Plan your GOLDEN TREE now!!
Secret of property millionaires always remain risk conscious whereby their portfolio is proven workable no matter economy good or bad. Not many people having recession proof portfolio. Recession proof is whereby majority of the assets are having low loan balances or even better if it is free from encumbrances. Yes..Free from any loan and 100% own by you. That means in the event of economy crisis you don’t need to worry about all the repayment and of course spike up of interest rate is not related to you at all. You are basically sitting on the assets especially vacant lands that grow in value day by day like what I mention in my previous articles on “You cannot grow Land”. I have repeatedly mentioned the beauty of owning a land and how the rich’s has benefit from their vacant land portfolio. My advice to all, those who leverage too much with bank facilities must naturalize it by diversify your portfolio into vacant land. I know vacant land can’t give you any cash flow but in long term land has proven to be the best performer in terms of return over your capital. And I also fully aware that you need huge capital in acquiring vacant land but what to do, if you don’t do it now do you think the price will stop rising? The answer is “NO”. Of course another strategy to protect yourself from recession risk is to borrow less every time you purchase property. Say 70%, as this will reduce your monthly commitment and in the event the rental is not coming in, at least you still can cover your low monthly repayment. This will not only protect you from loan default but also help you to save interest cost over the long run.
The last strategy of the property millionaires is to start young. Instead of starting at the middle age of your life, you might as well start now and stop when you reach middle ages. Look at people around you, I bet most of them will tell you they will start next year when they have money. But I can tell you the day will never come simply because as we grow older, our commitment and responsibility will gradually increase together with our earning. Increase in responsibility and commitment simply means increase in our daily expenses. These unavoidable expenses are like housing loans, children expenses, house renovation, marriage expenses and etc. So you have no choice but to cut down all your unnecessary expenses before you are 30 years old otherwise you are “gone”. I assume you are person who take full responsibility as father and husband after you are 30 years old. Don’t ever trade your own life for short term pleasure. Take it seriously as we only walk through our life once. There is no repeat in our life.
With all the above secrets, I can assure you, your destiny to millionaire is clearer and faster. But the main rules to become property millionaires is to start young…with longer time frame you can afford to make more mistakes. So don’t take your life for granted. Everyone here going to be successful if you make it right at the first step and you can even afford to spend all your hard work money if you start young. Look at me, even from today onwards if I decided to stop accumulating property, can I afford to do so? Yes…Why? Remember, as long as I didn’t sell my properties it will continue to grow without much effort. I can start spend every single cent I earned from my employment income enjoying my life especially trip to overseas which I wish to go many years ago. Oh ya..For your information, since I started working 10 years ago, my best trip is only reaching Thailand and that is since 2005.
Only 3/64 pages use after 5 years 
So ashamed to tell you that I only utilized 3 pages out of 64 for my passport before it expired last year!! Hope coming year I will spend more time travelling around seeing other part of the world to expand my exposure and knowledge. So what more you need to wait? Start now when you are young and I hope all of us will get rich and retire young. Nothing is impossible and don’t forget live below your means. Happy Investing
You cannot Grow Land..CK Wong & My Dad
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Nice post. Agree with you starting investing during young age can have more risk. They can always start over again before everything become too hectic and burden. Can I know you start investing property with how much money?
Hi,
I started with less than RM50K. But I’m very very lucky, my dad is helping me to get the first pieces which much much below market value. I got it for less than RM30K which valued at RM135K. So that how I fall in love in vacant land deeply. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
i may hv an amatuerish question.
some1 ‘quoted’ robert k. that capital appreciation is not as important as cashflow.
some mentor out ter stated ur portfolio reflect ur characteristic, perhaps. mebe im trying to make sense (ur) portfolio 70% consist of land. undeniably, good cap appr, (1) but how abt the loss of positive CF of which can be used as levarage to own more properties thru total rental income INSTEAD of putting it into land which god knows when it will increased in value.
(2) secondly, what factors or when do u decide to liquidate the land (to cash of course). and use the cash to buy next land? like how u roll properties but in this case, u ‘roll’ land? lol u get my drift hehe.
apology if my questions diff to understand. much appreciated.
Hi,
No doubt land did not give you up front cash flow but bear in mind, the growth of land is silently accumulated (silent wealth accumulator). You will only realized it once you cash out 10-20 years from now. Unlike rental properties, you are mainly leverage your resources and gradually collecting the “potential” rental and appreciation which might be slower compare to vacant land. This will definitely create more “recession” proof portfolio if you diversify into land. Meanwhile, I haven’t think of liquidating any of my vacant land since 2004. I still have other sources to go further. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi there CK,
I enjoy reading your articles. I sense your deep passion in vacant land investments which is of course healthy. I noted your last reader was questioning the profitability of land investments in general. Perhaps I would like to help clarify that ‘vacant land’ here is used to refer raw, unimproved acreage, such as farmland or vacant city lots. No doubt that this type of investment can be daunting for the novice investor with limited funds because immediate cash flow return is relatively low. However, what a successful land investor always do when evaluating is to assess the land’s short term and long term value. Putting this into perspective in Sabah, many millionaires here are palm oil planters who are also owners of the farmland. The short term value of land fluctuate in relationship to what the land can produce and the value of the production. The maths: 1 acre of palm oil in an estate produces about 7-9 ton of fresh fruits per year depending on soil quality. 1 ton of fresh fruits can fetch about RM400 (depending on CPO price of course). Overhead costs come to about RM250+ (depending on fertilizer cost etc). So the planter (or millionaire) can profit about RM1050-1350 from 1 acre per year. Doesn’t sound much until you multiple this by the large tracks of land these planters own (from 150-10,000acres) for small/medium holders). It’s irrelevant to compare with palm oil conglomerates which usually hold between 50,000 to 100,000 acres in Sabah. That’s just for short term value. The long term value of these lands is a source of much intangible benefits that CK yourself had pointed out clearly before; factored by irreplaceability, population growth, inflation and the related demand for food (ie palm oil). In the late 1960′s these rural farmlands cost less than RM750 per acre. After 1 generation, an acre of good palm oil land is fetching around RM12,000 onwards. A lot of palm oil money had flowed into KK. No wonder land prices keep increasing!! By the way, i only have time to write on rural farmlands. What about city/suburban/ex-urban vacant plots? CK can continue…. cheers
Hi,
Thank you for your sharing. For development land especially city land I think not to mention much, just look at Mid Valley. When the owner bought it was less than RM300K per acres @ RM6 psf back in 1970′s but today he is collecting rental of RM20 per sf on average per month. The value psf reach beyond his own dream. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi..Ck
Do u think the land price surge lately due to “CPO money” into kk as mentioned by Nicholas will create or already created “land price bubble”whch indirectly pushing up the price of house….
10Q for your wisdom
GK
HI,
Land price has surge since last few years from RM5K to RM15K on average. Will it continue to go up?Yes.. in the west agricultutal land is selling not less than RM50K per acre. So for I dont think our land price will face “bubble crisis”. Land price is inelastic due to scarcity and NO future supply. Virtually only demand in this market with NO SUPPLY. IF you study economies, NO SUPPLY in market means prices will not drop especially demand for land is always there. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
do you think it is right time to enter to palm oil industry
thanks
Hi CK,
Would like to ask you regarding 2-room service apartment. How’s the demand like for this type of property as opposed to the popular 3-room apartment. It seems that nowadays that more more developers prefer this type of property. I’m thinking of buying this type of property some around Shah Alam/Subang Jaya however my concern is whether are people out there interested to rent 2-room apartment. I i know people mostly prefer at least 3-room apartment. Need advice on this.
thanks
rahman
Hi,
World are facing problem of growing population and pressure of cost of living cause people prefer to stay smaller family. Today there is news in the star saying Korean govt is encouraging 1 month 1 day off after 7pm. That mean they would like their people to go home early to “make baby”. So smaller unit apartment also become trend and well recieved by investor. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Thank you so much ..really appreciate your view. Thanks
Hi,
Prices in general will continue to go up because of inflation. Read today Insider’s “Without the cost of living going up, you cannot have higher income,” Tun DR M told reporters when asked to comment on the New Economic Model.(http://themalaysianinsider.com/index.php/malaysia/50128-higher-incomes-mean-higher-cost-of-living-says-dr-m)
“For the government, it is the question of increasing taxes and reducing subsidies.”
It’s already happening. Reintroduction of 5% RPGT . up and coming GST, reduction of sugar subsidy, next round of diesel and petrol subsidy reduction and it will continue.
The government trying to get the private sector to fix a minimum wage for workers as well.
All these will one way or the other will translate into higher cost of living including housing which mean land cost will go up too.
For who has land, you can laugh. For those who has none BUY now!
Azlan
Please give me some information regarding a good luxury condo in KL for foreign investor. Where is the good location to buy? and any suggestions.
Price range is from 500K to 600K.
Thanks again.
Hi,
Im not familiar with KL properties. As I mention here before, I’m here to share my real like experience and I strongly believe my principles in investing is applicable everywhere. Anyway I have one good real estate agent from KL known as Richard. Please email me your contact number at ckwongproperty@gmail.com. I will ask him to contact you. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Thanks
Apology for long post
I m aware of the greatness of buying land ,sthg that not even owning series of properties can match.
But i think the problem here is not the decision whether to want to buy land or not but the method of financing for it. I know u cant teach/reveal to us the method of accumulating fund but bear with me…
e.g. majority of ppl walking into bank r as home buyer, NOT as investor so typically, the banker will feed information that is for home buyer, NOT investor. can say the information is not useful to us (investor). then i only realize there’s a way around that , which is …
we can use rental income to ‘boost’ our nominal income for bank loan approval for next apartment. this is sthg that I didnt even know weeks back. is this the ‘creative financing’ some ppl mentioned? not *that* creative actually.
(+++ If anyone know any other kind of CREATIVE FINANCING pls share, this is another topic altogether! +++)
so now back to THE question- I m not asking where to get the funds for buying land but the ‘creative financing’ to buy land, perhaps, sthg I didnt know (?) and I hope I’m asking the right question now. or is the answer is one of that old school’s…theres no way around it, u just hv to find hard cold cash! -to buy land. then, there is no further discussion and we can just ogle at land price skyrocketing without a piece of the action, one such as me.
it is not a question to buy or not to buy – but HOW. n this is where we need someone to shed a light rather than day in day out chanting that we should buy land and PRONTO.
Hi,
Rules always remain the same. You can get financing from the bank. But as I say vacant land is the most dislike types of property that bank want. So normally bank will only give up to 70% financing and they will impose higher interest rate. So over the long run the cost effectiveness is not there. Sources of financing from my land is from my own income, saving, investment,top up additional loans from my property like condo and apartment, my part time income from selling properties and etc. So what you do my profession Mr Renk? Why not you share with us what fund that you have now? Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK & contributors,
Concerning HOW to buy land….. in Sabah
I personally think it is hard to teach CREATIVE FINANCING per say. I feel if you really want to build a legacy, your mind will increase in capacity & be ‘creative’. Needless to say, you can definitely learn tips from creative investors/financiers (by associate with them, work for them, invest with them). I hope to share some light in this matter. In the past, a ‘creative’ way to invest was to form alliance or an investment club. Many successful investors in Sabah started with this kind of networking in the 70s. Many land holdings are in more than one name. The rational here is understandable: safety & power in numbers. The hard part is the networking but opportunities do exist today. Anyone can start an investment club in Malaysia pulling funds together.
Another point about buying land in Sabah, it is vital to know the Land law (Sabah Land Ordinance) because its provisions are NOT the same as in Peninsular Malaysia.
For the novice investor with limited funds, there is no short cut in general. SAVE & Invest in what you can afford first. This takes creativity!! This may not be vacant land but could a home/medium priced solid property with rental income as pointed by CK’s many entries.
2 cents worth, cheers
Nicholas
HI,
Thank you. I almost forgot as I got one Sarawak friend who did it through grouping investment. They are developer now. In the early 1980′s they started group their money and buying land at Tuaran, Menggatal, Kinarut, Dondongong and Papar. Today they keep utilising their land bank for housing project. If you know Tmn Dungang in Tuaran, that is one of the project SOLD out even during crisis. Thanks again Nic for your extra information. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CKWong,
First I would like to thanks you for the 2 part great article on the property investment. I’m working with Multi National Company in penang and seriously want to improve my financial situation. I wrote in other forum, before of all the mistakes I’ve make and why I’m still being poor.
From Credit Card Debt to Owning Six Houses
The article wasn’t started by me but I put my story in the comments along with others.
Later after all these things happening I’ve become very very scare of borrowing money. I got really stressed up even when the bank is calling me just to remind me a few days before my car payment is due. Even though nowadays I just do direct transfer from my maybank2u account to the hire purchase account.
Living in Penang I can certainly see people queuing to register for apartment/condo purchase sometimes and here apartment price goes up everyday
Because I’m not being smart when I started working now I’m early 30s with very little cash, and suggestion that I can follow to start in property investment because I also still believe that property investment is stable.
Thanks & Regards
Laikos
Hi,
We learn faster through sharing of mistake. I hope all of the readers will learn and avoid all heavy financial mistake. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD