Should Millennials Give Up Their Lifestyle To Buy A Property?
01 Jul 2020
[Original Article from Property Queen]
If you were born between 1980 – 1996, congratulations, you are known as a millennial or Gen Y. You are known as the “lucky” bunch, most of you are postgraduates in universities and some even had a chance to study abroad. Your generation had the privilege of enjoying colored Television, computers, handphones, and many gadgets throughout your childhood. While growing up, you had the opportunity to take extra classes such as piano classes, singing classes, dancing classes and so much more. You get to do what your parents and grandparents didn’t get to do. Therefore, period, that millennial are considered as the lucky bunch.
But being considered as the “lucky” bunch, there is also a downside to this. Some of you are pampered by your parents that you’ve never been through hardships in life, some of you still receive money from your parents even up till now, you have a different lifestyle compared to others. Evolving to a more sophisticated and technology savvy modern society, some of us are struggling to adapt to this new world of gadgets, and with peer pressure being one of the factors, we tend to compare ourselves with others and we give ourselves a hard time because of this. Some youngsters are unwilling to let go of their “luxury lifestyle” to buy a property, for example, weekly outings with friends or colleagues, buying branded items, traveling the world, buying a new car, getting the latest trending gadgets, these are all the reasons why millennials find it hard to purchase their own property. Some just don’t want the commitment of having to pay for a property and having to give up on everything else they find worthless, what’s more, worrisome is that most millennials do not have savings and they live from paychecks by paychecks monthly. Long term down the road, without proper financial planning, they might end up renting from people but why would you be paying for other people, when you can be paying for your own and call it yours?
Youngsters should be educated on financial planning and why it is important for them. Lifestyle is a show put on to impress others that brings no benefit to yourself if you think about it, would you still be wanting this lifestyle when you are 40 years old? Wouldn’t you prefer stability and comfort knowing you don’t have to worry about the next month’s rent or car loan? Giving up a lifestyle isn’t scary, it’s not being able to give yourself a stable lifestyle for the future, that is something you should be scared of. If you are almost 30 and you still worry about how you make ends meet every month, then something is definitely wrong here. I can’t guarantee that after you buy a property, you will be well off, no! That doesn’t happen, but if you purchase the right property, it could help you to make revenue and you will have ROI( Return of Investment ), you could then use the money to buy more properties and rent them out, you can even sell off the property to purchase an even bigger property. For example, you purchased a condo that is worth RM700 thousand in Subang Jaya, after 5 – 6 years the price increased to almost RM1 million, if there are buyers, you can choose to sell your property or rent it out to collect monthly rental to cover your monthly loan repayment. If you choose to sell, you have earned RM300 thousand, which you can use to make as a down payment for a new property. Your lifestyle won’t be long lasting if you keep spending money on things that won’t bring you any ROI, why not save up that money and get yourself a property that can help you in the long run? The remedy of getting a good property is to do your own market study, research on the location, the developer’s background story and the information about the project, speak to experts that can give you advice, or your friends who have bought from the developer before, go and visit their showroom or even visit a previous project developed by the developer. Other than that, make sure to think it through before making a decision, as buying a house is never a joke. Next, speak to the real estate agent or sales staff that is handling the project, get all your insights from them and start applying for a bank loan.
Remember to always pay your loans on time, because the banks will check your other commitments and see if you have a great record in good repayments or not. It will affect your credit score if you have late repayments. Other than that, the bank will also consider other elements before approving your loans, such as your CTOS and CRES. If you are clean and your repayments are good, your loan should be approved within 1 – 2 weeks. Lastly, make the right investments that will benefit you rather than “investments’ that are only for looking good purposes! Good luck and save smart!