Anders Ong is a university graduate with a big vision in mind and a big mission in heart. This 25-year-old Penangite did not live a luxurious life in his younger age; he lived with a budget of RM7.00 per day during his university days.
Graduated from Northern University of Malaysia (UUM) with a Bachelor Degree in Business Administration, he started his property investment journey in 2014 which might be a bit late compared to those started during 2008 and 2009. Today, he owns two properties which yield a good return. The return almost covers his three years’ salary, which is just a starting point of his property journey.
Transforming dreams into reality
In his entire life, Anders was guided by his family members, consisting his parents and siblings. After his graduation in the year 2014, he bought his first property while he was working for a renowned developer. Without much hesitation, he acquired another property the net year due to his deep interests in real estate. He believes that, “No one is too young to buy a property and no time is the right time to buy a property.”
Real estate lives in him
Anders is a highly motivated to invest in real estate and loves discussing about properties to his peers. His vast interest in properties was the main reason which encouraged him to join a property developer in the first place. He was inspired by many youngsters who was able to purchase properties to make a living out of it, and he wanted to become an inspiration to others as well.
“I will encourage youngsters to invest in properties during their early days to leverage on loan tenure, affordability and etc; but all this with a due diligence in doing research and be an informed real estate investor.”
Support is definitely limited
Anders started his property journey by purchasing a small apartment, He did not hesitate at all, despite the negative feedbacks he received. He was discouraged by others saying that he would not be able to cope with so many debts lining up, as he just started working at that time and had other commitments such as house rental, PTPTN loan, auto loan, food expenses, utilities and more.
His family members supported him, and then still nice food were rare. Ander’s first property was an 800 sq ft apartment in Penang Island. Currently, the apartment values twice the price he spent two years back.
His second property is a Semi-D located in Kedah. While browsing through a property list, this semi-d caught his attention and he booked the property immediately. Again, many did not support his idea as most were skeptical of the market condition. But fortunately, with his sister’s support, Anders purchased the 3,200 sq ft semi-d in Kedah. Currently, the property worth more than the actual price he purchased it at.
Getting in the game early
There’s no specific time or age to buy a property. By learning to invest in properties during your younger days, you learn to manage your money and learn to be more independent. It is advisable to invest in properties before you invest in your gadget, cars or etc.
Besides, properties have proven to be a good investment given it is not affected by any negative external reasons. So, get in as early as possible no matter what. Below are some of the benefits of investing in properties for beginners:
1.Stamp Duty Discount
For first time home buyers, you will be entitled to get a 50% stamp duty exemption on the instrument of transfer agreements and loan agreements for residential property purchases. This could possibly save up a lot of money if the property is expensive.
2. Skim Rumah Pertamaku
If you could not get a 10% down payment to pay for the first property you are interested, fret not. Skim Rumah Pertamaku allows 100% financing for residential property which is available for both conventional and Islamic loan.
MyDeposit scheme is the latest initiative by the government, where the government will contribute 10% of the sale price or maximum RM30,000.00 (whichever is lower). This is only available for the first-time home buyers, for properties priced below RM500,000.00. The closing date for this application is on the 30th of June 2016.
4. Real Property Gain Tax (RPGT) Exemption
You can get exemption from RPGT in a few instances such as:
- Exemption on gains from disposal of one residential property once in a lifetime for individual
- Exemption of up to RM10,000.00 or 10% of net gains (whichever is higher) from the disposal property by individuals
- Exemption on gains arising from the disposal of property between family members
5. Higher Mortgage Financing Rate & Terms
An individual will be entitled to get a 90% mortgage loan for the first two properties, and 70% loan for the third property. Thus, it is very important to choose the first and the second property wisely. Besides that, if you invest in a younger age, you can take a loan up to 35 years. This is definitely better than a loan tenure of 20 years, which increases your burden.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email email@example.com