So now you just proposed to your girlfriend, Congrats! Next on the list of course is to get a house and start a family. Not just ANY house of course, a house that you and your would be wife would be proud of, happy to stay in, in other words your Dream House. Then you remember, prices of KK housing have been rising faster than the no of illegals in the state and you are worried. Then you ask How leh?

First of all, as an investor, my natural inclination would be counting the beans and cents, how much would the returns be when I invest in any property whereas for the mass majority of people would be to buy for their own stay first. If they have already own a house, and when they have some extra cash left only then would they think of buying a property for investment.

I have been asked quite often this question “Where to find a Double Story Terrace House for around 500k in KK?” I responded them by asking them where do you plan to stay? 80% they would say somewhere around Damai, Lintas, Luyang, Penampang and Likas areas. I answered them its possible but there is definitely not the type of house you would be label as a “Dream” house.

Let me give you the definition of a Dream House from my experience of Sabahan friend would be:

1. Landed House, Terrace House or Corner Terrace (so I don’t have to see the neighbours and have extra land)
2. At least can park 2 cars side by side so I can just go out anytime I want.
3. Easy access to the Taman, not too many twist and turns, roads is wide and not narrow.
4. Good neigbourhood with good facilities likes Banks, Restaurants, Kopitiam, and schools nearby etc.
5. Definitely a NEW Development with great looking façade, and generous land area.
6. Nice Design with built in Kitchen and Move in condition.
7. Little to No Down Payment required upfront.
8. Finally, price around 500k.

Well, hate to break it to you guys, Landed Houses just doesn’t come cheap anymore, especially new ones. The criteria above are impossible to get. Your kopi O cost RM1.20 as 5 years ago; Now its RM1.80. Why would houses be spared?. Land is not cheap in KK, more so like Hot Areas like Lintas, Damai, Luyang, why do you think developers keep on building more and more condos? While you find it hard to find any new launches of Terrace House?

I remember when I first started doing research and looking into buying property for investment 9 years ago, majority of people I asked have only 1 house or 1 property, but they think its an “investment” a property which they are staying in. And most of the time, they would advise me against buying property just for “other” people to stay in first, as I don’t even have a house of my own yet. Luckily I am a stubborn guy and I did buy my investment property first before I bought my own accommodation.

Buy an investment property first can help you start your investment journey. Why?

• Smaller capital requirement means you don’t have to burn a hole in your pocket. Which leaves you with more disposable income so you can go to Starbucks and enjoy your Latte. For example, Beverly Hills apartments (ave 250k to 320k) versus buying a terrace house say in Taman Penampang for 520k.
• Lower loans repayment per month Beverly (RM1100) against Taman Penampang (RM2300). If you rent out you’re apartment for RM900 then you are only topping up RM200 per month.
• Pick and choose location, choose the location which has the best potential of stable and mature rental market, usually those that are 5 years and above their completion.
• Pick and choose your the units when a project just OC, (Around 2700 units in KK alone in 2016), many of the landlords are fighting for your money now and you can basically call the shots(picking a unit same block as the MAS stewardess might not be a dream)

Then where do you stay? Maybe you can rent a room or stay with your parents first. Yeah its hard, I know, but you rent a property which you can afford and get subsidized rents. Like one of my friend rented out his unit in Peak SoHo for RM1800 while he rents another condo for his own stay for RM2000. He gets subsidized housing and pay only RM200 more (2000-1800) to a place where is closer to his work place and SKIP the Jammm of Coastal Highway. Smart eh? 

There is a reason a Dream House is called a Dream House, because it is unlikely you will be able to buy your dream house right away. Save your bullets and work your way up. You will get there 1 day. I am also renting my accommodation; I rented out my own house in Kingfisher. No kidding.

Propertykid. Always Learning. Always Investing.