Welcome to MONEY MASTER. Money Master is a financial management and money talk blog where our aim is to become the money master rather than the slave to the money. Making money is no easy job if you treat it as a burden but once money becomes your friend and work for you, that is when cash flows in. Becoming the money master rather than slave to it helps us redefine the whole idea of earning more - it's more like the money working for us.
Whether you are one of those who are struggling with monthly bills like myself or a debt-free Malaysian, here are 10 simple & realistic ways to help you SAVE MONEY.
1) GOODBYE TO YOUR TV SUBSCRIPTION
We know that many of you have Astro at home, and it really help you to feel so much more convenient but maybe it's time to say goodbye to your TV subscription.
GOODBYE TO TV!
Instead of making Ananda Krishnan (2nd richest in South East Asia, estimated wealth of US$11.7 billion) even richer, it is time to consider saving a little bit more for yourself. Most of the favourite tv series and movies could be watched online nowadays.And maybe, just maybe it's time to stay away from your TV and develop a healthier lifestyle at the same time. Thus, saying goodbye to your TV subscription is first on the list to start saving more money. This will help you save about RM120 to RM200.
We all know the importance of owning properties and how the Malaysian government tried to set certain rules and regulations to prevent an overpriced of the properties in the country.
Well, here's the news for those of you who do not know....the new trend: a growing number of individuals and groups organizing bulk purchases of properties from developers. Bulk buying is basically an activity that allows few or many property investors to invest in a single development as a group. Most of the time when in bulk purchase, there will be additional benefits that won't be available should these individuals invest individually.
GROUP PURCHASE OF PROPERTY
Whether it's a good strategy or not, it's up to your preference but here are some of the pros and cons in group purchase of property...
Normally, when you buy in bulk, you will be given discounts and additional benefits...a simple logic deduction: A lot of developers love and encourage group purchase as they can transfer their risk to the new buyers and move on to the next project. Therefore, the more you buy, the more discount you get. Here are some of the benefits that participating group purchasers can potentially enjoy:
It is common to have additional discounts when many buyers buying from the same group....typical discounts can range from 1% to about 10%, depending on the number of units confirmed.
b) Easy ownership
With the increasing price of property, most fresh graduates like myself will find it difficult to own a property....but when you buy in group from a developer, most of the time, there are zero or low down-payment schemes....this helps easy ownership as one could buy property with as minimal cash as possible.
c) Early Preview
It is normal that there will be previews for the members held by the group. This early preview helps them to discuss the property and its prospects....and whether you like it or not, sometimes, they even got an early preview before the soft launch of the actual project (most of the time, this group has good connections with the developers)
Just as above, joining the group of property investors expand your network and sometimes even help you to know some good developers....by networking with buyers of the said development, you have the opportunity to collaborate with other investors of similar strategy and budget profiles.
Here is one thing that I learned as I grow up....for everything that is good, there is always a catch, something negatives....we just got to observe. And here are some of the not so good factors when we talk about bulk purchase.
Because of the added benefits from bulk purchase, this also create and encourage careless investment decisions. Most of the time, just like in any other investment, when you are in a group, there will be a lot of false optimism and it can overshawdow any small doubt you might have. It's human nature to feel threatened and uncomfortable to go against the crowd....
So, here is to getting know some of the disadvantages of group or bulk purhase of property...take caution!
Well, most of the time, the group leader will tell the members of the hefty profits after investing for a few years. In today's boom, it is natural for people to get excited about investing in property...just look at how the prices soar high over the last few years....you will probably heard speeches like "guaranteed return of XXX% as soon as the property completed....etc etc....
It's not wrong to be happy about the increase in one's own investment but at times hype such as this could lead to crazy optimism.
When you are excited, it is natural that you rush for it...."BUY 1st, THINK LATER" becomes the culture when one is surrounded with such optimism and hype. There are some that even create a one day promotion such as a ONE DAY DIBS only or free iPad or any other gadgets to rush the decision, giving people little time to think...
c) DISCOUNTS AREN'T REALLY DISCOUNTS
Here are the reasons why you must start to take note when developers tell you about the discounts.
For example, Condominium A has 3 blocks, BLOCK 1, 2 and 3. The 1st block was sold at RM500psf and it's fully sold. Then, the 2nd block was sold at RM550psf and it's also fully sold. Now, the 3rd block are being hawked at RM650psf to the group purchaser, and still has many units left as most seasoned investors probably viewed it as slightly overvalued. In order to move this 3rd block, some groups will come and negotiate with the developers, asking for discounts, say 10% discount. But even then, the group members still have to pay RM585psf, which is much more than what the block 1 and 2 buyers paid for.....therefore, they will be in an inferior position to compete with earlier buyers later.
So, are the discounts real? Better take note of it...
d) Hefty initial cost involved to join the group
Well, most of the groups organizing bulk purchases will charge members good money just for them to participate in the event. The cost could go from RM2000 to RM8000. So, you really got to decide if it's worth it or not...
Well, I guess the information is good enough for you to make your own conclusion....by joining these groups, you might even shorten your learning curve, but be cautious. That's the advice.
As for me, property investment is not one of my preference but it's good to keep an eye on the market....currently, I'm reading on one of Ho Chin Soon's article on one of his property tips: FOLLOW THE INFRASTRUCTURE....but that will have to wait...