Gen Y : Spoilt Or Struggling?

We all have that one uncle or aunt that is always going on about how this generation is glued to their phones, come out of college in debt and aren’t able to afford the necessary things in life because we’re that “spoilt” generation. At the dinner table they keep telling you old tales of how they were able to buy homes with the same salaries we are earning now. So if they could do it, why can’t Gen-Y? So we called upon Gen-Y investors to see if these stereotype stories are true. Are we spoilt? Or are we living in difficult times?

 

HACE WONG, 27

Property Investor

I ’ve always wanted to buy my dream house, and to do what I like with it. Then one day, I came across ‘Rich Dad, Poor Dad’, a book that introduced me to the idea of financial freedom. The book briefly explains how property helps you achieve financial freedom, and taught me the method used in property investing. Since then, I started saving money for my first property. I think most Gen-Y are more interested in Forex, stocks and other such investments. They want fast money. The process is a bit longer in property investment because you really have to ‘invest’ in it – you have to nurture it and grow it. Little do they know, property can be more than that – you can make fast money and get a passive income depending on your game plan. It is important for Gen-Y to realise the benefits of property investment. I think it is important to know what the angle is for them, meaning what they want to achieve through property investment, then I will share and explain with them what are learned on my journey. To me, showing them through example is the best way, instead of telling them my theories or sharing my ideas. I think it is more important to create this awareness first before we educate them. I realised one thing about property investment and this has helped me to move closer towards my dreams – I want to run my own business. Gen-Y are a generation of entrepreneurs. So some of them might be thinking ‘I want to run the business, but I don’t have the capital, how do I run it? How am I going to run a business without good cash flow?’ Here’s a way for you to use your property investment to generate cash flow for your business.

 

ZOOL RAIMY, 33

General Manager and Anaesthesiologist.

I am an anaesthesiologist practicing for the past 6 years in Galway, Ireland but decided to come home 5 months ago due to family reasons. I am the newly appointed General Manager for my family’s company. I am planning to learn how to run the family’s business from my elder brother and my job is to find new investment opportunities and also to develop the business and further grow the company.

I was born in Melaka but grew up in Gombak, Kuala Lumpur. My parents were teachers but my dad decided to start his own company and this is the same company we are still trying to grow and improve 30 years down the line. I am an investor and I chose this market simply because my family is involved in property development so they know the current market trends. My strategy in property is to always ‘know your stuff’. So, research, research and more research. I believe, to understand a particular investment, you need to gather as much information as you can regarding the investment so that you can make an informed decision. You also need the information in order for you to calculate the risks. Same goes for my exit strategy, you always have to be prepared. Always have a plan B, C, D and E. You need to be able to understand when you can cash out and cut your losses. If anything goes wrong I can fall back on anaesthesiology. As of now, I don’t have any specific types of properties I choose to invest in. My investment depends on my research and the risk taken. But I believe up to a certain extent the market is influenced by the political turmoil that Malaysia is going through. So far, the biggest challenge I have faced as a Gen-Y investor would be in trying to acclimatise myself with the working environment here in Malaysia. The Irish working environment is completely different. The year 2016 looks weak with minimal growth but I am optimistic and I will find more investment opportunities. I am sure that prices will go down to stimulate buying. That is what I hope. Nevertheless, Gen-Y should be more aware. Education leads to awareness and awareness leads to good investments. So the future for me is unclear, but as long as I am comfortable in investing, I will continue to do so. If not I will follow my exit strategy and cut my losses.

 

MC TIAU, 24

Property Investor

Before I ventured in property investment, I joined a lot of property talks. I was inspired by a friend who is my course mate. When we were in University, she had engaged in some property talks and she shared a lot of information with me and that is how I started to get interested in property investment. I have been interested in buying property for a long time, in fact, since I was studying, but I was not working so it was impossible. That is why I worked as hard as possible to get the money to invest as soon as I started working. When I wanted to register for this one property course, I had only RM900 in my account while the course’s fee was RM4,000. So I paid the deposit which was RM500. Luckily I had three months’ before the due date of the investment course. During that time, I had just started working as a teacher and I knew it was going to be impossible to get acquire the money, no matter how much I could save from my salary. So I decided to do a lot of tuition. I was busy with work, 24-7. I worked straight through without taking any off days and eventually earned enough to pay for the course. The following two months, I managed to save around RM10,000 to start my investment. I had enough of working and I did not want to work anymore. Not ever again. If you ask me about Gen-Y, I think they would like to buy properties that come with better packages – such as, zero down payment and rebates. For me, I like the feeling I get when I invest in properties – when I get a good deal or when I buy a good piece of property. So if you ask me how long I would want to invest, I would say as long as possible. It is not just about the money, it is how I can inspire other people as well.

 

BURHANUDDIN MOHD NOOR, 23

Student, Bachelor of Mechanical Engineering at UNITEN

The reason I am interested in property investment, is because the value doesn’t decrease. For example, even if I purchase a new car today, the price will decrease tomorrow if I were to sell it. But not in property investment, it keeps on increasing year by year. We are all aware that properties are not as cheap as it was before. Nowadays, new houses are all expensive, and even the secondary property prices are equally high. We want affordable and spacious houses for us Gen-Y. Why? Because we fresh graduates, cannot afford to take a loan of more than RM200K with a mere RM2K salary and it takes years to earn a high salary. I think only a few Gen-Y’s are aware of the advantages of property investment and everyone should be more exposed to this so that it is not too late for them. Investing is a choice many people make at one point or another, in the hope of bringing wealth to their lives. Whilst there are many investment alternatives such as stocks, bonds and cash, property investment tends to be viewed as one of the safest and easiest options. The value of your property will grow over time and may be extremely financially beneficial if you make the right decisions not only will you benefit from steady capital growth, but regular monthly rental returns. My dream is to have my own house, chalets in tourism areas and a hotel of my own. I did a business before and that was when my eyes were opened and I learned about property investment through a mentor of mine. I learned a lot from him and I’ve not forgotten what he taught me.

 

ILI AQILAH, 26

Full time writer and part time social media representative

I’m now based in Ipoh and intend to invest in the near future. I chose the property investment market due to its enticing valuation. Unlike cars, once you buy a property, the value increases by the year. My investment strategy is to acquire a landed house nearby a public attraction and either rent it out or turn it into a homestay. However, I still do not have an exit strategy if all else fails. As a Gen-Y investor, with the imbalance of rising living costs and a stagnant income, I intend to buy cheaper properties with low maintenance fees in order to afford the investment. The biggest struggle for me, and most Gen-Y investors, are our financial capabilities. I struggled to choose between buying a new car and buying a property, but I’m glad I made the right choice. But second to that, it was the difficulty in finding a property that fit my budget, in a good location. But that has not deterred me from investing in the near future. Things will get more and more expensive all thanks to GST and unnecessary price hikes. If I can earn more, of course I’ll invest. Despite the market sentiment, the plan is to at least own 2 properties. One for myself and the other to be rented out. As I mentioned earlier, I am currently eyeing a few upcoming residential areas near a theme park scheduled to open next year.

 

RACHEL POON, 27

Property Investor

I worked in Singapore previously as a graphic designer for years. I did not like the nature of my job, so, I wanted to try and invest in something new and I found property investment less risky than other investments. I actually wanted to invest when I was still working in Singapore, but at that time, my mind-set was more on buying a dream house instead of investing. Because of this, I actually missed a chance to invest in Puchong, on a property that was priced at RM700k. After a year, I came back and the price had gone up to RM900k! I was thinking to myself, how can property price increase so much in one year? So I think that is one of the problems that Gen-Y are facing – property prices hike, expenses go up, but our salaries remain the same.

  

WE ARE NOT SPOILT, WE ARE TRYING TO COPE

We come from a generation filled with dreams and amazing aspirations. We innovate and thrive within a market that tries so hard to pull us down. We are a generation of tech savvy geeks who have the same hopes, wants and needs as Gen-X and Baby Boomers. We are a generation with our phones to our faces because that is the nature and environment we were brought up in, but it is also the same nature that inspires us to be better than generations before. We have the same worldly scheme as you do, we want the same bright future you wanted for your kids. Sadly, our struggles are our own. And just like Gen-X and Baby Boomers, we have to fight our own battles. We are not spoilt. We just bury ourselves in all this inspiring technology because that is the only way we know how to cope and live in the environment you have left us in. The future looks bright, and with these new and upcoming investors, the market looks even more promising.