What's the most important to success in property investment?
Last week I started a fun Poll on LinkedIn to ask the question above. I allowed only 3 responses. Is it Skill and Experience? Or Luck? Or an MBA, REA, MSc Real Estate?
So far my LinkedIn Poll has racked up more than 400 views according to LinkedIn's algorithm. But just 6 people took the poll. All 6 choose "skill and experience". None conceded Lady Luck and a MBA in Real Estate or a REA qualification as essential to success in property investment.
Here is my response: Lady Luck is more important.
Let me qualify what I just said above : You might have a different experience from mine. That's OK with me. But from within my own personal circle, "Lady Luck" trumps "Skill and experience".
1. The highest ROI I personally know from a property investment was made by my better half's father. In the 1970s, he paid RM77,000 for a bungalow at Lorong Kemaris in Bangsar. When he passed away, the house (in its original 1970s condition) fetched more than RM2m a couple of years ago.
No skill here. One of my better half's relatives in KL asked him to buy. https://360kiranaresidence.com/klcc-property-news/home-truths1
2. The next highest ROI I know from a property investment was a piece of raw land at Bukit Beruang in my home town, bought for RM18,000 by my mum and dad in the 1970s. It was sold more than 30 years later for RM180,000 - a 9 fold return on investment.
No skill here. The piece of land was bought simply so I could attend the best High School in the state in 1971. Note: To attend the top High School in the state then, pupils needed to come from a top feeder school( BHPS) OR else have an official residence in the catchment area.
3. The third highest ROI I know from a property investment was a old 900sf one bedroom apartment off Orchard Road in Red Dot Island by my better half. It was bought out by a developer in an en bloc sale for more than twice her purchase price.
No skill here. One of my better half's relatives in Red Dot Island suggested the purchase.
4. Last in place is yours truly. I have a MBA from a UK business school rated Best Business School 2021 by a UK publication, the Times Higher Education. https://www.bradford.ac.uk/management/
And more years in experience in property investment (21+ years, more than 5 KLCC properties) than my better half and our fathers combined.
Yet my first KLCC investment property-a 3000+ SF luxury condo in KLCC bought in 2000 at RM500 psf (direct from developer at a 10% discount) is now worth just 50% more in 2022 (based on an estimated CMV RM750 PSF supplied by two KLCC Area Specialists).
THIS is the conclusion I want to draw for the benefit of my readers: Despite my years of property investment experience and academic qualifications , Viz;
a MBA (Top Quartile), armed with knowledge of Valuation Methods (NPV, DCF) and years in Stockbroking Research in Global & Regional houses, plus
more than 20 years experience as a high end KL property investor and active participation as a committee member in 4 KLCC condominium MCs and JMBs
yours truly failed to beat the ROI on property investment achieved by sheer luck by my mum and dad, my father in law and my better half. 🤠😜
POST SCRIPT
For my story how I got 10% off from the developer see here: here:https://360kiranaresidence.com/klcc-property-news/home-truths1
Sorry, folks. You all got it wrong 😜
My personal library of property investment, landlording, and DIY interior decor books.
Two very lucky property investors in RC's family. Thanks Mum & Dad.
