Are You Thankful?

Sumber:kclau.com
-by JACQUELYN
It is very easy to get caught up with our obsession on money. Everything that we do or decide is somehow related to our finances. For example, can we afford a detached house or a terrace house? Can we go overseas for a vacation or just a simple trip within the country? Can we afford to eat out everyday or just once a month? Even a simple decision like what to eat for lunch today means determining how much money you are willing to spend.

Hence, it is no wonder that everyone is so focus and busy on achieving a certain level of wealth as everything seems to cost money. In the pursuit of personal wealth, it is very easy to be angry and unhappy when we think about what we do not have or what we have not achieved yet. Consequently, we forget to be thankful for what we have at the present moment.

Some things to be thankful for

Below is a set of questions to ask yourself and if you answer “yes” to some of them, then you should have something to be thankful for. In those areas, you are more fortunate compared to a lot of other people.

• Can you afford to buy food on a daily basis to ensure that you do not go hungry? About one sixth of the people on earth (~ 1 billion) suffer from continual hunger.

• Can you afford USD2.50 for your daily sustenance? According to the World Bank, about half of the world’s population survives on less than USD2.50 a day.

• Do you have clean water to drink everyday? About 1.2 billion people do not have access to a clean water source according to the World Bank.

• Do you know how to read and enjoy the full benefits of that important skill? According to a UNICEF report, about 1 billion people entering the 21st century do not know how to read or even sign their names.

• Do you possess you own home or are you able to pay the monthly mortgage without worry? In the US, the Mortgage Bankers Association reported that one in eight households was either facing foreclosure or in default in the second part of 2009.

• Can you settle your credit cart debt in full every month? About 60% of Americans carry a balance every month according to a Federal Reserve survey which is a cause of constant worry.

In addition to the above, we Malaysians have a lot of other things we can be thankful for like living in a peaceful and beautiful country. We also have easy access to a reasonable healthcare and education system. In personal life, you can be thankful for your health, your loved ones and your good friends. Once in awhile, give yourself a break and just appreciate what you have now.

New Answers For The New Decade

-by Azizi Ali
For thousands of years, properties has been the foundation of wealth creation. All millionaires own a significant portion of their wealth in properties. And if you want to become a millionaire, doesn’t it make sense for you to do what the rich are doing? Of course it does.

At the same time, the rules for property investment in this new decade has changed. Why? Because the investing environment and the world as a whole have changed. The US is in deep trouble. The same applies to China, Japan, Dubai and even European countries (Greece is the first of many to fall).
The Euro is shaky, the price of gold is hovering at the $1,100 mark, the price of oil have climbed back up to $80 while the derivatives market is just waiting to explode. Now while these events are happening outside our shores (at the moment), it will affect us sooner or later. For example, the imminent crash of the US dollar will affect the whole world, perhaps in ways that is beyond our imagination even. One of the likely scenario is that the markets – stocks, properties and derivatives – will crash while the interest rate shoots up, perhaps to even double figures!

Scary as it is, these are very real threats in this new decade.

These new threats and challenges call for new answers.

Those who cling to the basic formula of buying a string of properties by taking on monster mortgages (or in other words, minimum downpayment and maximum loans) will soon be licking their wounds. They will be seriously hammered when prices turn down and interest rates rises. When their monthly repayments shoot up, a lot of people will not be able to pay off their loans. Life could turn real nasty because they may face a negative equity situation – where the value of the loans exceed the value of the properties (which is already happening to a lot of car owners). They could lose all their money and also their properties when the banks start foreclosure process by repossessing and then auctioning off the properties. This will mean that a lot of people will be out on the streets – no house, no money and worse, monster loans to be repaid!

But of course, wherever there is danger, there is also opportunities.

The opportunity to make serious money from properties are still there. All you need to do is to know what to do in the face of the rapidly changing environment and then of course, to take the necessary actions.

“Guessing is cheap, guessing wrong is expensive.”
A billboard I saw in Melbourne

At the same time, I also know the questions ringing in your head:

What are the critical success factors of property investment?
Why have the price rose so much in recent months?
What are the future prospect of properties?
What should I do bearing in mind of the possible downturn?
What are the choices that I have in property investment?
Which loans would be the best bet for me?
What are the risks involved?
What do I need to do to invest in properties?
How much capital do I need?
How much of my investable assets should be in properties?
How can I tell the good from the bad, the good from the ordinary?
How do I avoid costly mistakes because I cannot afford to lose any more money?
And perhaps, the main question is – Why are you the only one saying the market is very high now?