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First of all, you may look at the table below
|.||Buy Property||Buy Car|
|Base Price||RM300,000||RM300,000 (Luxury CAR）|
|Down Payment||RM30,000 (10%)||RM60000 (20%)|
|Interest Rate||4.65% reducing balance method||3.5% Fixed|
|Loan Tenure||35 years (MAX)||9 Years (MAX)|
|Other Cost per month||RM300(utility),
RM1000(maintenance + road tax)
|After 10 years||RM600,000||RM47,000|
In the table, what did you see?
If you have RM300,000, which kind of product will you buy? Property or car?
As we can see above. Both products are worth RM300k but property’s instalment only cost RM1550 due to property can maximum loan 35 years and car only loan 9 year so that it cost RM3969.
And the most important thing is the property will be having capital appreciate in the future but Luxury car will having depreciate in the future.
There are actually no right or wrong answers to this question. It’s a difficult question to impose one answer on and the real response would be that it is based on your needs; lifestyle and financial capabilities.
It is quite interesting to notice the difference in the reasons why people would choose for either a house or car first. The main reason for the car choice was very much on a “needs” factor, where transportation is an important tool getting to work and also as a part of work. It is a good reason but most of the young age will choose luxury car as their transportation tools.
If you are able to stay with family or rent cheaply with roommates but then need to make a long commute to work; the car may be something you need more. But a RM300k luxury car are much more than “need”. You may buy a lower cost car to fulfil your needed.
If you have RM300k, I will suggest you invest into property. The most prevalent reason of buying a house however, is for the sake of investments. The participants explained that they would choose a house as an investment because of reasons such as the depreciating value of cars, the rising prices of homes, and that a house’s value will increase in time.
A house, as we all know, is a shelter, and functions as pretty much one of the immediate needs of a human being. The prices of houses in Malaysia, on the other hand, is becoming incredibly difficult for people to afford. Instead, most are opting to rent, which is fine if the persons need is met but it will become an expenses for the people who rent the house every month. These won’t make them reach financial freedom in their life.
In Conclusion, you need to depending what you need currently and make decision. There are no right and wrong on choose property or car. What you really need to know is fully utilise on your money and let money work for you. Don’t choose at ease at the young age.
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