 25k! I saw it as an undiscovered gem. Prices in this prime location is going to appreciate since it have all the conveniences surrounding it. The only way it was still available is because of the T-Junction. I bought it 750k and rent it out for 2700, then later to 3300 for the next year. I sold it off 2 years later for 950k, making around 200k. Not bad for a “taboo property”. Haha

Remember to look at the Big Picture! Location, Price, Rentals, Potential for Appreciation, Titles, Margin of Finance, ATMs potential, Market Values, Neighborhood.

Buy with a long term view in mind; dirty floors and stinnnky bathrooms may put you off but that can be fixed easily, often by some elbow grease and some more elbow grease…(ok 1 property really scare the shit out of me with the decoration of fences around the wall tiles of a particular bathroom, later I found out the tenants mess it up because it was having a feud with the landlord, don’t play play with tenants!) Don’t be Penny Wise Pounds Foolish.

Property Kid. Always Learning. Always Investing.