3 Investing Skills You Must Master & Not Get Cheated

by admin on July 21, 2009 · 12 comments

Global economy starts to show some recovery from the lowest level in Mar 2009. As recovery emerged, the name of investment become increasingly popular lingo among street people. But before you get cheated in any kind of investment, educate yourself by reading this blog post very-very carefully.

Valuation is the Key

Shrewd investors have very fine-skill in valuing investment proposal come to them. They just don’t look at the current price, but how much it can offer in the future. Of course you need to decide some critical economic assumption along the way.

Most of us might think that RM 1.3Mil for 2,500 sq.ft of 2-storey terrace in Mutiara Damansara is so expensive compared to 10,000 sq.ft of 3-storey bungalow in Ulu Yam that cost RM600k.

But the moment you look at 10% potential price appreciation together with 1-3% potential rental income, you will easily find terrace house in Mutiara Damansara possess higher value for money than the Ulu Yam bungalow; which can hardly get 1-2% price appreciation. Btw, asking price is not the same with it current value.

Buy When Others Don’t

Shopping for investment asset in trying times is our expertise. We like it so much because it’s like buying genuine Versace handbag in KLCC for only RM250 with cheque some more.

Other than buying in economic downturn, we also love buying a rundown property (e.g. so buruk that you won’t live in it), depressed asset (e.g. when the owner have problems paying loans or want to move out asap) & seasoned blue-chip (e.g. house in long-time established address). The perfect investment asset would be any combo.

Only recently we managed to secure a property that is 20% cheaper than the transaction recorded in 2007. Moreover, our request for 30%-50% discount for S&P, loan agreement & valuer report was granted too. Very low interest rate is just an icing on the cake. Believe me you won’t get these kinds of discounts in the bull run.

Avoid Free/Cheap Advice

It’s not about you must pay to know something, but don’t expect someone with RM300 per month salary can appreciate the value of condo near KLCC. It’s just like you ask my opinion of paying thousands for Play Stations, I will definitely say ‘membazir’. Unless you ask other game geeks, you’ll certainly get frustrated with me.

Same goes to investment world, ask advice from experienced people only. Sure can get some feedbacks from other corridor talks wherever you want but make sure it doesn’t affect your decision-making. Mass people love to talk about investment even when they know nothing (like me), but taking it seriously can bring damage to you.

Your ability to filter noise & critical info is very important. Do detailed research on your investment and stay firm on your decision. Don’t be deterred with someone out of the league say some inconvenience words like “buat aper beli rumah teres sampai sejuta, membazir je nih” to you; especially your pakciks at kampungs.

Pity them they don’t understand but life as investors has to go on…

I might be missing some more points. If you have one, just drop a comment and share with us LOL.

{ 12 comments… read them below or add one }

dina July 21, 2009 at 9:43 am

hey! great article yet again n did u take any NLP course before?

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Mommy Lyna July 22, 2009 at 12:09 am

hey dina, nice to see u.
sory but wht is NLP course?

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Izwan Shahmin July 21, 2009 at 10:53 am

For the future! :)
.-= Izwan Shahmin´s last blog ..Seperti Kuda =-.

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Mommy Lyna July 22, 2009 at 12:10 am

future cash flow? make sure + npv

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mamadanish July 21, 2009 at 3:47 pm

Makin serious isi kandung blog2 u..bagus..!!
Mahalnye umah kat mutiara damansara skang..i ingat lagi..dalam yr 2004/5 mcm tu..umah teres kat sana rm345k mcm tu je..now..pergghh!!!
.-= mamadanish´s last blog ..Terharu =-.

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Mommy Lyna July 22, 2009 at 12:12 am

hoho, serious ek. sory for that. rasanya dah lama sangat beringan2 kan hihi.

umah teres juta2 tu yg superlink. i think baru siap last year for only rm900k. then tiba2 terus 1.2-1.4M. the one yg u tgk rm345k tu teres yg lama. it’s quite flat from 2003-2006 dlm range rm400k. suddenly meletop in 2007. skng ni around rm700-800k la.

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mamadanish July 21, 2009 at 3:48 pm

my concern pulak..tak tergamak beli umah jauh2..dan yang tak byk alternative..cos incase of emergency pasal anak ke..jenuh!
.-= mamadanish´s last blog ..Terharu =-.

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Mommy Lyna July 22, 2009 at 12:13 am

be like my uncle, beli rumah exactly blkg spital. kalo ank dia asma kronik teros masuk wad.

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Hanz July 21, 2009 at 6:14 pm

kalau nk tempat yg best untuk anak2 membesar, harga umah pun $$$$ tak hengat…
.-= Hanz´s last blog ..50 Science Fun Ideas for Toddler & Preschooler =-.

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Mommy Lyna July 22, 2009 at 12:15 am

i think saujana utama sg buloh or denai alam guthrie pun ok. same goes to rawang or bukit jelutong. nk lg educated, bangi or kajang la kot.

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dina July 22, 2009 at 9:30 am

‘NLP’ is a linguistical programme focusing on unleashing ur subconscious mind. ‘filtering’ and ‘critical factor’ are terms referring to processes of NLP.

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aidie July 24, 2009 at 4:01 pm

lyna..apa kata kita g dating..n u explain lagi detail bleh hehehe

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