Sua is attached to the number one unit trust company which has won a multitude of awards, and her credentials include young clients who have managed to purchase their own homes at the age of 24 and older –retired – clients who enjoy multiple sources of income from savings and investment plans. Read her full profile here.
Q. I was advised that designer watches are not worth for money, except buying real time pieces. What say you?
Reasons why people go for designer watches differ from one buyer to another. However, the reasons why most designer watch buyers buy these watches could be because they are durable, unique and stylish and can be used to impress other people. These people don’t mind paying a high price for the watches.
No doubt some designer watches do fetch high second values but their value still depreciates. Thus, they should not be treated as investment items.
Q. The property market is hot now. A lot of people make good money from it. I also plan to invest in property. What’s your opinion?
I must say, property is a good asset class. What’s your objective of investing in property? Is for rental income or for capital appreciation? Property prices, particularly those in Klang Valley, have gone up a lot in recent years and rental yield is also decreasing. Before you invest in property, you should consider the following factors:
(a) Rental yield/ capital appreciation – what’s the rental yield/ capital appreciation that you can get
(b) Maintenance – what’s the maintenance cost like?
(c) Other expense – what other expenses (such as quit rent, assessment fee etc) you need to pay
(d) Interest rate – in view of high inflation, interest rate is inching up. How does it affect your cash flow if interest rate moves up 25 basis points, 50 basis points or 100 basis points. Can the rental still be able to cover the loan installment?
(e) Cash flow – what’s your cash flow like if interest rate goes up or if the property is not tenanted for a few months or if you are out of job
(f) Holding power – what’s your holding power like in the event if property market goes downhill
(g) Liquidity – property is not a liquid asset. Do you have contingent money for emergency and if the property is not tenanted?
Need some financial advice? Contact Sua at sua@emmagem.com!
