The millennials, also known as Generation Y, have grown up witnessing the swinging inflation, fluctuating stock market and career vacillation that could have personally affected their lives. These circumstances have given some millennials, including a particular young investor, Alexander Woo, greater awareness and better knowledge on investing at a young age.
As someone who started property investment young, Woo have presented numerous talks on how to get better financial security by investing in property as early as possible. Millennials should start out researching and taking baby steps towards investing.
So, who is Alexander Woo?
Woo is currently the chief executive officer of VIVO Capital Sdn Bhd, director of IQI risk management Sdn Bhd and vice president of financial education for IQI holdings. He has been working with the IQI Group since 2014, which is an international property and investment company that has headquarters in Kuala Lumpur, as well as offices in Penang, Dubai and Singapore.
Why property investment?
Woo majored in Psychology, but he always had a keen interest in business. So even though he had a full-time job, he started property investment on a part-time basis and he soon realised that he was making more in property investment than his monthly salary.
Inspired by his late father, who had a successful business at a young age, Woo tendered his resignation at the age of 27 to make property investment his full-time job. He continues to profit from the first property that he bought at the age of 22, and also some other properties that he had purchased.
Wise investment strategies
When asked about which property type he prefers to invest in, Woo says that he would go for a high-rise unit because it provides quite good rental income, and it usually costs less than landed houses. He focuses more on the Puchong area because it is one of the hotspot areas that gives good returns on property investment, and also because he feels that it is easier to attract renters in Puchong. However, he also highlighted that there are also advantages of going for landed properties.
“Landed properties usually gain more capital appreciation in comparison to high-rise. So it really depends on what you are hoping to achieve with your investment,” Woo said.
Woo’s investment strategy is buy-to-rent, and he always work on adding value to ensure that he can get more rental income.
“For example, if you buy a unit with three bedrooms and two bathrooms, you can turn it into two separate units with two separate entrances. This way, you will get two rental from one unit.
“When investing for rental, the good rental yield that one should look for to be in a safe spot is 3%, but to get 7% yield will be even better and profitable,” Woo explained.
Words of advice
When dealing with real estate agents, he advises buyers to take their time and not rush into an agreement.
“First-time homebuyers should identify their reasons of buying a property; whether it is for own stay or investment. When bargaining, don’t seem too desperate, and always buy a property that is within your budget so you don’t overspend,” Woo advised.
He added that he is very lucky to have an aunt who is a real estate negotiator because she has been guiding and helping him towards making the right investment decisions.
“It is best to have someone with the right expertise before deciding to venture into property investment because they usually know the current property trend better and is able to give good evaluation on the property you are interested in,” Woo shared.
If you are one of those young people who are looking to invest in property, then it is prudent to consult with property expertise and financial advisor so you are on the right track. Attending property-related forums and talks is one of the best ways to get valuable property insights that can help with your investment. - By StarProperty