This was my first investment experience investing. The truth is I never knew that I was actually making an investment. The reality was I just got into real estate to be cool and portray that I was successful. Investment should start from your first paycheck and putting your money in the right places from the very start. Putting your money in the right places from the very first paycheck makes a huge difference to break from the rat race cycle and start fighting the rat race.
Don’t forget to check out Offers-And-Promotions page for useful links that I use throughout this journey.
Calculations involved for the real estate purchase
- House purchase value :RM 140,000
- Downpayment : RM 14,000
- Estimated additional fee : RM 4,000 (I am sure it was lesser than Rm 4,000)
- Monthly Installment : RM 600
- Monthly maintenance : RM 115
- Rental Return : RM450 (Master room) + RM300 (Middle Room) = RM 750
- Selling Price : RM 215,000 (The value of the same property today is around RM 300,000.00)
- Total Profit : +RM 71,000 (Need to add in a few thousand returns after paying the bank)
Calculation involved for the car purchase
- Downpayment : RM 500
- Monthly Commitment : RM 600 (Installment+Maintenanace)
- Expenses made for 5 years : RM 36,000
- Selling Price after 5 years : RM 18,000
- Loan balance : RM 13,970
- Balance after loan : RM 4,030
By no means am I saying not to purchase a car, but I do not see a necessity of a getting a car which takes up to 50% (Sometimes even more) of your take home income. Moreover in the current days when there are e-hailing services at your finger tip.
Getting it right from the very first time will help you to start building a habit to invest, and this is something I learnt and certainly I would never regret it although I learnt it much later.