Did You Make This Property Investment Mistake?

One of the greatest dangers that newbie investors face is getting sucked into the “prices of properties go nowhere but up” hype (or more accurately, lie). During the bull market, it’s easy to just plonk down RM10,000 in down payment, call yourself a proud owner of an upmarket condominium, and then flip the property for a tidy profit.

That would be what the typical “real estate guru” or a mediocre agent will want you to believe, anyway. Many newbies will buy into this dream only to find out later that are up the shit creek with no paddle.

And that, my friend, is the greatest mistake in property investment. It’s noob-ish to buy a piece of real estate because of its “potential capital appreciation“. Capital appreciation (also called a capital gain) is an increase in the value of an investment. It is the difference between the purchase price (the basis) and the sale price of an asset.

Past =/= The Future

Article By : GoodPlace.My

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