Tuesday, February 11, 2014

Buying First Property As Investment: The Courage to Decide

I was 26 years old when I purchased my first property for investment. I knew back then that I always wanted to purchase a property but the only thing that held me back was the courage to do so.

You will understand when you plan on purchasing your property, can be one of the biggest commitment of your life and many questions popped into your mind.

"What if I bought it too expensive?"
"What if I can make money and can't sell the property?"
"What if there are new development nearby where can be a better buy?

Too many "What If" statement during the decision making.
I was earning less than MYR5000 and the property cost MYR495,000. It is a very huge commitment for me.

When looking at the selling price, a lot of people would have back off because they would think that they couldn't afford. I used to do the same until my friend who is a property agent convinced me to just view the unit telling me in every way that it will be a good buy.

I went on and view the unit with my girlfriend (now wife). Firstly I was impressed by the surrounding of the condominium, we saw many foreigners in and out of the condominium proofing the fact that there are many expat staying in there. The whole compound of the condominium is one of the largest compared to all the newly develop condominium, there is walking distance to a lot of shops, restaurants, banks and even a soon to launch shopping mall.

There are offices behind the condominium within walking distance to support the demand of the condominium. I like what I see but there are also things that I don't like.

- the unit comes with only 1 car park
- the condominium is considered old in the area with more than 12 years old
- the unit although comes with fully furnish but are all very old furnisher which may need to change soon

Rather than focusing on the positive side of the property, I focused a lot on the negative things that I saw and I can't made up my mind.

Thanks to my mom who encouraged me to proceed with the purchase and I did - of course with a lot of fear and doubt that time.

Now the property is selling 31% higher than my purchase price not to mentioned comes with tenant occupied for the last 3 years with rental higher than 5.5% per year. It is not something amazing but it definitely a worthwhile purchase to gain confident.

There are things I learned after purchasing the first property for my investment journey. It is not the knowledge that plays the most important part in the process but the courage. Courage from your friends and family and courage from yourself. Logic does play a small part but once you made up your mind to purchase the first property, the next one comes easier... And knowledge comes next to make sure you don't fall into purchases that will make you regret.

Have you buy your first property?

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