Lee is my Property EDU member which I started many years back. He contributed to my upcoming property book. After reading his story I felt so touch. A true property investor indeed. As I always said in all my seminars, you must do a proper financial planning. Buy what you can afford. You do not need 100 properties to be a millionaire as the risk is extremely high. Like Lee, he do it one at a time. Yes he takes longer, but he sure will get there. I do thye same by buying one by one. I only will buy if I can afford and I only will take calculated risk.Do get proper property education before embarking your property journey.
Please read Lee’s property journey to understand better.
by Lee Soon Keong
Cockroaches, snakes, centipedes and iguanas are my companions. They often come to visit my bedroom. This was the housing provided by my father’s employer. I was born in 1978 to a poor family. I can still remember the days when every morning we would surely have an argument over breakfast. Imagine having to share 1 pack of hokkien mee among 3 of us (mother, sister and me). Since young I have desperately wanted to move out from this place and to have a better life.
Lived here for 21 years
After graduating with a Diploma I was lucky to be sent to Melaka for a job as a technician where I earned a decent income. I saved every single cent I earned.
After 1 year of working, most of my friends chose to buy themselves new cars. At that time a Wira Aeroback cost RM60,000. Me, I was torn between getting a car or a house. Now after 10 years I know that I have made the smarter decision. My house’s price has doubled in the span of 8 years while my friends’ cars have depreciated by almost 90%.
My first house was a 700 s/f apartment which cost RM135,000 back in 2004. Most people tend to renovate their houses after getting their keys. But my philosophy was a bit different. I couldn’t get myself to spend money on renovation work while still having a bank loan to service. I convinced my wife that it wasn’t the right time yet for us to do it.
I always tell my wife that the nicest house in the world is one that is mortgage free. Because we chose to delay the enjoyment of a renovated house, we were able to pay off the house in 5 years. After that, we are able to get our 2nd house.
How did I pay off the mortgage so quickly?
I worked 7days a week and 12 hours a day to earn as much money and as quickly as possible. Normally I will dump in all my OT money into the mortgage loan. Every year I would reward myself to a smaller bonus. Normally my company gives out 2 months bonus. But I would spend 0.5 month’s bonus instead of 2 and dump everything else into my mortgage loan. After 5 years (lock in period) I paid off my loan completely. I use this formula for my 2nd … 3rd ….4th properties and so on.
Having 13 years of involvement and experience in buying and investing in property (Low cost, apartment, condo, landed and shoplot) I am happy and satisfied with my results. I transitioned from living in a run-down shack to a nice and comfortable paid up 1800++s/f condo.
This is my principal that I apply in property investment:-
- I don’t renovate while having a mortgage to service
- Just move in and do a painting, lighting by myself (Zero labor cost)
- I always convince myself and my wife that the nicest house in the world is one that is mortgage free
- I work 7 days a week and 12hrs a day to earn $ to pay off my mortgage
- I will rent out my most beautiful property (higher rental) and stay at the ok property (lower payments)