True story of dying with massive debts. By just glancing at it, you’ll know what’s the case here. High cash out, negative cash flow. Multiple loan submissions, loan compression, whatever you want to call it.
These are people who wanted to “shortcut” their way to the riches but don’t quite understand how property investment really works. In almost all cases, you can tell that their goals and ambitions were very short-sighted and short-lived.
The moment they received their “enormous cash back”, the time bomb begins to tick. It’s just a matter of time before they run out of cash to finance their “atomic bombs” in the hopes that someone else would actually buy them for double their price.
What are the odds?
It frustrates me to see that a disaster of this magnitude leaves behind a bad stench in the Malaysian property market.
Come to think about it, loan compression is neutral, no good or bad. It’s just a multiplier, while the actual culprit is the poor-performing, overvalued properties themselves, which most people today are lacking the skills to appraise them.
What makes up a good investment?
How is the yield and return of investment calculated?
Where can I seek actual transparent data to conclude my research?
What is the median price of the property?
How many exit strategies are there if I choose to invest in it right now?
Versus:
Is this property freehold or leasehold? (It’s not as important as you think)
How to guarantee my rental? (Not even God can)
Landed or high rise? (Cash flow is king)
Got guaranteed rental returns? (Highway to hell)
Truth be told, it ultimately depends on the properties you buy.
Rubbish properties x loan compression = More rubbish properties.
Today our clients are investing only in Grade A properties with huge upside and positive cash flow properties.
Grade A properties x loan compression = More Grade A properties, more cash flow.
Well, you get the idea, but some of you might be asking what’s a Grade A property look like?
If you’d like to find out more, comment “PM” to receive a free copy of my PDF that’ll explain everything you need to know about property investment and grades.
And lastly, don’t die with massive debts.
