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20190213 Property v Mutual Fund, Part 1

20190213 (Wed)

So, tell me how! Buy property or put in mutual fund!? Part 1.

This scenario, RM500k house, repayment of 30 years. You have extra cash of RM2,293.47 per month which you could put into monthly installment. Now, you happen to have extra money, should you shorten the loan, stay as status quo or should you totally not buy the house?

I bet most readers want to know the answer to this scenario. BUT, I am sorry, there is no ONE ANSWER. WHY? Because the future is uncertain*. So, it is about your risk appetite and your long term goal in life. The fund performance/investment might be better or worse. Nobody knows for sure.

My take of this type of scenario question would be:

1. Do you have the risk appetite in financial market?

2. Your personality of being meticulous?

3. Are you making career move often or business venture?

If any of the above three questions is YES, then you are probably NOT for property investment.

Why do I say so? Tomorrow we will see the reasons.

* Some would say it is because I am not expert enough to give the answer. So be it.

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