We have come to that point in time when Gen X and Gen Y now have had jobs for a while and have enough savings to consider investing and growing those savings. Now the question you must ask is, what should I invest in? There are many options present in front of you: stocks, properties, fixed deposits, mutual funds, precious metals, art, antiques, jewellery, and cryptocurrencies. Which of these is the best option for you?
We say that today, the best option is property, and in this article, we will show you 4 reasons why Gen X and Gen Y should invest in property.
1. Build Equity
If you do your research carefully, you can find and invest in a property that is projected to do well in the future. When you buy a good property, it may build a good amount of equity over time. You may use this equity to invest in another property. You can find out more about this by speaking to a good property agent and together you can create a plan to build your property portfolio to further your financial goals.
2. Continue Your Current Lifestyle
Some people from Gen X and Gen Y hesitate to invest in a property because they believe that they will need to give up their current lifestyle. However that is not the case. You can easily rent a place to live or live at your parents temporarily. You could even rent out a part of your property and use to the income generated from this to keep up your lifestyle.
3. Tax Benefits
Another incentive to invest in property is the tax advantages. The Real Property Gains Tax (RPGT) in Malaysia (insert link to article) states that after 5 years of ownership, you no longer need to pay tax if you decide to sell your property. Moreover, should you decide to keep it, you can lessen the rental income with other deductible expenses such as:
- Interest paid for the mortgage
- Repairs for the house
- Commissions paid to the agent
4. Ready Your Retirement
Most people from Gen X and Gen Y think it is too early to start thinking about retirement. However, it is never too early to start planning for your future.
Let’s say you buy a property worth RM 400,000 today; after ten years the value will probably go up and it would be worth RM 800,000 and after another ten years it will go up even further. And what if you buy a property worth RM 800,000 today?
The sooner you enter the property market the sooner you can start building your wealth as an investor. It will also give you the opportunity to build a larger investment portfolio which you can put towards your retirement.
Investing in property provides you with many opportunities and provides a good platform for you to ready yourself for your future. You owe it to yourself to better your future prospects.
Want to know more about property investment? Talk to us, send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 037-450-6655.
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