True Value of RM10,000

You need to change for better

Back in 1960’s RM10K is a lot of money. With RM10K at that time actually you are consider rich man in town. One of my close business associate parents has bought one piece of Country Lease land at Jln Apas Tawau for RM17K @ RM1.7K per acres. In late 2007, after he keep for more than 30 years he sold it for RM6.6M making total free tax profit of RM 6.583M or 387 times over his investment. His money virtually increases by 1200% every year. His story not only ended there, now his smart son continues planting and collecting potential land all over Sabah for his future generation. Hope his son (grandson) will inherit his wealth and continuously growing it into greater level. Like what my father always advises us, we are live to plant “durian” for the next generations. Never stop planting as the moment you stop planting, your generation also stop growing. So never stop because the generation who stop planting after enjoying the fruits are the most selfish and stupid!!       

1970’s

My dad don’t have RM10K in his saving when he is 30’s. He only start his first property acquisition in early 1970’s with his own saving and top up personal loans from his elder friends. And for your information, to get personal loans at that time is not easy. He needs to get another good friend to act as guarantor before the loans of RM1000.00 got approval. With that amount of money he manages to get his first property and subsequently he sold it after few months making net profit of 60%. This is the first time he sucks the blood of profit relating to property.

My Dad fulltime job

It was much easy to make money from property compare to his daily job as Taxi driver which required more time and hard work to earn same amount of money. He begins to work smart rather than work hard after that. He never stop until today even though he know its enough!!   

1980’s

I’m only less than 10 years old during this period. Experience people around me keep telling and reminding me on “Black Monday” happens late 1987 due to overvaluation, illiquidity in the market and over trading situation. I remember one of my colleague always threaten me with this crisis whenever I bought property for rental collection. According to him, during the crisis everyone is trying to throw away their property. Some even worst willing to transfer the property to your name for free.

Property price drop until everyone give up!!

 They just want get rid  their property soonest not only due to huge dropping in property prices but crashing of rental market. It seems like the whole world going to end soon. So virtually with RM10K you can get few properties at this period provided you got the guts and some financial back up from banker or your family. Too bad not many people did so. One of my clients told me he was offered RM800 per acres CL land at Beverly Hills area during this period. He not only declines the offer but he also scolded the agent for introducing such “jungle” land to him. He almost cried when he told me this true story as he is still under employment even already reach 60’s years old. My dear friend, he thought his decision is right but turn out to be the biggest mistake in his entire life. Today Beverly Hills land commanding not less than RM50 psf or RM2M per acre.

More than 4000 units Apartment

Land price within this area has appreciate further after famous local developer known as Wong Kwok Group has successfully developing few thousand units of apartment cater for middle and lower income group. Too bad for my friend who miss the golden opportunity, imaging if he bought 5 acres that time costing him RM4K now he is enjoying his multimillions retirement life. 

 1990’s

Early 1990’s my friend who is working in the banking line was approach by agent to purchase vacant land along Jln Sulaman. At that time the road is still under planning stages, thus the land price is still selling between RM10K-RM30K depending on location and topography of the land. My friend declines the deal as he cannot foresee any potential at this area. Today land price at this area has sky rocket to RM1.5M-RM2.5M per acres depending on the frontage of the land. More and more developer is eyeing this area as they believe this is going to be new development corridor for Kota Kinabalu.

Largest Intergrated City in Borneo

The major developments happen around this area are completion of 1Borneo hyper mall which is the largest mall in Borneo. The anchor tenant are including famous Parkson Department store, Giant supermarket, GSC, KFC, Pizza Hut, Mc Donald, Gucci, Tomei, Habib Jewels and etc. Beside SagaJuta S/B, other developers also launching University Apartment, University Condo 1 & 2 and mix development by Lintasan Mayang S/B on their high end project known as Alamesra Desa Saujana. If you happen to bought 1 acre during this period, virtually you don’t need to solely depending on your EFP to retire. But how many people did it?

2000’s

I started my career life early year 2000 and only started my properties investment until late 2004. At this period you still can buy a lot of properties using RM10K. I remember I bought one pieces of land near to Kudat airport for less than RM5K per acre. A lot of people asking me why I continuously accumulate Kudat land, my answer to them are simple. Do you know why? Because it’s affordable to me and the most important the title is 999 years leasehold periods. That means I still can afford to keep the land for the next 30 years without hassle. For me, I don’t mind to wait.

Undiscovered Jewels of Sabah

My dear friend, ask you parent how KK town look like 30 years ago? Not many people can visualize it will turn out to be like what you see today. Given time and a bit of research, I strongly believe our investment in land will continue to grow above our expectation. You only need 10 years to build your wealth just like what I did. Frankly, my wealth has been tremendously enlarged throughout this decade.

2010’s

Your future is unknown..Discover it yourself!!

It’s going to be challenging and more demanding environment. Your RM10K might not even enough to purchase Beverly Hills studio that cost you RM70K (less than 400 sf). My dear friend, Time and tide wait for no man. Of course I don’t mean your RM10K is worthless but you can’t do much with that amount. Maybe you can consider Unit Trust since nothing to invest. But the fact is I never heard anyone make millions from Unit trust. So please understand the philosophy of investment and use it in your daily life for your own good. Don’t ever TRY NOT TO UNDERSTAND IT !!  Happy Investing.

You cannot Grow Land..CK Wong & My Dad

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