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Investment Strategy 2018?

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From the COO’s desk 

2018 has arrived. Right after the bonus, usually from the month of
February onwards, many would be looking for another new job with higher
salaries. How many would also have in their mind an investment strategy
starting from 2018? Some people say 2018 would be the year that Malaysia
falls into a recession. However, do note that whether recession comes or
not, as long as it recovers, the right investment always recover over
time. From properties to rare banknotes and even other collectibles, the
prices are always trending upwards. For example, properties within
mature neighbourhoods will not be growing too much because there’s just
no huge pieces of land left. Rare collectibles would always become even
more rare because some unforeseen circumstances may just happen. For
example, that antique Peranakan spoon was accidentally dropped to the
floor by our kids?

Just a really simple comparison. Assuming we get 1.5 months bonus,
that’s considered a return of 12.5% per annum. It’s very good. However,
it is based on our salary. So, if our salary is RM5,000 then the bonus
would only be RM7,500.  A property with just a price of RM500,000
growing by 2% per year is still RM10,000 per year.  Referring to the
Housing Price Index over the past 20 years would reveal that the
property price is increasing 3 times higher than the 2% assumption
above. Happy enjoying your bonus. Remember to think about Asset
Investments too. We will accompany you in your investment journey.

 

 

 

 

 

 

 

Charles Tan,

Chief Operating Officer, MNP Group Sdn Bhd

Posted on 1st February 2018

Suggested articles:  Selling Assets by way of Auction. The Way Forward.

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