Tuesday, May 20, 2008
Now that Smart Buyer is a jobless bum, he can finally give this blog the attention it deserves. Let me take this opportunity to salute the wisdom and vision of all those faceless, nameless heroes out there call Smart Buyers.
Looking back at life, if it hasn't been prudence and of course some luck, that my property investment has today contributed to most of my wealth generation, I wouldn't have the luxury of being the worry-free blog-bum that I am now.
For those generation-Y investors out there, take these words seriously:
Your property investment may be the sole determinant of your financial success in life.
So don't take your property investment lightly. One wrong move, and you may have to work another 10 years more or so for your property.
Once, when I was young and foolish, I plunged into property investment after watching friends and more friends making loads of money out of flipping property. This was during the long bull run of the 1990s. By the time I made the plunge, price was already at its peak but I was too inexperienced to know better. I took a substantial home loan and it hung around me like an iron chain. I finally sold it and made a small profit, then came the Asian financial crisis and the property market crashed.By mid 1998 the property price have fallen some 40% to 50%. I was then able to buy a brand new condo, this time without any mortgage, and still kept my first home.
I learned to wait. The cycle goes up, then it comes down. For sure.
In 2006, I bought another property. Today, it's worthed twice the price that I bought it. But, it's the most beautiful home we ever owned and it is not for sale.
I sold my investment properties by end 2007.
That's my gamble: We're heading south again.