Millionaires everywhere
Wednesday, April 25, 2007
I have gone back to work after taking a year off. It is really good to be back at work.
Many, many years ago when I was active in the conveyancing department, it was the norm that properties were sold within the region of 200-400k. Anything above that, the purchaser would be deemed a rich person.
That was many years ago. Now I am back doing conveyancing after four long years of doing something completely unrelated to it. Property prices have gone up and the purchasing power of buyers too have gone up. Just the other day, an old classmate of mine purchased a property at 1 million without even batting an eye. Every week there will be quotations for the sale and purchase of properties worth a million and above. At times it would be 2 million and above. Today, it's 9.6 million! Where the h*&% do they get that kind of money?
Luxury condos in the heart of KL which costs millions sell like hot cakes. Yet for the last 3 years, there have been no takers for our 180k condo in Bandar Manjalara. I was told by the bankers that it is much easier to sell a 2 million luxury condo situated in KLCC than a 180K condo in Bandar Manjalara, sigh.
I think I have been out of the real world for far too long. I just have to come to terms that people are more affluent these days and what is 400K? I am still recovering from the shock that a potential buyer will pay 9.6 million for a piece of property and some lucky person is about to get his hands on 9.6 million real soon.
8 comments:
April 25, 2007 at 6:00 PMIt's not hard to envision how they got their wealth.
Just the other day, I made 25% from a stock in 1 month. And that's by buying in late.
Someone bought in 1 month earlier, and made 105%, just like that. Imagine if he bought RM500,000. That's another RM500,000 in 2 months.
Look at the factories around you. A lot of factories make cheap, everyday items, like mosquito coils that sell for RM5 (that cost RM1 to make in bulk). But if you multiply by hundreds of thousands every week, there is a lot of profit.
Wait until you travel overseas. What's RM9.6 million? That's only about US$2.7 million. Can barely buy a sizeable house (not apartment) in London. And there are thousands of US$10 million apartments around in developed countries.
How did they get the money? Well, just save money, invest it. If you skip that RM500 handbag now, that RM500 will become RM10,000 in 30 years, at modest yearly returns. Imagine if you save RM10,000. RM9.6 million will not be that big a deal to you in 30 years!
You are very RIGHT in your analysis. I too fail to see how people make so much money. From where???. Many will tell you that it's from the stock market. Well, this sounds easy BUT when you start putting in your "chips", you will start to realize that making money from the stock money is not that easy afterall. It may be a roller coaster ride....20% paper loss on your investment..the pain of having to ride through the storm, etc.
Let me share with you on the scene here in Hong Kong. There has been IPO after IPO in the HKSE over the last 2 years. For example two new counters this week. Banks here offer 90% margin financing and such line just get snap up QUICKLY. A friend in my office makes it a habit to invest on IPO only and he "beg" HK$1 million for most IPO...with his HK$100K capital. Total return for last year execeed HK$100,000 from IPO!!!
Many will eventually move their money to property, with big financing. I see a property bubble is being created now...with the recent announcement on removal of RPGT. Reason is that those condo worth millions is not for any average Joe and when the stock market collapse....those millionaires may disappear as well....with some jumping down from their condo...as they have huge debt and no income...
Moral of the story is "Be happy with what you have!"
That's an interesting post and good analysis by tch and anonymous.
Mae,
I'm currently shopping for a property (the RM200k, not RM9.6million, range) and will need a lawyer for S&P agreement soon.
If ur firm is not the exclusive type that takes only rich clients, can you drop me an e-mail at tealover@xsmail.com with contact, firm name and address? TQ.
TCH - what got to me most was the handbag part...darn was thinking of buying a ... anyway ya, better to invest the money.
THanks anonymous for your insights and it is so comforting to hear that you too agree that at the end of it all, it is happiness and contentment that maketh a person "whole".
THanks Eric for dropping by, just emailed to you :)
Found your blog through Loopy Meals.
I didn't know you were from the legal line as I was a general/conveyancing/litigation/dumping-ground-of-miscellaneous-files more than a decade ago. I think conveyancing is a bit formulaic and it gets boring after a while while litigation is so juicy especially those scandalous divorce cases with pics! Anyway can you cerita a-bit about how you got in this line....
Anonymous - WAH got pics some more ah..... very juicy indeed. How I got into this line....hmmmm can't even remember it was so long ago, will definately write about it :)
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