I was recently approached to market a new property in Tampoi, Malaysia. Being not very pro-Iskandar, I was hesitant in marketing it to my network. However, after having done some analysis, I concluded that this may be a more interesting project to invest in. Here's why:
This development will probably be the next go-to place when it's completed!
Who would have thought of associating Fruit and Nuts with property investments?
I read an interesting article on a property magazine not too long ago on profiling real estate investors by Scottt O. Tolbot and thought it was an interesting concept to share. Here's a quick digested version:
Fruit aka Fruit Shop
You look for the freshest, ripest, most high-quality foodstuffs and place it up on shelf for customer to see. You are obliged quickly sell it before the fruit rot before your eyes. You cash in and want to buy more property. You are in for healthy short term gain.
Pros: You get almost immediate gratification from your investments or money in your pocket.
Cons: You forgo future capital growth and fail to reap full financial benefits. You don't actually own anything end of the day.
Nut aka Squirrel Investors
You get as many nuts as you can and stash them away. You are a hoarder. Your goal is to accumulate wealth rather than gain wealth. Your strategy is to buy and retain property by not selling. You reap your rewards through re-mortgaging.
Pros: You get to reap full capital growth. You own the property and will likely buy more (without selling) with money from re-mortgaging.
Cons: You'll see paper gain but will not get money in your pocket in the short term. You'll also need holding power to reap full financial benefits.
In my opinion, if your are a squirrel, go for freehold. It will be a legacy for your many future generations. For those that are financially strapped, it is not such a bad idea being a Fruit Shop and move on to be a Squirrel once you have gain enough wealth as your foundation.
Either way, you will gain from your investments. It's matter of how soon and how much.
Realtor and Real Estate Enthusiast