Monday, August 16, 2010

50% picked property if have RM1 million

Almost 50% of the 1,211 respondents picked properties as the number one item that they would buy if they had RM1 million. For this group, they are in good company. Datuk Tony Fernandes, the group CEO of Air Asia Bhd, was once asked the same question 5 years ago by a leading Malaysian business magazine. His answer? Apart from Air Asia shares, he would definitely invest in property and unit trusts.
“With property, I feel you can never go wrong as long as you buy in the right area,” he was quoted to have said.

The rest of the results were unsurprising. With lingering reservations on the economy, not many would want to venture into a new business, nor even invest in shares, bonds, REITs, life insurance or unit trusts. Fixed deposits were the least favoured by the respondents.

Interestingly, 9% or 106 respondents expressed a desire to emigrate. Again, it’s hardly surprising given that the brain drain is still ongoing since the last few years when our economy dipped. Although, it’s on a recovery trend, some may have had enough already.

Almost 200 respondents or 17% were leery of the RM1 million figure given. And why not? With many property prices straddling the RM1 million figure, the vast majority have been priced out of choice properties in prime locations. The message is clear: Property prices are running ahead of average incomes. This group awaits Malaysia’s Transformation into a High Income Economy with bated breath.

If you have RM1 million cold cash to invest, how would you spend it?

Article from : http://www.iproperty.com.my/news/2400/50-picked-property-if-have-RM1-million-

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