Happy With A Savvy Investment Return!

This year has been a very challenging year in terms of the global investment climate...it has been series of negative events followed by another, don 't you agree? Same old concerns keep popping up, from sub-prime to credit crunch, escalating crude oil prices, inflation, etc! So the key question is how fast and how far the bugs are going to spread? God knows, really!

Some experts say 2009 will be the end of the boom cycle. To me, it appears more like 2008! Light at the end of tunnel? Well, may be traces of light at best but still dim, i should say!

Malaysia of course is no exception, although the country has not been hit so badly by credit crunch. However, the current political uncertainties have indeed thrown a large spanner, where speculations constantly alive that the leading opposition party may overturn the Government within the next few months! It does not help the fact that no opposition party has ever led the country to become the Governor. So i could understand the jitters everywhere, especially from abroad!

Like I always emphasize, it's good to diversify one's investment portfolio, instead of putting all in one basket! For the Warren Buffet fans, of course you would say otherwise?

Real estate property is definitely one of the most defensive and stable asset class of investment. Arguably the best hedge against inflation, and generally stands good against time. Of course there are some exceptions, particularly for places where huge price increase occurs and bubble formed. In the not so distant past, we have witnessed that happened for Hong Kong, followed by recently US residential market and Vietnam! Well, the good thing was at least they had a good run once upon a time!

Recently i manage to dispose off one of my real estate property for a decent 45% gain (gross) within 4 years! Not bad indeed! Not to mention the positive cash flows that I had been earning from rental income for the past 4 years too! My gross rental yield averaged 11% to 13% per annum! I have decided to cash out due to receiving an excellent offer at a time when the economic climate is going through rocky roads. I believe i could certainly keep the spare cash for the next better opportunity out there, especially during times of crisis!