Housing Investment, Is It A Right Time?

One of the way to generate passive income is from rental property. Buy a property and become a landlord.

Whereas here’s a person who is the Novel prize winner Robert Shiller totally has different view from most of the people regarding buying and investing in housing property. He always has the same answer whenever people asked him on the investment in property, for Business Insider after that Bloomberg TV’s interview.

From his view, investing in housing is not viewed as great investment, because it will need maintenance from year to year and out of style plus technical progress. So, new one is better. Then the people will just rent a house instead of buying own house. Here’s he compared buying a property with buying a car, as the car will deteriorate and depreciate after years and no one want to buy a second –hand car. We can’t compare a house with a car where even a car can undergo overhaul to become a brand new one, whereas a housing property will become more precious especially those developed states. Although the 30 years old roofing, carpet and kitchen appliances are old enough, but the price still going up, and still gain a profit after the maintenance and renovation.

But still the property is a win for Malaysian, perhaps we may lose some interest payments. As from my own point of view, I have rather pay the loan for my own house than paying as rental fee as it’s like throwing the money into the sea.

The property in Malaysia, especially Klang Valley, Penang and Iskandar City are hot market, even some of the big cities in Sabah and Sarawak’s housing property price is rising up. Therefore, the bubble market could not have happen.

The rental income still can cover the bills. And for those who still can’t afford to buy a housing property, here’s the chance as the government comes out with housing scheme for cheaper housing. 

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Reference:
http://www.starproperty.my/index.php/articles/investment/is-a-house-a-good-investment/