Monday, September 28, 2015

投资房产,或股票?Invest Share or Property

两年前,Ali写过《Invest Share or Property》。有兴趣,可以看看。
早期Ali blog是以英文书写的,不过英文水平不是很好,读者也不多。今日重温一下旧文章,并为旧文章从新update一下。看看两年后的情况是如何。

『投资房产,或股票?』Invest in share market or real estate property

This question is often asked. Invest in share market or real estate property.

Some answer is share, some said property.

We used the statistic data for comparison.

Scenario 1:  Buy a completed house at price $400,000.  pay 10% for down payment, the rest borrow from bank with 4.2% interest rate. Total of annual installment is $21,126.  Let say, the house is rent out with 4% rental rate. 5 years later sell the house, how much the investor gain.

Based on Malaysia Housing Price Index, the house price rise between 4 to 12%. The mean of 10 years is 6.2%.

After 5 years the house price rose to $616,000, sell it and repayment outstanding bank loan, thus simple gross profit included rental is $313,113. and net profit after deduct down payment and installment is $273,113. Does this profit return excited you?

Now, we compare what if invest in share market.

Above is past 5 years KLCI performance chart, assume same scenario with initial investment $40,000 and yearly saving $21,126 to investment, plus annual dividend yield of 4%.

After 5 year, the investment portfolio is appreciated to $162,049 and the net profit is $16,421 only. It is much lesser than invest in property.

From the figure above shows invest in Property is better than Share market. Bear in mind, there is some risk in investment either share or property.






Invest Share or Property
★ 差一点点半个百万富翁

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