An Adventurous Way To Buy A House - Part 2
If you have not read the first part to this story, I have attached it below:
So I started this little pet project in January 2021. The aim, which probably did not mention clearly last time, is to grow the portfolio within 5 years to a value that can allow me to purchase a home with at least a 75% down payment. I don’t mind taking a small loan if I can get a really wonderful home.
I started off the portfolio with RM 20,570. Over time, I have added another RM 28,031 into the account and am currently sitting on a RM15,007 profit as of 21st Sept 2021. That is a 30% gain on capital so far. I am hitting my first RM 100,000 and I am indeed pretty excited. They say that once you hit your first 100 grand, the journey becomes a lot easier moving forward. I sincerely hope it’s true.
Currently, there are 5 stocks in the portfolio. 2 of them are Malaysian based companies; Hartalega and Air Asia. My Hartalega position in the portfolio are only memorial positions. That means I have sold almost all of them when the market was offering me RM18 to RM20 for my shares, leaving only 100 shares behind to remind myself of the wonderful journey I had with the stock. The same goes for AirAsia. I bought a good amount of AirAsia when the stock crashed hard after lockdown was first implemented in 2020. Sold most of it when it recovered close to RM0.95. 100 shares remain for memories. The other 3 are US based companies which as of now, I have no intention to sell.
I received some questions about managing multiple funds. I run multiple private funds for multiple purposes. This one’s purpose, for example, is solely to buy a house. Hence the fund’s objective and game plan will be geared mostly towards that purpose. Once the value of the fund allows me to purchase a home, I will liquidate it and shut it down. Retirement funds, on the other hand, are different. They are meant for long term growth for my golden years. Personally, I feel it’s a good habit to practice. Its like you don’t wear your pyjamas to the gym. You wear clothes that allow you to workout better.
Of course, this may not be the best way to purchase a home. I am sure some of you would probably have better methods. But my personal philosophy is to stay away from debt as much as possible. I understand that I am taking a risk whereby house prices will continue to grow and even if my fund does well, it may not be enough to afford a home. But that’s not what I am thinking about. What I am thinking about is, what if I succeed in doing this? Then it becomes a unique story that only I can tell to future generations. And I really can’t wait to tell that story one day.